Free Wisconsin Real Estate Practice Test (2026) — LicenseIQ

Question 1

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 2

The principle that value is the present worth of expected future benefits, which underlies the income approach, is:

Accepted Answer

Anticipation: buyers/investors pay today for anticipated future income or benefits.

Question 3

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 4

A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

Accepted Answer

Gallons needed = $168 / $4.20 = 40; remaining = 275 - 40 = 235 gallons; credit = 235 x $4.20 = $987.

Question 5

Which WB form is the Residential Condominium Listing Contract?

Accepted Answer

The WB-4 is the condominium listing contract. The WB-14 is the condominium offer to purchase, a common mix-up.

Question 6

Inducing owners to sell by suggesting people of a protected class are moving in is:

Accepted Answer

Blockbusting (panic peddling) is illegal under the Fair Housing Act.

Question 7

Who is responsible for furnishing the Real Estate Condition Report under Wis. Stat. ch. 709?

Accepted Answer

Section 709.02 places the duty to furnish the report on the owner. Licensees have separate disclosure duties under ch. 452.

Question 8

Within what time must a firm withdraw its earned commission from the trust account after the transaction is consummated?

Accepted Answer

REEB 18.09(3) requires withdrawal of earned commissions or fees within 24 hours.

Question 9

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 10

Which transfer is exempt from the transfer fee?

Accepted Answer

Section 77.25(8m) exempts transfers between spouses. Parent-child transfers are exempt only for nominal or no consideration under §77.25(8).

Question 11

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 12

A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

Accepted Answer

Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)

Question 13

Under Wis. Stat. §706.08, an unrecorded conveyance is void against which later purchaser?

Accepted Answer

Wisconsin is a race-notice state: the later buyer must lack notice, pay value, and record first.

Question 14

What is the maximum criminal penalty for acting as a broker or salesperson in Wisconsin without a license?

Accepted Answer

Section 452.17 sets the maximums at $5,000 and 6 months. The violation is prosecuted by the district attorney or attorney general.

Question 15

Which conduct is specifically listed as a ground for discipline under Wis. Stat. §452.14(3)?

Accepted Answer

Section 452.14(3)(g) lists representing a firm without its express knowledge and consent. Commission rates and MLS membership are business choices.

Question 16

For compensation, which of the following activities does NOT, by itself, fall within Wisconsin's definition of broker?

Accepted Answer

The 'shows' prong of the broker definition expressly excludes property offered exclusively for rent. Written value reports and business sales are both inside the definition.

Question 17

Binding acceptance occurs Friday, May 1, 2026. The seller never delivers a Real Estate Condition Report. What is the last day for the buyer to deliver written rescission?

Accepted Answer

The 10-day delivery period runs to Monday, May 11. The buyer then has 2 business days after that period ends: Tuesday, May 12 and Wednesday, May 13. May 11 is the seller's deadline, not the buyer's.

Question 18

What is required before a Wisconsin firm may act in a multiple representation relationship?

Accepted Answer

Section 452.134 requires written consent of all clients. Consent by only one client is not enough.

Question 19

Annual crops planted and cultivated by a farmer, such as corn and wheat, are called ____ and are treated as ____.

Accepted Answer

Cultivated annual crops are emblements - personal property of the cultivator. Naturally growing plants (trees, grass) are fructus naturales and part of the real estate.

Question 20

The tenant's right to possess and use the leased premises without interference by the landlord is the covenant of:

Accepted Answer

Quiet enjoyment protects the tenant's undisturbed possession during the lease term.

Question 21

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 22

Which is an example of an economic characteristic of land?

Accepted Answer

Scarcity, improvements, permanence of investment and area preference are economic characteristics; immobility, indestructibility and uniqueness are physical.

Question 23

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 24

A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

Accepted Answer

Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.

Question 25

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Wisconsin real estate practice test

1. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

2. The principle that value is the present worth of expected future benefits, which underlies the income approach, is:

3. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

4. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

5. Which WB form is the Residential Condominium Listing Contract?

6. Inducing owners to sell by suggesting people of a protected class are moving in is:

7. Who is responsible for furnishing the Real Estate Condition Report under Wis. Stat. ch. 709?

8. Within what time must a firm withdraw its earned commission from the trust account after the transaction is consummated?

9. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

10. Which transfer is exempt from the transfer fee?

11. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

12. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

13. Under Wis. Stat. §706.08, an unrecorded conveyance is void against which later purchaser?

14. What is the maximum criminal penalty for acting as a broker or salesperson in Wisconsin without a license?

15. Which conduct is specifically listed as a ground for discipline under Wis. Stat. §452.14(3)?

16. For compensation, which of the following activities does NOT, by itself, fall within Wisconsin's definition of broker?

17. Binding acceptance occurs Friday, May 1, 2026. The seller never delivers a Real Estate Condition Report. What is the last day for the buyer to deliver written rescission?

18. What is required before a Wisconsin firm may act in a multiple representation relationship?

19. Annual crops planted and cultivated by a farmer, such as corn and wheat, are called and are treated as .

20. The tenant's right to possess and use the leased premises without interference by the landlord is the covenant of:

21. For a deed to be valid it must be:

22. Which is an example of an economic characteristic of land?

23. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

24. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

25. A buyer of a unit in a cooperative receives:

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