Free Wisconsin Property Practice Test — LicenseIQ

Question 1

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 2

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 3

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 4

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 5

What must a nonresident file to obtain a Wisconsin real estate license?

Accepted Answer

Section 452.11 requires nonresident applicants to file an irrevocable consent to service of process so they can be sued in Wisconsin courts. No bond or Wisconsin office is required by that section.

Question 6

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 7

A property sells for $412,300. What is the transfer fee?

Accepted Answer

$412,300 is an even hundred, so $412,300 / 100 = 4,123 units x $0.30 = $1,236.90. Using $4 per $1,000 would give $1,649.20.

Question 8

The 'bundle of rights' in real property includes all of the following EXCEPT:

Accepted Answer

The bundle includes possession, control, enjoyment, exclusion and disposition - never a guaranteed profit.

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

On whom is the Wisconsin real estate transfer fee imposed?

Accepted Answer

Section 77.22 imposes the fee on the grantor, meaning the seller in a typical sale.

Question 11

Who is the beneficial owner of interest earned on a Wisconsin firm's real estate trust account?

Accepted Answer

Section 452.13(2)(d) makes the Department of Administration the beneficial owner of trust account interest, less allowable service charges. Firms do not keep it.

Question 12

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.

Question 13

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 14

A home sells for $287,450. What is the Wisconsin real estate transfer fee?

Accepted Answer

The fee is 30 cents per $100 or fraction. Round $287,450 up to $287,500. $287,500 / 100 = 2,875 units x $0.30 = $862.50. Multiplying the unrounded price by 0.003 gives $862.35, which ignores the fraction rule.

Question 15

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 16

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 17

A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

Accepted Answer

Down payment = $60,000; 1 point = $240,000 x 0.01 = $2,400; total = $60,000 + $2,400 + $450 + $1,800 = $64,650; minus $10,000 earnest money = $54,650.

Question 18

Unless a written property management agreement provides otherwise, property management fees held in trust are disbursed:

Accepted Answer

REEB 18.09(3) provides for monthly disbursement of property management fees unless the parties' written agreement provides otherwise.

Question 19

A salesperson with 30 months of supervised experience in the last four years has completed 3 residential transactions, 2 commercial transactions, and 16 months of property management. How many broker experience points does the salesperson have?

Accepted Answer

Residential: 3 x 5 = 15. Commercial: 2 x 10 = 20. Property management: 16 x 0.5 = 8. Total 15 + 20 + 8 = 43, which exceeds the 40-point minimum. Counting property management as one point per month would wrongly give 51.

Question 20

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 21

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 22

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 23

Who may prepare a property management agreement between a firm and a landlord that qualifies as an approved form under REEB 16.03?

Accepted Answer

REEB 16.03(1)(e) approves property management agreements prepared by the broker, an attorney, or the landlord.

Question 24

Under the statutory RECR form, an insurance claim relating to damage to the property is disclosed if made within the last:

Accepted Answer

Section G of the RECR asks about insurance claims within the last five years.

Question 25

A person sues in a Wisconsin court for a real estate commission. What must the person allege and prove?

Accepted Answer

Section 452.20 bars a commission action unless the plaintiff alleges and proves licensure at the time the claim arose. Association membership and notarization are irrelevant.

Wisconsin real estate property practice test

1. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

2. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

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

4. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

5. What must a nonresident file to obtain a Wisconsin real estate license?

6. A life estate is measured by:

7. A property sells for $412,300. What is the transfer fee?

8. The 'bundle of rights' in real property includes all of the following EXCEPT:

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

10. On whom is the Wisconsin real estate transfer fee imposed?

11. Who is the beneficial owner of interest earned on a Wisconsin firm's real estate trust account?

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

13. Which is the most common and desirable way a real estate sales contract terminates?

14. A home sells for $287,450. What is the Wisconsin real estate transfer fee?

15. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

16. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

17. A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

18. Unless a written property management agreement provides otherwise, property management fees held in trust are disbursed:

19. A salesperson with 30 months of supervised experience in the last four years has completed 3 residential transactions, 2 commercial transactions, and 16 months of property management. How many broker experience points does the salesperson have?

20. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

21. When an owner dies with no will and no heirs, the property passes to the state through:

22. Adverse possession allows someone to acquire title by:

23. Who may prepare a property management agreement between a firm and a landlord that qualifies as an approved form under REEB 16.03?

24. Under the statutory RECR form, an insurance claim relating to damage to the property is disclosed if made within the last:

25. A person sues in a Wisconsin court for a real estate commission. What must the person allege and prove?

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