Agency Law and Disclosures Flashcards
7 cards from real Wisconsin Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency Law and Disclosures flashcards as text
Under Wisconsin law, when does an agency relationship between a broker and a client typically begin?
Answer: When a written agency agreement is signed
Wisconsin requires a written agency agreement to establish the client relationship and its accompanying duties.
A Wisconsin licensee who works with a buyer but has no written agency agreement owes that buyer duties as a:
Answer: Customer
Without a written agency agreement the person is a customer, owed only the statutory broker duties, not full client-level fiduciary duties.
Which document must a Wisconsin firm provide describing the types of agency relationships available?
Answer: The Broker Disclosure to Customers
The Broker Disclosure to Customers explains the duties a firm provides and the agency options available.
In Wisconsin, a subagent relationship arises when:
Answer: One firm authorizes another firm to act on behalf of its client
Subagency occurs when a client's firm delegates authority to another cooperating firm to work on the client's behalf.
When a Wisconsin broker represents both the buyer and seller in the same transaction, this is known as:
Answer: Multiple representation
Wisconsin refers to representing both parties in one transaction as multiple representation, which requires written consent.
A key duty a Wisconsin licensee owes to ALL parties, clients and customers alike, is to:
Answer: Disclose material adverse facts they know
Licensees must disclose material adverse facts to all parties regardless of who they represent.
If a Wisconsin licensee's client instructs them to conceal a known structural defect, the licensee must:
Answer: Refuse and disclose the material adverse fact
The duty to disclose material adverse facts overrides a client instruction to conceal them.