WRA EXAM 2024 WITH COMPLETE SOLUTIONS.

WRA EXAM 2024 WITH COMPLETE SOLUTIONS. The WB-11 Residential Offer to Purchase describes which of the following as the way an earnest money payment should be handled as a result of a sale involving cooperating firms? - ANSWER The selling licensee should have all earnest money checks paid directly to the listing firm... Explanation: The Earnest Money section of the offer states: "Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker." An appraisal would most likely be used in all of the following transactions or situations EXCEPT: - ANSWER subletting an apartment unit.... Value does not need to be established in order to sublet an apartment unit. A buyer has an inspection contingency in the offer to purchase that does not give the seller the right to cure. The home inspector finds a defect during the inspection. The buyer would like the seller to repair the defect according to the buyer's specifications. If the seller does not want to repair the defect as specified by the buyer then the buyer is no longer interested in purchasing the property. How would you accomplish this for the buyer? - ANSWER Deliver an amendment to the seller specifying the repairs that must be made and if the seller does not agree then deliver a notice of defects. ...Explanation: Because the seller does not have the right to cure, delivering a notice of defects will terminate the offer. The buyer should first try and negotiate the repairs by amending the offer. If the seller does not agree to the amendment, then issuing the notice will terminate the offer. Which of the following would violate advertising rules for real estate licensees? - ANSWER Advertising a property that has already been sold. ...Explanation: Wis. Admin. Code § REEB 24.04(1) states, "Licensees shall not advertise in a manner which is false, deceptive, or misleading." At closing, the seller needs to give a credit to the buyer for property taxes. Last year's taxes were $3,700 and there are 242 days from the first of the year through the day of closing. How much will the buyer's tax credit be? - ANSWER $2,443.02... Explanation: $3,700 / 365 day year = $10.1370 daily proration. $10.1370 x 241 days between January 1 and the day prior to closing = $2,443.02. The right of a governmental body to take ownership of real estate for public use is called: - ANSWER eminent domain...Explanation: Eminent domain is one form of police power and is the power of a governmental body to take ownership of real estate for a public use. Rental property is sold to a new owner. Tenants remain under a written lease. The new owner wants to raise the rent. When can the new owner raise the rent? - ANSWER When the lease with the current tenants expires Explanation: Unless the terms of the tenants' current lease permit an increase in rent, the new owner must wait until the lease expires and execute a new lease at the desired rent. Which of the following activities can an unlicensed personal assistant do? - ANSWER Schedule WRA EXAM 2024 WITH COMPLETE SOLUTIONS. appointments. Explanation: An unlicensed personal assistant cannot do any activities that would require a real estate license such as showings, open houses, or completing forms. An unlicensed assistant can complete activities that do not require a license such as scheduling appointments. A city zoning board changes the zoning for a single parcel of property to meet a public need. This would be called: - ANSWER spot zoning...Explanation:Spot zoning occurs when a single parcel of land rezoned. A variance allows a parcel to violate permanently a zoning law. Downzoning changes the use of all the properties within a zoning district. A licensee is listing a 4-bedroom, two-story house. Which of the following would be the most suitable comparable property? - ANSWER A 3-bedroom, two-story house that was recently sold in the same neighborhood as the listed property. Explanation: A comparable property is a similar property currently being sold. The maximum value of a property tends to be established by value of similar properties that have recently sold. A foreclosed property does not provide a good comparison because it is not an arm's length sale. Evelyn and her boyfriend, Noah, are getting married, and are looking to purchase a new home. They have asked you as their real estate licensee for advice on how to take title. What advice can you give them regarding on how they should take title? - ANSWER Suggest they speak to an attorney. Explanation: Real estate licensees cannot give legal advice such as how to take title. Which of the following is the way that title appears on public records? - ANSWER Record....Explanation: Record title is the way that the title appears on public records. Omar lists his house with Brandon. Nancy goes to Brandon's open house and decides she wants to make an offer on the house. Nancy does not have an agency agreement with Brandon and she asks Brandon to write the offer. Which of the following CORRECTLY identifies the relationship between Brandon and Nancy? - ANSWER Nancy is Brandon's customer...Explanation: Brandon has a listing contract with Omar. Nancy does not sign a buyer agency agreement with Brandon. Brandon provides brokerage services to Nancy as a customer. Question 14 - ANSWER A licensee is purchasing a home. When completing the offer to purchase how should they handle the agency information on line 1? - ANSWER All of the agency information should be stricken because the licensee is acting as a principal not an agent. Explanation: A licensee cannot act as a principal and an agent at the same time. Therefore, the agency information found at line one of the Residential Offer to Purchase should be stricken completely. A