Final Exam - CEShop
Which of the following measurement systems is mostly used in states that were part of the original 13 colonies? Compass and ruler Lot and block Metes and bounds RGSS
Metes and bounds
What must occur to effect a transfer of title? The grantee must sign the deed. The grantor must accept the deed. The grantor must deliver a valid deed to the grantee. The grantor should acknowledge the deed.
The grantor must deliver a valid deed to the grantee.
A property manager is authorized to perform all of the duties related to the property on whose behalf? The lender's The owner's The state's The tenant's
The owner's
Conrad and Evan have been renting their house in Green Bay for several years. The end of their current lease is approaching, and the couple wants to continue renting the home. Which of the following is true of the lease arrangement they will enter into with their landlord? They can simply extend the lease they are currently in. They must enter into a new lease. They must go on a month-to-month lease. They must pay a renewal fee to the state.
They must enter into a new lease.
Which of the following is a reason that wetlands are protected? To be developed at a later date To grow commercial crops To open them to commercial fishing To stabilize soil and help control erosion
To stabilize soil and help control erosion
A clause that allows the parties to agree that they won't litigate if there are any contract disputes is a/n _________. Arbitration clause Choice of law clause Indemnification clause Severability clause
Arbitration clause
Which type of contract involves an exchange of consideration between two parties? Bilateral Executed Mutual Unilateral
Bilateral
Examples of duties that Wisconsin licensees owe to their clients include all of the following EXCEPT which one? Compassion Disclosure Fulfilling all requirements required by the agency agreement Providing information and advice
Compassion
Which fiduciary duty goes beyond closing? Confidentiality Disclosure Loyalty Obedience
Confidentiality
Alexandra is perusing her closing statement, particularly those amounts that are a benefit to her. What's the term for these items? Benefits Credits Debits Favorables
Credits
Which type of estate conveys all rights of ownership? Fee simple estate Leasehold estate Legal estate Life estate
Fee simple estate
To avoid discriminating against those with disabilities in her advertisements, June, a listing agent, should use which of the following phrases? Fourth-floor walk-up Ideal for active singles No service animal allowed No wheelchairs on premises
Fourth-floor walk-up
As a property manager, Darby expects to _______. Charge tenants for maintenance calls Have the property owner reimburse her for expenses Include free lawn care service Pay some expenses out of pocket
Have the property owner reimburse her for expenses
Lenders require that borrowers purchase and maintain adequate _____, which is usually bundled into their monthly PITI payment. Hazard and flood insurance Legal counsel Personal property insurance Pest and hazard inspections
Hazard and flood insurance
With which approach to value does the appraiser analyze a property's ability to earn future income? Cost approach Income approach Sales comparison approach Taxable revenue approach
Income approach
Which of the following is an example of a deed restriction? Eminent domain EPA wetland conservation guidelines Fence height Zoning regulation
Fence height
What's the area of a rectangular building that's 40 feet by 20 feet? 800 feet 800 square feet 80 feet 80 square feet
800 square feet
What is the definition of a tax lien? A tax lien can be attached to a property as a result of an unpaid mortgage. A tax lien can be attached to a property for a violated covenant restriction. A tax lien can be attached to a property for work performed on a property by a contractor. A tax lien can be attached to property for failure to pay any type of taxes, including property taxes and income taxes.
A tax lien can be attached to property for failure to pay any type of taxes, including property taxes and income taxes.
Al is a real estate licensee. Assuming that none of the following people are his clients but are parties to a potential transaction, to whom must he provide an agency disclosure form? Any party Only buyers Only sellers Only tenants
Any party
Which stage of the property ownership life cycle can be affected by income tax issues? Acquisition, ownership, and reversion can all be affected by income tax issues. Only acquisition Only ownership Only reversion
Acquisition, ownership, and reversion can all be affected by income tax issues.
Which one of the following elements of a deed signify the grantor's intention to transfer title to the grantee? Act of conveyance Consideration Evidence Grantor/grantee
Act of conveyance
Licensees conduct CMAs to determine ______. An appropriate listing price Appraisal value Construction costs Multiple methods
An appropriate listing price
What hazardous material might be found in vinyl flooring, insulation, and roof shingles of older homes? Asbestos PCBs Radon VOCs
Asbestos
______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc. Bracketing Bridging Substituting Surrounding
Bracketing
How can an agent offer dual agency legally? By getting general agreement from both parties By having clients sign waivers By not disclosing one of the agency relationships By obtaining informed consent in writing from both parties
By obtaining informed consent in writing from both parties
Juniper is buying a newly constructed home with a fireplace and garage. A _______ is required, per state laws. Carbon monoxide detector Radon test UST Well inspection
Carbon monoxide detector
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? Commingling and conversion Commingling only Conversion only Deceptive business practice
Commingling and conversion
You're obligated to preserve all the confidential information you receive from a seller client. This obligation ______. Can be ignored if you're sharing confidential information with someone other than the buyer Ceases once the seller's property is sold Continues even after your fiduciary relationship with the client ends Ends 30 days after you've received the confidential information
Continues even after your fiduciary relationship with the client ends
A listing agreement describes how compensation the seller's agent earns will be shared with the licensee who brings the buyer. This is known as the _______. Buyer's split Cooperating broker's split Honor system Office fee
Cooperating broker's split
How does discrimination still occur, even though it's illegal? Discrimination is human nature. Discrimination is often not visible to the public. Discrimination makes good business sense. Not all laws make sense.
