Wisconsin Real Estate License Transactions & Contracts 2

Question 1

In Wisconsin, which offer-to-purchase provision automatically makes an accepted offer contingent on the buyer securing a mortgage?

Accepted Answer

The financing contingency in the WB-11 Residential Offer to Purchase

Answer

The WB-11 Residential Offer to Purchase includes a financing contingency that conditions the sale on the buyer obtaining loan approval.

Question 2

Under Wisconsin law, when does an offer to purchase become a binding contract?

Accepted Answer

When the seller signs an unconditional acceptance and it is communicated to the buyer

Answer

A binding contract forms upon the seller's written acceptance of the exact terms, communicated back to the buyer.

Question 3

A Wisconsin buyer wants to keep the right to back out if a home inspection reveals defects. Which provision protects this?

Accepted Answer

An inspection contingency

Answer

An inspection contingency lets the buyer cancel or renegotiate based on the results of a professional home inspection.

Question 4

What is the primary purpose of earnest money in a Wisconsin real estate transaction?

Accepted Answer

To show the buyer's good-faith commitment to the purchase

Answer

Earnest money demonstrates the buyer's serious intent and is typically credited toward the purchase at closing.

Question 5

In Wisconsin, a counter-offer by the seller has what legal effect on the buyer's original offer?

Accepted Answer

It rejects the original offer and creates a new offer

Answer

A counter-offer terminates the original offer and constitutes a new offer that the other party may accept or reject.

Wisconsin Real Estate License Practice Test