Wisconsin Real Estate License Wisconsin Real Estate License Contracts and Approved Forms Questions and Answers 2 — Questions and Answers
Question 1: Under Wisconsin law, what is the maximum duration of a listing agreement before it must be renewed?
- 6 months
- 12 months
- 24 months
- There is no statutory maximum (Correct answer)
Correct answer: There is no statutory maximum
Wisconsin does not impose a statutory maximum duration on listing agreements, though DSPS recommends reasonable timeframes.
Question 2: Which Wisconsin-approved form must be provided to a buyer before the buyer signs an offer to purchase?
- Seller disclosure form
- Agency disclosure form (Correct answer)
- Lead paint disclosure
- Condominium resale certificate
Correct answer: Agency disclosure form
Wisconsin law requires the agency disclosure form be provided to the buyer before the buyer signs an offer to purchase.
Question 3: In a Wisconsin offer to purchase, what happens if the buyer fails to deliver earnest money by the deadline stated in the contract?
- The offer is automatically void
- The seller may declare the offer in default (Correct answer)
- The buyer receives automatic extension
- The listing broker must cover the shortfall
Correct answer: The seller may declare the offer in default
Failure to deliver earnest money by the stated deadline allows the seller to declare the buyer in default of the contract.
Question 4: On the WB-11 Residential Offer to Purchase, which contingency allows the buyer to cancel if they cannot obtain financing approval?
- Inspection contingency
- Appraisal contingency
- Financing commitment contingency (Correct answer)
- Title contingency
Correct answer: Financing commitment contingency
The financing commitment contingency on the WB-11 permits the buyer to cancel if they cannot secure a loan commitment by the specified date.
Question 5: What is the purpose of the WB-40 Amendment to Offer form in Wisconsin?
- To cancel an existing offer
- To modify terms of an accepted offer (Correct answer)
- To extend the listing agreement
- To transfer earnest money to the seller
Correct answer: To modify terms of an accepted offer
The WB-40 is used to modify or change the terms of an already-accepted offer to purchase with mutual consent.
Question 6: Under Wisconsin's approved forms, who is required to sign the condition report (seller disclosure)?
- Only the listing agent
- Only the buyer
- The seller or the seller's agent with direct knowledge (Correct answer)
- Only a licensed appraiser
Correct answer: The seller or the seller's agent with direct knowledge
The Real Estate Condition Report must be completed and signed by the seller or someone with direct knowledge of the property's condition.
Wisconsin Real Estate License Wisconsin Real Estate License Contracts and Approved Forms Questions and Answers 2
Under Wisconsin law, what is the maximum duration of a listing agreement before it must be renewed?