WRA EXAM QUESTIONS WITH CORRECT
ANSWERS
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? - CORRECT 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: - CORRECT 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? - CORRECT 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? -
| | | | | | | | | | | | |
CORRECT 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? - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-$2,443.02... Explanation: $3, 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: - CORRECT 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? -
| | | | | | | | | | | | | | | | |
CORRECT 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? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Schedule 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: - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT
| | | | | | | | | | | | | | |
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? -
| | | | | | | | | |
CORRECT 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 - CORRECT ANSWER✔✔- | | | |
A licensee is purchasing a home. When completing the offer to purchase how
| | | | | | | | | | | | |
should they handle the agency information on line 1? - CORRECT 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? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-$1,200...Explanation: $240,000 assessed value x .01 = $2,400. | | | | | | | |
$2, 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: - CORRECT
| | | | | | | | | | | |
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
| | | | | | | | | | | |
ANSWERS
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? - CORRECT 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: - CORRECT 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? - CORRECT 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? -
| | | | | | | | | | | | |
CORRECT 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? - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-$2,443.02... Explanation: $3, 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: - CORRECT 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? -
| | | | | | | | | | | | | | | | |
CORRECT 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? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Schedule 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: - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT
| | | | | | | | | | | | | | |
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? -
| | | | | | | | | |
CORRECT 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 - CORRECT ANSWER✔✔- | | | |
A licensee is purchasing a home. When completing the offer to purchase how
| | | | | | | | | | | | |
should they handle the agency information on line 1? - CORRECT 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? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-$1,200...Explanation: $240,000 assessed value x .01 = $2,400. | | | | | | | |
$2, 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: - CORRECT
| | | | | | | | | | | |
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
| | | | | | | | | | | |
