Wisconsin Real Estate License Property Laws & Regulations 4

Question 1

In Wisconsin, the most common instrument used to finance a home purchase and secure the loan against the property is a:

Accepted Answer

Mortgage

Answer

A mortgage creates a lien on the property as security for repayment of the loan in Wisconsin.

Question 2

Wisconsin follows which theory regarding mortgages, meaning the borrower retains title while the lender holds a lien?

Accepted Answer

Lien theory

Answer

Wisconsin is a lien theory state, so the borrower keeps title and the lender holds only a lien until the debt is paid.

Question 3

In a Wisconsin land contract, when does the buyer typically receive legal title to the property?

Accepted Answer

After making the final payment

Answer

Under a land contract, the seller retains legal title until the buyer completes all payments, at which point title transfers.

Question 4

Which type of lien in Wisconsin can a contractor file against a property for unpaid labor or materials?

Accepted Answer

Construction (mechanic's) lien

Answer

Wisconsin's construction lien law lets contractors and suppliers place a lien on property for unpaid work or materials.

Question 5

In Wisconsin, unpaid property taxes create what kind of lien priority?

Accepted Answer

A lien superior to most other liens

Answer

Property tax liens generally take priority over most other liens, including mortgages, in Wisconsin.

Wisconsin Real Estate License Practice Test