Wisconsin Real Estate License Exam — Questions and Answers

Question 1: What penalty can the Wisconsin Department of Safety and Professional Services impose on a licensee found guilty of fair housing violations?

Mandatory community service with no license impact
Only a written warning for first-time offenders
A fine not exceeding $100 with no further action
License suspension or revocation and monetary penalties (Correct answer)

Correct answer: License suspension or revocation and monetary penalties

The Department of Safety and Professional Services can suspend or revoke a real estate license and impose monetary penalties for fair housing violations.

Question 2: A real estate agent in Wisconsin steers a family with children away from a neighborhood with mostly single professionals. Which fair housing violation does this represent?

Redlining
Steering based on familial status (Correct answer)
Disparate impact discrimination
Blockbusting

Correct answer: Steering based on familial status

Steering occurs when an agent directs buyers or renters toward or away from neighborhoods based on a protected class such as familial status.

Question 3: Which Wisconsin agency is primarily responsible for enforcing shoreland zoning regulations?

Wisconsin Department of Natural Resources (Correct answer)
Wisconsin Department of Revenue
County sheriff's office
Local planning commission

Correct answer: Wisconsin Department of Natural Resources

The Wisconsin DNR establishes minimum standards for shoreland zoning, which counties must adopt and enforce to protect navigable waters.

Question 4: What happens to a Wisconsin real estate license if the licensee fails to complete CE by the renewal deadline?

The license lapses and becomes inactive (Correct answer)
The license remains active but a fine is imposed
The license is automatically revoked
The licensee must retake the state exam

Correct answer: The license lapses and becomes inactive

Failing to complete the required CE by the renewal deadline causes the Wisconsin license to lapse, making the licensee unable to practice real estate.

Question 5: In Wisconsin, a buyer obtains an FHA loan requiring a 3.5% down payment on a $200,000 home. What is the minimum down payment amount?

$7,000 (Correct answer)
$3,500
$6,000
$10,000

Correct answer: $7,000

Multiplying the purchase price of $200,000 by 3.5% yields a minimum down payment of $7,000.

Question 6: In a Wisconsin commercial real estate transaction, which approved form is used instead of the WB-11?

WB-14 Commercial Offer to Purchase (Correct answer)
WB-15 Commercial Offer to Purchase
WB-13 Commercial Offer to Purchase
WB-12 Commercial Listing Contract

Correct answer: WB-14 Commercial Offer to Purchase

The WB-14 is the approved form for commercial offers to purchase in Wisconsin, distinct from the residential WB-11.

Question 7: Which of the following is NOT a required disclosure on the Wisconsin Real Estate Condition Report?

History of environmental contamination
The original purchase price paid by the seller (Correct answer)
Presence of underground storage tanks
Known defects in the roof

Correct answer: The original purchase price paid by the seller

The original purchase price is not a required item on the Wisconsin Real Estate Condition Report.

Question 8: Which of the following actions by a Wisconsin real estate licensee would constitute blockbusting?

Recommending a home inspector who charges higher fees
Telling homeowners that property values will decline because a minority family is moving into the neighborhood (Correct answer)
Declining to show a property because the seller is not available
Advertising a property as being in an exclusive gated community

Correct answer: Telling homeowners that property values will decline because a minority family is moving into the neighborhood

Blockbusting involves inducing panic selling by suggesting that the entry of a protected class into a neighborhood will lower property values.

Question 9: What does the term 'eminent domain' mean in relation to land use controls in Wisconsin?

A landlord's right to evict tenants without notice
The ability of a homeowner to annex adjacent parcels
The right of a private developer to seize neighboring property
The government's power to take private property for public use with just compensation (Correct answer)

Correct answer: The government's power to take private property for public use with just compensation

Eminent domain is the constitutional power of government to acquire private property for a public purpose, provided the owner receives fair market value compensation.

Question 10: In Wisconsin, which type of co-ownership automatically includes the right of survivorship?

Joint tenancy (Correct answer)
Community property
Tenancy at will
Tenancy in common

Correct answer: Joint tenancy

Joint tenancy in Wisconsin includes the right of survivorship, meaning a deceased co-owner's share passes directly to the surviving co-owner(s).

Question 11: What must an agent do when they have a conflict of interest in a transaction?

Avoid working with certain clients
Ignore the conflict and proceed
Disclose the conflict to all parties (Correct answer)
Only inform their brokerage

Correct answer: Disclose the conflict to all parties

When a real estate agent has a conflict of interest, such as representing both buyer and seller (dual agency) or having a personal stake in the property, they are ethically and legally required to disclose this conflict to all parties involved. This transparency allows clients to make informed decisions and ensures that their interests are protected, or they can choose to seek independent representation.

Question 12: The federal Fair Housing Act originated as which part of federal legislation?

Title VII of the Civil Rights Act of 1964
The Sherman Act
RESPA
Title VIII of the Civil Rights Act of 1968 (Correct answer)

Correct answer: Title VIII of the Civil Rights Act of 1968

The Fair Housing Act is Title VIII of the Civil Rights Act of 1968.

Question 13: A homeowner in Madison, Wisconsin wants to build a garage that will encroach 5 feet into the side-yard setback required by the local zoning ordinance. The homeowner can demonstrate that the odd shape of their lot creates a unique hardship not caused by their own actions. What should the homeowner apply for?

An area variance, to get an exception from a physical dimension rule. (Correct answer)
A conditional use permit, because the use is not normally allowed.
A spot zoning grant, to have their property uniquely rezoned.
A zoning amendment, to change the rules for the entire neighborhood.

Correct answer: An area variance, to get an exception from a physical dimension rule.

A variance is used when a property owner requests an exception to a physical requirement in a zoning ordinance, such as a setback. An 'area variance' specifically relates to dimensional requirements like setbacks, height, or lot coverage, and is granted when a hardship not created by the owner is proven.

Question 14: How many continuing education (CE) hours must a Wisconsin real estate licensee complete each 2-year renewal period?

24 hours
12 hours
18 hours (Correct answer)
30 hours

Correct answer: 18 hours

Wisconsin real estate licensees are required to complete 18 hours of DSPS-approved continuing education during each biennial renewal cycle.

Question 15: 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?

WB-40 Amendment to Offer to Purchase
WB-41 Notice Relating to Offer to Purchase
WB-45 Cancellation Agreement and Mutual Release (Correct answer)
A letter drafted by the listing broker

Correct answer: WB-45 Cancellation Agreement and Mutual Release

The WB-45 Cancellation Agreement and Mutual Release (CAMR) is specifically designed for situations where both parties agree to terminate the contract. It formally cancels the Offer to Purchase, directs the disbursement of earnest money, and releases all parties from their obligations under the contract.

Question 16: In Wisconsin, a life estate measured by the life of someone other than the life tenant is called what?

Fee simple determinable
Remainder estate
Life estate pur autre vie (Correct answer)
Estate for years

Correct answer: Life estate pur autre vie

A life estate pur autre vie is measured by the life of a third party rather than the life tenant.

Question 17: 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?

Subagent of the listing firm (Correct answer)
Dual agent
Transaction coordinator
Buyer's agent

Correct answer: Subagent of the listing firm

When a broker who is not the buyer's agent shows a property to a buyer-customer, that broker is typically acting as a subagent of the listing firm. This means the cooperating broker (from Firm A) owes fiduciary duties to the listing firm's client, the seller, even though they are working directly with the buyer.

Question 18: A Wisconsin real estate licensee discovers that a property they listed has a known defect that the seller refused to disclose. What is the licensee's legal obligation?

Report the seller to the Wisconsin DSPS
Withdraw from the listing without explanation
Disclose the defect to prospective buyers regardless of the seller's wishes (Correct answer)
Keep the information confidential as required by agency duties

Correct answer: Disclose the defect to prospective buyers regardless of the seller's wishes

Wisconsin's Real Estate Condition Report requirements and licensee duties mandate disclosure of known material defects to buyers, even if the seller objects.

