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WRA Final Exam
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? A:No, because the buyer does not have a check from the bank. B:Yes, because the financing contingency has been removed. C:No, because the buyer did not deliver a loan commitment. D:Yes, because the buyer wants to proceed to closing. - correct answer C 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? A:$2,453. B:$2,587. C:$2,346. D:$2,443.02 - correct answer D How should a licensee number counter-offers? A:Number the form according to how many counters have been made by that party B:Number the form according to how many counters have been made in total by buyer and seller C:Identify the form ID number assigned to that particular Counter-Offer form D:Show the date of the Counter-Offer in the blank provided in the upper right hand corner - correct answer B Which of the following is NOT a federally protected class? A:Color B:Age C:National origin
D:Gender - correct answer B A buyer wants to have the interest earned on their earnest money deposit. Which of the following statements is most correct? A:The firm cannot hold the earnest money but they may draft an escrow agreement for the buyer and the seller B:The firm can give the interest to the buyer if the offer to purchase states that the buyer gets the interest. C:The firm cannot draft an escrow agreement for the buyer and seller. D:The firm can give the interest to the buyer with written permission from the seller. - correct answer C Jane is showing a home to prospective buyer Lester. Jane shows Lester the warped steps of the back porch stairs, describing it as "country charm." She then shows him the "beautifully landscaped herb garden," while pointing to patch of overgrown weeds. Which term below describes Jane's actions in describing the property to Lester? A:Negligent misrepresentation B:Fraud C:Concealment D:Puffing - correct answer D According to the WB-1 Residential Listing Contract, which of the following parties is responsible to prepare the property to minimize the likelihood of injury? A:The seller B:The selling firm C:The listing licensee D:The buyer's firm - correct answer A Rental property is sold to a new owner. Tenants remain under a written lease. The new owner wants to raise the rent. When can the new owner raise the rent? A:Within 24 hours after the closing B:At the closing
D:The existing offer does not look very strong because the buyer is trying to obtain a loan for 100% of the purchase price - correct answer C Which of the following is established by the time and date a document was recorded? A:Quit claim B:Chain of title C:Marketable title D:Priority - correct answer D Which of the following creates a multiple representation relationship? A:A buyer's licensee presents an offer to a seller B:A listing licensee presents a counter-offer to a buyer C:A listing licensee writes an offer for a buyer on one of the listing licensee's listings D:A buyer's licensee writes an offer for a buyer on a property listed by the buyer's licensee's firm - correct answer D A builder or developer consults the building codes to: A:keep from paying the city inspectors B:ensure that the builder complies with safety requirements C:advertise that the builder meets all building codes D:allow the builder to restrict the use of the building - correct answer B Which of the following sales would need to include a lead-based paint addendum to the Offer to Purchase? A:Housing for persons with a disabling condition built prior to 1978 B:An efficiency apartment without bedrooms built prior to 1978 C:A duplex built prior to 1978 D:Housing for the elderly built prior to 1978 - correct answer C Zoning laws may NOT be used to regulate which of the following?
A:The purpose for which a building may be constructed B:The placement of interior partitions C:The height and bulk of a building D:The number of persons a building may accommodate - correct answer B The WB-11 Residential Offer to Purchase indicates the seller shall provide title evidence in the form of: A:abstract of title B:gap endorsement C:title insurance D:warranty deed - correct answer C What is a planned unit development? A:A regulatory process which promotes unified development for a development specially approved by the zoning authority for the developer B:A development where single family homes are owned as condominiums C:A process for a government to take private property for a public development D:A regulatory framework for protecting land near bodies of navigable water - correct answer A Which of the following is NOT an essential term of a real estate sales contract? A:The signatures of the parties B:The price C:The identity of the parties D:An inspection contingency - correct answer D Which of the following likely constitutes secondary mortgage market fraud? A:A seller agreeing to give the buyer a purchase money mortgage at closing. B:A buyer applying for a loan even though it will be difficult to make the monthly payments.
