Wisconsin Real Estate License Agency Law and Relationships Questions and Answers Flashcards

Under Wisconsin law, what is the primary duty a broker owes to the party they represent in a transaction?

Answer: Loyalty and confidentiality

A broker's fiduciary duties to their client include loyalty, confidentiality, disclosure, obedience, accounting, and reasonable care.

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

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.

Which type of agency relationship allows a Wisconsin broker to represent both the buyer and seller in the same transaction?

Answer: Dual agency

Dual agency occurs when one broker represents both parties, which is permitted in Wisconsin with informed written consent from both parties.

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

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.

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

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.

Under Wisconsin's agency law, which action would constitute a breach of a licensee's duty of confidentiality?

Answer: Revealing the seller's minimum acceptable price to a buyer without permission

Revealing a client's negotiation position, such as their bottom-line price, without authorization is a direct breach of the duty of confidentiality.