Wisconsin Real-estate Exam Questions with Verified Answers 2025 Graded A+, Exams of Real Estate Management

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Wisconsin Real-estate Exam Questions with Verified Answers 2025

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Which of the following is NOT typically considered client funds? - Correct Answers ✅Security deposits collected by a property owner

A buyer wants to have the interest earned on their earnest money deposit. Which of the following statements is most correct? - Correct Answers ✅The firm cannot draft an escrow agreement for the buyer and seller.

Which of the following does NOT create a voidable contract? - Correct Answers ✅A counter- offer signed by an authorized power of attorney

To ensure compliance with the lead-based paint (LBP) disclosure law, licensees: - Correct Answers ✅must inform the seller of the seller's obligations under the federal LBP laws

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

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

A borrower is obtaining a loan for $130,000. The loan is 95% of the property's value. The interest rate on the loan is 5% after the borrower pays two points. How much do the two points cost the borrower? - Correct Answers ✅$2,

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

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

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

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

Which of the following would violate advertising rules for real estate licensees? - Correct Answers

✅Advertising a property that has already been sold

The WB-11 Residential Offer to Purchase does NOT have any information at lines 557 and 558. This

means that - Correct Answers ✅binding acceptance can only occur by delivery to the Party, not the agent

D: the buyer will accept delivery in any form

Which of the following sales would need to include a lead-based paint addendum to the Offer to

Purchase? - Correct Answers ✅A duplex built prior to 1978

A firm has a contract with a person to pay a finder's fee if the person finds a buyer for the firm's

listing. This is permissible if the - Correct Answers ✅person has a salesperson's license

Current municipality land uses and resources, forecasts community growth, and sets objectives for the development that is desirable for the community's vision of its future defines the: - Correct Answers ✅master plan

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

How can a buyer terminate a buyer agency agreement according to the terms of the WB-36 Buyer

Agency Agreement? - Correct Answers ✅In writing

When presenting an offer to a For Sale by Owner (FSBO), a buyer's licensee will present what form

to the seller? - Correct Answers ✅Disclosure to Customers

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

Refer to the transactional story problem on the introduction page of the final exam to answer the following question. Where on the WB-11 Residential Offer to Purchase does Scott Frey insert the

date March 28 at 7:00 p.m.? - Correct Answers ✅Line 40

If, after receiving an offer from a prospective buyer, the seller makes a counter-offer, the

prospective buyer is - Correct Answers ✅relieved of further liability

A seller counters a buyer's offer. The buyer rejects the seller's counter and the original period for binding acceptance has not expired. The seller accepts and delivers the original offer to the buyer.

At this point - Correct Answers ✅a sales contract does not exist

How must a supervising broker delegate supervision to another broker? - Correct Answers ✅In a written statement signed by both brokers

Which of the following form of asbestos is likely to be considered the largest health risk? - Correct

Answers ✅Deteriorating asbestos insulation wrapped around water pipes

Which of the following activities can an unlicensed personal assistant do? - Correct Answers

✅Schedule appointments

What kind of agency relationship is created when a seller signs a listing contract and prohibits the

firm from representing the buyer too? - Correct Answers ✅Express agency

Property taxes are to be prorated through - Correct Answers ✅the day prior to closing

A two-story home has exterior wall measurements of 40 feet by 90 feet. There is no basement.

What is the total square footage of the home? - Correct Answers ✅7,200 square feet

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

✅Nonconforming use

A licensee wishes to sell the licensee's personally owned property without the assistance of the licensee's real estate company. At what point must the licensee disclose the licensee's licensed

status? - Correct Answers ✅As soon as possible whether that be a showing or first contact with a buyer or agent of the buyer

What is a planned unit development? - Correct Answers ✅A regulatory process which promotes unified development for a development specially approved by the zoning authority for the developer

Licensees shall advertise in a manner which is - Correct Answers ✅true

Evelyn and her boyfriend, Noah, are getting married, and are looking to purchase a new home. They have asked you as their real estate licensee for advice on how to take title. What advice can you give them regarding on how they should take title? - Correct Answers ✅Suggest they speak to an attorney