D:Extraordinary Human Being Test - correct answer A If a buyer wanted their second counter-offer to include the first three items discussed in their first counter-offer to seller, the buyer: A:can state any other terms in the second counter-offer and incorporate the first three items of the buyer's first counter-offer by reference B:cannot resubmit these provisions because seller has previously rejected them C:must write a new offer D:would reissue the first counter-offer along with a multiple counter-offer to incorporate any additional changes - correct answer A 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: A:conditional use B:variance C:nonconforming use D:permitted use - correct answer B The owner of a property just found out that the municipality is going to be putting in sidewalks. The cost of the sidewalks is going to be assessed at $18.00 per linear foot. The owner has a 120-foot lot excluding the driveway. How much will the property owner's special assessment be? A:$2, B:$1, C:$2, D:$1,970 - correct answer A When a listing firm lists a property, the seller is: A:an agent B:an employee C:a customer D:a client - correct answer D
A:Title theory B:Lien theory C:Abstract theory D:Intermediate theory - correct answer B Without the written consent of the supervising broker, an agent has the authority to: A:Shorten the term of the buyer agency agreement B:Amend the commission amount C:Amend a buyer agency agreement to exclude commercial and agricultural properties D:Enter into a mutual agreement to terminate the buyer agency agreement - correct answer C 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? A:The buyer is Salesperson A's customer B:The buyer is the principal of Salesperson A C:The buyer is Salesperson A's client D:Salesperson A is the buyer's agent - correct answer A 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: A:the buyer would be bound only if delivery occurred personally to the buyer and not to the agent working with the buyer B:the buyer is bound by the offer to purchase C:the seller has countered their original counter-offer D:a sales contract does not exist - correct answer D
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? A:Unenforceable B:Breach by the buyer C:Null and void D:Seller must cure - correct answer C Which of the following is NOT a protected class under the Wisconsin Fair Housing Laws? A:Religion B:Sex C:Age D:Student - correct answer D 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: A:person acts as a property manager for the listing B:person has a salesperson's license C:person is an unlicensed personal assistant D:transaction closes - correct answer B An appraisal would most likely be used in all of the following transactions or situations EXCEPT: A:establishing property taxes or when applying for property insurance B:selling or refinancing a property C:originating a mortgage or home equity loan D:subletting an apartment unit - correct answer D Which of the following is NOT a right associated with property ownership? A:The right to use the property as collateral for a debt B:The right to sell or convey the property
C:The right to use the property in any manner desired by the property owner D:The right of enjoyment - correct answer C 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: A:are included in the sale B:must be removed C:will be purchased separately D:must be on the property - correct answer B A purchaser of real estate is entering into a land contract with the seller. The purchaser should expect legal title when: A:the seller has been paid in full B:the buyer takes possession of the property C:making the first land contract payment to the seller D:the land contract is recorded in public records - correct answer A A listing firm and a seller can modify an Exclusive Right to Sell Listing Contract to create any of the following EXCEPT: A:net listing B:open listing C:exclusive agency D:one-party listing - correct answer A Which of the following documents does NOT have to be delivered promptly to the parties after it is signed? A:Counter-offer B:Lease agreement C:Amendment to offer to purchase D:Offer to purchase - correct answer B
C:The seller decided not to sell the property at this time. D:A sales contract failed to close. - correct answer D "Use a form" means to: A:complete a form by filling in the blanks to accomplish the intent of a party B:take advantage of the form C:reproduce a form D:present it to a party - correct answer A According to the terms of the Extension of Listing section of the WB-1 Residential Listing Contract, how long is the listing contract extended for protected buyers? A:Two years B:One year C:Six months D:15 months - correct answer B Deadlines expressed as a number of days from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. When does acceptance occur? A:An offer to purchase that has been signed by all parties is delivered binding the parties B:One party tells another party that they have accepted the offer C:All parties have signed a copy of the offer to purchase D:A licensee indicates an offer as being accepted in the MLS - correct answer C 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: A:title insurance commitment B:abstract of title C:chain of title D:deed - correct answer A
