1. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?
Answer & explanation
Answer: A. Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.
2. No interest remittance is required for a year if the account's interest before deductions is less than:
Answer & explanation
Answer: C. Section 452.13(2)(e)1 excuses remittance when interest is under $10 before deductions.
3. Who is the beneficial owner of interest earned on a Wisconsin firm's real estate trust account?
Answer & explanation
Answer: A. 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.
4. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:
Answer & explanation
Answer: D. The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.
5. A licensee representing the seller who learns the buyer will pay more than the offer must:
Answer & explanation
Answer: C. Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.
6. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:
Answer & explanation
Answer: A. Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.
7. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
8. On a closing statement, the purchase price is a:
Answer & explanation
Answer: B. The seller receives the price (credit); the buyer owes it (debit).
9. 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:
Answer & explanation
Answer: A. Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.
10. A buyer is purchasing a non-condominium duplex to live in one unit and rent the other. Which offer form should the licensee use?
Answer & explanation
Answer: C. A two-unit residential property that is not a condominium uses the residential offer, WB-11.
11. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
12. 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?
Answer & explanation
Answer: C. 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.
13. Which information is a Wisconsin licensee expressly NOT required to disclose?
Answer & explanation
Answer: C. Section 452.23(2) relieves licensees from disclosing the location of adult family homes, community-based residential facilities, and nursing homes. Hidden defects, contradictions to reports, and non-performance information must be disclosed.
14. When do Wisconsin real estate licenses renew?
Answer & explanation
Answer: D. Wisconsin uses a two-year cycle ending December 14 of even-numbered years. Annual renewal and odd-year dates are distractors.
15. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
16. How many hours of approved continuing education must a Wisconsin licensee complete in each two-year renewal period?
Answer & explanation
Answer: A. Licensees complete 18 hours of board-approved CE per biennium, and approved courses include an exam component. Twelve hours is a tempting partial figure but is not the total requirement.
17. Which conveyance is exempt from the Wisconsin real estate transfer fee?
Answer & explanation
Answer: C. Section 77.25(10) exempts conveyances solely to provide or release security for a debt, which covers mortgages. Gifts between unrelated private parties are not exempt.
18. Who is responsible for furnishing the Real Estate Condition Report under Wis. Stat. ch. 709?
Answer & explanation
Answer: D. Section 709.02 places the duty to furnish the report on the owner. Licensees have separate disclosure duties under ch. 452.
19. What must a nonresident file to obtain a Wisconsin real estate license?
Answer & explanation
Answer: C. 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.
20. A licensee may manage property for an owner for a fee only if there is:
Answer & explanation
Answer: D. Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.
21. Which statement about FHA-insured loans is correct?
Answer & explanation
Answer: C. FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.
22. A salesperson wants to buy a FSBO home for his own investment. He must:
Answer & explanation
Answer: D. A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.
23. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
24. Which is the most common and desirable way a real estate sales contract terminates?
Answer & explanation
Answer: C. Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.
25. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
Sources
Source verification pending. Confirm current requirements with your state regulator.