WI Real Estate Final UPDATED Exam
Questions and CORRECT Answers
Salespeople can use which of the following forms: - Correct Answer- a form prepared and
approved by the Department
Which of the following statements is true of property held in joint tenancy? - Correct
Answer- If a joint tenant dies, the surviving tenant or tenants receive the interest of the
deceased joint tenant
When presenting an offer to a For Sale by Owner (FSBO), a buyer's licensee will present
what form to the seller? - Correct Answer- Disclosure to Customers
Which of the following is NOT typically considered client funds? - Correct Answer- Security
deposits collected by a property owner
How can a seller terminate a listing contract? - Correct Answer- In writing, delivered
according to the terms of the listing contract
If a seller does not accept an offer that included earnest money, the listing firm MUST: -
Correct Answer- promptly disburse the money to the person(s) who paid the money
Which type of loan does the federal government guarantee? - Correct Answer- Department of
Veterans Affairs (VA) loan
What is the legal effect of a counter-offer? - Correct Answer- Rejection of the offer and
presentation of a new offer
When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a
claim of: - Correct Answer- misrepresentation
The Distribution of Information section of the WB-11 Residential Offer to Purchase states
that: - Correct Answer- the listing firm may deliver a copy of the offer to the title company
,Which statement best explains why instruments affecting real estate, such as deeds or
easements, are recorded in the register of deeds in the county where the property is located? -
Correct Answer- Recording gives constructive notice to the world of the rights and interests
in a parcel of real estate.
When a depository institution remits the interest earned on a firm's interest-bearing trust
account to the Department they must inform the firm of all the following EXCEPT the: -
Correct Answer-
interest earned on account - Correct Answer-
When marketing properties, a licensee's liability for providing information regarding lot lines,
lot sizes, or room dimensions may lead to all of the following EXCEPT: - Correct Answer- a
selling bonus
Wallace lists his house with Kima. Preston goes to Kima's open house and decides he wants
to make an offer on the house. Preston signs a buyer agency agreement with Kima. Kima
drafts the offer to purchase for Preston. Which of the following CORRECTLY identifies the
relationship of Kima to Preston and Wallace? - Correct Answer- Wallace is Kima's client,
Preston is Kima's client
In the WB-1 Residential Listing Contract, who has the authority to accompany a home
inspector during a home inspection? - Correct Answer- the buyer
The WB-11 Residential Offer to Purchase does NOT have any information at lines 38 and 39.
This means that: - Correct Answer- binding acceptance can only occur by delivery to the
Party, not the agent
How must a supervising broker delegate supervision to another broker? - Correct Answer- In
a written statement signed by both brokers
When purchasing a condominium the buyer has the right to a copy of the condominium
declaration bylaws within how many days prior to closing? - Correct Answer- 15
, An offer is written and subsequently rejected. The buyer gave earnest money with the offer.
What would be the proper procedure to return the earnest money? - Correct Answer- can be
returned to the buyer
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? - Correct Answer- The interest rate at which the
ARM is originated
Jimmy and Sara, a married couple, are selling their primary residence. Both Jimmy and Sara
must sign all of the following EXCEPT: - Correct Answer- the listing contract
A selling agent has given the buyer information on the real estate market and suggested a
purchase price for the buyer's offer. The selling agent has likely created what type of agency
with the buyer? - Correct Answer- implied
Most commonly, price-fixing is a violation of: - Correct Answer- anti trust
Which of the following transactions must include a real estate condition report? - Correct
Answer- A seller selling a duplex that the seller has never lived in
A seller counters a buyer's offer. The buyer rejects the seller's counter and the original period
for binding acceptance has not expired. The seller accepts and delivers the original offer to
the buyer. At this point: - Correct Answer- a sales contract does not exist
At what point in the real estate transaction does a buyer receive equitable title? - Correct
Answer- When all contingencies have been removed
Which of the following is NOT viewed as an encumbrance that must be disclosed to a buyer?
