FREE Wisconsin Real Estate License Contracts and Approved Forms Questions and Answers

Question 1

A buyer submits a WB-11 Residential Offer to Purchase.
The seller agrees to the price but wants to change the closing date.
Which form is the proper and clearest method for the seller to use to propose this change before acceptance?

Accepted Answer

WB-44 Counter-Offer

Answer

WB-40 Amendment to Offer to Purchase

Answer

WB-41 Notice Relating to Offer to Purchase

Answer

Physically cross out the date, initial the change, and sign the offer

Question 2

A licensee is preparing a WB-1 Residential Listing Contract. The seller proposes a 'net listing,' where the seller gets a guaranteed $250,000 and the firm will receive any amount above that as its commission. According to Wisconsin Administrative Code, what is the licensee's proper course of action?

Accepted Answer

Refuse the listing because net listings are prohibited in Wisconsin.

Answer

Agree to the arrangement as it is a valid form of compensation.

Answer

Proceed with the listing but cap the potential commission at 10% of the net price.

Answer

Accept the listing only if the seller's attorney drafts the commission clause.

Question 3

Under which of the following circumstances is a Wisconsin real estate licensee permitted to use a contractual form that has NOT been approved by the Department of Safety and Professional Services (DSPS)?

Accepted Answer

When the form is prepared by a principal to the transaction or an attorney for a principal.

Answer

When the licensee's supervising broker has personally created and approved the form.

Answer

When the transaction is for a commercial property valued under $100,000.

Answer

Under no circumstances; only DSPS-approved forms may ever be used.

Question 4

A buyer's offer (WB-11) includes an inspection contingency with the seller's right to cure. The buyer provides a timely Notice of Defects to the seller. According to the standard language of the form, which of the following may the seller do?

Accepted Answer

Deliver a written notice to the buyer stating they elect not to cure the defects, which renders the offer null and void.

Answer

Disregard the notice, which obligates the buyer to purchase the property as-is.

Answer

Amend the offer with a price reduction instead of curing, which the buyer must accept.

Answer

Insist on curing only half of the listed defects, which binds the buyer to the contract.

Question 5

A buyer and seller have a fully executed WB-11 Residential Offer to Purchase. The buyer's financing falls through, and the financing contingency cannot be satisfied. Both parties agree to terminate the transaction and have the earnest money returned to the buyer. Which approved form should be used to accomplish this?

Accepted Answer

WB-45 Cancellation Agreement and Mutual Release

Answer

WB-40 Amendment to Offer to Purchase

Answer

WB-41 Notice Relating to Offer to Purchase

Answer

A letter drafted by the listing broker

Question 6

In a Wisconsin real estate transaction, 'delivery' of an accepted offer occurs when:

Accepted Answer

the accepted document is physically received by the other party or their designated agent.

Answer

the accepting party signs the document.

Answer

the accepted document is put in the mail by the accepting party's agent.

Answer

the sending party's agent calls the other agent to inform them of the acceptance.

A buyer submits a WB-11 Residential Offer to Purchase.The seller agrees to the price but wants to change the closing date.Which form is the proper and clearest method for the seller to use to propose this change before acceptance?

A buyer submits a WB-11 Residential Offer to Purchase.
The seller agrees to the price but wants to change the closing date.
Which form is the proper and clearest method for the seller to use to propose this change before acceptance?