Free Wisconsin Real Estate Practice Exam

Q1.A mobile ad shows required brokerage information only after the viewer scrolls. What is the issue under R4-28-502(J)?

• A.There is no issue online.
• B.Online requirements must be satisfied on the advertisement without scrolling.
• C.The rule applies only to print.
• D.A link in the biography always cures it.

Q2.A broker is representing a seller when a buyer submits an offer with a financing contingency stating the buyer must obtain a 'satisfactory mortgage commitment' within 21 days. On day 19, the buyer's lender issues a commitment letter conditioned on the buyer selling their current home first. The seller wants to declare the contingency unsatisfied and terminate the contract. Which broker-level analysis best describes the legal situation?

• A.The contingency is likely unsatisfied because a conditional commitment subject to the sale of another property is generally not considered an unconditional mortgage commitment, giving the seller a colorable basis to terminate.
• B.The contingency is automatically satisfied because the lender issued a formal written commitment letter within the 21-day period, regardless of any conditions attached.
• C.RESPA Section 8 prohibits lenders from issuing conditional commitment letters, so the commitment is void and the contract must be renegotiated.
• D.The broker should advise the seller to immediately declare a material breach and retain the earnest money deposit without seeking legal counsel.

Q3.A buyer applies for a mortgage loan and is denied. Under the Equal Credit Opportunity Act (ECOA), the lender is required to:

• A.Offer the applicant an alternative loan product within 30 days
• B.Provide the applicant with a written notice of adverse action stating the specific reasons for denial
• C.Report the denial to the Consumer Financial Protection Bureau within 10 business days
• D.Refund any application fees collected prior to the denial decision

Q4.Which set of terms is most important when evaluating an E&O policy?

• A.Logo, website, and premium alone.
• B.Insuring agreement, definitions, exclusions, dates, reporting terms, endorsements, defense, and insureds.
• C.Another brokerage's claim result.
• D.Only the deductible.

Q5.Under Wisconsin law, which type of deed provides the GREATEST protection to a buyer because the grantor warrants title against all claims, including those arising before the grantor owned the property?

• A.Quitclaim deed
• B.Sheriff's deed
• C.Warranty deed
• D.Trustee's deed

Q6.During a listing appointment, a broker discovers an underground storage tank (UST) on a commercial property that the seller has not disclosed. The seller instructs the broker to keep this information confidential. Under CERCLA and general broker liability principles, what is the broker's MOST defensible course of action?

• A.Decline to withhold the information from prospective buyers and advise the seller that material environmental conditions must be disclosed; withdraw from the listing if the seller refuses.
• B.Follow the seller's instructions because the broker's fiduciary duty of obedience requires compliance with all lawful and unlawful client directives.
• C.Disclose the UST only if a prospective buyer specifically asks about underground storage tanks.
• D.Encapsulate the disclosure in the listing agreement footnotes so it is technically available to any buyer who reads the full document.

Q7.Which of the following is the most common method of transferring title to real estate?

• A.Deed
• B.Will
• C.Court order
• D.Adverse possession

Q8.A lender requires a borrower to deposit funds into an escrow (impound) account for property taxes and insurance. Under RESPA, the maximum initial escrow deposit the lender may collect at closing is limited to:

• A.Three months of estimated escrow payments
• B.Six months of estimated escrow payments
• C.Two months of estimated escrow payments plus amounts necessary to pay bills when due
• D.Twelve months of estimated escrow payments

Q9.A Wisconsin real estate firm represents the seller of a property. A buyer who is not represented by any agent makes an offer directly through the listing firm. Under Wis. Stat. Chapter 452, what is the firm's obligation to this unrepresented buyer?

• A.The firm owes the buyer full fiduciary duties because the buyer is using the firm's services
• B.The firm must treat the buyer as a customer, providing honesty and disclosure of material adverse facts, but does not owe fiduciary duties
• C.The firm may not assist the buyer with the transaction and must refer them to another licensee
• D.The firm automatically becomes a dual agent and must obtain written consent from the seller

Q10.A deed contains a covenant restricting the lot to single-family residential use. A buyer wants to operate a daycare from the property. This restriction is best described as:

• A.A financial encumbrance, like a mortgage
• B.An easement granting access rights to neighboring properties
• C.A non-financial encumbrance — a restrictive covenant in the deed that limits the permitted use of the property
• D.A zoning variance that can be modified through a city planning process

Q11.What is the basic effect of A.R.S. § 44-7007 on an electronic record or signature?

• A.It is invalid solely because it is electronic.
• B.It cannot be denied legal effect solely because it is electronic.
• C.It automatically proves every transaction fact.
• D.It eliminates record-retention duties.

Q12.A property manager collects security deposits, last month's rent, and monthly rent payments on behalf of the owner. Under generally accepted property management principles, these funds should be held in:

• A.The property manager's personal checking account for convenience
• B.The owner's personal savings account
• C.A separate trust or escrow account distinct from the manager's own funds
• D.A single pooled operating account along with maintenance expenses

Q13.A managing broker oversees a 15-agent office. Two of the broker's salespersons are separately representing a buyer and a seller who are now in the same transaction. The broker obtains written informed consent from both parties to proceed as a dual-agency brokerage. Which ongoing broker obligation is MOST critical once dual agency has been authorized?

• A.Ensuring that neither designated agent discloses one principal's confidential information—such as motivation or price limits—to the other principal or agent
• B.Requiring the buyer's salesperson to withdraw from the transaction so the seller's salesperson can represent both parties
• C.Reducing the listing commission to reflect the reduced advocacy each party will receive
• D.Obtaining a new listing agreement from the seller because the original agreement is void once dual agency arises

Q14.A city council passes an ordinance that requires all property owners in a newly designated flood zone to elevate their structures within 18 months or face fines. A homeowner whose property is affected claims the ordinance is an unconstitutional taking. Under the general legal standard for regulatory takings established by federal constitutional principles, which factor would a court be LEAST likely to consider when evaluating this claim?

• A.The economic impact of the regulation on the property owner
• B.Whether the regulation interferes with the owner's reasonable investment-backed expectations
• C.The character of the government action, including whether it resembles a physical invasion or an adjustment of benefits and burdens
• D.The political affiliation of the city council members who voted in favor of the ordinance

Q15.Which of the following IS a federal protected class under the Fair Housing Act?

• A.Familial status (presence of children under 18 or pregnant occupants)
• B.Marital status
• C.Sexual orientation (under federal FHA)
• D.Source of income