Question 19: A Wisconsin resident passes away, leaving a small estate consisting of a car, a bank account, and some personal belongings, with a total value of $45,000. The decedent had a simple will naming their child as the sole heir. What is the most likely method the heir will use to transfer this property?

Using a Transfer by Affidavit. (Correct answer)
A full probate court proceeding to validate the will.
Filing a lawsuit to quiet title on the assets.
Executing a new deed for the car and bank account.

Correct answer: Using a Transfer by Affidavit.

Wisconsin law provides a simplified procedure for small estates. When a decedent's probate assets are valued at $50,000 or less, an heir can use a 'Transfer by Affidavit' to collect the assets without going through the formal, time-consuming probate process.

Question 20: Which of the following statements is TRUE regarding multiple representation relationships without designated agency in Wisconsin?

The brokerage firm can assign two different agents to represent the buyer and seller respectively, with each agent advocating for their client.
The brokerage firm and its agents must remain neutral and cannot provide advice or opinions that favor one party over the other. (Correct answer)
The licensee is only required to get verbal consent from both parties to proceed with this type of representation.
This type of relationship is illegal in Wisconsin due to the inherent conflict of interest.

Correct answer: The brokerage firm and its agents must remain neutral and cannot provide advice or opinions that favor one party over the other.

In a multiple representation relationship without designated agency, the brokerage firm represents both the buyer and the seller, but must act as a neutral facilitator. The firm and its agents are prohibited from providing information, opinions, or advice that might favor one client's interests over the other's. Written consent from all clients is required for any form of multiple representation.

Question 21: Under Wisconsin's agency disclosure requirements, when must a licensee provide the agency disclosure form to a prospective buyer?

At the first substantive contact or before showing properties (Correct answer)
At the time of closing
Only if the buyer requests it
Within 5 days of first contact

Correct answer: At the first substantive contact or before showing properties

Wisconsin requires agency disclosure at the first substantive contact with a prospective buyer or before showing properties.

Question 22: 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?

WB-41 Notice Relating to Offer to Purchase
Physically cross out the date, initial the change, and sign the offer
WB-44 Counter-Offer (Correct answer)
WB-40 Amendment to Offer to Purchase

Correct answer: WB-44 Counter-Offer

A WB-44 Counter-Offer is used to reject a previous offer and propose new terms for a contract before there is a binding acceptance. An amendment (WB-40) is used to change terms on an already accepted contract. A notice (WB-41) is for unilateral communications that don't require the other party's agreement. While physically altering the contract is a form of counter-offer, using the WB-44 is the standard, approved, and clearest method.

Question 23: What is spot zoning, and why is it generally disfavored in Wisconsin?

Temporarily zoning land for industrial use during construction
Allowing multiple uses on a single lot by special permit
Designating land for public parks within residential areas
Rezoning a single parcel inconsistent with the surrounding area, which may be struck down as arbitrary (Correct answer)

Correct answer: Rezoning a single parcel inconsistent with the surrounding area, which may be struck down as arbitrary

Spot zoning singles out a small parcel for treatment inconsistent with surrounding properties and may be invalidated by Wisconsin courts as arbitrary and unreasonable.

Question 24: A Wisconsin seller's agent receives two offers simultaneously. Which practice aligns with the agent's ethical and legal duties?

Present both offers promptly and let the seller decide without the agent's bias (Correct answer)
Hold the lower offer until the seller responds to the higher one
Advise the seller to reject the lower offer before formally presenting it
Present the higher offer first to save the seller time

Correct answer: Present both offers promptly and let the seller decide without the agent's bias

Wisconsin licensees must present all offers promptly and fairly, allowing the seller to make an informed decision without the agent filtering or prioritizing.

Question 25: In Wisconsin, a licensee acting as a dual agent must do all of the following EXCEPT:

Obtain written informed consent from both parties
Treat both parties honestly and fairly
Maintain confidentiality of each party's negotiating position
Negotiate the best possible price for the buyer (Correct answer)

Correct answer: Negotiate the best possible price for the buyer

A dual agent cannot advocate for the best price for one party since that would inherently disadvantage the other party in the transaction.

Question 26: Under Wisconsin law, which type of listing agreement allows the seller to sell the property independently without owing a commission to the broker?

Net listing
Open listing
Exclusive right to sell listing
Exclusive agency listing (Correct answer)

Correct answer: Exclusive agency listing

An exclusive agency listing allows the seller to find a buyer independently without owing commission, while the broker is the only authorized agent.

Question 27: Which Wisconsin statute grants extraterritorial plat review authority to cities and villages?

Wisconsin Statute 236 (Correct answer)
Wisconsin Statute 703
Wisconsin Statute 440
Wisconsin Statute 101

Correct answer: Wisconsin Statute 236

Wisconsin Statute 236 governs subdivision platting and grants cities and villages extraterritorial plat approval jurisdiction within a specified distance of their borders.

Question 28: Under the federal Fair Housing Act, which single-family home sale may be exempt from certain provisions?

Any home listed with a broker
Any home over $500,000
A home sold by an owner who owns three or fewer homes without a broker or discriminatory advertising (Correct answer)
Any home in a subdivision

Correct answer: A home sold by an owner who owns three or fewer homes without a broker or discriminatory advertising

The Mrs. Murphy-type exemption applies to owners with few homes who don't use a broker or biased ads.

Question 29: A mortgage lender in Wisconsin offers less favorable loan terms to applicants from a predominantly Hispanic neighborhood. This practice is known as what?

Steering
Blockbusting
Price fixing
Redlining (Correct answer)

Correct answer: Redlining

Redlining is the illegal practice of denying or limiting financial services to residents of certain neighborhoods based on racial or ethnic composition.

Question 30: Which of the following would disqualify someone from Wisconsin real estate licensure?

Providing false information on the license application (Correct answer)
Having previously held a license in another state
Being over 65 years old
Not having a high school diploma

Correct answer: Providing false information on the license application

Providing false or misleading information on a license application is grounds for denial of a Wisconsin real estate license.

Question 31: Under Wisconsin law, when must a real estate licensee provide the agency disclosure form to a prospective buyer?

At closing
After the offer is accepted
At the first substantive contact (Correct answer)
Only if the buyer requests it

Correct answer: At the first substantive contact

Wisconsin law requires the agency disclosure to be provided at the first substantive contact with a prospective buyer.

Question 32: A Wisconsin real estate broker learns that a competing agent has been advertising properties with misleading square footage claims. What is the broker's ethical obligation?

Contact the competing agent's clients directly
Ignore it since it involves a competitor's listing
Report the conduct to the local MLS and Wisconsin DSPS (Correct answer)
Correct the information in their own marketing only

Correct answer: Report the conduct to the local MLS and Wisconsin DSPS

Wisconsin licensees have an ethical duty to report known violations by other licensees to the appropriate regulatory authorities to protect consumers.

Question 33: Under Wisconsin's Open Housing Law, which of the following is considered a protected class that goes beyond federal Fair Housing Act protections?

Race
Religion
National origin
Marital status (Correct answer)

Correct answer: Marital status

Wisconsin's Open Housing Law adds marital status as a protected class beyond the seven federal protected classes.

Question 34: Before a Wisconsin salesperson license can be activated, what must the licensee do?

Pay a separate activation fee to DSPS
File a surety bond with the state
Complete 10 additional hours of post-license education
Affiliate with a licensed Wisconsin broker (Correct answer)

Correct answer: Affiliate with a licensed Wisconsin broker

A Wisconsin salesperson license is not active until the licensee is affiliated with and sponsored by a licensed Wisconsin broker.

Question 35: Under Wisconsin's Smart Growth law, comprehensive plans must include how many required elements?

Twelve
Nine (Correct answer)
Seven
Five

Correct answer: Nine

Wisconsin's Comprehensive Planning Law requires that local comprehensive plans contain nine elements, including land use, transportation, housing, and economic development.

Question 36: Wisconsin's farmland preservation program provides tax credits to landowners who agree to what restriction?

Donating development rights to the state permanently
Keeping land in agricultural use and complying with soil conservation standards (Correct answer)
Converting farmland to residential subdivisions within five years
Allowing public recreational access to their property

Correct answer: Keeping land in agricultural use and complying with soil conservation standards

Wisconsin's farmland preservation program offers tax credits to qualifying landowners who keep their land in agricultural use and follow soil and water conservation standards.

