WISCONSIN REAL ESTATE EXAM
QUESTIONS AND ANSWERS (100%
CORRECT ANSWERS) ALREADY GRADED
A+
QUESTIONS AND ANSWERS
The foundation upon which real estate brokerage is practiced. ANSWER -Agency
A legal and ethical relationship created between a real estate firm and a party to a
transaction; the party may be a buyer, seller, landlord, or tenant. ANSWER -Agency
Relationship
A written agreement between a firm and a client; the client authorizes the firm to provide
brokerage services to the client. ANSWER -Agency Agreement
What are two agency agreements?. ANSWER -Listing Agreement
Buyers Agency Agreement
Laws to protect consumers; helps explain agency to consumers; consumers rights and
obligations; licensees rights and obligations. ANSWER -Agency Disclosure
Duties owed to all parties involved in a transaction; duties owed to clients; roles in agency
relationships; creation and termination of agency. ANSWER -Agency Law
Any person licensed under WI statutes Chapter 452. ANSWER -Licensee
The WI statute that governs real estate practice. ANSWER -Chapter 452
What are the 5 parts of the definition of broker?. ANSWER -Negotiation
Pattern of Sales
,Shows Property
Advertised Property
Opinion of Value
What are the three parts of broker-negotiation?. ANSWER -Intermediary
Complete Forms
Presents Proposals
For another, and for commission, money, or other thing of value, negotiates, or offers to
negotiate. ANSWER -Broker as Negotiator
Negotiator =. ANSWER -For someone else
Facilitating or participating in communications between parties related to the parties
interest in a transaction; agents talking to each other about a buyer or seller's interest in a
transaction. ANSWER -Broker-Negotiator-Acting as Intermediary
Completing approved forms or other writings to document the party's proposal consistent
with the party's instruction; Drafting an offer for a buyer; drafting a counter-offer for a
seller. ANSWER -Broker-Negotiator- Complete Forms
Presenting to a party the proposals of other parties to the transaction and giving the party a
general explanation of the provisions of a proposal; a listing agent presents a buyer's offer to
the seller and explains the provisions. ANSWER -Broker-Negotiator-Presents Proposals
A person engaged wholly or in part is in the business of selling or exchanging interest in
real estate or business to the extent that a pattern of sales is established; 5 sales in 1 year; 10
sales in 5 years. ANSWER -Broker-Pattern of Sales
What are the two ways to create a pattern of sales?. ANSWER -5 sales in 1 year
10 sales in 5 years
A person who for another person and for commission, money, or other thing of value shows
real estate or a business. ANSWER -Broker-Shows Property
,Does a property manager who does not negotiate or sign leases need a real estate license? If
they sign or negotiate leases do they need a real estate license?. ANSWER -Does not
negotiate or sign - No
Negotiates or signs - Yes
A person who for another person and commission, money, or other thing of value promotes
the sale, exchange, purchase, option, rental, or leasing of real estate, a time share, or
business; does not apply to a person who only publishes or disseminates verbatim info
provided by another party (Newspaper for example). ANSWER -Broker-Advertises
Property
Issues a written report of property value that is prepared for another person and that is not
an appraisal. ANSWER -Broker-Opinion of Value
What can you do with your license?. ANSWER -Residential Sales
Exchanges
Options to Purchase
Business Sales
Can be a tax planning tool used in a trade or a business that then defers capital gains.
ANSWER -Exchange
Why might someone exchange a property instead of buying/selling?. ANSWER -Defer
capital gains taxes
An agreement to open, for a period of time, an offer to sell or lease real property; can be
used to collect several parcels of land; gives a buyer time to resolve zoning, financing, title,
etc. issues before commitment to purchase the property. ANSWER -Option to Purchase
(WB-24)
In an option to purchase, who is the optionor and who is the optionee?. ANSWER -
Optionor = Seller
Optionee = Buyer
, If the option is not exercised, what happens to the option fee? If the option is exercised?.
ANSWER -Not Exercised = Option fee is non-refundable and the seller retains it
Exercised = Option fee is applied to the purchase price
Can an option be recorded?. ANSWER -Yes
If, during the term of the option, the buyer chooses to exercise the option, what is the
obligation of the seller?. ANSWER -The seller must sell
Include the goodwill of a business and all the assets; does not necessarily include the
business in which the business is located. ANSWER -Business Sales
A licensed individual broker acting as sole proprietorship or a licensed broker business
entity. ANSWER -Firm
Any person associated with a firm other than a broker or a person who is not required to
hold a license; must be licensed according to the state licensing process; practices real estate
under the supervision of the supervising broker; extension of the firm. ANSWER -
Salesperson
Does a sales person have to be associated with a firm in order to practice real estate?.
