Wisconsin Real Estate License Agency Law and Relationships 2 — Questions and Answers
Question 1: In Wisconsin, when does an agency relationship between a broker and a consumer typically begin?
- When a written listing or buyer agency agreement is signed (Correct answer)
- When the consumer first walks into the office
- When the consumer views a property
- When a purchase offer is accepted
Correct answer: When a written listing or buyer agency agreement is signed
An agency relationship in Wisconsin is created when the parties sign a written agreement authorizing the firm to act on the client's behalf.
Question 2: Under Wisconsin law, what duty requires a licensee to keep a client's confidential information private even after the transaction ends?
- Confidentiality (Correct answer)
- Disclosure
- Accounting
- Obedience
Correct answer: Confidentiality
The duty of confidentiality obligates a licensee to protect a client's confidential information indefinitely, including after closing.
Question 3: A Wisconsin firm representing both the buyer and seller in the same transaction is engaging in what practice?
- Multiple representation (dual agency) (Correct answer)
- Subagency
- Designated agency
- Single agency
Correct answer: Multiple representation (dual agency)
When one firm represents both parties in a transaction it is providing multiple representation, which requires written consent.
Question 4: What written document must a Wisconsin broker provide describing the different agency relationships available to consumers?
- Disclosure to Customers / agency disclosure statement (Correct answer)
- Real Estate Condition Report
- Closing Disclosure
- Offer to Purchase
Correct answer: Disclosure to Customers / agency disclosure statement
Wisconsin requires licensees to provide consumers with a disclosure explaining the agency relationships the firm offers.
Question 5: In Wisconsin, a licensee working with a buyer who has NOT signed a buyer agency agreement generally treats that buyer as a:
- Customer (Correct answer)
- Client
- Principal
- Fiduciary
Correct answer: Customer
Without a written agency agreement, the buyer is a customer to whom the licensee owes fair and honest dealing but not full client-level duties.
Question 6: Which duty requires a Wisconsin licensee to promptly account for money and property belonging to the client?
- Accounting (Correct answer)
- Loyalty
- Confidentiality
- Reasonable skill and care
Correct answer: Accounting
The duty of accounting requires prompt and accurate handling of client funds and property, including trust account deposits.
Question 7: A Wisconsin broker who follows a client's lawful instructions even when the broker disagrees is fulfilling which duty?
- Obedience (Correct answer)
- Disclosure
- Confidentiality
- Accounting
Correct answer: Obedience
The duty of obedience requires a licensee to follow the client's lawful and reasonable instructions.
Wisconsin Real Estate License Agency Law and Relationships 2
In Wisconsin, when does an agency relationship between a broker and a consumer typically begin?