Question 37: Under Wisconsin's Smart Growth law, what are comprehensive plans required to address?

At least nine specific planning elements including land use, transportation, and housing (Correct answer)
Only environmental protection and historic preservation
Federal military base relocation plans
Only transportation and housing elements

Correct answer: At least nine specific planning elements including land use, transportation, and housing

Wisconsin's comprehensive planning law requires municipalities to address nine elements including issues, opportunities, housing, transportation, utilities, agricultural resources, natural resources, economic development, intergovernmental cooperation, and land use.

Question 38: Which Wisconsin approved form is used to amend the terms of an accepted offer to purchase after mutual acceptance?

WB-41 Notice Relating to Offer to Purchase
WB-40 Amendment to Offer (Correct answer)
WB-45 Cancellation Agreement
WB-44 Counter-Proposal

Correct answer: WB-40 Amendment to Offer

The WB-40 Amendment to Offer is the approved form used to modify terms of an already-accepted offer with both parties' consent.

Question 39: A buyer makes a 20% down payment on a $275,000 home. What is the loan amount?

$235,000
$55,000
$245,000
$220,000 (Correct answer)

Correct answer: $220,000

The buyer finances 80% of $275,000: $275,000 × 0.80 = $220,000.

Question 40: Under Wisconsin law, which government body typically has the primary authority to enact zoning ordinances?

The federal government
The Wisconsin Department of Natural Resources
County or municipal governing bodies (Correct answer)
The state legislature

Correct answer: County or municipal governing bodies

In Wisconsin, counties, cities, villages, and towns are granted zoning authority under state enabling statutes to regulate land use within their jurisdictions.

Question 41: What range of disciplinary actions can the Wisconsin Real Estate Examining Board (REEB) impose on a licensee?

Only permanent license revocation
Only written reprimands and fines up to $500
Only a mandatory CE requirement
Reprimand, license suspension, license revocation, and/or monetary fines (Correct answer)

Correct answer: Reprimand, license suspension, license revocation, and/or monetary fines

REEB has broad disciplinary authority including issuing reprimands, suspending or revoking licenses, and imposing monetary fines based on the severity of the violation.

Question 42: A real estate agent attempts to solicit listings in a neighborhood by telling homeowners that people of a certain protected class are moving in and that property values will decline as a result. This illegal and discriminatory practice is known as:

Canvassing
Steering
Redlining
Blockbusting (Correct answer)

Correct answer: Blockbusting

Blockbusting, also known as panic selling, is the illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular protected class into the neighborhood. This fear-mongering tactic is a violation of the Fair Housing Act.

Question 43: Can a non-U.S. citizen obtain a real estate license in Wisconsin?

Yes, but only permanent residents
No, only U.S. citizens may be licensed
Yes, if they have legal authorization to work in the U.S. (Correct answer)
Yes, but only citizens of Canada or Mexico

Correct answer: Yes, if they have legal authorization to work in the U.S.

Non-U.S. citizens who are legally authorized to work in the United States may obtain a Wisconsin real estate license.

Question 44: A homeowner in Wisconsin believes their property's assessed value for tax purposes is incorrect and significantly higher than the fair market value. According to state procedures, what is generally the first formal step the owner should take to challenge the assessment?

Submit a private appraisal to the Wisconsin Department of Revenue.
Refuse to pay the property tax bill until the assessment is corrected.
File a lawsuit directly with the Wisconsin Circuit Court.
File an objection form and attend the local municipality's Board of Review hearing. (Correct answer)

Correct answer: File an objection form and attend the local municipality's Board of Review hearing.

The first formal step in the Wisconsin property tax appeal process is to appeal to the local Board of Review (BOR). The property owner must provide notice of intent to object and file the proper objection form with the municipal clerk to be heard by the BOR, which is a quasi-judicial body that hears evidence on assessments. Appealing to the court or the Department of Revenue typically comes after the local BOR process has been completed.

Question 45: Which of the following is TRUE about the rescission period for a Wisconsin residential real estate contract?

The seller may rescind within 5 days of acceptance
There is no statutory rescission period in Wisconsin
The buyer has a 3-day rescission period after receiving the condition report
The buyer has a 2-business-day rescission period after receiving the condition report (Correct answer)

Correct answer: The buyer has a 2-business-day rescission period after receiving the condition report

Wisconsin provides a 2-business-day rescission period after the buyer receives the Real Estate Condition Report.

Question 46: Which disclosure is a Wisconsin seller exempt from providing on the Real Estate Condition Report?

Known plumbing defects
Known boundary disputes
Presence of lead-based paint in a pre-1978 home
Transfers made by a court-appointed fiduciary such as a personal representative (Correct answer)

Correct answer: Transfers made by a court-appointed fiduciary such as a personal representative

Transfers by court-appointed fiduciaries, such as estate sales through a personal representative, are exempt from the condition report requirement.

Question 47: Which of the following contingencies is NOT typically included in a Wisconsin WB-11 offer to purchase?

Financing contingency
Appraisal contingency
Neighbor approval contingency (Correct answer)
Home inspection contingency

Correct answer: Neighbor approval contingency

Neighbor approval is not a standard contingency in any Wisconsin real estate purchase agreement.

Question 48: A tenant with a hearing impairment asks the landlord to communicate maintenance notices by text. Denying this reasonable request likely violates protection for:

Disability (Correct answer)
Sex
Age
Ancestry

Correct answer: Disability

Refusing an accommodation tied to a disability violates disability protection.

Question 49: An appraiser is valuing a 15-year-old, single-family home in a well-established suburban neighborhood in Wisconsin. Which approach to value would the appraiser most likely give the most weight to?

Income Approach
Cost Approach
Sales Comparison Approach (Correct answer)
Gross Rent Multiplier Approach

Correct answer: Sales Comparison Approach

The Sales Comparison Approach (also known as the market data approach) is the most reliable method for appraising single-family homes. It compares the subject property to similar, recently sold properties in the same area. The Cost Approach is best for new construction or unique properties like schools, and the Income Approach is used for income-generating properties like apartment buildings.

Question 50: Under Wisconsin law, what is the maximum duration of a listing agreement before it must be renewed?

24 months
There is no statutory maximum (Correct answer)
6 months
12 months

Correct answer: There is no statutory maximum

Wisconsin does not impose a statutory maximum duration on listing agreements, though DSPS recommends reasonable timeframes.

Question 51: Which of the following is NOT a requirement for obtaining a Wisconsin real estate salesperson license?

Having a sponsoring broker
Completing pre-license education
Passing the state licensing exam
Holding a college degree (Correct answer)

Correct answer: Holding a college degree

Wisconsin does not require a college degree to obtain a real estate salesperson license.

Question 52: What is the role of contingencies in a real estate contract?

Increase closing costs
Allow contract termination if conditions aren’t met (Correct answer)
Eliminate the need for inspections
Guarantee contract execution

Correct answer: Allow contract termination if conditions aren’t met

Contingencies are clauses in a real estate contract that specify conditions which must be met for the sale to proceed. They protect both buyers and sellers by allowing a party to terminate the contract without penalty if a specified condition, such as a satisfactory home inspection or securing financing, is not fulfilled. This provides an escape clause, ensuring the parties are not bound to an unfavorable deal.

Question 53: Under Wisconsin law, how must amendments to the earnest money amount in an accepted offer be documented?

Using the WB-40 Amendment to Offer signed by all parties (Correct answer)
A text message between parties is acceptable
No documentation is required for earnest money changes
Verbal agreement between agents is sufficient

Correct answer: Using the WB-40 Amendment to Offer signed by all parties

Any change to earnest money in an accepted offer must be documented using the WB-40 Amendment form signed by all parties to be enforceable.

Question 54: The Wisconsin Open Housing Law adds several protected classes to those covered by the federal Fair Housing Act. Which of the following is a protected class under Wisconsin law but NOT under federal law?

