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
During a Wisconsin closing, what document itemizes the final costs and credits for buyer and seller in a financed residential deal?
Answer: The Closing Disclosure
The Closing Disclosure itemizes final loan terms, closing costs, and credits for federally regulated residential mortgage transactions.
In Wisconsin, prorations at closing (such as property taxes) are used to accomplish what?
Answer: Fairly divide ongoing expenses between buyer and seller as of the closing date
Prorations allocate recurring costs like taxes so each party pays only for the period they own the property.
If a Wisconsin buyer defaults after an accepted offer, what remedy is commonly available to the seller under the offer to purchase?
Answer: Retaining the earnest money as liquidated damages or pursuing other stated remedies
Wisconsin offers commonly allow the seller to keep earnest money as liquidated damages or elect other remedies specified in the contract.
What is the role of a title insurance policy in a Wisconsin transaction?
Answer: To protect the insured against losses from covered title defects
Title insurance protects the buyer and/or lender against financial loss from covered defects in title.
A Wisconsin contingency in an offer that requires the buyer to sell their current home is called what?
Answer: A closing/sale-of-buyer's-property contingency
A sale-of-buyer's-property (home-sale) contingency conditions the purchase on the buyer successfully selling their existing home.
Under Wisconsin law, when may a buyer typically withdraw an offer to purchase?
Answer: Any time before the seller's acceptance is communicated to the buyer
An offer may be revoked any time before the offeror receives communication of the seller's acceptance.
What is 'specific performance' as a remedy in a Wisconsin real estate contract dispute?
Answer: A court order compelling a party to complete the sale as agreed
Specific performance is an equitable remedy that forces a breaching party to carry out the contract because real estate is unique.