Wisconsin Real Estate License FREE Wisconsin Real Estate License Agency Law and Disclosures Questions and Answers 2 — Questions and Answers
Question 1: Under Wisconsin law, when must a real estate licensee provide the agency disclosure form to a prospective buyer?
- At closing
- After the offer is accepted
- At the first substantive contact (Correct answer)
- Only if the buyer requests it
Correct answer: At the first substantive contact
Wisconsin law requires the agency disclosure to be provided at the first substantive contact with a prospective buyer.
Question 2: A listing agent in Wisconsin discovers that the property has a history of flooding in the basement. What is the agent's obligation?
- Disclose only if the buyer asks directly
- No obligation if the seller says not to disclose
- Disclose the known material adverse fact to prospective buyers (Correct answer)
- Disclose only after an offer is submitted
Correct answer: Disclose the known material adverse fact to prospective buyers
Wisconsin agents must disclose known material adverse facts regardless of seller instructions.
Question 3: In Wisconsin, a subagent owes fiduciary duties to which party?
- The buyer who is shown the property
- The seller through the listing broker (Correct answer)
- Both the buyer and seller equally
- The mortgage lender
Correct answer: The seller through the listing broker
A subagent works through the listing broker and owes fiduciary duties to the seller.
Question 4: Which of the following is NOT a required disclosure on the Wisconsin Real Estate Condition Report?
- Known defects in the roof
- Presence of underground storage tanks
- The original purchase price paid by the seller (Correct answer)
- History of environmental contamination
Correct answer: The original purchase price paid by the seller
The original purchase price is not a required item on the Wisconsin Real Estate Condition Report.
Question 5: A buyer's agent in Wisconsin learns that the buyer plans to use the property for an illegal purpose. What should the agent do?
- Keep the information confidential as part of fiduciary duty
- Report the buyer to local law enforcement immediately
- Terminate the agency relationship (Correct answer)
- Disclose the plan to the seller
Correct answer: Terminate the agency relationship
An agent should terminate the relationship rather than assist in an illegal activity, as confidentiality does not extend to illegal acts.
Question 6: Under Wisconsin's agency law, which type of agency allows a broker to represent both the buyer and seller in the same transaction?
- Single agency
- Designated agency
- Dual agency with informed consent (Correct answer)
- Implied agency
Correct answer: Dual agency with informed consent
Dual agency is permitted in Wisconsin only when both parties give informed written consent.
Wisconsin Real Estate License FREE Wisconsin Real Estate License Agency Law and Disclosures Questions and Answers 2
Under Wisconsin law, when must a real estate licensee provide the agency disclosure form to a prospective buyer?