Contracts and Approved Forms Flashcards
6 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 6 Contracts and Approved Forms flashcards as text
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?
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.
A buyer submits a WB-11 Residential Offer to Purchase to a seller. The seller wishes to change the closing date and the amount of earnest money. Which of the following is the appropriate Wisconsin-approved form for the seller to use to propose these changes to the buyer?
Answer: WB-44 Counter-Offer
A WB-44 Counter-Offer is used during negotiations before an offer has been accepted to propose changes to the original offer. It essentially rejects the original offer and presents a new offer with the desired changes. A WB-40 Amendment is used to change terms on an *already accepted* offer.
According to the standard language in the WB-1 Residential Listing Contract - Exclusive Right to Sell, which of the following statements about the termination of the contract is TRUE?
Answer: Neither the seller nor the firm has the legal right to unilaterally terminate the listing absent a material breach by the other party.
The WB-1 listing contract explicitly states that neither the seller nor the brokerage firm can unilaterally terminate the contract before its expiration date unless the other party has committed a material breach. While a seller has the power to terminate, doing so without cause may constitute a breach of contract, making them potentially liable for damages.
In a Wisconsin real estate transaction using the WB-11 Residential Offer to Purchase, what is the definition of 'Binding Acceptance'?
Answer: When the accepted offer is delivered back to the party who made the offer according to the delivery terms specified.
Binding Acceptance occurs not just when the offer is signed, but when the signed, accepted offer is delivered back to the other party (or their agent) in a manner specified in the contract. This is a critical step that creates the binding contract. Until delivery occurs, the party who made the offer can typically withdraw it.
A licensee is using a WB-44 Counter-Offer. The seller's first counter-offer (Counter-Offer #1) is rejected by the buyer, who then submits their own counter-offer. How should the buyer's counter-offer be numbered?
Answer: Counter-Offer #2
Counter-offers in a Wisconsin transaction should be numbered sequentially, regardless of which party is making the counter. If the seller makes the first one, it is #1. The buyer's response would then be Counter-Offer #2.
A buyer includes an inspection contingency in their WB-11 Residential Offer to Purchase. The inspection report reveals a 'Defect' as defined in the offer. The buyer wants to ask the seller to make repairs. What is the buyer's next step according to the standard contingency language?
Answer: Provide the seller with a WB-40 Amendment to Offer to Purchase proposing the repairs.
While a buyer has the right to provide a Notice of Defects which can terminate the offer, if the goal is to negotiate repairs, the proper procedure is to propose a WB-40 Amendment to the seller. The WB-11 explicitly states that a proposed amendment is NOT a Notice of Defects. The parties must mutually agree to the amendment to change the terms of the accepted offer.