condominium owner has to pay a condominium fee each month. The condominium fee is calculated on an annual basis and then is paid monthly in equal installments. The fee paid is 1% of the assessed value of the unit, which is $240,000. The fee is due on the first of every month. How much would the owner of the condominium have paid in condominium fees as of June 1? - ANSWER $1,200...Explanation: $240,000 assessed value x .01 = $2,400. $2,400 / 12 months = $200 monthly fee. $200 x 6 = $1,200 paid in condominium fees through June 1. A listing contract must include all of the following EXCEPT: - ANSWER the signature of the seller...Explanation: Wis. Stat. § 240.10(1): Every contract to pay a commission to a real estate agent or broker or to any other person for selling or buying real estate shall be void unless such contract or note or memorandum thereof describes that real estate; expresses the price for which the same may be sold or purchased, the commission to be paid and the periods during which the agent or broker shall procure a buyer or seller; is in writing; and is subscribed by the person agreeing to pay such commission, except that a contract to pay a commission to a person for locating a type of property need not describe the property. A buyer hires a firm to locate a specific type of property for a buyer. The buyer's licensee, upon finding the property, does not make the buyer aware of it and purchases it for himself. What duty to the buyer did the licensee violate? - ANSWER Loyalty...Explanation: The duty of loyalty requires an agent to put the interests of the client ahead of everyone else. Purchasing a property without telling a client about it first violates the duty of loyalty. Betty and Sam were in negotiations regarding property 789 Pear Street. Betty made an offer to purchase including earnest money of $5,000. Sam rejected Betty's offer. Who receives the disbursement of the $5,000 earnest money? - ANSWER Betty receives $5,000...Explanation: Lines 376-378 of the Offer to Purchase - Disbursement states, "If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from payer's depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. If a seller nets $140,000 on their home after paying the listing firm an 8% commission, what was the sales price of the home? - ANSWER $152,173.91..Explanation: $140,000 / .92 = $152,173.91 sales price Zoning laws may NOT be used to regulate which of the following? - ANSWER The placement of interior partitions...Explanation: The placement of interior partitions does not affect public safety. The purpose of zoning is to protect public safety and welfare. According to the WB-1 Residential Listing Contract, which of the following parties is responsible to prepare the property to minimize the likelihood of injury? - ANSWER The seller...Explanation: Lines 253-258 of the WB-1 Residential Listing Contract. Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an "individual showing" or an "open house." Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold the Firm and its agents harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during "individual showings" or "open houses" other than those caused by the negligence or intentional wrongdoing of the Firm or its agents. What event would NOT terminate a listing contract? - ANSWER A sales contract failed to close...Explanation: A listing contract can be terminated by: death or incapacity of the principals, destruction or condemnation of the property by eminent domain, expiration of the term, mutual agreement, breach, operation of law, or completion. Bankruptcy and foreclosure are examples of operation of law. The seller has the power to cancel the listing contract at any time. A sales contract that fails to close would not have any effect on the listing contract. A borrower is obtaining an adjustable rate loan where the initial rate is fixed for three years. After the initial period, the loan will adjust every six months. What is the borrower's initial principal and interest payment is based upon? - ANSWER The interest rate at which the ARM is originated...Explanation: When calculating a principal and interest payment for an adjustable rate loan, one would use the interest rate at which the loan is originated. When trying to determine if an advertisement violates the Fair Housing Act, what test(s) is applied? - ANSWER Ordinary Reader Test...Explanation: In determining if an advertisement violates fair housing, the ordinary reader test is applied. Essentially, if the add appears to prefer or "dis-prefer" individuals because of their membership in a protected class, it might be discriminatory. What type of loan program requires the borrower to pay 20% of the purchase price or to obtain private mortgage insurance to cover the difference? - ANSWER Conventional loan...Explanation: A conventional loan requires the borrower to invest 20% of the purchase price towards a down payment in order to receive financing. Lenders will originate loans to borrowers with a lower down payment if the borrower purchases PMI. The Distribution of Information section of the WB-11 Residential Offer to Purchase states that: - ANSWER the listing firm may deliver a copy of the offer to the title company...Explanation: Lines 272-277 state, "Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's lender, appraisers, title insurance companies and any other settlement service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide active listing, pending sales, closed sale and financing concession information and data and related information regarding seller contributions, incentives or assistance, and third party gifts, to appraisers researching comparable sales, market conditions and listings, upon inquiry.