Free Wisconsin Real Estate Practice Exam

Q1.Which federal law requires lenders to provide a Loan Estimate within three business days of receiving a complete loan application?

• A.Fair Credit Reporting Act
• B.Equal Credit Opportunity Act
• C.Real Estate Settlement Procedures Act (RESPA) / TRID rules
• D.Home Mortgage Disclosure Act

Q2.A lender discovers that a property being financed was previously used as a dry cleaning facility. Under federal environmental law, what is the lender's primary concern?

• A.Asbestos contamination from building materials
• B.Lead paint in the building structure
• C.Potential soil and groundwater contamination from hazardous substances
• D.Radon gas accumulation in the basement

Q3.Under Wisconsin law, what constitutes 'material adverse facts' that must be disclosed by a broker?

• A.Only structural defects affecting property value
• B.Any facts that significantly and adversely affect the use, value, or desirability of the property
• C.Only facts that would cause immediate safety concerns
• D.Only facts specifically listed in the Real Estate Condition Report

Q4.In Wisconsin, what happens if a landlord fails to return a security deposit within the required timeframe without justification?

• A.The tenant can sue for the deposit amount only
• B.The landlord forfeits the right to claim any damages
• C.The tenant is entitled to double damages plus attorney fees
• D.The landlord must pay a $100 fine to the state

Q5.What is the minimum timeframe a Wisconsin broker must retain copies of listing agreements and other transaction documents?

• A.3 years from the closing date
• B.5 years from the closing date
• C.3 years from the expiration of the listing
• D.7 years from the transaction date

Q6.Under Wisconsin law, when must a broker disclose that they have a personal interest in a property being offered for sale?

• A.Only if directly asked by a prospective buyer
• B.Before showing the property to any prospective buyer
• C.At the time an offer is made
• D.Only if the broker is also the owner of record

Q7.Which of the following deposits may NOT be commingled in a broker's trust account under Wisconsin law?

• A.Earnest money from different transactions
• B.Security deposits from property management clients
• C.The broker's personal commission funds
• D.Tenant deposits held for different landlords

Q8.A Wisconsin broker receives an earnest money deposit from a buyer. Under state law, what must the broker do with these funds?

• A.Deposit them in the broker's personal account within 24 hours
• B.Hold them in cash until closing
• C.Deposit them in a trust account or deliver to an escrow agent
• D.Give them directly to the seller immediately

Q9.According to Wisconsin license law, what is the minimum amount of errors and omissions insurance coverage required for real estate brokers?

• A.$50,000
• B.$100,000
• C.$250,000
• D.$500,000

Q10.Under the Equal Credit Opportunity Act (ECOA), which of the following actions by a lender would be prohibited?

• A.Requiring verification of income from all applicants
• B.Asking about an applicant's marital status when applying for an individual unsecured loan
• C.Requesting proof of employment history
• D.Requiring a down payment for the loan

Q11.A Wisconsin purchase agreement includes a financing contingency with a deadline of March 15th. On March 16th, the buyer's lender approves the loan. What is the status of the financing contingency?

• A.The contingency is satisfied since the loan was approved
• B.The contingency is waived due to the missed deadline
• C.The seller must accept the late approval
• D.The contract is automatically void

Q12.A Wisconsin real estate licensee discovers their client has been arrested but never convicted of a crime. The licensee advises sellers to reject this buyer's offers based on the arrest record. This situation involves:

• A.Legal advice that protects sellers from potential problems
• B.Violation of Wisconsin fair housing law protecting arrest record
• C.Permissible business judgment about creditworthiness
• D.Required disclosure under Wisconsin license law

Q13.Under the Fair Housing Act, which action by a real estate agent would constitute illegal steering?

• A.Showing all available properties in the MLS that meet a client's stated criteria
• B.Directing minority clients away from certain neighborhoods to maintain racial composition
• C.Providing demographic information about schools when specifically requested by a client
• D.Offering to show properties in multiple neighborhoods based on price range

Q14.Under RESPA, which settlement service provider is specifically prohibited from giving or receiving kickbacks for referrals?

• A.Only mortgage lenders
• B.Only real estate brokers
• C.Only title insurance companies
• D.All settlement service providers

Q15.A property is described as 'the NW 1/4 of the SE 1/4 of Section 12, Township 3 North, Range 2 East.' How many acres does this property contain?

• A.20 acres
• B.40 acres
• C.80 acres
• D.160 acres