Free Wisconsin Real Estate Salesperson Exam Flashcards

An easement gives a nonowner a limited right to use land; a lien secures payment of a debt against the property. An easement can restrict use, while a lien can affect proceeds and must often be resolved for clear title.

Look to attachment, adaptation, the parties' intent, and any agreement. A fixture is treated as real property and normally conveys unless the contract clearly excludes it; unresolved items should be named in the offer.

A joint tenant's interest passes to the surviving joint tenant or tenants by survivorship. A tenant in common's interest passes through that owner's estate, not automatically to the other co-owners.

A warranty deed carries title covenants from the grantor. A quitclaim deed transfers only whatever interest the grantor has, if any, without those title warranties; neither deed proves that every title risk is absent.

Title insurance is a contract under which the insurer covers specified title risks subject to exclusions and exceptions. A deed warranty is the grantor's covenant; a claim under one follows different parties and remedies than a policy claim.

Zoning is a public land-use control enforced by government. Deed restrictions and covenants are private controls generally enforced by parties who hold the benefit; a use may have to satisfy both layers.

A lawful nonconforming use predates a zoning change; a variance grants relief from a rule because the legal standard is met; a conditional use is allowed only under stated conditions. None is automatic permission to ignore zoning.

A licensee uses a comparative market analysis to advise on a likely market range; a licensed or certified appraiser develops an opinion of value; a taxing authority assigns an assessed value for property-tax purposes.

LTV = loan amount ÷ property value used by the lender × 100. A higher LTV means the borrower finances more of the value and generally gives the lender a smaller equity cushion.

Property tax = assessed value × mill rate ÷ 1,000. A 20-mill rate means $20 of tax per $1,000 of assessed value, not 20% of the value.

A proration allocates a shared expense or income as of the contract's agreed date. The party receiving the benefit is credited and the party owing it is debited, so the paired entries must balance.

A fixed-rate loan keeps its interest rate; an ARM can reset under its index and terms; a balloon loan leaves a large balance due at maturity. The payment risk therefore comes from different sources.

RESPA governs settlement practices and bars kickbacks or unearned fees for settlement-service referrals. Regulation Z focuses on consumer-credit cost disclosures, including the APR; disclosure does not make a kickback lawful.

The Loan Estimate presents expected loan terms and costs early; the Closing Disclosure presents the final terms before consummation. Comparing them reveals changes that need explanation before the borrower closes.

A client has a written agency agreement with the firm. A customer receives brokerage services without that agreement; the licensee still owes statutory duties to the customer, but not the client's additional agency duties.

In addition to honesty, fair dealing, skill, care, disclosure, and confidentiality, a client receives loyalty, advice, disclosure of material information, fulfillment of agency obligations, and negotiation on the client's behalf.

Disclose it timely and in writing to an affected party who does not know it and cannot discover it through reasonably vigilant observation, unless disclosure is prohibited by law. Loyalty to a client does not permit concealment.

No. Wisconsin's confidentiality duty continues after the transaction and after the agency relationship ends, subject to legal exceptions and the client's authorization.

No. Wisconsin defines an agency agreement as a written agreement between a firm and a client. Compensation may create disclosure issues, but it does not substitute for the written agreement that creates client status.

A written buyer-agency agreement, commonly the WB-36 for buyer or tenant representation, creates the client relationship and states the firm's authority and duties. Without it, the buyer is generally a customer.

The firm needs prior written consent from every client for multiple representation. A disclosure alone is not enough; a client can decline consent.

With every client's written consent, the firm may designate different licensees to negotiate for different clients. Each designated licensee may place that assigned client's interests ahead of the other client, within statutory duties.

The firm and its licensees may not place one client's interests ahead of another's. They can provide required services and present proposals, but cannot advocate one represented client's bargaining position over the other.

WB-1 is the residential listing contract for the sale of ordinary residential real estate; WB-4 is tailored to a residential condominium. Selecting the property-specific form avoids omitting condominium terms.

Termination stops future authority to act, but it does not erase obligations already accrued. Confidentiality continues, and the parties may still owe duties created by the agreement or law.