Discrimination is often not visible to the public.
Fred wants to make sure that his home is radon free. He wants to check all likely access points, including which of the following? Doorways Drains Outlets Windows
Drains
What do buyers provide to the seller as an indication that they are serious and intend to go through with the purchase? A copy of the signed agency agreement A promissory note Earnest money Their word
Earnest money
Switches that are warm to the touch, damaged panels, and lights that dim or flicker when other appliances are in use can be signs of what sort of problem? Electrical Foundation Heating/cooling Plumbing
Electrical
What's the amount a lender charges a borrower for using the lender's money? Discount point Interest Principal Usury
Interest
Roger just discovered that his loan includes a hidden balloon payment, so now he must ________. Make one large final payment to pay off the principal Make one large initial payment to pay down the principal Pay off the interest with a second mortgage Pay off the interest with higher payments for the first year
Make one large final payment to pay off the principal
Which of these may be covered by a builder-backed home warranty? Custom exterior paint Owner-installed landscaping Ugly carpeting Workmanship
Workmanship
Can REEB discipline a Wisconsin licensee for violating laws other than real estate license laws? No. REEB can investigate and discipline licensees for violating Wisconsin license laws but not other laws. Yes, but only if the licensee is also guilty of violating a related real estate license law. Yes. REEB can discipline a licensee for any conviction. Yes. REEB can discipline licensees who are convicted of any offense that's substantially related to real estate.
Yes. REEB can discipline licensees who are convicted of any offense that's substantially related to real estate.
Your clients, the Jamesons, are selling their lakefront property. They receive an offer, and the buyer has included a pre-approval letter. The Jamesons balk, saying, "We want a pre-qualification letter, or we're not selling." What do you tell them? "A pre-approval letter is almost as good." "A pre-approval letter is better than a pre-qualification letter." "I agree. We will ask for a pre-qualification letter." "The pre-qualification letter will only come after the property appraises."
"A pre-approval letter is better than a pre-qualification letter."
Ella, a listing agent, accidentally discriminated on the basis of familial status by using which statement in her advertisement? "Families will love it here!" "Features a cozy fireplace." "House located on quiet street." "Offers a spacious family room."
"Families will love it here!"
The transfer tax rate is $0.37 per $100. A property that sold for $300,000 would have a ______ transfer tax. $1,110 $1,200 $2,200 $920
$1,110
Buyer Yun-Wah is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much will his loan origination fee be? $2,400 $3,200 $3,600 $800
$3,200
A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. The listing brokerage will split the full commission with the buyer's broker 50/50. Kiko the seller's listing agent has a 70/30 split arrangement with her brokerage, with Kiko receiving the "70". After sharing the commission with the buyer's broker and her commission split with her brokerage, how much will Kiko receive? $15,750 $2,362.50 $5,512.50 $7,875
$5,512.50
What's an encumbrance? A claim on property that limits the owner's use or rights, or decreases the property value A defect on the property found during inspection An unauthorized claim to property Anything that affects the marketability of a property
A claim on property that limits the owner's use or rights, or decreases the property value
A legal claim against the title to a property is known as ______. A lien An abstract of title Debt Title accountability
A lien
Wisconsin licensees owe their customers _______. A limited amount of duties More duties than they do their clients No duties The same duties they owe their clients
A limited amount of duties
You should make sure that any property management agreement you sign has _______ that outlines why and when you have the right to terminate a contract with an owner. A hold harmless clause An activation clause A reasonable care clause A termination clause
A termination clause
What's the term for an addition to a sales agreement form that can be added before it is signed without changing any of the other terms that have already been agreed upon? Addendum Amendment Annexation Appurtenance
Addendum
Which of the following scenarios is an example of group boycotting? Agreeing with your competition to not cooperate with another business Getting together with the competition and setting a standard commission rate Making doing business with a client dependent on the client also obtaining services from a related business Segmenting the market to limit competition
Agreeing with your competition to not cooperate with another business
Which of the following statements about agents and the duty of obedience is true? An agent can ignore a client's instructions if they negatively affect the agent's commission. An agent should carry out the client's instructions as long as they are within the law. An agent should never question a client's instructions. The duty of obedience extends beyond the termination of the agency agreement.
