Free Wisconsin Agency Practice Test — LicenseIQ

Question 1

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 2

A firm reproduces a WB form for its agents. Which change is permitted?

Accepted Answer

REEB 16.06(1) requires line-for-line matching and keeps the approval statement in the upper left, but allows margin and font-size adjustments.

Question 3

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 4

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 5

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 6

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 7

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 8

A buyer wants a firm to represent her in finding and negotiating for a home. Which WB form creates that agency relationship?

Accepted Answer

The WB-36 is the buyer and tenant representation agreement. WB-1 is a seller listing, and WB-11 is an offer, not an agency agreement.

Question 9

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 10

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 11

A seller tells the listing agent orally, 'Keep my home off public websites.' Under §452.1355, what is required to honor that request?

Accepted Answer

The statutory opt-out requires the owner's written request and reason plus initialed acknowledgments that buyers and licensees may not learn of the property and that it will not appear on public listing sites.

Question 12

Under designated agency, a licensee negotiating for the buyer client may:

Accepted Answer

Section 452.134 permits the designated licensee to advise his or her own client, even to the other client's disadvantage. Confidential information of the other client remains protected.

Question 13

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 14

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 15

A buyer's agent learns that the seller has already purchased another home and is carrying two mortgages. Which statement is correct?

Accepted Answer

Clients receive disclosure of all material information, favorable or adverse, under §452.133(2)(b). The seller's financial pressure is material to the buyer's negotiation even though it is not a defect in the property.

Question 16

For an agency agreement involving residential property of one to four dwelling units, what additional step is required if the Disclosure to Clients is NOT incorporated into the agreement?

Accepted Answer

When the client disclosure is not built into a 1-4 unit residential agency agreement, the firm must ask the client to sign an acknowledgment of receipt.

Question 17

The WB-36 Buyer Agency/Tenant Representation Agreement may be altered to create:

Accepted Answer

REEB 16.06(9) allows the buyer agency form to be altered into these three types of agreements.

Question 18

How may a client withdraw consent to designated agency?

Accepted Answer

Consent to designated agency may be withdrawn in writing at any time.

Question 19

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 20

Buyer and seller want a title company to hold earnest money as a neutral escrow agent. Which is correct?

Accepted Answer

REEB 18.06 bars licensees from drafting escrow agreements and bars the firm from holding the funds in its trust account or acting as custodian when a neutral escrow agent is used.

Question 21

In a multiple representation relationship WITHOUT designated agency, the firm and its licensees:

Accepted Answer

Without designated agency, licensees may not favor either client. Withdrawal is not required if both clients consented to multiple representation.

Question 22

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 23

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 24

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 25

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Wisconsin real estate agency practice test

1. Which statement about dual agency is correct?

2. A firm reproduces a WB form for its agents. Which change is permitted?

3. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

4. The best way to create an agency relationship is a(n):

5. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

6. The client a broker represents is the:

7. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

8. A buyer wants a firm to represent her in finding and negotiating for a home. Which WB form creates that agency relationship?

9. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

10. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

11. A seller tells the listing agent orally, 'Keep my home off public websites.' Under §452.1355, what is required to honor that request?

12. Under designated agency, a licensee negotiating for the buyer client may:

13. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

14. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

15. A buyer's agent learns that the seller has already purchased another home and is carrying two mortgages. Which statement is correct?

16. For an agency agreement involving residential property of one to four dwelling units, what additional step is required if the Disclosure to Clients is NOT incorporated into the agreement?

17. The WB-36 Buyer Agency/Tenant Representation Agreement may be altered to create:

18. How may a client withdraw consent to designated agency?

19. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

20. Buyer and seller want a title company to hold earnest money as a neutral escrow agent. Which is correct?

21. In a multiple representation relationship WITHOUT designated agency, the firm and its licensees:

22. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

23. Which of the following is a fiduciary duty an agent owes the principal?

24. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

25. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Sources