Transactions & Contracts 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 Transactions & Contracts flashcards as text
In Wisconsin, which offer-to-purchase provision automatically makes an accepted offer contingent on the buyer securing a mortgage?
Answer: The financing contingency in the WB-11 Residential Offer to Purchase
The WB-11 Residential Offer to Purchase includes a financing contingency that conditions the sale on the buyer obtaining loan approval.
Under Wisconsin law, when does an offer to purchase become a binding contract?
Answer: When the seller signs an unconditional acceptance and it is communicated to the buyer
A binding contract forms upon the seller's written acceptance of the exact terms, communicated back to the buyer.
A Wisconsin buyer wants to keep the right to back out if a home inspection reveals defects. Which provision protects this?
Answer: An inspection contingency
An inspection contingency lets the buyer cancel or renegotiate based on the results of a professional home inspection.
What is the primary purpose of earnest money in a Wisconsin real estate transaction?
Answer: To show the buyer's good-faith commitment to the purchase
Earnest money demonstrates the buyer's serious intent and is typically credited toward the purchase at closing.
In Wisconsin, a counter-offer by the seller has what legal effect on the buyer's original offer?
Answer: It rejects the original offer and creates a new offer
A counter-offer terminates the original offer and constitutes a new offer that the other party may accept or reject.
Which Wisconsin document must a seller of residential property with 1-4 dwelling units generally provide to a buyer?
Answer: The Real Estate Condition Report
Wisconsin law requires most sellers of 1-4 unit residential property to furnish a Real Estate Condition Report disclosing known defects.
If a Wisconsin offer to purchase specifies 'time is of the essence,' what does that mean?
Answer: Deadlines in the contract must be strictly met or a party may be in breach
A 'time is of the essence' clause makes stated deadlines strictly enforceable, so missing one can constitute a breach.