Lawful source of income (Correct answer)
Disability
Familial Status
Race

Correct answer: Lawful source of income

The Federal Fair Housing Act protects against discrimination based on race, color, religion, sex, disability, familial status, and national origin. Wisconsin law adds protections for marital status, lawful source of income, age, sexual orientation, ancestry, and status as a victim of domestic abuse, sexual assault, or stalking.

Question 55: Who approves continuing education providers and courses for Wisconsin real estate license renewal credit?

Real Estate Educators Association (REEA)
National Association of REALTORS®
Wisconsin DSPS (Correct answer)
Wisconsin REALTORS® Association

Correct answer: Wisconsin DSPS

The Wisconsin Department of Safety and Professional Services (DSPS) must approve all CE providers and course content before they qualify for license renewal credit.

Question 56: Which section of the Wisconsin WB-11 Residential Offer to Purchase addresses the property condition and seller's disclosure obligations?

The Financing Contingency section
The Title and Survey section
The Condition of Property and Seller Representations section (Correct answer)
The Closing Provisions section

Correct answer: The Condition of Property and Seller Representations section

The Condition of Property and Seller Representations section of the WB-11 covers disclosures about property condition and known defects.

Question 57: In a Wisconsin real estate transaction, a customer is best described as a party who:

Has waived all rights to agency disclosure
Is provided services but is not represented by the broker (Correct answer)
Has signed an exclusive listing agreement with the broker
Receives fiduciary duties from the broker

Correct answer: Is provided services but is not represented by the broker

A customer receives services such as honesty and fair dealing but does not have a formal agency relationship or receive fiduciary duties from the broker.

Question 58: Which of the following is a legitimate, non-discriminatory reason to reject a rental applicant in Wisconsin?

The applicant's national origin
The applicant having children
The applicant's sexual orientation
Insufficient verifiable income to afford the rent (Correct answer)

Correct answer: Insufficient verifiable income to afford the rent

Inability to afford the rent is a lawful, non-discriminatory basis for denial.

Question 59: What does the term 'fiduciary duty' mean in real estate?

An agreement to guarantee a sale
Obligation to act in a client’s best interest (Correct answer)
A requirement to disclose all offers
A contract to set commission rates

Correct answer: Obligation to act in a client’s best interest

Fiduciary duty in real estate refers to the legal and ethical obligation of an agent to act solely in the best interests of their client. This relationship demands utmost loyalty, confidentiality, and care, requiring the agent to prioritize the client's goals and protect their financial and personal information. It ensures the client's trust is upheld throughout the transaction.

Question 60: What happens to earnest money in Wisconsin if the buyer and seller cannot agree on its disbursement after a failed transaction?

The broker returns it to the buyer after 30 days
The broker keeps the earnest money as commission
The broker must interplead the funds with the court (Correct answer)
The earnest money automatically goes to the seller after 60 days

Correct answer: The broker must interplead the funds with the court

When there is a dispute over earnest money, the Wisconsin broker must interplead the funds with the court for resolution.

Question 61: In a Wisconsin real estate transaction, when can earnest money held by the listing broker's trust account be disbursed if there is a dispute between buyer and seller?

Upon the seller's written demand after closing date passes
Only upon written agreement of both parties or a court order (Correct answer)
Automatically to the buyer if the seller breaches
At the listing broker's sole discretion after 30 days

Correct answer: Only upon written agreement of both parties or a court order

Disputed earnest money in a broker's trust account can only be disbursed with written consent of both parties or by court order under Wisconsin law.

Question 62: What is the statute of limitations for filing a fair housing complaint with the Wisconsin Department of Workforce Development?

30 days from the date of the alleged discrimination
180 days from the date of the alleged discrimination
Two years from the date of the alleged discrimination
One year from the date of the alleged discrimination (Correct answer)

Correct answer: One year from the date of the alleged discrimination

In Wisconsin, a complainant has one year from the date of the alleged discriminatory act to file a complaint with the state.

Question 63: Which of the following best describes tenancy by the entirety in Wisconsin?

Ownership by two or more unrelated individuals
Ownership by a married couple with right of survivorship (Correct answer)
Ownership by a business partnership
Ownership held in a living trust

Correct answer: Ownership by a married couple with right of survivorship

Tenancy by the entirety is a form of co-ownership available only to married couples in Wisconsin, featuring an automatic right of survivorship.

Question 64: In Wisconsin, when must a real estate licensee provide the agency disclosure form to a prospective buyer or seller?

After an offer is accepted
At the time of closing
At the first substantive contact with the party (Correct answer)
Only if requested by the party

Correct answer: At the first substantive contact with the party

Wisconsin law requires licensees to provide the agency disclosure at the time of first substantive contact with a prospective buyer or seller.

Question 65: Which type of property ownership allows multiple owners with an undivided interest in the property?

Fee simple absolute
Life estate
Joint tenancy with right of survivorship
Tenancy in common (Correct answer)

Correct answer: Tenancy in common

Tenancy in common is a type of property ownership that allows multiple owners to hold an undivided interest in the property. This means each owner has a distinct, proportionate share of the entire property, but not a specific physical portion. Unlike joint tenancy, there is no right of survivorship, allowing each co-owner to sell or will their share independently.

Question 66: A developer is planning a new residential subdivision in a Wisconsin town. According to Chapter 236 of the Wisconsin Statutes, which of the following describes the general timeline for municipal review of the preliminary and final plats?

60 days for the preliminary plat and 90 days for the final plat.
120 days for both the preliminary and final plats.
90 days for the preliminary plat and 60 days for the final plat. (Correct answer)
30 days for the preliminary plat and 30 days for the final plat.

Correct answer: 90 days for the preliminary plat and 60 days for the final plat.

Wisconsin statutes generally require that the approving authorities must approve, conditionally approve, or reject a preliminary plat within 90 days of its submission. After the preliminary plat is approved, they have 60 days to approve or reject the final plat.

Question 67: What is the purpose of the Code of Ethics established by the National Association of Realtors (NAR)?

Only apply to commercial real estate
Determine commission rates for agents
Promote fairness and integrity in real estate (Correct answer)
Allow agents to ignore legal regulations

Correct answer: Promote fairness and integrity in real estate

The National Association of Realtors (NAR) Code of Ethics establishes a set of professional standards and principles that guide the conduct of its members. Its primary purpose is to ensure fairness, integrity, and competence in real estate transactions, protecting the public and promoting honorable dealings among Realtors. This code goes beyond legal requirements, setting a higher standard of practice.

Question 68: A married couple in Wisconsin acquires a home after their marriage. Under Wisconsin's Marital Property Act, how is this property generally classified, assuming there is no marital property agreement to the contrary?

Separate property of the spouse whose name is on the title.
Joint tenancy with right of survivorship.
Individual property.
Marital property. (Correct answer)

Correct answer: Marital property.

Wisconsin is a community property state, referred to as marital property. The Marital Property Act presumes that all property acquired by either spouse during the marriage is marital property, with each spouse having an undivided one-half interest. This is true regardless of how the property is titled. While it can be titled as survivorship marital property, the fundamental classification is 'marital property'.

Question 69: The 1988 amendments to the federal Fair Housing Act added which two protected classes?

Religion and sex
Race and color
National origin and age
Disability and familial status (Correct answer)

Correct answer: Disability and familial status

The 1988 amendments added disability (handicap) and familial status.

Question 70: Under Wisconsin condominium law (Chapter 703), what document establishes the creation of a condominium and defines unit boundaries?

Articles of incorporation
Subdivision plat
Zoning permit
Condominium declaration (Correct answer)

Correct answer: Condominium declaration

Wisconsin Chapter 703 requires a condominium declaration to be recorded, which legally creates the condominium and defines the boundaries of each unit and common elements.

Question 71: In Wisconsin, which document is used as the standard offer to purchase residential real estate?

WDRL Purchase Agreement
WB-11 Residential Offer to Purchase (Correct answer)
WB-1 Listing Contract
WRA Form 1

Correct answer: WB-11 Residential Offer to Purchase

The WB-11 is the standard approved form used for residential offers to purchase in Wisconsin.