- Correct Answer- Back taxes that the seller will be paying off at closing
If the buyer would like the buyer's firm to be paid by the seller, the buyer: - Correct Answer-
must authorize the payment of commission from seller to buyer's firm in the buyer agency
agreement
Questions and CORRECT Answers
Salespeople can use which of the following forms: - Correct Answer- a form prepared and
approved by the Department
Which of the following statements is true of property held in joint tenancy? - Correct
Answer- If a joint tenant dies, the surviving tenant or tenants receive the interest of the
deceased joint tenant
When presenting an offer to a For Sale by Owner (FSBO), a buyer's licensee will present
what form to the seller? - Correct Answer- Disclosure to Customers
Which of the following is NOT typically considered client funds? - Correct Answer- Security
deposits collected by a property owner
How can a seller terminate a listing contract? - Correct Answer- In writing, delivered
according to the terms of the listing contract
If a seller does not accept an offer that included earnest money, the listing firm MUST: -
Correct Answer- promptly disburse the money to the person(s) who paid the money
Which type of loan does the federal government guarantee? - Correct Answer- Department of
Veterans Affairs (VA) loan
What is the legal effect of a counter-offer? - Correct Answer- Rejection of the offer and
presentation of a new offer
When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a
claim of: - Correct Answer- misrepresentation
The Distribution of Information section of the WB-11 Residential Offer to Purchase states
that: - Correct Answer- the listing firm may deliver a copy of the offer to the title company
,Which statement best explains why instruments affecting real estate, such as deeds or
easements, are recorded in the register of deeds in the county where the property is located? -
Correct Answer- Recording gives constructive notice to the world of the rights and interests
in a parcel of real estate.
When a depository institution remits the interest earned on a firm's interest-bearing trust
account to the Department they must inform the firm of all the following EXCEPT the: -
Correct Answer-
interest earned on account - Correct Answer-
When marketing properties, a licensee's liability for providing information regarding lot lines,
lot sizes, or room dimensions may lead to all of the following EXCEPT: - Correct Answer- a
selling bonus
Wallace lists his house with Kima. Preston goes to Kima's open house and decides he wants
to make an offer on the house. Preston signs a buyer agency agreement with Kima. Kima
drafts the offer to purchase for Preston. Which of the following CORRECTLY identifies the
relationship of Kima to Preston and Wallace? - Correct Answer- Wallace is Kima's client,
Preston is Kima's client
In the WB-1 Residential Listing Contract, who has the authority to accompany a home
inspector during a home inspection? - Correct Answer- the buyer
The WB-11 Residential Offer to Purchase does NOT have any information at lines 38 and 39.
This means that: - Correct Answer- binding acceptance can only occur by delivery to the
Party, not the agent
How must a supervising broker delegate supervision to another broker? - Correct Answer- In
a written statement signed by both brokers
When purchasing a condominium the buyer has the right to a copy of the condominium
declaration bylaws within how many days prior to closing? - Correct Answer- 15
, An offer is written and subsequently rejected. The buyer gave earnest money with the offer.
What would be the proper procedure to return the earnest money? - Correct Answer- can be
returned to the buyer
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? - Correct Answer- The interest rate at which the
ARM is originated
Jimmy and Sara, a married couple, are selling their primary residence. Both Jimmy and Sara
must sign all of the following EXCEPT: - Correct Answer- the listing contract
A selling agent has given the buyer information on the real estate market and suggested a
purchase price for the buyer's offer. The selling agent has likely created what type of agency
with the buyer? - Correct Answer- implied
Most commonly, price-fixing is a violation of: - Correct Answer- anti trust
Which of the following transactions must include a real estate condition report? - Correct
Answer- A seller selling a duplex that the seller has never lived in
A seller counters a buyer's offer. The buyer rejects the seller's counter and the original period
for binding acceptance has not expired. The seller accepts and delivers the original offer to
the buyer. At this point: - Correct Answer- a sales contract does not exist
At what point in the real estate transaction does a buyer receive equitable title? - Correct
Answer- When all contingencies have been removed
Which of the following is NOT viewed as an encumbrance that must be disclosed to a buyer?
- Correct Answer- Back taxes that the seller will be paying off at closing
If the buyer would like the buyer's firm to be paid by the seller, the buyer: - Correct Answer-
must authorize the payment of commission from seller to buyer's firm in the buyer agency
agreement
