Wisconsin Real Estate Exam Prep Flashcards

Wisconsin Real Estate Exam Prep Flashcards How long is the listing period extended for protected buyers in the WB-1 Residential Listing Contract Extension of Listing Provision?

• year

Which type of agency relationship gives an agent the authority to represent a principal in more than one transaction?General agency What tie in arrangements are legal?If builder and licensee own property, the buyer has to use builder. Builder and licensee selling improved - need to pick from house and use builder. Deed restrictions - use builder to achieve uniformity.Which in-use underground storage tanks must be tightness tested every two years?1,100 gallons or greater An owner of a property would like to transfer title. Will the existing dead conditions stay in place or are they terminated upon transfer of title?Stay in place - runs with the land.What exemptions are recognized under the Real Estate Condition Report law?Personal representative that has never lived on the property, sheriff sale, new construction that has never been inhabited or if it's exempt from transfer fee.What must a licensee do with the results of the third-party's inspection report? What must a licensee do if the licensee's own knowledge or observation of the property is contradictory to the third party report?Make sure it's provided to all the parties. Disclose as material adverse fact if contradictory.The purchaser of a condominium must receive the

disclosure documents no later than:

Within 10 days of accepting offer, no later than 15 days prior to closing.Once a buyers firm earns compensation, when is it due and paid?At the earlier of closing or date set for closing even if transaction does not close, unless otherwise agreed in writing.What is a leasehold estate?If you rent / lease property when is a licensee associated with a firm allowed to advertise without mentioning the firm's name in the ad?Only if you are advertising for your own personal rental property.What kind of agency is the firm practicing if they represent just one party in a transaction?Single Agency Which party tends to be more concerned with the seller's opinion of value, the appraiser or the licensee?The licensee When can agent agree to write an offer for a buyer on a property only if the buyer agrees to list buyers current property with agent?

NEVER-ILLEGAL

What must occur before a licensee gives a third-party buyer's offer to a party holding a right of first refusal?Disclosure in writing that there is someone who holds right of first refusal on the property.What forms of ownership allow title to pass to the surviving owner(s) without probate?Joint Tenancy, Survival Ship Martial Property

In an unmodified WB-36 Buyer Agency / Tenant Representation Agreement, does a buyer's firm have to be directly involved in negotiations in order to earn a commission?NO, property was found, buyers firm earns commission.How does one determine the permitted uses for a particular area?Zoning ordinances.When is a licensee prohibited from submitting a personal offer to purchase on a property?If there is a pending offer and licensee has knowledge of ANY of the terms.What form would a licensee use to change a term of the sales contract?WB-42 Amendment to Listing Contract What is a limited common element?Something that is not the unit, use of "some" owners.(Parking space, balcony) What type of zoning allows land to be used in a way that was already in existence when a zoning ordinance was enacted, but does not comply with current zoning regulations?Non - Conforming use / Grandfathered What type of listing contract is illegal in Wisconsin?Net Listing Contract In what kind of transaction must a firm provide agency disclosure?ALL TRANSACTIONS 1-4 family need to sign The primary principal of value used by a licensee when

conducting a marketplace analysis is:

Substitution What are listing firms agency disclosure obligations when working with a customer who wants to write an offer on a duplex? Commercial warehouse?Must provide disclosure in ALL transactions, 1-4 family must sign, commercial no signature required.What form would a licensee use to notify a secondary buyer that his offer was being elevated to primary position?WB-41 Notice Relating to Offer to Purchase Who can retain unlicensed personal assistant? Licensed?Anyone can hire unlicensed assistant. Firm can only hire licensed.In the inspection section of the WB-11 Residential Offer to Purchase, an "inspection" is defined as an observation of the property which does not include testing of the property

other than:

Leaking Carbon Monoxide, Leaking LP Gas, Leaking Natural Gas-used as fuel source.If a licensee is representing a family member who is writing an offer, what are the disclosure obligations? Does it matter if they are a client or customer?Disclose in writing and offer to purchase. Written consent from all parties.When a firm has a multiple representation relationship with designated agency, to whom will each salesperson provide information, opinions, advice?Each client receives full negotiation services from their designated agent.Provide an example of secondary mortgage fraud: Loan made fraudulently on primary market, sold on secondary market.To originate a loan at a rate lower than being charged on the open market, a buyer most likely Buy points If you are the listing agent and a buyer asks you to write an offer but does not sign an agency agreement, how do you describe the buyer?Customer

If you are a buyers agent by when must you disclose your agency relationship to seller or listing firm.First chance you get, first contact when parties exchange information about transaction or the seller, showing of property, any other negotiation with seller or listing firm.When must a licensee disclose that they hold a real estate license when selling their own home? Commercial property owned by licensee?First contact with party or agent where information is being exchanged, showing property or other negotiations.A borrower is able to originate a loan that is amortized for 30 years, however, the borrower only has five years to pay the loan back. The borrower received what type of loan?Balloon Loan If "time is of the essence" does not apply to a date or deadline, then when must performance occur before a breach?Reasonable time Fair housing laws do not apply to what type of properties:Commercial & Industrial What federal legislation prohibits the payment of kickbacks?

