Wisconsin Real Estate License Agency Law and Disclosures 2

Question 1

Under Wisconsin law, when does an agency relationship between a broker and a client typically begin?

Accepted Answer

When a written agency agreement is signed

Answer

Wisconsin requires a written agency agreement to establish the client relationship and its accompanying duties.

Question 2

A Wisconsin licensee who works with a buyer but has no written agency agreement owes that buyer duties as a:

Accepted Answer

Customer

Answer

Without a written agency agreement the person is a customer, owed only the statutory broker duties, not full client-level fiduciary duties.

Question 3

Which document must a Wisconsin firm provide describing the types of agency relationships available?

Accepted Answer

The Broker Disclosure to Customers

Answer

The Broker Disclosure to Customers explains the duties a firm provides and the agency options available.

Question 4

In Wisconsin, a subagent relationship arises when:

Accepted Answer

One firm authorizes another firm to act on behalf of its client

Answer

Subagency occurs when a client's firm delegates authority to another cooperating firm to work on the client's behalf.

Question 5

When a Wisconsin broker represents both the buyer and seller in the same transaction, this is known as:

Accepted Answer

Multiple representation

Answer

Wisconsin refers to representing both parties in one transaction as multiple representation, which requires written consent.

Wisconsin Real Estate License Practice Test