Agency Law and Relationships Flashcards
7 cards from real Wisconsin Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency Law and Relationships flashcards as text
A Wisconsin buyer's agent learns the seller must relocate quickly for a job. What should the agent do with this information?
Answer: Share it with the buyer client, as it may aid negotiation
A buyer's agent works in the buyer's interest and may use non-confidential, relevant information like a seller's motivation to benefit the client.
Which Wisconsin duty requires licensees to exercise reasonable skill and care in performing services?
Answer: Competence / reasonable skill and care
Licensees must provide services with the reasonable skill and care expected of a competent real estate professional.
A Wisconsin licensee discovers a hidden water leak that the seller wants hidden. The licensee must:
Answer: Disclose the material adverse fact to all parties
Material adverse facts must be disclosed to all parties even if the client instructs otherwise, since the duty of disclosure overrides obedience.
In Wisconsin, an agency relationship can be terminated by all of the following EXCEPT:
Answer: Unilateral refusal to disclose a material adverse fact
Agency ends by mutual agreement, expiration, or completion; refusing to disclose an adverse fact is a violation, not a termination method.
A Wisconsin firm practicing designated agency must ensure that:
Answer: Each designated agent protects the confidential information of their own party
Under designated agency, each appointed agent owes full duties to their assigned party, including confidentiality.
When must a Wisconsin licensee provide the agency disclosure to a consumer?
Answer: At the first substantive contact / negotiation
Agency disclosures must be provided early, at the first substantive business contact, so consumers understand the relationship.
A Wisconsin licensee who places earnest money in the firm's trust account is fulfilling the duty of:
Answer: Accounting
Properly depositing and tracking client funds such as earnest money satisfies the duty of accounting.