Wisconsin Real Estate Exam || All Questions Answered
Correctly.
The foundation upon which real estate brokerage is practiced correct answers 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 correct answers Agency Relationship
A written agreement between a firm and a client; the client authorizes the firm to provide
brokerage services to the client correct answers Agency Agreement
What are two agency agreements? correct answers Listing Agreement
Buyers Agency Agreement
Laws to protect consumers; helps explain agency to consumers; consumers rights and
obligations; licensees rights and obligations correct answers Agency Disclosure
Duties owed to all parties involved in a transaction; duties owed to clients; roles in agency
relationships; creation and termination of agency correct answers Agency Law
Any person licensed under WI statutes Chapter 452 correct answers Licensee
The WI statute that governs real estate practice correct answers Chapter 452
What are the 5 parts of the definition of broker? correct answers Negotiation
Pattern of Sales
Shows Property
Advertised Property
Opinion of Value
What are the three parts of broker-negotiation? correct answers Intermediary
Complete Forms
Presents Proposals
For another, and for commission, money, or other thing of value, negotiates, or offers to
negotiate correct answers Broker as Negotiator
Negotiator = correct answers 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 correct
answers 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 correct
answers 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 correct answers 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 correct answers Broker-Pattern of Sales
What are the two ways to create a pattern of sales? correct answers 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 correct answers 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? correct answers 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) correct answers Broker-Advertises Property
Issues a written report of property value that is prepared for another person and that is not an
appraisal correct answers Broker-Opinion of Value
What can you do with your license? correct answers 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 correct
answers Exchange
Why might someone exchange a property instead of buying/selling? correct answers 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 correct answers Option to Purchase (WB-24)
,In an option to purchase, who is the optionor and who is the optionee? correct answers Optionor
= Seller
Optionee = Buyer
If the option is not exercised, what happens to the option fee? If the option is exercised? correct
answers 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? correct answers Yes
If, during the term of the option, the buyer chooses to exercise the option, what is the obligation
of the seller? correct answers 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 correct answers Business Sales
A licensed individual broker acting as sole proprietorship or a licensed broker business entity
correct answers 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 correct answers Salesperson
Does a sales person have to be associated with a firm in order to practice real estate? correct
answers Yes
Acts on behalf of a principal (buyer, seller, tenant, or landlord) and carries out the directions of
the principal correct answers Agent
A seller/buyer hires a firm who then hires an salesperson, what is the relationship between the
buyer/seller, firm, and salesperson? correct answers 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 correct answers Client
Engages a subagent to provide brokerage services in a transaction correct answers Principal Firm
A firm that is engaged by a principal firm to provide brokerage services in a transaction, but that
is not associated with the principal firm correct answers Subagent
A party to a transaction who receives brokerage services, such as drafting an offer to purchase,
from a firm; does not enter into an agency agreement; receives brokerage services on behalf of
and for the benefit of another correct answers Customer
, What are the different agency models? correct answers Single Agency
Multiple representation with designated agency
Multiple representation without designated agency
When a firm represents either the buyer or the seller, but never both in the same transaction
correct answers Single Agency
Can a client withdraw consent to multiple representation? If so, when? correct answers Yes, at
any time
The buyer and seller are both clients of the same firm; the firm and all agents associated with the
firm must remain neutral in the transaction; no agent can say or do anything that would give one
party an advantage over the other party; can be one or two agents correct answers Multiple
representation without designated agency
What must the agents do if one party chooses multiple representation without designated agency
and the other chooses multiple representation with designated agency? correct answers The
agents must remain fully neutral
Firm represents both parties in the transaction; each party gets his or her own agent; agents are
NOT neutral, but rather negotiate on behalf of the agents' respective clients correct answers
Multiple representation with designated agency
A person who is responsible for the property of another correct answers Fiduciary
A listing firm and a buyers firm work together on behalf of their respective clients; a listing firm
and a subagent work together on behalf of the listing firms client and the buyer-customer; What
is the relationship between the two firms? correct answers Cooperating Firms
The firm that the seller hires with the listing contract correct answers Listing Firm
The agent of the listing firm that executes the listing contract on behalf of the firm correct
answers Listing Agent
The firm that procures a buyer and writes the offer correct answers Selling Firm
The agent of the selling firm that procures the buyer correct answers Selling Agent
What do we know for sure if we see selling firm or selling agent? correct answers The buyer is a
customer
The firm that the buyer signs a buyer agency agreement with correct answers Buyers Firm
The agent who drafts the offer for the buyer client correct answers Buyers Agent