Question 72: What happens if a Wisconsin licensee fails to disclose a known material adverse fact to a buyer?

The transaction automatically voids after 30 days
The licensee may face disciplinary action and civil liability (Correct answer)
The seller assumes all liability instead
Nothing, as disclosure is voluntary in Wisconsin

Correct answer: The licensee may face disciplinary action and civil liability

Wisconsin law requires disclosure of material adverse facts, and failure to do so can result in license discipline, fines, and civil liability.

Question 73: Under Wisconsin Chapter 706, which requirement must be met for a valid conveyance of real property?

Oral agreement with two witnesses
Email confirmation between parties
Notarized written instrument signed by the grantor (Correct answer)
Verbal consent recorded on audio

Correct answer: Notarized written instrument signed by the grantor

Wisconsin Chapter 706 requires conveyances of interest in real property to be by written instrument that is signed by the grantor and notarized for recording purposes.

Question 74: A rectangular lot measures 45 feet by 30 feet. What is the square footage of the lot?

150 sq ft
750 sq ft
1,500 sq ft
1,350 sq ft (Correct answer)

Correct answer: 1,350 sq ft

Area = length × width: 45 × 30 = 1,350 square feet.

Question 75: How long must a Wisconsin licensee maintain the duty of confidentiality regarding a former client's confidential information?

For 30 days after closing
Indefinitely, even after the transaction closes (Correct answer)
Only during the listing period
Only until the offer is accepted

Correct answer: Indefinitely, even after the transaction closes

Confidential information must be protected indefinitely, with no expiration once the relationship ends.

Question 76: A Wisconsin broker who follows a client's lawful instructions even when the broker disagrees is fulfilling which duty?

Accounting
Confidentiality
Disclosure
Obedience (Correct answer)

Correct answer: Obedience

The duty of obedience requires a licensee to follow the client's lawful and reasonable instructions.

Question 77: Which of the following events would NOT automatically terminate a WB-1 Residential Listing Contract in Wisconsin?

The listing salesperson transfers to a different brokerage firm. (Correct answer)
The destruction of the home by a tornado.
The death of the seller (sole owner).
The sale and closing of the property.

Correct answer: The listing salesperson transfers to a different brokerage firm.

The listing contract is an agreement between the seller and the brokerage firm, not the individual salesperson. If the salesperson leaves the firm, the listing remains with the original firm. The death of the principal (seller), destruction of the subject matter (the house), or performance of the contract (sale and closing) are all events that would typically terminate the agency relationship.

Question 78: In Wisconsin, what is the maximum security deposit a landlord may collect for a residential rental property?

One month's rent
Three months' rent
There is no statutory limit (Correct answer)
Two months' rent

Correct answer: There is no statutory limit

Wisconsin does not impose a statutory cap on the amount a landlord may charge as a security deposit for residential properties.

Question 79: Under Wisconsin law, what is the primary purpose of a property appraisal in a real estate transaction?

To set the listing price for the seller
To establish an opinion of market value for the lender (Correct answer)
To calculate the buyer's closing costs
To determine the property tax assessment

Correct answer: To establish an opinion of market value for the lender

The primary purpose of an appraisal in a real estate transaction is to provide the lender with an independent opinion of the property's market value to protect their investment.

Question 80: In Wisconsin, what type of ownership automatically passes a deceased owner's share to the surviving co-owner without probate?

Tenancy by the entirety
Joint tenancy (Correct answer)
Tenancy in common
Life estate

Correct answer: Joint tenancy

Joint tenancy includes the right of survivorship, meaning the deceased owner's interest automatically transfers to the surviving joint tenant without going through probate.

Question 81: Which Wisconsin state agency is primarily responsible for enforcing the state's Open Housing Law?

Department of Safety and Professional Services
Department of Workforce Development, Equal Rights Division (Correct answer)
Department of Administration
Wisconsin Real Estate Examining Board

Correct answer: Department of Workforce Development, Equal Rights Division

The Equal Rights Division within the Department of Workforce Development handles fair housing complaints in Wisconsin.

Question 82: A tenant with a disability requests permission from their landlord to install grab bars in the apartment's bathroom. The tenant has agreed to pay for the installation. According to Wisconsin Fair Housing Law, the landlord must:

allow the modification only if the tenant pays an additional security deposit.
deny the request as it alters the property's structure.
allow the modification at the tenant's expense. (Correct answer)
pay for the modification as a required accommodation.

Correct answer: allow the modification at the tenant's expense.

Under both state and federal fair housing laws, a landlord must permit a tenant with a disability to make reasonable modifications to the premises at the tenant's expense if the modifications are necessary for the person to fully use and enjoy the housing. The landlord can require the tenant to agree to restore the property to its original condition upon moving out (aside from reasonable wear and tear).

Question 83: Three friends own a recreational property in Wisconsin as joint tenants with the right of survivorship. One of the friends sells their interest to an outside party. What is the new form of ownership?

The three owners are now tenants in common.
The new owner becomes a joint tenant with the remaining two original owners.
The original two friends remain joint tenants with each other, and the new owner is a tenant in common with them. (Correct answer)
The sale is void because all joint tenants must agree to sell.

Correct answer: The original two friends remain joint tenants with each other, and the new owner is a tenant in common with them.

In a joint tenancy, a co-owner has the right to sell their interest without the consent of the other joint tenants. However, this action severs the joint tenancy only for the share being sold. The new owner does not become a joint tenant because the unities of time and title are broken. Therefore, the original two owners remain joint tenants with each other, while the new owner holds their interest as a tenant in common in relation to the original two.

Question 84: What is the primary purpose of the WB-36 Buyer Agency/Tenant Representation Agreement in Wisconsin?

To terminate a listing agreement
To authorize a licensee to show properties only
To establish exclusive buyer agency representation (Correct answer)
To disclose dual agency to the buyer

Correct answer: To establish exclusive buyer agency representation

The WB-36 establishes the terms of exclusive buyer agency representation between the buyer and the brokerage firm.

Question 85: When must a Wisconsin real estate licensee provide a buyer with the approved Consumer Notice form?

After the offer has been accepted
At the time of writing an offer
Only if the buyer requests representation
At the first substantive contact with the buyer (Correct answer)

Correct answer: At the first substantive contact with the buyer

Wisconsin Administrative Code requires licensees to provide the Consumer Notice at the time of first substantive contact with a prospective buyer.

Question 86: How often must a Wisconsin real estate license be renewed?

Never
Annually
Every five years
Every two years (Correct answer)

Correct answer: Every two years

A Wisconsin real estate license must be renewed every two years. This biennial renewal cycle ensures that licensees remain active, comply with continuing education requirements, and adhere to current state regulations. Regular renewal helps maintain professional standards and ensures that practitioners are up-to-date with industry changes.

Question 87: What is the purpose of a purchase agreement in a real estate transaction?

Provide a property tax estimate
Define terms and obligations of the sale (Correct answer)
Secure financing for the buyer
Act as a deed transfer document

Correct answer: Define terms and obligations of the sale

A purchase agreement is a legally binding contract that outlines all the essential details of a real estate transaction. It specifies the price, property description, financing terms, contingencies, and closing date, ensuring both buyer and seller understand their rights and responsibilities. This document is crucial for a smooth and legally sound transfer of property.

Question 88: Under Wisconsin law, which type of deed provides the greatest protection to the buyer?

Quitclaim deed
Special warranty deed
General warranty deed (Correct answer)
Bargain and sale deed

Correct answer: General warranty deed

A general warranty deed guarantees the title against all defects, even those arising before the grantor owned the property, offering the highest level of buyer protection.

Question 89: In Wisconsin, when must a licensee provide the 'Disclosure to Customers' form to a potential buyer who is not represented by an agent?

Prior to or at the time of the first property showing.
Only after the buyer has expressed a serious interest in a specific property.
At the time an offer to purchase is drafted.
Before negotiating on behalf of the customer. (Correct answer)

Correct answer: Before negotiating on behalf of the customer.