For a covered transfer, the owner generally must provide the completed report no later than 10 days after acceptance of the sale or option contract. Statutory exemptions must be checked rather than assumed.

The prospective buyer may rescind in writing within 2 business days after that 10-day period ends and recover deposits or option fees paid. This is a short statutory window, not an unlimited cancellation right.

The owner reports conditions in good faith based on the required form; the report does not guarantee the property's condition. Buyers should use appropriate inspection and testing contingencies for independent evaluation.

Wisconsin uses the vacant-land disclosure report under Wis. Stat. § 709.033, rather than the residential real-estate condition report under § 709.03. The property type controls the form.

For most housing built before 1978, sellers must disclose known lead information and provide the federal pamphlet before the buyer is obligated, while giving the buyer the required inspection opportunity unless properly adjusted or waived.

A licensee may complete and generally explain a board-approved form for the transaction. The licensee may not advise on legal rights, a contract's legal effect, or title; those questions should go to qualified legal counsel.

Use WB-11 for residential property, WB-13 for vacant land, and WB-14 for a residential condominium. The correct starting form matters because each addresses property-specific risks and disclosures.

Use WB-40 when both parties agree to modify the offer. Use WB-41 when one party gives a unilateral notice authorized by the offer and the other party's agreement is not required.

WB-44 is a counteroffer to one party and becomes binding through acceptance and delivery under its terms. WB-46 may go to multiple buyers; a buyer's acceptance remains nonbinding until the seller later gives binding acceptance.

The offeree must sign the offer without changing it and deliver the accepted offer in an authorized manner by the deadline. A private signature that is never timely delivered does not complete binding acceptance.

A contingency makes a party's duty depend on a stated event or approval. A covenant is a promise to perform; breaching it can create remedies but does not automatically operate like an unsatisfied contingency.

An option gives the holder, for consideration, the right to accept on stated terms during the option period while obligating the optionor to keep it open. The holder is not required to purchase unless the option is exercised.

Furnish the parties their copies as required and ensure transaction records are retained by the responsible licensee or firm under Wisconsin law. A signed form should not exist only in the agent's private file.

Do not perform it alone. Engage an identified competent person and describe that person's contribution, or decline the service; the license does not authorize unsupported technical expertise.

It must not be false, deceptive, or misleading and must comply with firm-identification and authorization rules. Advertising cannot imply facts or a relationship the licensee cannot substantiate.

A net listing pays the firm the amount above a seller's required net, creating a direct incentive to manipulate price and a conflict with the seller. Wisconsin REEB rules prohibit licensees from entering into one.

It conditions one brokerage service on buying another product or service in a way prohibited by REEB rules. A client's transaction should not be leveraged into an undisclosed or coercive side benefit.

Submit them promptly and objectively unless the party has given specific written instructions establishing another lawful process. The licensee should not suppress or slant a proposal to favor a preferred outcome.

Federal law protects race, color, national origin, religion, sex, familial status, and disability. Wisconsin also protects marital status, ancestry, lawful source of income, sexual orientation, age 18 or older, and status as a victim of domestic abuse, sexual assault, or stalking.

An accommodation changes a rule, policy, practice, or service; a modification physically changes the premises. Both address disability-related needs, but who pays and what restoration is allowed can differ.

Competitors agreeing on commission rates or other price terms is price fixing, an antitrust violation. Commission structures are negotiable business decisions, not an industrywide standard.

The firm generally deposits them in a real estate trust account within 48 hours. If the institution is closed because the funds arrived before a holiday or other closed day, deposit is due within the next 2 business days; a licensee must submit funds to the firm promptly.

Wisconsin bars paying a commission, referral fee, or finder's fee for licensed real estate activity to an unlicensed person, subject to the statute's licensed out-of-state exception. If associated with a firm, the licensee's compensation is paid to the firm.

No. A salesperson may practice only while associated with a firm and provides services on the firm's behalf under its supervision. Independent practice is not a salesperson privilege.

No. A lease transfers a right of possession for its term, while title remains with the owner. The lease terms and landlord-tenant law govern use, payment, renewal, and termination.