Wisconsin Real Estate Exam Prep Questions and Answers Already Passed

Wisconsin Real Estate Exam Prep Questions and Answers Already Passed A seller signs listing contract with firm. Who is the agent who is the principal? Seller is the principal, firm is the agent. If you are the listing agent and a buyer asks you to write an offer but does not sign an agency agreement, how do you describe the buyer? Customer What kind of agency is the firm practicing if they represent just one party in a transaction? Single Agency When can a firm engage in multiple representation? When buyer and seller consent and receive full written disclosure. In what kind of transaction must a firm provide agency disclosure? ALL TRANSACTIONS 1-4 family need to sign By when must a firm provide agency disclosure to client? Customer? Before or at the same time executing client agency agreement. Before negotiations for customer. If you are a buyers agent by when must you disclose your agency relationship to seller or listing firm. First chance you get, first contact when parties exchange information about transaction or the seller, showing of property, any other negotiation with seller or listing firm. What are listing firms agency disclosure obligations when working with a customer who wants to write an offer on a duplex? Commercial warehouse? Must provide disclosure in ALL transactions, 1-4 family must sign, commercial no signature required. When does a property manager need to have a real estate license? If they are negotiating terms or signing leases on behalf of the landlord. If a licensee is representing a family member who is writing an offer, what are the disclosure obligations? Does it matter if they are a client or customer? Disclose in writing and offer to purchase. Written consent from all parties. What are the licensees disclosure obligations if receiving a referral fee from lawn maintenance company? Referral between agents? Before or at time licensee makes they referral, must disclose in writing that they will receive compensation from lawn care company. Licensees do not need to disclose referral fees for real estate services. When must a licensee disclose that they hold a real estate license when selling their own home? Commercial property owned by licensee? First contact with party or agent where information is being exchanged, showing property or other negotiations. What tie in arrangements are legal? If builder and licensee own property, the buyer has to use builder. Builder and licensee selling improved - need to pick from house and use builder. Deed restrictions — use builder to achieve uniformity. Who can retain unlicensed personal assistant? Licensed? Anyone can hire unlicensed assistant. Firm can only hire licensed. When can agent agree to write an offer for a buyer on a property only if the buyer agrees to list buyers current property with agent? NEVER-ILLEGAL Which agent duty survives the transaction? Confidentiality What duties does a firm owe to all parties in a transaction? Fair and honest treatment, disclosure of material adverse facts, confidentiality, provision of accurate market condition information, reasonable skill and care, accounting, objective presentation of offers. What are the additional duties owed to a client? Loyalty, Advice, Disclosure, Obedience (Obligation), Negotiation When a firm has a multiple representation relationship with designated agency, to whom will each salesperson provide information, opinions, advice? Each client receives full negotiation services from their designated agent. How should a client withdraw consent to a multiple representation relationship? In writing. Amend agency agreement, terminate agreement and be a customer or hire a different firm. How should a client waive a firms duty of negotiation? In writing. Which type of agency representation is created with written words? Express agency Which type of agency relationship gives an agent the authority to represent a principal in more than one transaction? General agency What are the seven different ways to terminate an agency relationship? Death or Incapacity, Destruction or Condemnation of Property - Eminent Domain, Expiration of Term of the Contract, Mutual Agreement, Breach, Operation of Law, Completion. Which agency contracts do not require the seller to pay a commission to the listing firm when the buyer is procured? Open Listing Contract / Exclusive Agency What type of listing contract is illegal in Wisconsin? Net Listing Contract What are the six requirements to create a valid agency agreement? Description of Real Estate, Statement of Price, Statement of the Commission, Statement of the Term, In Writing, Signed by the Person Who Will Pay the Commission (doesn't have to be buyer or seller). In an unmodified WB-36 Buyer Agency / Tenant Representation Agreement, does a buyer's firm have to be directly involved in negotiations in order to earn a commission? NO, property was found, buyers firm earns commission. What are the three remedies if an agent breaches and agency agreement? Rescission, Forfeiture of Commission, Sue