Wisconsin law, specifically Wis. Stat. § 452.135, requires that a licensee provide the 'Disclosure to Customers' form prior to negotiating on behalf of that customer. This disclosure clarifies that the licensee is not representing the customer as a client and outlines the duties owed to them. While it's good practice to provide it early, the legal trigger is before beginning negotiations.

Question 90: Which appraisal approach is most suitable and heavily relied upon for valuing a 15-year-old single-family residence located in a well-established residential subdivision in Wisconsin?

Cost Approach
Sales Comparison Approach (Correct answer)
Income Approach
Gross Rent Multiplier Method

Correct answer: Sales Comparison Approach

The Sales Comparison Approach is the most reliable and common method for appraising residential properties, especially in areas with ample sales data. This approach is based on the principle of substitution, comparing the subject property to similar, recently sold properties to determine its value. The Cost Approach is better for new or unique properties, and the Income Approach is used for income-generating properties.

Question 91: In a Wisconsin land contract (contract for deed), when does the buyer receive legal title to the property?

When the buyer takes physical possession
When the first payment is made
At the time the contract is signed
After all payments are completed per the contract terms (Correct answer)

Correct answer: After all payments are completed per the contract terms

In a Wisconsin land contract, the seller retains legal title until the buyer fulfills all payment obligations, at which point the deed is delivered.

Question 92: A property manager in Wisconsin applies different security deposit requirements based on a tenant's national origin. Which law does this most directly violate?

Neither, as security deposits are not covered by fair housing laws
Only the federal Fair Housing Act
Only Wisconsin's Open Housing Law
Both the federal Fair Housing Act and Wisconsin's Open Housing Law (Correct answer)

Correct answer: Both the federal Fair Housing Act and Wisconsin's Open Housing Law

Applying different terms and conditions, including security deposits, based on national origin violates both federal and state fair housing protections.

Question 93: A buyer's agent in Wisconsin learns that the buyer plans to use the property for an illegal purpose. What should the agent do?

Keep the information confidential as part of fiduciary duty
Disclose the plan to the seller
Report the buyer to local law enforcement immediately
Terminate the agency relationship (Correct answer)

Correct answer: Terminate the agency relationship

An agent should terminate the relationship rather than assist in an illegal activity, as confidentiality does not extend to illegal acts.

Question 94: Which Wisconsin agency oversees real estate regulations?

Federal Housing Administration (FHA)
Wisconsin Department of Revenue
National Association of Realtors (NAR)
Wisconsin Department of Safety and Professional Services (DSPS) (Correct answer)

Correct answer: Wisconsin Department of Safety and Professional Services (DSPS)

The Wisconsin Department of Safety and Professional Services (DSPS) is the state agency responsible for overseeing real estate regulations. The DSPS handles the licensing of real estate professionals, enforces state real estate laws, and ensures compliance with professional standards. Its role is crucial in protecting consumers and maintaining the integrity of the real estate industry in Wisconsin.

Question 95: A Wisconsin real estate license applicant who has a felony conviction must do what?

Obtain a pardon from the governor first
They are permanently barred from licensure
Wait 10 years before applying
Disclose it on the application and may face review (Correct answer)

Correct answer: Disclose it on the application and may face review

Applicants must disclose felony convictions, and the DSPS reviews each case individually to determine eligibility.

Question 96: A buyer is purchasing a home for $250,000 with a 20% down payment. What is the loan-to-value (LTV) ratio?

80% (Correct answer)
75%
90%
85%

Correct answer: 80%

With a 20% down payment on a $250,000 home, the loan amount is $200,000, making the LTV ratio $200,000 ÷ $250,000 = 80%.

Question 97: How long is a Wisconsin real estate salesperson license valid before renewal is required?

1 year
2 years (Correct answer)
3 years
4 years

Correct answer: 2 years

Wisconsin real estate licenses must be renewed every two years on an even-year cycle.

Question 98: Which document is used in Wisconsin to transfer real property ownership at a tax foreclosure sale?

Sheriff's deed
Executor's deed
Trustee's deed
Tax deed (Correct answer)

Correct answer: Tax deed

A tax deed is issued by the county to convey property acquired through tax foreclosure proceedings in Wisconsin.

Question 99: Under Wisconsin's agency law, which type of agency allows a broker to represent both the buyer and seller in the same transaction?

Implied agency
Single agency
Dual agency with informed consent (Correct answer)
Designated agency

Correct answer: Dual agency with informed consent

Dual agency is permitted in Wisconsin only when both parties give informed written consent.

Question 100: A buyer in Wisconsin is using an FHA loan to purchase a home for $250,000. The transaction includes an FHA Amendatory Clause. If the property's appraised value comes in at $240,000, what are the buyer's primary rights under this clause?

The seller is required to lower the purchase price to the appraised value of $240,000.
The buyer is obligated to make up the $10,000 difference in cash to secure the loan.
The buyer can cancel the contract and receive a refund of their earnest money. (Correct answer)
The buyer must proceed with the purchase but can sue the seller for the $10,000 difference.

Correct answer: The buyer can cancel the contract and receive a refund of their earnest money.

The FHA Amendatory Clause, also known as an escape clause, protects the buyer by allowing them to cancel the contract without penalty if the appraised value is less than the sales price. The buyer is not obligated to purchase, and the seller is not obligated to lower the price, but the buyer has the right to back out and recover their earnest money.

Question 101: Under Wisconsin law, which type of mortgage clause allows the lender to demand full repayment if the property is sold without lender approval?

Prepayment penalty clause
Due-on-sale clause (Correct answer)
Defeasance clause
Subordination clause

Correct answer: Due-on-sale clause

A due-on-sale clause, also called an alienation clause, lets the lender accelerate the loan balance upon transfer of the property.

Question 102: An appraiser is valuing a single-family home in suburban Wisconsin using the sales comparison approach. Which of the following factors would the appraiser be LEAST likely to use as a primary adjustment factor to the comparable properties' sale prices?

The date of sale of a comparable property sold six months ago.
The seller's original purchase price of the subject property. (Correct answer)
A comparable property having a two-car garage while the subject property has a one-car garage.
A comparable property being located on a busy street while the subject property is on a quiet cul-de-sac.

Correct answer: The seller's original purchase price of the subject property.

The sales comparison approach focuses on the recent sales of similar properties, making adjustments for differences in location, physical characteristics, date of sale, and terms of the sale. The seller's original purchase price is a historical cost and is generally not relevant to the current market value of the property, making it the least likely factor to be used for adjustment.

Question 103: Why is accurate property disclosure important in real estate transactions?

Allow for negotiation flexibility
Reduce the agent’s responsibilities
Help the seller get a higher price
Ensure transparency and prevent legal disputes (Correct answer)

Correct answer: Ensure transparency and prevent legal disputes

Accurate property disclosure requires sellers to reveal known defects or issues with a property to potential buyers. This transparency is crucial because it allows buyers to make informed decisions, potentially negotiate repairs, or withdraw from a sale if the defects are significant. Failing to disclose known issues can lead to costly legal disputes and liabilities for the seller after the sale.

Question 104: Under Wisconsin law, which of the following must be disclosed by a seller even if it is not on the condition report?

The seller's reason for moving
The identity of the seller's real estate attorney
How much the seller still owes on their mortgage
Known structural defects that materially affect the property's value (Correct answer)

Correct answer: Known structural defects that materially affect the property's value

Known structural defects that materially affect value must be disclosed regardless of whether they appear on the standard condition report.

Question 105: A Wisconsin landlord refuses to rent to a tenant because they have a lawful source of income from housing assistance. Under Wisconsin fair housing law, is this permitted?

Yes, but only for properties with fewer than four units
Yes, landlords may choose tenants based on income source
No, but only if the landlord receives government subsidies
No, lawful source of income is a protected class in Wisconsin (Correct answer)

Correct answer: No, lawful source of income is a protected class in Wisconsin

Wisconsin law prohibits discrimination based on lawful source of income, including housing vouchers and public assistance.

Question 106: A Wisconsin appraiser uses a gross rent multiplier (GRM) of 120 on a property with a monthly gross rent of $1,500. What is the estimated property value?

