Wisconsin Real Estate License Wisconsin Real Estate License Transactions & Contracts 2 — Questions and Answers
Question 1: Under Wisconsin law, what is the maximum amount of earnest money a broker can hold in their trust account without depositing it into an interest-bearing account?
- There is no maximum; all earnest money must be deposited (Correct answer)
- $1,000
- $5,000
- $25,000
Correct answer: There is no maximum; all earnest money must be deposited
Wisconsin law requires all earnest money to be deposited into the broker's trust account promptly, regardless of amount.
Question 2: In a Wisconsin real estate transaction, when must a seller provide the Real Estate Condition Report to the buyer?
- Before the buyer makes an offer
- Before acceptance of the offer (Correct answer)
- Within 10 days after acceptance
- At the time of closing
Correct answer: Before acceptance of the offer
Wisconsin Statute 709.02 requires the seller to furnish the condition report before acceptance of a contract of sale.
Question 3: Which of the following is TRUE about the rescission period for a Wisconsin residential real estate contract?
- There is no statutory rescission period in Wisconsin
- The buyer has a 3-day rescission period after receiving the condition report
- The buyer has a 2-business-day rescission period after receiving the condition report (Correct answer)
- The seller may rescind within 5 days of acceptance
Correct answer: The buyer has a 2-business-day rescission period after receiving the condition report
Wisconsin provides a 2-business-day rescission period after the buyer receives the Real Estate Condition Report.
Question 4: What happens to earnest money in Wisconsin if the buyer and seller cannot agree on its disbursement after a failed transaction?
- The broker keeps the earnest money as commission
- The broker must interplead the funds with the court (Correct answer)
- The earnest money automatically goes to the seller after 60 days
- The broker returns it to the buyer after 30 days
Correct answer: The broker must interplead the funds with the court
When there is a dispute over earnest money, the Wisconsin broker must interplead the funds with the court for resolution.
Question 5: In Wisconsin, which document is used as the standard offer to purchase residential real estate?
- WRA Form 1
- WB-11 Residential Offer to Purchase (Correct answer)
- WDRL Purchase Agreement
- WB-1 Listing Contract
Correct answer: WB-11 Residential Offer to Purchase
The WB-11 is the standard approved form used for residential offers to purchase in Wisconsin.
Question 6: Under Wisconsin's agency disclosure requirements, when must a licensee provide the agency disclosure form to a prospective buyer?
- At the time of closing
- Within 5 days of first contact
- At the first substantive contact or before showing properties (Correct answer)
- Only if the buyer requests it
Correct answer: At the first substantive contact or before showing properties
Wisconsin requires agency disclosure at the first substantive contact with a prospective buyer or before showing properties.
Wisconsin Real Estate License Wisconsin Real Estate License Transactions & Contracts 2
Under Wisconsin law, what is the maximum amount of earnest money a broker can hold in their trust account without depositing it into an interest-bearing account?