Wisconsin out of State Prelicense

ClickCE

Wisconsin Out of State Prelicense

Final Exam D

Presented by:

ClickCE LLC

Your one stop for continuing education and pre-license in the real estate industry

© 2006 – ClickCE LLC and/or its authors

ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher and the copyright holder.

This publication is designed to present, as simply and accurately as possible, general information on the subject.

It should be noted that the information presented is not all-inclusive. Products, programs and guidelines change due to rapid changes in the industry. This publication should not be used as a substitute for referring to appropriate experts and is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other personalized professional service. If legal or other expert assistance is required, the services of a competent professional should be sought.

Wisconsin Out of State Prelicense

Final Exam D

INSTRUCTIONS: Choose the best answer for each question. Fill in the bubble sheet for each answer. The bubble sheet is at the end.

1. A buyer is interested in seeing a house listed with XYZ Realty, but does not wish to enter into an agency relationship, A salesperson from LMN Realty can show the buyer the house if
2. XYZ Realty obtains the seller's written consent to subagency, thus permitting LMN Realty to act as the subagent of XYZ Realty, and the buyer is given a Disclosure of Real Estate Agency form stating that LMN Realty represents the seller.
3. XYZ Realty obtains LMN Realty's consent to subagency, and the buyer is given a Disclosure of Real Estate Agency form stating that XYZ Realty represents the seller.
4. the buyer verbally agrees to buyer agency.
5. This cannot occur.

1. When a seller hires a licensee to list the seller's property, the seller and buyer are respectively
2. principal and agent.
3. agent and principal.
4. client and customer.
5. customer and client.

1. During the marriage of two Wisconsin residents, the husband purchases rental property in his own name. In Wisconsin, the husband
2. is the sole owner and may sell the property without the wife signing the deed.
3. and wife each own one-half of the property and both must sign the deed to sell the property.
4. and wife each own one-half of the property, but the husband alone may sign the deed to sell the property.
5. has violated the law, and must give the wife a quit claim deed for one-half of the property within 30 days of the purchase.

1. The seller's Real Estate Condition Report must be delivered to the buyer
2. within 10 days after acceptance of the contract of sale.
3. at the time that the seller agrees to the offer.
4. at the time of the home inspection.
5. prior to closing.

1. Six months after the buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof. Under these facts the buyer
2. can sue the broker for non-disclosure required by license law.
3. cannot sue the broker under the license law.
4. can sue the seller under license law.
5. cannot do anything because the leaking roof could have been discovered by inspection.

1. A real estate licensee must give the Disclosure of Real Estate Agency form to prospective purchasers/tenants
2. before they are shown any properties.
3. at an open house.
4. at the closing table.
5. before the purchasers/tenants disclose confidential information.

1. A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants. Instead, the licensee receives a commission from the landlords. The licensee tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking. Which of the following statements is true?
2. The licensee owes the statutory agency duties only to the landlords who pay the commission.
3. The licensee's disclosure to the landlord was appropriate under these circumstances.
4. The licensee's disclosure violated the statutory duties owed to the tenant.
5. Because the licensee is not charging a fee to prospective tenants, the licensee has not violated Wisconsin agency law.

1. All of the following are exempt from the Chapter 709 Disclosures by Owners of Residential Real Estate Property law EXCEPT a
2. foreclosure sale.
3. sale by a personal representative who has never lived in the house.
4. conveyance of a primary residence from one former spouse to another under a divorce settlement agreement.
5. sale by a real estate licensee of a four-unit residential property.

1. Under Wisconsin licensing law, a partnership, limited liability company, or corporation will be granted a license only if
2. at least one partner, member, or officer is licensed as a broker.
3. every partner, member, or officer has a broker license.
4. all papers are filed with the Real Estate Board.
5. the brokerage business has registered with the Department of Financial Institutions.

1. In Wisconsin, applications for any real estate license must
2. be completed after taking the written exam.
3. be completed before taking the required hours of study.
4. be made before May 31 of each year.
5. be accompanied by a sworn statement attesting to the applicant's character.

1. In Wisconsin, all of the following are requirements for obtaining a broker's license EXCEPT
2. successfully completing 108 hours of approved real estate courses.
3. being at least 18 years of age.
4. having been actively engaged as a licensed salesperson for at least one year.
5. being of good moral character.

1. A person passed her salesperson's exam on November 1,2000. What is the latest date on which she may apply for a salesperson's license?
2. December 31,2000
3. November 1, 2001
4. December 31,2001
5. November 1, 2002

1. Which of the following is an example of an "administrative act" under the Wisconsin agency law that persons hired as unlicensed personal assistants may perform?
2. Arguing the merits of an offer on behalf of a prospective buyer
3. Helping prospective buyers determine an appropriate price range and geographical location for their home search
4. Responding to general questions about the price and location of a specific property
5. Assisting a buyer through the closing process

1. The broker has developed a Web site advertising the broker's office. What, if anything, does the broker need to include?
2. The name of the broker, or the trade name of the broker, exactly as registered with the Department of Regulation and Licensing, and the fact that the broker is a business and not a private concern
3. The license number of the brokerage and a list of current active licensees
4. The active licensees' names, addresses, and phone numbers
5. There is no need for any disclosures.

1. Wisconsin has reciprocity agreements, permitting out of state licensees to act occasionally in Wisconsin, with
2. no other state.
3. Minnesota and Illinois.
4. Minnesota, Michigan, and Illinois,
5. all of the states that border Wisconsin—Minnesota, Michigan, Illinois, and Iowa.

1. A nonresident license applicant must file which of the following with the Department of Regulation and Licensing?
2. A certificate of specific performance
3. An irrevocable consent to suit
4. A copy of his or her birth certificate
5. A corpus delicti

1. The on-site property manager for Acme Apartments is responsible for showing apartments, but is not permitted to negotiate leases for the apartments. In this position the on-site manager
2. must have a written contract with the owner.
3. must have a broker's license.
4. is exempt from the licensing requirements.
5. must have a salesperson's license.
6. All of the following properties are exempt from paying general real estate taxes EXCEPT
7. churches.
8. federal government buildings.
9. housing owned by a disabled veteran.
10. private schools.

1. Who of the following must hold a real estate license?
2. Property owner who sells his or her own property the first time
3. Individual who receives compensation for procuring prospective buyers or renters of real estate
4. Resident property manager only allowed to show the rental units
5. Resident lessee who receives the equivalent of one month's rent as a "finder's fee" for referring a new tenant to the owner

1. Salesperson J-H placed the following order with the telephone company for yellow page advertising: List my name in the directory under the heading, Real Estate, as "J-H, Real Estate Salesperson, Residential Property My Specialty." J-H is also required to include
2. her license number.
3. the expiration date of her license.
4. her street address.
5. the name of her employing broker.

1. When advertising real property, real estate licensees
2. may state only the licensee' s box number or street address.
3. may simply give a telephone number to call for more information.
4. must indicate that the ads were placed in the name of the licensed real estate broker.
5. must identify the owner of the property.

1. A real estate salesperson decides to sell his or her own property without using a broker. When advertising the property, the salesperson
2. must disclose the name, address, and phone number of his employing broker.
3. must disclose the fact that she or he is a real estate licensee.
4. must disclose his or her license number.
5. is prohibited from selling his or her own home in this manner by license law.

1. In a multiple representation situation, a broker may collect a commission from both the seller and the buyer if
2. the broker holds a state multiple representation license.
3. the buyer and the seller are related by blood or marriage.
4. both parties give their informed written consent to the dual compensation.
5. both parties are represented by attorneys.

1. Listings based on a "net price" are
2. more profitable because no minimum is set on the amount of commission collectible.
3. legal in Wisconsin, as long as the seller agrees.
4. illegal in Wisconsin at any time.
5. permissible with written approval of the Department of Regulation and Licensing and the seller's attorney.

1. The seller told the broker that she wanted to clear $50,000 when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest. Which of the following is correct?
2. The broker should have given the seller a better appraisal of the value of her house.
3. The broker's commission exceeds statutory and Wisconsin REALTORS8 Association guidelines.
4. The broker accepted an illegal net listing.
5. As the seller's agent, the broker had a duty to sell the house for as much as possible, and split any excess of the $50,000 amount equally with the seller.

1. If a broker establishes an account to hold money belonging to others, which of the following is correct?
2. All checks, deposit slips, and bank statements must include the word "Escrow" as part of the account name.
3. Accounts must state the name of the broker as registered with the Department of Regulation and Licensing and must state "Trust Account" in addition to the broker's registered name.
4. The account cannot be in the same bank as the broker's personal checking account.
5. An individual trust account is required for each transaction.