$200,000
$120,000
$180,000 (Correct answer)
$150,000

Correct answer: $180,000

Multiplying the monthly gross rent of $1,500 by the GRM of 120 produces an estimated value of $180,000.

Question 107: A property has a loan balance of $180,000. The bank requires a maximum LTV of 80%. What is the minimum appraised value required?

$144,000
$240,000
$225,000 (Correct answer)
$216,000

Correct answer: $225,000

Minimum value = loan amount ÷ LTV ratio: $180,000 ÷ 0.80 = $225,000.

Question 108: What is the primary purpose of private mortgage insurance (PMI) in a conventional Wisconsin real estate loan?

To guarantee the buyer will qualify for a future refinance
To protect the borrower from interest rate increases
To protect the lender against borrower default when the down payment is less than 20% (Correct answer)
To insure the property against physical damage

Correct answer: To protect the lender against borrower default when the down payment is less than 20%

PMI protects the lender from loss if the borrower defaults, and is typically required when the LTV exceeds 80%.

Question 109: Under Wisconsin law, what action must a brokerage take when a licensee affiliated with the firm has their license suspended by the DSPS?

Allow the licensee to continue working under increased supervision
Appeal the suspension on behalf of the licensee before taking action
Immediately terminate the licensee's affiliation and notify all active clients (Correct answer)
Continue the licensee's pending transactions but prevent new ones

Correct answer: Immediately terminate the licensee's affiliation and notify all active clients

A suspended licensee cannot perform any licensed activities, so the brokerage must immediately end the affiliation and ensure clients are properly transferred.

Question 110: What is the function of a buffer zone in Wisconsin land use planning?

To separate incompatible land uses and reduce conflicts between them (Correct answer)
To designate areas exclusively for government buildings
To allow unlimited commercial development near residential areas
To create zones where no property taxes are assessed

Correct answer: To separate incompatible land uses and reduce conflicts between them

Buffer zones are transitional areas placed between incompatible land uses, such as industrial and residential districts, to minimize negative impacts like noise, traffic, and visual intrusion.

Question 111: Which Wisconsin statute governs the formal requirements for transferring real property?

Wisconsin Fair Dealership Law
Wisconsin Consumer Act
Uniform Commercial Code
Statute of Frauds (Correct answer)

Correct answer: Statute of Frauds

The Statute of Frauds requires real property transfers to be in writing and signed by the party to be charged.

Question 112: Under Wisconsin's Fair Housing Law, which of the following scenarios is generally permissible?

A landlord charging a higher security deposit for tenants with disabilities who have service animals.
An advertisement for an apartment that reads "Ideal for single professionals."
A landlord refusing to rent a two-bedroom apartment to a family with four young children due to a reasonable local occupancy ordinance. (Correct answer)
The owner of a 20-unit apartment building refusing to rent to anyone under the age of 30.

Correct answer: A landlord refusing to rent a two-bedroom apartment to a family with four young children due to a reasonable local occupancy ordinance.

Wisconsin law allows property owners to comply with reasonable local, state, or federal government restrictions on the maximum number of occupants permitted in a dwelling. Refusing to rent based on a violation of such an ordinance is not considered illegal discrimination based on family status. The other options represent illegal discrimination based on age, marital/family status (in advertising), and disability.

Question 113: Which Wisconsin form is used when a buyer wants to make a counter-offer in response to a seller's counter-proposal?

WB-40 Amendment
WB-44 Counter-Offer (Correct answer)
WB-36 Buyer Agency Agreement
WB-45 Cancellation Agreement

Correct answer: WB-44 Counter-Offer

The WB-44 Counter-Offer form is the approved form for making counter-proposals during offer negotiations in Wisconsin.

Question 114: What happens if a Wisconsin real estate license applicant fails the state exam?

They may retake the exam after paying a new fee (Correct answer)
They must wait one full year to retake it
They must complete all pre-license education again
They are permanently disqualified

Correct answer: They may retake the exam after paying a new fee

Applicants who fail may retake the exam by scheduling a new appointment and paying the required examination fee.

Question 115: Which of the following is a recognized ground for disciplinary action against a Wisconsin real estate licensee?

Charging a commission as agreed in the listing contract
Disclosing known material defects to a buyer
Commingling client trust funds with personal funds (Correct answer)
Advertising a listed property on a public website

Correct answer: Commingling client trust funds with personal funds

Commingling client funds with personal or brokerage operating funds is a serious violation that can result in license suspension or revocation by REEB.

Question 116: A real estate agent is showing homes to a minority couple. The agent avoids showing them properties in a predominantly white, affluent suburb, assuming they would not be comfortable or could not afford it, despite the couple being financially qualified for that area. Instead, the agent focuses only on homes in more diverse neighborhoods. This practice is an illegal example of:

Redlining
Steering (Correct answer)
Appraising
Blockbusting

Correct answer: Steering

Steering is the illegal practice of guiding prospective homebuyers toward or away from certain neighborhoods based on their protected class, such as race or national origin. By limiting the couple's housing choices based on race, the agent is engaging in steering, which violates fair housing laws.

Question 117: What distinguishes a general warranty deed from a special warranty deed in Wisconsin?

A special warranty deed provides greater protection to the buyer
A general warranty deed does not require a legal description
A general warranty deed warrants title against all defects, past and present (Correct answer)
A general warranty deed cannot be used for commercial property

Correct answer: A general warranty deed warrants title against all defects, past and present

A general warranty deed warrants title against all defects arising at any time, while a special warranty deed only covers the grantor's period of ownership.

Question 118: In Wisconsin, a listing broker who cooperates with a buyer's broker through the MLS is generally offering what type of relationship to the buyer's broker?

Dual agency
Cooperative compensation without subagency (Correct answer)
Automatic fiduciary representation
Subagency

Correct answer: Cooperative compensation without subagency

Modern MLS practice in Wisconsin typically offers cooperative compensation to a buyer's broker without creating a subagency relationship.

Question 119: A Wisconsin property manager requires a higher security deposit from tenants who use wheelchairs. Under fair housing law, this practice is an example of discrimination based on which protected class?

Age
Economic status
Physical appearance
Disability (Correct answer)

Correct answer: Disability

Charging higher deposits based on wheelchair use constitutes disability discrimination under both Wisconsin and federal fair housing laws.

Question 120: Even where an exemption applies, which prohibition of the federal Fair Housing Act still always applies?

Property tax caps
The right to a mortgage
The ban on discriminatory advertising (Correct answer)
Rent control

Correct answer: The ban on discriminatory advertising

Discriminatory advertising is prohibited in all cases, regardless of other exemptions.

Question 121: In Wisconsin, when a listing broker authorizes a cooperating broker to act on the seller's behalf, this creates:

Designated agency
A customer relationship
Dual agency
Subagency (Correct answer)

Correct answer: Subagency

Subagency occurs when a cooperating broker is authorized to represent the seller's interests through the listing broker.

Question 122: Which approved Wisconsin form is used to cancel an offer to purchase by mutual agreement?

WB-42 Notice Relating to Offer to Purchase
WB-45 Cancellation Agreement and Mutual Release (Correct answer)
WB-40 Amendment to Offer
WB-44 Counter-Offer

Correct answer: WB-45 Cancellation Agreement and Mutual Release

The WB-45 is the approved form for mutual cancellation of an offer to purchase and release of the parties from their obligations.

Question 123: Which of the following activities requires a Wisconsin real estate license?

Managing your own rental properties
Selling your own personal residence
Negotiating the sale of real property for another person for compensation (Correct answer)
Referring a friend to a licensed agent with no compensation received

Correct answer: Negotiating the sale of real property for another person for compensation

Acting on behalf of another person to negotiate a real estate transaction in exchange for compensation requires a Wisconsin real estate license.

Question 124: A Wisconsin real estate licensee is drafting a WB-11 Residential Offer to Purchase for a buyer client. The buyer wants to include a provision that is not covered in the standard approved form. According to Wis. Admin. Code § REEB 16, what is the proper procedure for the licensee to add this provision?