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 party

Which of the following is NOT a penalty for a licensee who breaches a duty to a client? - Correct

Answers ✅Loss of MLS membership

A borrower is obtaining an adjustable rate loan where the initial rate is fixed for three years. After the initial period, the loan will adjust every six months. What is the borrower's initial principal and

interest payment is based upon? - Correct Answers ✅The interest rate at which the ARM is originated

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

The commission on the sale of 123 Anywhere Drive was $18,500, based on a 6.5 percent commission rate. What was the final selling price of the property? Use whole numbers. - Correct

Answers ✅$284,

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

An offer to purchase for the sale of a home meets all of the requirements established in the listing

agreement. Which of the following statements is true? - Correct Answers ✅The owner may reject the offer.

Which of the following tests would NOT be used to determine if a hot tub is a fixture or personal

property? - Correct Answers ✅Relationship between the parties

Refer to the transactional story problem on the introduction page of the final exam to answer the following question. What information does the buyer place on lines 12-16 of the WB- Residential Offer to Purchase? - Correct Answers ✅Washer, dryer, and refrigerator

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

A lender is in the practice of restricting the number of loans or the loan-to-value ratio in certain areas of a community. This is a violation of fair housing law and is called: - Correct Answers

✅redlining

Binding acceptance occurs - Correct Answers ✅when all parties have signed an identical copy of the offer to purchase and it is delivered to the party who made the offer

Representing both parties in a transaction is: - Correct Answers ✅multiple representation

When marketing properties, a licensee's liability for providing information regarding lot lines, lot

sizes, or room dimensions may lead to all of the following EXCEPT - Correct Answers ✅a selling bonus

The listing contract states that the washer and dryer are included in the sale. The offer to purchase does not mention the washer and dryer anywhere. At the time of closing the washer and dryer -

Correct Answers ✅must be removed

A buyer's licensee is representing two separate buyers. Each buyer is interested in the same

property. How should the buyer's licensee proceed? - Correct Answers ✅The licensee should draft competing offers on behalf of each buyer

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

A seller accepts an offer for $91,575 with a $10,000 mortgage carried by the seller for the buyer. After adjustments between the parties were made on the closing statement, the buyer ended up owing the seller $78,500 in cash on closing day. What was the amount of transfer tax paid by the

seller? - Correct Answers ✅$274.

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

At closing, the seller needs to give a credit to the buyer for property taxes. Last year's taxes were $3,700 and there are 242 days from the first of the year through the day of closing. How much will

the buyer's tax credit be? - Correct Answers ✅$2,443.

Which of the following activities requires a real estate license? - Correct Answers ✅Receiving compensation to procure a buyer for another person's business

A neighborhood is improved with new curbs and gutters. If the curbs and gutters were funded by a

special assessment, which home would most likely be charged the most? - Correct Answers ✅A house on a corner lot

Four condominium units are valued at $200,000; $215,000; $220,000; and $225,000; a total value of $860,000. The four condominiums have an annual property maintenance fee $8,500. If the amount of the property maintenance fee owed by each unit is based upon the unit's value, what

percentage of the total fee does the most expensive unit owe? - Correct Answers ✅26%

Where must a firm deposit client funds? - Correct Answers ✅Mandatory interest-bearing real estate common trust account (IBRETA)

A radioactive gas in the air that comes from the natural breakdown of uranium in soil, rock and water is: - Correct Answers ✅radon

There are fair housing laws recognized at the federal, state, and local levels of government. A

licensee should abide by the law - Correct Answers ✅that offers the most protection

All of the following may legally terminate a listing contract EXCEPT - Correct Answers ✅a rise in interest rates

A condominium owner has to pay a condominium fee each month. The condominium fee is calculated on an annual basis and then is paid monthly in equal installments. The fee paid is 1% of the assessed value of the unit, which is $240,000. The fee is due on the first of every month. How much would the owner of the condominium have paid in condominium fees as of June 1? - Correct

