Wisconsin Real Estate Exam Questions and Answers 2025 Update, Exams of Real Estate Management

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Wisconsin Real Estate Exam Questions and

Answers 2025 Update.

Salespeople can use which of the following forms: - Correct Answers ✅a form prepared and approved by the Department

Which of the following are NOT considered client funds? - Correct Answers

✅Promissory Notes

Zoning laws may NOT be used to regulate which of the following? - Correct Answers ✅The placement of interior partitions

According to the WB-36 Buyer Agency/Tenant Representation Agreement, a commission is earned by the buyer firm only if the: - Correct Answers ✅buyer acquires an interest in property or enters into an enforceable contract that is acceptable to buyer

A seller lists his house with Salesperson A. A buyer goes to Salesperson A's open house and decides to make an offer on the house. The buyer signs a buyer agency agreement with Salesperson A. Salesperson A drafts the offer to purchase for the buyer. Which of the following CORRECTLY identifies the relationship of Salesperson

A and the buyer and the seller? - Correct Answers ✅The seller is Salesperson A's client, the buyer is Salesperson A's client

Shoreland zoning regulates land located within: - Correct Answers ✅1,000 feet of the ordinary high water mark of a lake, pond, or flowage

Bob changed his mind about purchasing 456 Right Here Avenue. The seller has accepted the offer. The offer has not been delivered to Bob. What is the effect on

the transaction if Bob's license calls the seller and says the deal is off? - Correct

Answers ✅Withdrawal of the offer

A buyer discovered defects during the home inspection and the seller has the right to cure. Which of the following forms would be used to inform a seller of defects a buyer would like to have repaired prior to closing? - Correct Answers ✅Notice Relating to Offer to Purchase

A licensee is required to do all of the following EXCEPT: - Correct Answers ✅have the technical knowledge, skills, or training possessed by competent third-party inspectors and investigators of real estate and related areas

What would a buyer's licensee NOT have to disclose to the buyer-client? - Correct Answers ✅The sellers are getting divorced and need to sell the house quickly.

The buyer, in an effort to meet the terms of the Financing Contingency found in the WB-11 Residential Offer to Purchase, delivers a notice to the seller indicating that the buyer is ready to proceed to closing. Has the buyer waived the Financing Commitment Contingency? - Correct Answers ✅No, because the buyer did not deliver a loan commitment.

A buyer's firm writing an offer as a cooperating firm is an example of: - Correct Answers ✅single agency

Licensees are required to disclose to all parties: - Correct Answers ✅possible material adverse facts

Which of the following allows a property owner to use property in a way that was once allowed but is no longer permitted under current zoning regulations? - Correct

Answers ✅Non Conforming Use

When would a licensee NOT have to provide agency disclosure? - Correct Answers

✅A listing licensee answers a prospective buyer's basic questions at an open house

When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a claim of: - Correct Answers ✅Misrepresentation

From the grantee's point of view, the best deed to receive is a: - Correct Answers ✅Warranty Deed

Wisconsin fair housing laws prohibit discrimination in housing based on all of the following EXCEPT: - Correct Answers ✅Conviction Record

A tenant has vacated a property at the end of the tenant's lease term. What is the landlord's deadline for returning a security deposit less any amounts properly withheld? - Correct Answers ✅ 21 days after the tenant vacates the unit

Which of the following real estate licensee is NOT required to ensure compliance

with the federal LBP disclosure law? - Correct Answers ✅A buyer's firm paid by the buyer: LBP disclosure law does not apply to purchasers.

Which of the following is NOT viewed as an encumbrance that must be disclosed to a

buyer? - Correct Answers ✅Back taxes that the seller will be paying off at closing

A licensee is required to disclose: - Correct Answers ✅material inconsistent with or materially contradictory to the seller's statements or the inspection report of a third

When purchasing the property, the owners disclosed that they received permission from the local municipality to build their deck onto the setback lines. This is an

example of a: - Correct Answers ✅Variance

The WB-36 Buyer Agency Agreement provides that the buyer's firm has the exclusive right to: - Correct Answers ✅act as a buyer's agent

In the WB-1 Exclusive Right to Sell Listing Contract, the firm earns a commission when the: - Correct Answers ✅seller accepts an enforceable contract for the sale of all of the property

Which of the following likely constitutes secondary mortgage market fraud? - Correct Answers ✅A loan officer telling the seller and buyer to enter into a side agreement that will not be shared with the secured lender.