1. A salesperson has engaged in activities that constitute violations of the Wisconsin Fair Housing laws, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective buyer and used the proceeds to buy a new car. The salesperson's employing broker was unaware of all of these activities and had no reason to be aware of them. What is the impact on the salesperson's broker when the salesperson's violations are brought to the attention of the Real Estate Board?
2. The employing broker will not have his or her license revoked as a result of the salesperson's violations.
3. The salesperson's employing broker will be required to pay any fine imposed against the salesperson out of her or his own personal funds.
4. The salesperson's actions are legally the responsibility of the employing broker who will be subject to the same disciplinary action as the salesperson regardless of whether or not he or she knew the violations had occurred.
5. The salesperson's employing broker will be held liable for the Fair Housing violations only.

1. A person who believes that he or she has been illegally discriminated against may file a complaint with the
2. Wisconsin REALTORS® Association.
3. Wisconsin Attorney General.
4. Real Estate Board.
5. the Equal Rights Division of the Wisconsin Department of Workforce Development or HUD.

1. A housing discrimination charge must be filed with the Equal Rights Division of the Wisconsin Department of Workforce Development within
2. 30 days.
3. 6 months.
4. 1 year.
5. 2 years.

1. In Wisconsin, a licensee must be concerned with fair housing laws and regulations made by
2. the United States, the State of Wisconsin, and the local counties, towns, and municipalities where the transactions take place.
3. the United States and State of Wisconsin only.
4. the State of Wisconsin and the local counties, towns, and municipalities where the transactions take place only.
5. the local counties, towns, and municipalities where the transactions take place only.

1. The parties suspect that the septic system of the home is failing, but they aren't sure. The listing broker tells the parties he will hire an expert to investigate the problem. Upon inspection, the expert tells the listing broker that the system needs to be replaced and that it will cost $3,000 to replace the drain field. The listing broker conveys this information to the parties. The parties agree to escrow the $3,000 from the seller's proceeds so the deal may close and the buyer can repair the system. After the deal closes, the buyer discovers that the whole system must be replaced with a mound system at a cost of $10,000. The expert who was hired has died and his estate has no money, assets, or insurance. Who will suffer the $7,000 difference?
2. The listing broker because he hired the expert.
3. The buyer, because he now owns the property and the broker had hired an expert.
4. The seller, even though the expert said it would only cost $3,000, because it was his broker who hired the expert.
5. No one, because every one involved relied upon the erroneous advice of the expert.

1. A listing agent presents an offer to the seller, outlining the pros and cons, and the seller makes a counteroffer. The listing agent presents the offer to the prospective buyer and informs the prospective buyer of the advantages and disadvantages of his client's offer. Has the listing agent violated any duty?
2. No, the listing agent is required to inform the customer of the advantages and disadvantages of the client's counteroffer under both common law and statutory law.
3. No, the listing agent is required to inform the customer of the advantages and disadvantages of the client's counteroffer under statutory law.
4. Yes, the listing agent is required to inform the customer only of the advantages of the client's counteroffer.
5. Yes, the listing agent is required to inform the customer only of the disadvantages of the client's counteroffer.

1. What duties, if any, does a licensee have with respect to inspecting properties?
2. All licensees must reasonably and competently inspect properties to detect observable adverse material facts.
3. Only the listing agent must reasonably and competently inspect properties to detect observable adverse material facts.
4. Only the selling agent must reasonably and competently inspect properties to detect observable adverse material facts.
5. The listing agent must hire an expert to make an inspection of the property to detect observable adverse material facts.

1. A seller is required to give a buyer a Real Estate Condition Report in all of the following transactions EXCEPT
2. when the seller is not assisted by a licensed real estate agent.
3. if the seller has not resided on the property in the last year.
4. a sale of commercial property.
5. if the buyer has lived on the property as a tenant.

1. When making a proper inspection of vacant farm land for sale, the licensee must observe
2. all of the acreage involved in the sale by walking around all of it.
3. all of the tillable acreage by walking around it.
4. all of the tillable acreage by walking around it and obtaining soil maps.
5. the property from at least one point, on or adjacent to the property, if given access to it.

1. The selling agent, when showing the property, did not enter an unlit crawl space over a room.