Answers ✅$1,

A seller wants to use the listing agent as the seller's recipient for delivery. Where does the listing

agent's name go in the WB-11 Residential Offer to Purchase? - Correct Answers ✅Line 557

A condominium owner has to pay a condominium fee each month. The condominium fee is calculated on an annual basis and then is paid monthly in equal installments. The fee paid is 1% of the assessed value of the unit, which is $240,000. The fee is due on the first of every month. How much would the owner of the condominium have paid in condominium fees as of June 1? - Correct Answers ✅$1,

Refer to the transactional story problem on the introduction page of the final exam to answer the following question. Where does the listing agent place the dollar amount $210,000 on the WB-

Residential Listing Contract? - Correct Answers ✅Line 17

Calculate the monthly payment for a mortgage of $120,000 at 9 percent for 20 years. The factor is

9. • Correct Answers ✅$1,

A seller is selling a condominium. What must accompany the seller's real estate condition report? - Correct Answers ✅A condominium addendum to the real estate condition report

What section in the WB-1 Residential Listing Contract requires licensees to disclose commission offered to cooperating firms? - Correct Answers ✅Compensation to others

An offer is written and subsequently rejected. The buyer gave earnest money with the offer. What

would be the proper procedure to return the earnest money? - Correct Answers ✅The earnest money can be returned to the buyer.

If there is a rented fixture in a home that is listed and a buyer wishes to write an offer, a licensee

should - Correct Answers ✅address it in the offer to purchase

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

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

The extension portion of the WB-1 Residential Listing Contract can be found on lines - Correct

Answers ✅220-

At what point in the real estate transaction does a buyer receive equitable title? - Correct Answers ✅When all contingencies have been removed

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.

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

In the WB-1 Residential Listing Contract, who has the authority to accompany a home inspector

during a home inspection? - Correct Answers ✅The buyer

When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a claim of

• Correct Answers ✅misrepresentation

Disclosing the lowest price a seller is willing to accept to a potential buyer is a violation of the duty

of: - Correct Answers ✅loyally representing the client's interest

If property is held in joint tenancy, the heirs of a deceased joint tenant have - Correct Answers ✅no interest

What does private mortgage insurance do - Correct Answers ✅Protects the lenders from losses in conventional mortgage defaults

A purchaser of real estate is entering into a land contract with the seller. The purchaser should

expect legal title when: - Correct Answers ✅the seller has been paid in full

Licensees must always avoid communications with licensees from other firms relating to - Correct Answers ✅commission rates charged to clients

Which of the following services should NOT be performed for a buyer-customer? - Correct Answers ✅Creating a market analysis of the property the buyer wishes to purchase

What must a firm provide to its licensees - Correct Answers ✅Reasonable access to a supervising broker

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.

The reason for including expired properties in a market analysis is to show the sellers that: - Correct Answers ✅comparable properties could not support an above-market list price

A firm is responsible for - Correct Answers ✅any brokerage service provided on behalf of the firm by its licensee

Which of the following is NOT a duty owed to a customer? - Correct Answers ✅Disclosure of material facts

The WB-36 Buyer Agency/Tenant Representation Agreement provides that the buyer's firm has

the exclusive right to: - Correct Answers ✅act as a buyer's agent

What is the legal effect of a counter-offer? - Correct Answers ✅Rejection of the offer and presentation of a new offer

According to the WB-11 Residential Offer to Purchase who is responsible to pay special assessments levied against a seller's property after the date of the offer but prior to acceptance? -

Correct Answers ✅Buyer

Layla has a large apple tree growing on her property. The branches of her tree extend across the lot line into her neighbor's yard. Layla's tree is an example of an - Correct Answers

✅encroachment

What state agency owns the interest earned on a firm's Interest Bearing Real Estate Trust Account (IBRETA)? - Correct Answers ✅The Department of Administration

Which of the following creates a multiple representation relationship? - Correct Answers ✅A buyer's licensee writes an offer for a buyer on a property listed by the buyer's licensee's firm