Compare the WB-13 Vacant Land Offer to Purchase to the WB-11 Residential Offer to Purchase. Which of the following statements is most correct? - Correct Answers ✅The WB-13 includes a map contingency.

"Use a form" means to: - Correct Answers ✅complete a form by filling in the blanks to accomplish the intent of a party

A buyer hires a firm to locate a specific type of property for a buyer. The buyer's licensee, upon finding the property, does not make the buyer aware of it and

Which of the following transactions must include a real estate condition report? - Correct Answers ✅A seller selling a duplex that the seller has never lived in

The duties to all parties include all of the following EXCEPT - Correct Answers

✅Negotiation

The WB-11 Residential Offer to Purchase describes which of the following as the way an earnest money payment should be handled as a result of a sale involving cooperating firms where the listing firm will hold the earnest money? - Correct Answers ✅The selling licensee should have all earnest money checks paid directly to the listing firm.

Which of the following situations requires a written earnest money disbursement agreement prior to disbursement of funds when the earnest money is held by the listing firm? - Correct Answers ✅A buyer is not able to obtain financing

A buyer receives an inspection report that discloses defects as defined by the inspection contingency. Under what circumstances will buyer NOT be able to give a Notice of Defects? - Correct Answers ✅D:The buyer had knowledge of the defects at the time of the offer.

How long does a licensee have to notify the DSPS of a misdemeanor conviction? - Correct Answers ✅ 48 Hours

A seller delivers an amendment to the buyer, which is not accepted. What is the status of the offer? - Correct Answers ✅The terms remain as they were before the amendment.

A listing agent has an accepted offer to purchase on a listing. Another offer is being written and the buyer wants information about the existing offer. What information

can the listing agent share with the second buyer? - Correct Answers ✅The existing offer has a continued marketing (bump) clause

A licensee offers payment for a buyer's home inspection. What is this offer from the

licensee to the buyer called? - Correct Answers ✅An incentive

Which of the following is NOT a duty owed to a customer? - Correct Answers

✅Disclosure of material facts

Which of the following is a duty owed ONLY to a client? - Correct Answers ✅Loyally represents interests

Without the written consent of the supervising broker, an agent has the authority to: - Correct Answers ✅Amend a buyer agency agreement to exclude commercial and agricultural properties

Discount points enable a borrower to: - Correct Answers ✅reduce the initial interest rate of the loan

A seller lists a house with Salesperson A. The buyer attends Salesperson A's open house and decides to write an offer. The buyer does not have an agency agreement with Salesperson A and she asks Salesperson A to write the offer. Which of the following CORRECTLY identifies the relationship between the buyer and

Salesperson A? - Correct Answers ✅The buyer is Salesperson A's customer

According to the terms of the WB-1 Residential Listing Contract, how many days does the seller have to provide a new listing firm with the former listing firm's list of protected buyers? - Correct Answers ✅ 7 days

When renting commercial property to tenants, the property owner or property manager: - Correct Answers ✅needs to be aware of any local equal opportunity ordinances that may affect commercial or industrial properties

A firm is allowed to act in a multiple representation relationship when: - Correct Answers ✅both clients in the transaction consent in writing to the multiple representation

A real estate agent signs a contract with a non-licensed individual. In that contract, the real estate licensee agrees to pay the non-licensed individual $50 for every referred person that signs a listing contract. What type of contract is this? - Correct Answers ✅Void

Which of the following is CORRECT regarding a property owner who holds a real estate license? - Correct Answers ✅The property owner may place security deposits into a real estate trust account.

What term describes a debt secured by an item of personal property? - Correct Answers ✅A security Interest

The penalty for knowingly or willfully violating the federal lead-based paint disclosure rules can be: - Correct Answers ✅$11,000 fine and imprisoned for up to one year, or both

Beth, Jenny, and Molly all purchased a farm together. The deed only listed each of their names. Which of the following forms of ownership are they presumed to have

taken? - Correct Answers ✅Tenants in Common

Which of the following is NOT a federally protected class? - Correct Answers ✅Age

The market data approach when used by a licensee: - Correct Answers ✅gives an opinion of the price a property will most likely sell for on the open market

Which of the following is the way that title appears on public records? - Correct Answers ✅Record

Which of the following is NOT a penalty for a licensee who breaches a duty to a

client? - Correct Answers ✅Loss of MLS membership

If the buyer would like the buyer's firm to be paid by the seller, the buyer: - Correct

Answers ✅must authorize the payment of commission from seller to buyer's firm in the buyer agency agreement

