Wisconsin Real Estate License Ethics & Professional Practices 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 Wisconsin Real Estate License Ethics & Professional Practices flashcards as text
Under Wisconsin law, what is the maximum period a broker may retain a buyer's earnest money deposit in their trust account after a transaction fails to close before returning it?
Answer: Until both parties provide written instructions
Wisconsin law requires the broker to hold earnest money until receiving mutual written instructions from both parties or a court order directing disbursement.
A Wisconsin real estate licensee discovers that a property they listed has a known defect that the seller refused to disclose. What is the licensee's legal obligation?
Answer: Disclose the defect to prospective buyers regardless of the seller's wishes
Wisconsin's Real Estate Condition Report requirements and licensee duties mandate disclosure of known material defects to buyers, even if the seller objects.
Which of the following actions would constitute commingling under Wisconsin real estate law?
Answer: Keeping personal funds in the brokerage trust account beyond the allowed minimum
Commingling occurs when a broker mixes personal funds with client trust funds beyond the nominal amount permitted to cover bank fees.
A Wisconsin licensee receives a gift valued at $150 from a mortgage lender for referring clients. Under RESPA and Wisconsin ethics rules, this is considered:
Answer: A violation of anti-kickback provisions
RESPA prohibits giving or accepting anything of value for referrals of settlement service business, making this a violation regardless of disclosure.
In Wisconsin, a licensee acting as a dual agent must do all of the following EXCEPT:
Answer: Negotiate the best possible price for the buyer
A dual agent cannot advocate for the best price for one party since that would inherently disadvantage the other party in the transaction.
What is the primary purpose of the Wisconsin DSPS continuing education requirement for real estate licensees?
Answer: To ensure licensees stay current on laws, ethics, and industry practices
Continuing education ensures that licensees maintain current knowledge of evolving laws, ethical standards, and best practices to protect consumers.