RESPA

Asbestos is considered to be most dangerous when it is:In it's friable state.

A seller becomes aware of a defect after an Offer to Purchase has been accepted. Does the seller have to amend the Real Estate Condition Report and deliver a copy to the buyer?NO, the offer to purchase controls.What rights are in the bundle of legal rights? Right to Dispose of It, Right to Encumber It, Right to Exclude, Right of Possession, Right of Quiet Enjoyment, Right of Control.

Fannie Mae, Ginnie Mae, and Freddie Mac are part of:The Secondary Market

What are the three remedies if an agent breaches and agency agreement?Rescission, Forfeiture of Commission, Sue for Damages Under fair housing when is it permissible to refuse to sell a property to someone because of age?If it qualifies as housing for older people (senior housing), can refuse to rent/sell if the applicant is younger than required age.What is the purpose of a comprehensive plan? Guide & Coordinate Growth, Protect Health & Safety, Harmonious Development, Existing & Future Needs By when must a firm provide agency disclosure to client?Customer?Before or at the same time executing client agency agreement. Before negotiations for customer.After a borrower pays off a loan, what should the borrower expect to be recorded by the law?Satisfaction of Mortgage On what line of the WB-1 Residential Listing Contract does it state that they buyer may accompany inspectors?Lines 260-262 How does an abstract protect a purchaser from gaps in the chain of title?It does NOT. It notes them if there is a history.A vacant parcel of land was zoned residential has been re-zoned to conservancy. What type of zoning has occurred?Down Zoning

The party that issues the loan is called the: Lender

Are FHA loans guaranteed or insured?FHA - Insured / VA - Guaranteed

When is it permissible to mention a protected class in an advertisement?If it's affirmative marketing designed to attract person's who

wouldn't ordinarily apply. IE: ADA Compliant, Accessible,

Grab Bars.If a buyer does not receive a Real Estate Condition Report within 10 days of acceptance, how many days does the buyer have to rescind the contract? How should the buyer rescind?

• BUSINESS days to rescind in WRITING

Name for lenderMortgagee What are the licensees disclosure obligations if receiving a referral fee from lawn maintenance company? Referral between agents?Before or at time licensee makes they referral, must disclose in writing that they will receive compensation from lawn care company. Licensees do not need to disclose referral fees for real estate services.What duties does a firm owe to all parties in a transaction?Fair and honest treatment, disclosure of material adverse facts, confidentiality, provision of accurate market condition information, reasonable skill and care, accounting, objective presentation of offers.What are the 13 protected classes under Fair Housing laws?Race, Color, Religion, Nationality Origin, Sex, Familial Status, Disability, Ancestry, Age, Sexual Orientation, Marital Status, Lawful Source of Income, Victim of Domestic Violence / Abuse / Assault. *Municipality can add their own class* What are the six requirements to create a valid agency agreement?Description of Real Estate, Statement of Price, Statement of the Commission, Statement of the Term, In Writing, Signed by the Person Who Will Pay the Commission (doesn't have to be buyer or seller).What are the additional duties owed to a client? Loyalty, Advice, Disclosure, Obedience (Obligation), Negotiation A seller signs listing contract with firm. Who is the agent who is the principal?Seller is the principal, firm is the agent.A seller of what type of property is subject to the Real Estate Condition Report?Residential Sellers, Sellers of Vacant Land (Disclosure Report) When does a property manager need to have a real estate license?If they are negotiating terms or signing leases on behalf of the landlord.How should a client waive a firms duty of negotiation?In writing.A licensee is trying to determine value for a property. The subject property is surrounded by smaller properties that are not in as good of shape. The surrounding properties are bringing the value of the subject property down. This is

an example of:

Regression Telling existing homeowners that a certain class of people will lower property values in an effort to obtain listings is a

form of:

Block Busting - ILLEGAL What type of property is automatically included in the purchase price of real estate - personal or real?Real Property