An agent should carry out the client's instructions as long as they are within the law.
When can real estate agents give legal advice to a buyer about backing out of a contract? An agent should never give legal advice unless the agent is also a practicing and licensed attorney. They can give legal advice any time. They can give legal advice any time they are asked by the buyer, if the information is provided orally. They can give legal advice any time they are asked to do so by the buyer, and they provide the information in writing.
An agent should never give legal advice unless the agent is also a practicing and licensed attorney.
Which of the following statements is accurate regarding Wisconsin notices and amendments? Although amendments to real estate offers are legally acceptable in Wisconsin, notices are prohibited for use in real estate transactions. An amendment is used to change the terms of a purchase offer, while a notice is used when one party needs to inform the other party about something related to the contract. Any Wisconsin licensee may prepare a notice, but only Wisconsin brokers are authorized to prepare and deliver amendments. Notices and amendments are used for the same purpose.
An amendment is used to change the terms of a purchase offer, while a notice is used when one party needs to inform the other party about something related to the contract.
Mario does not want to include a religious preference in his listing ad, so he decides to use which of the following phrases? Apartment complex with a temple Close to Catholic cathedral Jewish community Within walking distance to a mosque
Apartment complex with a temple
How are condominium units taxed in Wisconsin? As a complex as a whole As separate units of real property Each building of multiple condominium units is taxed separately. Only common elements, like pools, hallways, and meeting rooms, are taxed.
As separate units of real property
A late spring snow melt caused a river to swell past its bank. The flooding led to many landowners losing portions of their properties. What is the process called that caused this land loss? Accretion Avulsion Erosion Prior appropriation
Avulsion
Which of the following is a private agreement that impacts the use of the land? Assessment Deed restriction Encroachment Encumbrance
Deed restriction
Hilary just learned that some of the repairs the seller was going to make on the house she is buying in the Milwaukee suburbs will not be completed before closing. Rather than delaying the closing, what can Hilary and the buyer do? Draft a post-closing escrow agreement with instructions for how the seller will pay for the repairs. Hilary can hire her own contractor to finish the repairs and send the seller the bill. Nothing, Hilary will have to pay for any repairs that are not made before closing. Require the contractor to work overnight to complete all repairs.
Draft a post-closing escrow agreement with instructions for how the seller will pay for the repairs.
Easements are a type of encumbrance that can affect a property. Which of the following is true about easements? Easements are always permanent. Easements are often established by a written agreement between the parties. Easements are rights one party acquires to use another party's land, usually for one day. Easements require the property owner's express permission.
Easements are often established by a written agreement between the parties.
Which of the following occurs when a property owner dies without having a will in place, and no heirs or creditors can be found? Eminent domain Encroachment Escheat Estoppel
Escheat
Jerome is buying Joanne's bungalow in Kenosha. Both parties decided they would prefer a title agent hold the earnest money prior to closing. In what type of account is the earnest likely to be deposited? Broker's operating account Escrow account Mortgage account Trust account
Escrow account
What do you call the person who or entity that oversees trust or escrow money? Escrow agent Escrow master Mortgage agent Special agent
Escrow agent
In Wisconsin, what document contains specific information about escrow funds, who manages them, and how they can be used? Closing statement Escrow agreement Loan commitment Title commitment
Escrow agreement
Which ownership type involves one person owning the property? Co-ownership Dual ownership Estate in severalty Property partnership
Estate in severalty
What's NOT true about the ethical conduct of a Wisconsin licensee? A lack of knowledge of the professional standards of conduct expected of a licensee could lead to an inadvertent ethical breach. Ethical misconduct is defined personally and is therefore not an area the Real Estate Examining Board is authorized to investigate or discipline. It is up to each licensee to make ethical decisions in professional practice. Standards of professional conduct and ethical practices for licensees are described in Wisconsin statute.
Ethical misconduct is defined personally and is therefore not an area the Real Estate Examining Board is authorized to investigate or discipline.
Which of the following is a duty that licensees owe to ALL parties in a transaction? Exercising reasonable skill and care Negotiating on a party's behalf Placing a party's interests first Protecting confidential information
Exercising reasonable skill and care
Which agency enforces federal fair housing laws? FHA FHEO NFHA NHA
FHEO
When a Wisconsin property tax lien goes unpaid, the county may eventually be able to _____. Apportion the delinquent amount to other properties in the municipality Foreclose on the property and sell it Impose a secondary mortgage on the property that will repay the outstanding tax amount and that the homeowners will pay off at a rate agreeable to her Imprison the delinquent taxpayer
Foreclose on the property and sell it
A claim of misrepresentation can stand up in court if it includes ________ elements. Five Four Three Two
Four
Carsten is a Wisconsin licensee who's at the end of the second year of his first term on the Wisconsin Real Estate Examining Board. Which of these do we know is true of Carsten? He's a Wisconsin licensed broker with at least six years of real estate experience. He's a Wisconsin salesperson. He's legally eligible to serve for six more years. He's serving with seven other members.
