Wisconsin Real Estate License Fair Housing and Ethics 3 — Questions and Answers
Question 1: The Wisconsin agency that regulates real estate licensees is the:
- HUD Regional Office
- Department of Safety and Professional Services (DSPS) (Correct answer)
- Department of Justice
- Consumer Financial Protection Bureau
Correct answer: Department of Safety and Professional Services (DSPS)
The Wisconsin DSPS, through the Real Estate Examining Board, regulates licensees.
Question 2: An advertisement stating 'perfect for a Christian family' most likely violates fair housing on the basis of:
- Sex and age
- Religion and familial status (Correct answer)
- Race and color
- Disability
Correct answer: Religion and familial status
Referencing religion and family type in an ad indicates a discriminatory preference.
Question 3: Redlining refers to:
- Marking up a contract
- Denying services like loans or insurance in specific neighborhoods (Correct answer)
- Highlighting comparable sales
- Refusing to show luxury homes
Correct answer: Denying services like loans or insurance in specific neighborhoods
Redlining is the discriminatory denial of financial or insurance services based on area demographics.
Question 4: A licensee's fiduciary duty of loyalty to a client means the agent must:
- Disclose client's confidential motivations to the other party
- Place the client's interests above their own (Correct answer)
- Always accept the lowest commission
- Represent both parties equally
Correct answer: Place the client's interests above their own
Loyalty requires placing the client's interests ahead of the agent's own or third parties'.
Question 5: An assistance animal for a disabled tenant is best classified as:
- A pet subject to pet fees
- A reasonable accommodation exempt from pet fees (Correct answer)
- A prohibited animal
- A luxury item
Correct answer: A reasonable accommodation exempt from pet fees
Assistance animals are reasonable accommodations and are exempt from pet policies and fees.
Question 6: Which sale is generally exempt from some provisions of the federal Fair Housing Act?
- A broker-listed apartment complex
- An owner selling a single-family home without a broker or discriminatory advertising (Correct answer)
- A publicly advertised condo
- A rental managed by a property company
Correct answer: An owner selling a single-family home without a broker or discriminatory advertising
An owner selling their own single-family home without a broker and without discriminatory ads may qualify for limited exemption.
Question 7: Steering is best defined as:
- Negotiating price aggressively
- Directing buyers toward or away from areas based on protected class (Correct answer)
- Managing a transaction's paperwork
- Advertising a listing widely
Correct answer: Directing buyers toward or away from areas based on protected class
Steering illegally guides clients to or from neighborhoods based on protected characteristics.
Wisconsin Real Estate License Fair Housing and Ethics 3
The Wisconsin agency that regulates real estate licensees is the: