FREE Wisconsin Real Estate License Agency Law and Relationships Questions and Answers

Question 1

A listing agent is holding an open house for their seller client.
A prospective buyer attends, is not represented by an agent, and expresses interest in the property.
The buyer asks the listing agent about a faint water stain on the ceiling of a closet.
The agent knows the seller repaired a minor roof leak last year.
According to Wisconsin law, how must the agent respond?

Accepted Answer

Disclose the known information about the past leak and subsequent repair, as it is a material adverse fact.

Answer

Advise the buyer that all property condition issues are addressed in the Real Estate Condition Report and that the agent cannot comment further.

Answer

Inform the buyer that because the leak was repaired, it is no longer a disclosable issue.

Answer

Tell the buyer they must hire their own agent to get information about the property's condition.

Question 2

A real estate firm in Wisconsin has a listing agreement with a seller and a buyer agency agreement with a prospective buyer. The buyer becomes interested in the seller's property. For the firm to legally facilitate this transaction, what must occur?

Accepted Answer

The firm must receive prior written, informed consent from both the seller and the buyer to act in a multiple representation relationship.

Answer

The firm must assign one agent to the seller and another to the buyer and proceed with the transaction.

Answer

The firm must obtain verbal consent from both parties to engage in a multiple representation relationship.

Answer

The buyer must terminate their agency agreement and proceed as a customer to avoid a conflict of interest.

Question 3

A buyer's agent is working with a client who is very interested in a specific home. The client tells the agent in confidence that while their initial offer will be $250,000, they are pre-approved and willing to pay up to $275,000 if necessary. When presenting the offer, the listing agent asks, "Is this your buyer's best and final offer?" Which of the following is the most appropriate response by the buyer's agent?

Accepted Answer

To state that the client has presented a solid offer and that their financial position is confidential.

Answer

To hint that the buyer might be willing to increase their offer to encourage negotiations.

Answer

To state that the buyer is pre-approved for a higher amount to show they are a strong candidate.

Answer

To refuse to answer the question, as it is not the listing agent's business.

Question 4

Which of the following events would NOT automatically terminate a WB-1 Residential Listing Contract in Wisconsin?

Accepted Answer

The listing salesperson transfers to a different brokerage firm.

Answer

The death of the seller (sole owner).

Answer

The destruction of the home by a tornado.

Answer

The sale and closing of the property.

Question 5

In Wisconsin, a cooperating broker from Firm A shows a property listed by Firm B to a buyer who is a customer (the buyer has not signed a buyer agency agreement). In this scenario, what is the agency relationship of the broker from Firm A?

Accepted Answer

Subagent of the listing firm

Answer

Buyer's agent

Answer

Dual agent

Answer

Transaction coordinator

Question 6

Under Wisconsin Administrative Code REEB 24, licensees owe certain duties to all parties in a transaction, clients and customers alike. Which of the following is a duty owed exclusively to a CLIENT?

Accepted Answer

To negotiate on the party's behalf, unless released from this duty.

Answer

To provide brokerage services fairly and honestly.

Answer

To disclose all known material adverse facts in a timely manner.

Answer

To safeguard trust funds and other property held by the firm.