Chain of title refers to: A:a summary or history of all instruments and legal proceedings affecting a specific parcel of land B:a series of links measuring 7.92 inches C:the succession of conveyances from some starting point whereby the current owner derives title to the real estate D:an insurance policy that protects the holder from challenges to the policyholder's ownership - correct answer C How are the listing contract and the buyer agency agreement similar? A:They both require all negotiations with a client go through the firm. B:They recognize the firm's interests in the transaction as being superior to other parties. C:They satisfy the minimum requirements to create a lawful agency relationship and ensure that the firm has the right to enforce its commission with a court. D:They will always create a multiple representation relationship. - correct answer C Which of the following statements best describes the function of the VA guarantee, FHA mortgage insurance, and conventional private mortgage insurance? A:If the lender forecloses, the lender is protected to some degree against potential loss. B:If the property declines in value, the buyer is guaranteed he will not suffer an equity loss. C:If the homeowner gets into financial difficulty, this coverage will make the monthly mortgage payment. D:If the homeowner dies, the remaining mortgage will be paid off. - correct answer A When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a claim of: A:RESPA violations B:HUD violations
D:promissory note - correct answer D What does Regulation Z require a lender to disclose to a consumer? A:The cost of the credit report B:The estimated closing costs C:The amount of interest paid over the life of the loan D:The cost of the appraisal - correct answer C If property is valued at $65,000 and assessed for 60 percent of its value, what is the tax if the rate is $5.30 per hundred? A:$2, B:$2, C:$2, D:$2,677 - correct answer A - Explanation $65,000 x .60 = $39,000 assessed value. $39,000 x .053 = $2,067 tax bill. 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 purchases it for himself. What duty to the buyer did the licensee violate? A:Confidentiality B:Accurate market conditions C:Disclosure of material adverse facts D:Loyalty - correct answer D Calculate the monthly payment for a mortgage of $120,000 at 9 percent for 20 years. The factor is 9. A:$1, B:$1, C:$1, D:$960 - correct answer A - Explanation
$120,000 x 9 = $1,080,000. $1,080,000/$1000 = $1080. To find the mortgage payment, multiply the loan amount by the factor and then divide by 1000. Disclosing the lowest price a seller is willing to accept to a potential buyer is a violation of the duty of: A:loyally representing the client's interest B:accounting C:disclosure of material adverse facts D:negotiation - correct answer A A selling agent has given the buyer information on the real estate market and suggested a purchase price for the buyer's offer. The selling agent has likely created what type of agency with the buyer? A:Implied B:Express C:General D:Single - correct answer A Representing both parties in a transaction is: A:multiple representation B:single agency C:an ethical violation D:illegal - correct answer A Which of the following is NOT typically considered client funds? A:Security deposits collected by a property owner B:Advance fees C:Earnest money deposits D:Finder's fees - correct answer A What would a buyer's licensee NOT have to disclose to the buyer-client?
B:$235.
C:$244.
D:$274.72 - correct answer A - Explanation $91,600 x .003 = $274.80. Which of the following bundle of rights are NOT included in a leasehold estate? A:Exclusion B:Disposition C:Control D:Quiet enjoyment - correct answer B A buyer's firm writing an offer as a cooperating firm is an example of: A:single agency B:coercion C:multiple representation D:an illegal action - correct answer A When using an approved form, a licensee may: A:add new numbered lines to the form B:charge a fee for preparing the form C:cross out provisions to reflect the agreement of a party to a transaction, provided that the deleted provisions remain legible D:delete form language on a computer before printing the form - correct answer C Which of the following is a duty owed ONLY to a client? A:Objective presentation of contract proposals B:Safeguard trust funds C:Loyally represents interests D:Disclose material adverse facts - correct answer C
A licensee is working with a deaf individual. The individual needs an interpreter to understand the real estate contracts. Who is required to pay for the interpreter? A:The firm B:The seller C:The buyer D:Housing and Urban Developmen - correct answer A The reason for including expired properties in a market analysis is to show the sellers that: A:comparable properties could not support an above-market list price B:the seller cannot substitute the value of their neighbor's house C:the competition cannot sell their listings D:their neighbors' properties are not comparable - correct answer A 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: A:blockbusting B:discounting C:redlining D:steering - correct answer C Which of the following would a licensee have to disclose to all parties in the transaction? A:Receiving a referral fee from another licensee for the referral of a listing B:A buyer's licensee is representing the licensee's sister in the purchase of a property C:A seller is paying an incentive to a buyer at closing D:A buyer's firm is receiving commission from the buyer - correct answer B A salesperson may practice real estate for:
