Ownership and Transfer
10%of exam
Land Use Controls
3.57%of exam
Valuing and Financing
14.29%of exam
Agency
22.86%of exam
Disclosures
9.29%of exam
Contracts and Approved Forms
15.71%of exam
Business Ethics
10%of exam
Fair Housing
4.29%of exam
Federal Anti-Trust Law
1.43%of exam
Miscellaneous
8.57%of exam
Quick Facts
- Exam
- Salesperson
- Scored items
- 140
- Pretest items
- 5-10 unscored
- Time
- 4 hours
- Pass
- Scaled 75 of 100
- Fee
- $65
- Provider
- Pearson VUE
- Regulator
- Wisconsin DSPS / REEB
- Education
- 72 approved hours
- Retake wait
- 24 hours
- Score validity
- Apply within 1 year
- Renewal
- December 14, even years
Ownership and Encumbrances
- Encumbrance
- Claim limiting clear title
- Easement
- Right to use land
- Lien
- Money claim on property
- Encroachment
- Improvement crossing a boundary
- Special assessment
- Charge for local improvement
- Marital property
- Presumed equal spousal ownershipWisconsin
- Joint tenancy
- Equal shares with survivorship
- Tenancy in common
- Shares without survivorship
- Fixture
- Personal property permanently attached
- Real property
- Land plus permanent attachments
Deeds and Title Transfer
- Warranty deed
- Broadest title guarantee
- Quit claim deed
- Conveys interest, no warranty
- Personal representative deed
- Estate fiduciary conveyance
- Deed
- Instrument conveying real estate
- Security interest
- Collateral claim securing debt
- Bill of sale
- Transfers personal propertyWB-25
- Recording
- Public notice of interest
- Title insurance
- Protects against title defects
- Preliminary report
- Title status before closing
- Gap insurance
- Covers the recording gap
Land Use Controls
- Private controls
- Deed restrictions and covenants
- Public controls
- Zoning of permitted use
- Conditional use
- Allowed only with approval
- Nonconforming use
- Lawful use predating zoning
- Variance
- Relief from a zoning rule
- Setback
- Required distance from boundary
- PUD
- Planned unit development
Assessed vs Market Value
Assessed value
- Set by municipal assessor
- Drives the tax bill
- Used with mill rate
Market value
- Probable open-market price
- Drives CMA and appraisal
Tax base versus price
Wisconsin Math Picker
- Need the transfer fee→$0.30 per $100(Grantor owes)
- Need the property tax→Mill rate times assessed(Not market value)
- Need loan-to-value→Loan divided by value(State as percent)
- Need acreage→43,560 square feet(Memorize it)
- Need mile length→5,280 feet(Memorize it)
- Need a proration→Use the stated basis(360 or 365)
Valuation and Market Analysis
- CMA
- Comparable sales pricing tool
- Market value
- Probable open-market price
- Assessed value
- Municipal value for taxes
- Appraised value
- Licensed appraiser opinion
- Substitution
- Buyer pays no more
- Conformity
- Similar surrounding uses support value
- Progression
- Better neighbors lift value
- Regression
- Weaker neighbors drag value
Financing Terms
- LTV
- Loan divided by value
- PMI
- Insures low-downpayment conventional loans
- Points
- Prepaid interest, 1% each
- Origination fee
- Lender loan processing charge
- ARM
- Rate adjusts on schedule
- Balloon mortgage
- Large final payment due
- Fixed-rate loan
- Rate never changes
- FHA
- Government-insured loan program
- VA
- Government-guaranteed veteran loan
- Land contract
- Seller keeps legal title
- Regulation Z
- Truth in Lending disclosure
- TRID
- Loan Estimate, Closing Disclosure
- RESPA
- Bans kickbacks and referral fees
Wisconsin Math Rules
- Transfer fee
- $0.30 per $100 value77.22
- Property tax
- Mill rate times assessed
- Mill
- $1 per $1,000 value
- LTV formula
- Loan divided by value
- Acre
- 43,560 square feet
- Mile
- 5,280 feet
- Proration basis
- Question states 360 or 365
- Closing day
- Question assigns buyer or seller
Biggest Blueprint Blocks
Agency 32 | Contracts 22 | Finance 20
Agency: 32 itemsContracts and forms: 22 itemsValuing and financing: 20 itemsEthics: 14 itemsOwnership: 14 items
Client vs Customer
Client
- Signed agency agreement
- Loyalty and advocacy
- All material facts
Customer
- No agency agreement
- Fair and honest only
- Adverse facts only
The agreement creates loyalty
Agency Duty Picker
- No agency agreement→All-party duties only(Customer)
- Signed agency agreement→Client duties added(Loyalty)
- Two clients, one transaction→Multiple representation(Written consent)
- Clients want advocacy→Designated agency(Separate agents)
- Designated agency refused→Neutral representation(No favoring)
- Working for another firm→Subagency(Principal firm client)
- Negotiating for a nonclient→Disclosure to Customers(Give it first)
Duties to All Parties
- Honesty
- Serve honestly and fairly
- Reasonable care
- Skill and care required
- Material adverse facts
- Timely written disclosure
- Confidentiality
- Continues after the transaction
- Market conditions
- Accurate information on request
- Trust funds
- Safeguard money and property
- Objective proposals
- Give advantages and disadvantages
- Adverse fact
- Hurts value, safety, structure
Customer Duty Checklist
Honest, Careful, Adverse, Confidential, Market, Funds, Objective
Honest and fairReasonable skill and careMaterial adverse factsConfidentialityMarket conditionsSafeguard trust fundsObjective proposals
Multiple vs Designated
Multiple representation
- Two clients, one firm
- Neutral without designation
- Written consent required
Designated agency
- Separate agents assigned
- Each agent may advocate
- Second written consent
Designation restores advocacy
Extra Duties to Clients
- Loyalty
- Client interests come first
- Advice on request
- Within licensee knowledge scope
- All material facts
- Not just adverse facts
- Agency agreement
- Follow lawful client orders
- Negotiate
- The only waivable duty
- Waiver disclosure
- Written text and consequences
Relationships and Disclosure
- Firm
- The licensed brokerage entity
- Client
- Signed a written agency agreement
- Customer
- Party without agency agreement
- Subagent
- Firm engaged by principal firm
- Principal firm
- Firm engaging a subagent
- Multiple representation
- Two clients, one transaction
- Designated agency
- Different agents, separate clients
- Disclosure to Customers
- Before negotiating for nonclients
- Disclosure to Clients
- By the agency agreement time
- Buyer agency notice
- At first contact or showing
Condition Report Clock
10 days to deliver, 2 to rescind
10 days after acceptance2 business days to rescindApplies to 1-4 unitsDeposits returned on rescission
Disclosure Picker
- Selling 1-4 dwelling units→Real Estate Condition Report(10 days)
- Selling vacant land→Vacant Land Disclosure Report(10 days)
- Home built before 1978→Lead-based paint disclosure(Federal)
- Buyer asks about offenders→Corrections registry notice(Gives immunity)
- Third-party report delivered→No repeat disclosure(Unless contradicted)
- Seller reports no defects→Still inspect accessible areas(REEB 24.07)
Real Estate Condition Report
- Who completes
- Owner of 1-4 units
- Deadline
- 10 days after acceptance
- Buyer remedy
- Rescind within 2 business days
- Defect
- Significant adverse property condition
- Aware
- Owner has notice, knowledge
- Exempt owner
- Court fiduciary never occupying
- Exempt property
- Never inhabited or fee-exempt
- Vacant land report
- Same duty, land version
- Condo addendum
- Association fees and contacts
Other Disclosure Duties
- Lead-based paint
- Federal pre-1978 disclosure
- Licensee inspection
- Accessible areas, adverse facts
- Not required
- Open panels or move furniture
- Third-party report
- Written report shifts disclosure
- Contradiction
- Disclose facts that conflict
- Stigma
- No duty without physical effect
- Sex offender registry
- Refer to Corrections for immunity
- Care facilities
- No duty to disclose location
- Government information
- Good-faith relay is protected
- Underground storage tanks
- Environmental disclosure topic
WB-40 vs WB-41
WB-40 Amendment
- Changes an accepted offer
- Both parties sign
- Mutual agreement
WB-41 Notice
- Delivers a required notice
- One party signs
- Exercises a contract right
Amend together, notice alone
WB Form Picker
- Listing a house→WB-1(Exclusive right to sell)
- Listing a condominium→WB-4(Condo listing)
- Representing a buyer→WB-36(Buyer agency)
- Representing a tenant→WB-39(Tenant representation)
- Writing a home offer→WB-11(Residential)
- Writing a condo offer→WB-14(Condominium)
- Writing a land offer→WB-13(Vacant land)
- Changing an accepted offer→WB-40(Both parties sign)
- Giving a contingency notice→WB-41(One party acts)
- Rejecting and re-offering→WB-44(Counter-offer)
- Countering several buyers→WB-46(Multiple counter-proposal)
- Ending an accepted offer→WB-45(Mutual release)
WB Listing and Agency Forms
- WB-1
- Residential listing contract
- WB-4
- Condominium listing contract
- WB-36
- Buyer Agency Agreement
- WB-39
- Tenant Representation Agreement
- WB-37
- Exclusive right to rent
- WB-42
- Amendment to listing contract
- WB-47
- Amendment to buyer agency
- WB-50
- Residential pre-agency showing agreement
WB-44 vs WB-46
WB-44 Counter-Offer
- Rejects and replaces offer
- One buyer at once
WB-46 Multiple Counter
- Goes to several buyers
- Seller chooses one acceptance
One buyer versus many
WB Offer and Change Forms
- WB-11
- Residential offer to purchase
- WB-13
- Vacant land offer
- WB-14
- Condominium offer to purchase
- WB-24
- Option to purchase
- WB-40
- Amendment to offer
- WB-41
- Notice relating to offer
- WB-44
- Counter-offer
- WB-45
- Cancellation and mutual release
- WB-46
- Multiple counter-proposal
Exclusive Right vs Exclusive Agency
Exclusive right to sell
- Commission however it sells
- Owner sale still owes
Exclusive agency
- Owner may sell alone
- No commission on owner sale
Owner escape clause differs
Form and Drafting Rules
- Approved forms
- Required in covered transactions
- No legal advice
- General explanation only
- Deleting text
- Cross out, keep legible
- Addendum
- Firm or attorney drafted
- Approval statement
- Keep board stamp intact
- Copies
- Promptly to every signer
- Writing required
- Listings, offers, options, leases
- Record retention
- At least 2 yearsREEB 15.04
- Retention start
- Closing or agreement termination
Conduct Rules REEB 24
- Net listing
- Prohibited in Wisconsin
- Tie-in arrangement
- Cannot force a second deal
- Offer confidentiality
- Do not reveal offer terms
- Present all offers
- Promptly, unless written instructions
- Notify outcome
- Accepted, rejected, or countered
- Written statement
- Date and time on request
- Unauthorized law practice
- Never discourage retaining attorney
- Insufficient funds
- No checks without funds
- Conviction report
- 48 hours to board
- Department request
- Respond within 30 days
- Competent services
- Get help or decline
- False interest
- No document faking ownership
Advertising Rules
- Firm name
- Exactly as licensed or filed
- Blind ad
- Prohibited, firm must appear
- Business enterprise
- Show firm, not private party
- Another firm listing
- Need listing firm consent
- Advertised price
- Only the owner-approved price
- Own property
- Identify yourself as licensee
- False advertising
- Deceptive or misleading prohibited
Wisconsin Extra Classes
Orientation, marital, income, victim, age, ancestry
Sexual orientationMarital statusLawful source of incomeVictim of domestic abuseAge 18 plusAncestry
Federal vs Wisconsin Classes
Federal FHA
- Seven protected classes
- Race, color, religion
- Sex, national origin
- Familial status, disability
Wisconsin Open Housing
- Thirteen protected classes
- Adds orientation, ancestry
- Adds marital status, age
- Adds lawful income, victim
Wisconsin protects more people
Wisconsin Open Housing Classes
- Federal classes
- Seven under the FHA
- Wisconsin classes
- Thirteen under 106.50
- Sexual orientation
- Wisconsin protected class
- Marital status
- Wisconsin protected class
- Lawful source of income
- Wisconsin protected class
- Age
- Protected at 18 plus
- Ancestry
- Wisconsin protected class
- Victim status
- Domestic abuse, assault, stalking
- Owner-occupied homes
- Covered by Wisconsin law
- Auxiliary services
- ADA aids for disabilities
- Local ordinances
- Municipal equal opportunity rules
- Discriminatory information
- Licensee may not disclose
Federal Anti-Trust
- Sherman Act
- Federal antitrust statute
- Price fixing
- Firms agreeing on commission
- Group boycott
- Agreeing to exclude a competitor
- Market allocation
- Splitting territory or clients
- Commission source
- Set by each firm alone
- Safe answer
- Commissions are always negotiable
Trust Account Timers
48 deposit | 24 commission | 30 dispute
48 hours: deposit funds24 hours: take commission30 days: disputed release10 days: notify department
Scaled Score vs Percent
Scaled 75
- Equated across exam forms
- Converted 0-100 scale
- Numeric score only on fails
Raw percent
- Not the passing rule
- Not the number correct
75 scaled, not 75%
Earnest Money Picker
- Funds received today→Deposit within 48 hours(Trust account)
- Received before a holiday→Deposit within 2 days(Business days)
- Firm cannot deposit→Return or forward funds(One business day)
- Offer rejected before acceptance→Return to the payer(No violation)
- All parties sign agreement→Follow disbursement agreement(Written)
- A party disagrees→Certified notice first(Wait 30 days)
- Court issues an order→Follow the order(Safe harbor)
Trust Account Rules
- Deposit deadline
- Within 48 hours receivedREEB 18.031
- Holiday rule
- Next 2 business days
- Cannot deposit
- Return or forward, 1 day
- Licensee duty
- Promptly submit funds to firm
- Client funds
- Interest-bearing common trust account
- Interest owner
- Department of Administration
- Account name
- Must say trust account
- Notify department
- Within 10 days of opening
- Commingling
- Only trust funds deposited
- Commission withdrawal
- Within 24 hours earned
- Disputed release
- Certified notice, wait 30 days
- Non-depositable items
- Held by an escrow party
- Bookkeeping
- Cash journal plus ledger
- Earnest money receipt
- Note on offer when drafted
- Trust account optional
- Only if funds received
License Number Line
72 pre-license | 18 CE | 12 mandatory
72 hours pre-license18 CE hours biennially12 mandatory, 6 elective13 hours by endorsement
Commingling vs Conversion
Commingling
- Mixing firm and trust funds
- Prohibited by REEB 18.10
Conversion
- Spending client money
- Treated as theft
Mixing versus taking
Licensing and Renewal
- Pre-license education
- 72 approved hours
- Education alternative
- 10 semester credits accepted
- Endorsement course
- 13 hours for out-of-state
- Education window
- Within 4 years of application
- Score validity
- Apply before 1 year
- Renewal date
- December 14, even years
- Renewal fee
- $75, or $100 late
- CE hours
- 18 per biennium
- CE split
- 12 mandatory, 6 elective
- Firm association
- Salesperson works under firm
- Compensation flow
- All fees paid to firm
- Unlicensed payment
- No commission or finder fee
- Leaving a firm
- Notify department within 10 days
Leases and Rentals
- Tenant copy
- On lease execution
- Landlord copy
- On landlord request
- Rents received
- Trust funds when agent
- Licensee-owned rental
- Trust account or owner account
- Owner account
- Direct deposit with authorization
- Property management form
- Firm, attorney, or landlord drafted
Common Traps
Scaled score is not percent
75 is a scaled score ≠ Not 75% correct
Transfer fee rate
Rate is $0.30 per $100 ≠ Not per $1,000
Trust deposit deadline
Deposit within 48 hours ≠ Not 5 business days
WB-36 title changed
WB-36 is Buyer Agency ≠ WB-39 covers tenants
Condition report is the owner's
Owner completes the report ≠ Licensee gives no defect opinions
Fair housing class counts
Federal lists seven classes ≠ Wisconsin lists thirteen classes
Education versus score clocks
Education valid four years ≠ Scores valid one year
Net listing is banned
Net listings are prohibited ≠ Open listings are allowed
Trust account is conditional
Required only if funds received ≠ Firm may hold none
Renewal date is fixed
December 14, even years ≠ Not two years after issue
Commission goes to the firm
All fees paid to firm ≠ Not directly to salesperson
Last Minute
- 1.140 scored items, 4 hours
- 2.Pass = scaled 75
- 3.Agency = 32 items, biggest
- 4.Contracts and forms = 22 items
- 5.Deposit trust funds in 48 hours
- 6.Condition report = 10 days
- 7.Rescind window = 2 business days
- 8.Transfer fee = $0.30 per $100
- 9.Property tax = mill rate x assessed
- 10.Wisconsin fair housing = 13 classes
- 11.Net listings are prohibited
- 12.Pre-license = 72 hours
- 13.CE = 18 hours biennially
- 14.Renewal = December 14, even years
- 15.Commissions are paid to firm
- 16.Retake wait = 24 hours
- 17.Keep records at least 2 years
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