ANSWER -Yes
Acts on behalf of a principal (buyer, seller, tenant, or landlord) and carries out the directions
of the principal. ANSWER -Agent
A seller/buyer hires a firm who then hires an salesperson, what is the relationship between
the buyer/seller, firm, and salesperson?. ANSWER -Buyer/Seller = Principal
Firm = Agent of buyer/seller
Salesperson = Agent of the firm
A party to a transaction who has an agency agreement, such as a listing contract or buyer's
agency agreement, with a firm for brokerage services. ANSWER -Client
QUESTIONS AND ANSWERS (100%
CORRECT ANSWERS) ALREADY GRADED
A+
QUESTIONS AND ANSWERS
The foundation upon which real estate brokerage is practiced. ANSWER -Agency
A legal and ethical relationship created between a real estate firm and a party to a
transaction; the party may be a buyer, seller, landlord, or tenant. ANSWER -Agency
Relationship
A written agreement between a firm and a client; the client authorizes the firm to provide
brokerage services to the client. ANSWER -Agency Agreement
What are two agency agreements?. ANSWER -Listing Agreement
Buyers Agency Agreement
Laws to protect consumers; helps explain agency to consumers; consumers rights and
obligations; licensees rights and obligations. ANSWER -Agency Disclosure
Duties owed to all parties involved in a transaction; duties owed to clients; roles in agency
relationships; creation and termination of agency. ANSWER -Agency Law
Any person licensed under WI statutes Chapter 452. ANSWER -Licensee
The WI statute that governs real estate practice. ANSWER -Chapter 452
What are the 5 parts of the definition of broker?. ANSWER -Negotiation
Pattern of Sales
,Shows Property
Advertised Property
Opinion of Value
What are the three parts of broker-negotiation?. ANSWER -Intermediary
Complete Forms
Presents Proposals
For another, and for commission, money, or other thing of value, negotiates, or offers to
negotiate. ANSWER -Broker as Negotiator
Negotiator =. ANSWER -For someone else
Facilitating or participating in communications between parties related to the parties
interest in a transaction; agents talking to each other about a buyer or seller's interest in a
transaction. ANSWER -Broker-Negotiator-Acting as Intermediary
Completing approved forms or other writings to document the party's proposal consistent
with the party's instruction; Drafting an offer for a buyer; drafting a counter-offer for a
seller. ANSWER -Broker-Negotiator- Complete Forms
Presenting to a party the proposals of other parties to the transaction and giving the party a
general explanation of the provisions of a proposal; a listing agent presents a buyer's offer to
the seller and explains the provisions. ANSWER -Broker-Negotiator-Presents Proposals
A person engaged wholly or in part is in the business of selling or exchanging interest in
real estate or business to the extent that a pattern of sales is established; 5 sales in 1 year; 10
sales in 5 years. ANSWER -Broker-Pattern of Sales
What are the two ways to create a pattern of sales?. ANSWER -5 sales in 1 year
10 sales in 5 years
A person who for another person and for commission, money, or other thing of value shows
real estate or a business. ANSWER -Broker-Shows Property
,Does a property manager who does not negotiate or sign leases need a real estate license? If
they sign or negotiate leases do they need a real estate license?. ANSWER -Does not
negotiate or sign - No
Negotiates or signs - Yes
A person who for another person and commission, money, or other thing of value promotes
the sale, exchange, purchase, option, rental, or leasing of real estate, a time share, or
business; does not apply to a person who only publishes or disseminates verbatim info
provided by another party (Newspaper for example). ANSWER -Broker-Advertises
Property
Issues a written report of property value that is prepared for another person and that is not
an appraisal. ANSWER -Broker-Opinion of Value
What can you do with your license?. ANSWER -Residential Sales
Exchanges
Options to Purchase
Business Sales
Can be a tax planning tool used in a trade or a business that then defers capital gains.
ANSWER -Exchange
Why might someone exchange a property instead of buying/selling?. ANSWER -Defer
capital gains taxes
An agreement to open, for a period of time, an offer to sell or lease real property; can be
used to collect several parcels of land; gives a buyer time to resolve zoning, financing, title,
etc. issues before commitment to purchase the property. ANSWER -Option to Purchase
(WB-24)
In an option to purchase, who is the optionor and who is the optionee?. ANSWER -
Optionor = Seller
Optionee = Buyer
, If the option is not exercised, what happens to the option fee? If the option is exercised?.
ANSWER -Not Exercised = Option fee is non-refundable and the seller retains it
Exercised = Option fee is applied to the purchase price
Can an option be recorded?. ANSWER -Yes
If, during the term of the option, the buyer chooses to exercise the option, what is the
obligation of the seller?. ANSWER -The seller must sell
Include the goodwill of a business and all the assets; does not necessarily include the
business in which the business is located. ANSWER -Business Sales
A licensed individual broker acting as sole proprietorship or a licensed broker business
entity. ANSWER -Firm
Any person associated with a firm other than a broker or a person who is not required to
hold a license; must be licensed according to the state licensing process; practices real estate
under the supervision of the supervising broker; extension of the firm. ANSWER -
Salesperson
Does a sales person have to be associated with a firm in order to practice real estate?.
ANSWER -Yes
Acts on behalf of a principal (buyer, seller, tenant, or landlord) and carries out the directions
of the principal. ANSWER -Agent
A seller/buyer hires a firm who then hires an salesperson, what is the relationship between
the buyer/seller, firm, and salesperson?. ANSWER -Buyer/Seller = Principal
Firm = Agent of buyer/seller
Salesperson = Agent of the firm
A party to a transaction who has an agency agreement, such as a listing contract or buyer's
agency agreement, with a firm for brokerage services. ANSWER -Client
