Wisconsin Real Estate License Ethics & Professional Practices 2

Question 1

A Wisconsin broker discovers a material defect in a listed property after the listing is signed. What is required?

Accepted Answer

Disclose it to prospective buyers regardless of who asks

Answer

Wisconsin licensees must disclose known material adverse facts to all parties in the transaction.

Question 2

Under Wisconsin license law, when must an agency disclosure be provided to a customer?

Accepted Answer

At the first substantive contact with a customer

Answer

Agency disclosure must be made at the licensee's first substantive contact with a customer.

Question 3

A Wisconsin licensee represents both buyer and seller in the same transaction. This arrangement requires:

Accepted Answer

Written consent from both parties for multiple representation

Answer

Multiple representation in Wisconsin requires the written consent of all parties involved.

Question 4

What must a Wisconsin broker do with earnest money received from a buyer?

Accepted Answer

Hold it in the broker's trust account by the required deadline

Answer

Earnest money must be placed in the broker's trust account within the timeframe set by law.

Question 5

A licensee is asked to draft a complex addendum outside standard approved forms. The ethical action is to:

Accepted Answer

Advise the client to consult an attorney for legal drafting

Answer

Drafting original legal language is the practice of law, so licensees should refer clients to an attorney.

Wisconsin Real Estate License Practice Test