Wisconsin Real Estate License Transactions & Contracts 3 — Questions and Answers
Question 1: In Wisconsin, which type of listing agreement gives one broker the exclusive right to earn a commission even if the owner finds the buyer?
- Exclusive right-to-sell listing (Correct answer)
- Open listing
- Net listing
- Exclusive agency listing
Correct answer: Exclusive right-to-sell listing
An exclusive right-to-sell listing entitles the broker to a commission regardless of who procures the buyer during the term.
Question 2: Net listings are treated how under Wisconsin real estate practice?
- They are discouraged/prohibited due to conflict-of-interest risk (Correct answer)
- They are the required default listing type
- They must always be verbal
- They eliminate the need for a written agreement
Correct answer: They are discouraged/prohibited due to conflict-of-interest risk
Net listings create a conflict of interest and are prohibited or strongly discouraged because the broker's pay depends on price above a set net to the seller.
Question 3: Under Wisconsin law, a listing contract for real estate must be in what form to be enforceable for a commission?
- In writing and signed by the seller (Correct answer)
- Verbal with two witnesses
- Recorded at the register of deeds
- Notarized only
Correct answer: In writing and signed by the seller
To collect a commission, the listing agreement must be in writing and signed by the party to be charged.
Question 4: What generally happens to a Wisconsin listing agreement if the property owner dies before the listing term ends?
- The listing is typically terminated (Correct answer)
- The commission automatically doubles
- The broker becomes the owner
- The listing transfers to the buyer
Correct answer: The listing is typically terminated
Death of the principal is one of the events that generally terminates an agency/listing agreement.
Question 5: A Wisconsin broker representing the seller owes the seller which core duty regarding offers received?
- Promptly present all written offers (Correct answer)
- Present only the highest offer
- Present offers only from pre-approved buyers
- Withhold lowball offers
Correct answer: Promptly present all written offers
A broker must promptly present all written offers to the client unless instructed otherwise in writing.
Question 6: In Wisconsin, when may a firm act as a multiple representation (both buyer and seller) firm in one transaction?
- With written disclosure and consent of both parties (Correct answer)
- Never under any circumstance
- Only if the buyer waives inspection
- Automatically without disclosure
Correct answer: With written disclosure and consent of both parties
A firm may work with both parties only after providing required disclosure and obtaining the parties' consent.
Question 7: What is a protection (or override) period in a Wisconsin listing contract?
- A period after expiration when the broker may still earn a commission from a protected buyer (Correct answer)
- A grace period to lower the price
- A window to cancel the offer to purchase
- A time to redeem a foreclosed property
Correct answer: A period after expiration when the broker may still earn a commission from a protected buyer
The protection period lets the broker collect a commission if a buyer they introduced during the listing purchases shortly after expiration.
Wisconsin Real Estate License Transactions & Contracts 3
In Wisconsin, which type of listing agreement gives one broker the exclusive right to earn a commission even if the owner finds the buyer?