A buyer may be protected under a previous firm's listing contract in all of the

following ways EXCEPT: - Correct Answers ✅the buyer saw the property at an open house

When a depository institution remits the interest earned on a firm's interest-bearing trust account to the Department they must inform the firm of all the following

EXCEPT the: - Correct Answers ✅Interest earned on the account

All of the following would constitute a basis for disciplinary action under Wisconsin's

license law EXCEPT: - Correct Answers ✅paying a referral fee to another licensee without disclosing the fee

A buyer orders a title insurance policy. The title insurance provider searches the public records for the title examination. The title company notifies the buyer in

writing of the condition of the title with the: - Correct Answers ✅title insurance commitment

Chain of title refers to: - Correct Answers ✅the succession of conveyances from some starting point whereby the current owner derives title to the real estate

After entering into a sales contract a seller discovers a defect on the property, the: -

Correct Answers ✅seller must comply with the terms of the sales contract

All of the following are true regarding discount points EXCEPT: - Correct Answers ✅all loans have discount points associated with them

A seller lists a house with Salesperson A. A buyer attends Salesperson A's open house and decides to write an offer after signing a buyer agency agreement with Salesperson A. Which of the following correctly identifies the relationship between

the buyer, the seller, and Salesperson A? - Correct Answers ✅Salesperson A has a multiple representation relationship.

At what point in the real estate transaction does a buyer receive equitable title? -

Correct Answers ✅When all contingencies have been removed

When purchasing a condominium the buyer has the right to a copy of the condominium declaration bylaws within how many days prior to closing? - Correct

Answers ✅ 15

A buyer has selected multiple representation without designated agency. A seller has selected multiple representation with designated agency. The buyer wants to

buy that seller's house. Which of the following is true? - Correct Answers ✅The firm and all of its licensees must remain neutral.

The financing commitment contingency would be satisfied if which of the following

were to occur? - Correct Answers ✅The seller receives a loan commitment subject to conditions

The WB-11 Residential Offer to Purchase states that title evidence shall be given by

the seller in the form of a/an: - Correct Answers ✅owner's policy of title insurance

Who of the following should NOT sign a seller's real estate condition report? -

Correct Answers ✅A listing licensee

Which of the following creates an express agency? - Correct Answers ✅Property management agreement

If a buyer has properly given a Notice of Defects and the seller does NOT have the right to cure, what is the status of the contract? - Correct Answers ✅Null and void

What must firms provide to their licensees? - Correct Answers ✅A written statement of procedures under which the firm and licensees associated with the firm shall operate with respect to transaction documents

Right to give someone else interest in property - Correct Answers ✅Encumber

Types of Ownership - Correct Answers ✅Free hold Estate and Lease Hold Estate

Maximum ownership all 6 rights - Correct Answers ✅Fee Simple Absolute

Property must be used in a certain way or something must happen to keep property

• Correct Answers ✅Fee Simple Defeasible

Someone grants rights of property to a person but reserved right to a property until

they die. - Correct Answers ✅Life Estate

Sole ownership of a Property - Correct Answers ✅Severalty

Each Persons interest in property are held in severalty, can sell or will share. - Correct Answers ✅Tenants in common

Created by will or deed, held by multiple individuals with no shares, if one person

dies that share is dissolved to remaining parties. - Correct Answers ✅Joint Tenancy

Most comprehensive guarantee of title assures the grantee the property is free from

liens and encumbrances. - Correct Answers ✅Warranty Deed.

Operates as a release of grantors interest in property. Transfers title but makes no guarantee of the title. - Correct Answers ✅Quitclaim deed

Wisconsin Transfer Fee - Correct Answers ✅ 30 cents for every 100$

Title free from undisclosed encumbrances does not need to be perfect but free from

reasonable doubt. - Correct Answers ✅Marketable title.

History of the documentation appearing in the public record that affect a properties

title. Prepared by Abstrator. - Correct Answers ✅Abstract of title

Amount of space required between lot lines and improvements - Correct Answers ✅Setback

Zoning Board may grant permission to use a parcel in a certain way without extending permission for that use to other similar property. - Correct Answers ✅Spot Zoning

300 feet center of river or stream - Correct Answers ✅

RECR Due? - Correct Answers ✅ 10 days.

Merchantable title due to a Buyer? - Correct Answers ✅Not less than 5 business days before closing.

Damages prior to closing threshold? - Correct Answers ✅5%

Depositing Client Funds - Correct Answers ✅ 48 Hours