Write the provision in the blank space under 'Additional Provisions' or attach a separate addendum. (Correct answer)
Modify a pre-printed clause by crossing it out and writing the new provision next to it.
Advise the buyer that no changes or additions can be made to state-approved forms.
Use a separate, non-approved form that contains the desired provision.

Correct answer: Write the provision in the blank space under 'Additional Provisions' or attach a separate addendum.

Wisconsin Administrative Code § REEB 16 allows licensees to add provisions to approved forms by either filling in the blank lines provided (such as in the 'Additional Provisions' section) or by attaching a pre-prepared addendum. The addendum must be incorporated by reference into the approved form.

Question 125: Under Wisconsin law, which of the following property types is exempt from the state's Open Housing Law?

Any property managed by a licensed real estate broker
Commercial properties with residential units
All single-family homes sold by owner
Owner-occupied buildings with no more than two units where no discriminatory advertising is used (Correct answer)

Correct answer: Owner-occupied buildings with no more than two units where no discriminatory advertising is used

Wisconsin exempts owner-occupied duplexes from the Open Housing Law provided no discriminatory advertising is used and no broker is involved.

Question 126: Which Wisconsin state agency administers and oversees real estate licensing?

Wisconsin Real Estate Commission
Department of Safety and Professional Services (DSPS) (Correct answer)
Department of Commerce
Wisconsin Housing Finance Authority

Correct answer: Department of Safety and Professional Services (DSPS)

The Wisconsin Department of Safety and Professional Services (DSPS) issues and regulates all real estate licenses in the state.

Question 127: In Wisconsin, what happens if a licensee fails to provide the mandatory agency disclosure form?

The transaction is automatically void
Nothing, it is only a recommended practice
The buyer receives an automatic price reduction
The licensee may face disciplinary action from DSPS (Correct answer)

Correct answer: The licensee may face disciplinary action from DSPS

Failure to provide the required agency disclosure can result in disciplinary action by the Wisconsin Department of Safety and Professional Services.

Question 128: What must a Wisconsin salesperson do if their employing broker's license is revoked?

Transfer their license directly to another salesperson
Immediately cease practicing real estate until affiliated with a new licensed broker (Correct answer)
Apply for an emergency temporary broker license
Continue working independently for up to 30 days

Correct answer: Immediately cease practicing real estate until affiliated with a new licensed broker

If the sponsoring broker's license is revoked, affiliated salespersons must immediately stop practicing real estate until they affiliate with a new licensed broker.

Question 129: In a Wisconsin real estate transaction, when must a seller provide the Real Estate Condition Report to the buyer?

Before acceptance of the offer (Correct answer)
Before the buyer makes an offer
At the time of closing
Within 10 days after acceptance

Correct answer: Before acceptance of the offer

Wisconsin Statute 709.02 requires the seller to furnish the condition report before acceptance of a contract of sale.

Question 130: What does the inspection contingency on the WB-11 allow the buyer to do after receiving an inspection report?

Negotiate repairs, accept as-is, or cancel within the contingency period (Correct answer)
Demand the seller make all repairs at seller's expense
Only cancel the offer entirely
Automatically reduce the purchase price by repair costs

Correct answer: Negotiate repairs, accept as-is, or cancel within the contingency period

The inspection contingency gives the buyer the option to negotiate repairs, accept the property as-is, or cancel within the contingency timeframe.

Question 131: Which of the following best describes the concept of 'negligent misrepresentation' in Wisconsin real estate practice?

Intentionally lying about a property's condition to induce a sale
Failing to return phone calls from prospective buyers in a timely manner
Accidentally using an outdated listing photo in marketing materials
Making a false statement about a property without exercising reasonable care to verify its accuracy (Correct answer)

Correct answer: Making a false statement about a property without exercising reasonable care to verify its accuracy

Negligent misrepresentation occurs when a licensee makes inaccurate statements without taking reasonable steps to verify the information, even without intent to deceive.

Question 132: What is the purpose of Wisconsin's Fair Housing Law?

Increase property values in select areas
Mandate all homes be owner-occupied
Eliminate zoning laws
Prevent discrimination in housing transactions (Correct answer)

Correct answer: Prevent discrimination in housing transactions

The primary purpose of Wisconsin's Fair Housing Law is to prevent discrimination in housing transactions. This law prohibits discrimination based on protected characteristics such as race, color, religion, sex, national origin, disability, and familial status. It ensures equal housing opportunities for all individuals in sales, rentals, and financing, promoting fairness and preventing unfair practices.

Question 133: What is a variance in the context of Wisconsin zoning law?

An authorized deviation from specific zoning requirements due to unique property hardship (Correct answer)
A federal exemption from state land use regulations
A complete rezoning of a parcel to a different classification
A temporary construction permit for residential projects

Correct answer: An authorized deviation from specific zoning requirements due to unique property hardship

A variance is relief granted by a zoning board of appeals when strict application of the zoning ordinance would cause unnecessary hardship due to unique characteristics of the property.

Question 134: Within how many years of lapsing may a Wisconsin real estate license be reinstated without retaking the licensing exam?

1 year
2 years
5 years (Correct answer)
10 years

Correct answer: 5 years

Wisconsin allows a lapsed license to be reinstated within 5 years of the lapse date without requiring the licensee to retake the licensing examination.

Question 135: A Wisconsin licensee owes a customer which of the following?

Confidentiality of the customer's negotiating position
Full fiduciary loyalty
Fair and honest dealing and disclosure of material adverse facts (Correct answer)
The duty to obey the customer's instructions

Correct answer: Fair and honest dealing and disclosure of material adverse facts

Customers are owed honesty and disclosure of material adverse facts but not the full client-level duties.

Question 136: Which of the following is a material adverse fact that a Wisconsin licensee must disclose to all parties?

The seller's motivation for moving
A known structural defect affecting the property's safety (Correct answer)
The client's minimum acceptable price
The buyer's maximum budget

Correct answer: A known structural defect affecting the property's safety

Licensees must disclose material adverse facts, such as known defects, to all parties regardless of who they represent.

Question 137: How many hours of pre-license education must a Wisconsin real estate salesperson candidate complete?

60 hours
72 hours (Correct answer)
40 hours
90 hours

Correct answer: 72 hours

Wisconsin requires 72 hours of approved pre-license education for salesperson candidates.

Question 138: Under Wisconsin law, what is the maximum amount of earnest money a broker can hold in their trust account without depositing it into an interest-bearing account?

$25,000
There is no maximum; all earnest money must be deposited (Correct answer)
$5,000
$1,000

Correct answer: There is no maximum; all earnest money must be deposited

Wisconsin law requires all earnest money to be deposited into the broker's trust account promptly, regardless of amount.

Question 139: If a HUD complaint is filed in Wisconsin, it may be referred to the state agency because Wisconsin's law is considered:

Substantially equivalent to federal law (Correct answer)
Purely voluntary
Weaker than federal law
Unenforceable

Correct answer: Substantially equivalent to federal law

Wisconsin is a substantially equivalent jurisdiction, so HUD can refer complaints to the state.

Question 140: What is the statute of limitations for adverse possession claims in Wisconsin?

20 years (Correct answer)
5 years
10 years
30 years

Correct answer: 20 years

Wisconsin requires continuous, open, notorious, hostile, and exclusive possession for 20 years to establish an adverse possession claim.

Wisconsin Real Estate License Exam

The Wisconsin Real Estate License Exam exam validates essential knowledge and skills required for certification or licensure in this field.

140

Questions

150 min

Time Limit

75%

To Pass

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Exam Rules

You can skip questions and return to them later
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No feedback shown until you submit the entire exam
Unanswered questions count as wrong — answer everything
10 pretest questions are mixed in and don't affect your score
Timer auto-submits when time runs out
Your progress is auto-saved every 30 seconds

These practice questions were written with AI tools. They are not real exam questions. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

dsps.wi.gov — Renewal, fees, time limit, score validity · verified Oct 2026
home.pearsonvue.com — Test delivery, fees, exam format, passing score, retake fee, retake policy, score release, time limit · verified Oct 2026