He's legally eligible to serve for six more years.
Seller Julius knows he has asbestos in his insulation, and he wants to remove it before listing his house. What's Julius's best option for removal? Hire an odd jobs contractor Hire someone with proper and training and certification Leave it for the buyer to deal with it Remove the insulation himself
Hire someone with proper and training and certification
Ralph has a right of first refusal agreement on his neighbor's property. When the property goes up for sale, how will Ralph exercise his right? He's allowed to review and refuse any offer the seller would like to accept, giving him control over who lives next door. His neighbor isn't allowed to market the property until Ralph has decided to either purchase the property at market value or give up his right of first refusal. His neighbor must notify Ralph as soon as he receives his first offer, giving Ralph the opportunity to match the offer and buy the property. If Ralph doesn't do so, he gives up his right of first refusal. Ralph is allowed to refuse any material change to the property, including a sale, lease, or substantial change to the property improvements.
His neighbor must notify Ralph as soon as he receives his first offer, giving Ralph the opportunity to match the offer and buy the property. If Ralph doesn't do so, he gives up his right of first refusal.
Raj wants to protect some of the equity in his home in case of bankruptcy or foreclosure. He should file a(n) _____. Equity Protection form Foreclosure waiver Homestead exemption Security Interest form
Homestead exemption
Where is an appropriate place for a broker to place client trust funds? In an interest-bearing account within the state, with a ledger entry noting they are trust funds In a non-interest-bearing general business account In a trust fund account or neutral escrow account In the broker's personal checking account
In a trust fund account or neutral escrow account
Lester, a confirmed bachelor, decided to celebrate the fact that he just made the final payment on his home in Oshkosh. He invited several friends over for a "burn the mortgage" party. How does Lester own his home now? As chattel As tangible property Encumbered In severalty
In severalty
John is a qualified third party conducting a standard review of a property. John is conducting a(n) ______. Analysis Inspection Review Test
Inspection
Which one of these individuals will be required to complete the Wisconsin reinstatement process instead of the renewal process? Constance, whose license expired two years ago and who has one unmet disciplinary requirement Johnathan, whose license was revoked more than five years ago Michelle, whose initial broker's license expires next month Terry, whose license expired more than five years ago
Johnathan, whose license was revoked more than five years ago
The potential for health hazards related to ______ must be disclosed when selling or renting homes built before 1978. Arsenic Asbestos Lead Radiation
Lead
In real estate contracts, which are required: legal descriptions or street addresses? Legal descriptions are required, because they provide less ambiguous and more complete descriptions of properties than street addresses provide. Legal descriptions are required, because they're more ambiguous than street addresses. Street addresses are required, because they provide clearer, more unambiguous information than legal descriptions provide. Street addresses are required, because they're easier to find on a map and can be easily identified by anyone.
Legal descriptions are required, because they provide less ambiguous and more complete descriptions of properties than street addresses provide.
Karen wants to sell her lakeside vacation home. Upon visiting for the first time in six months, she discovers it flooded during the rainy season. She should have the property checked for _______. Formaldehyde Lead-based paint Mold Radon
Mold
What type of tenancy can be automatically created if a tenant under a lease stays beyond the lease's terms, and the landlord continues to accept rent from that tenant? Estate for years Freehold estate Month-to-month tenancy Tenancy at sufferance
Month-to-month tenancy
Valarie's lender informed her that she must pay into escrow. For what can the lender require Valarie to pay into escrow in Wisconsin? Closing fees Home inspections Interest Mortgage insurance
Mortgage insurance
Felicity doesn't mind if her listing firm represents potential buyers of her home, but she would prefer that her listing agent only represent her in the transaction. What type of agency relationship should she select in her residential listing contract? Designated agency only Multiple representation relationship with designated agency Multiple representation relationship without designated agency Rejection of multiple representation relationships
Multiple representation relationship with designated agency
When people are treated differently because they were born in another country or are from a specific part of the world, this is discrimination based on _______. Color Familial status National origin Race
National origin
Which of these is prohibited in Wisconsin? Net listings Open agency agreements Option contracts Sub-agency agreements
Net listings
Levinia is preparing a sales contract for her clients Rose and Lily. When is it acceptable for her to offer them legal advice? Never When covering the options for terms and contingencies When determining the purchase price amount When discussing the amount of earnest money to place as a down payment
Never
When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client? Never When covering the options for terms and contingencies When determining the amount of the purchase offer When discussing the amount of earnest money to place as a down payment
Never
Kevin completed three topics in four CE courses and two topics in two other CE courses. Has he met the CE requirements? No. Kevin must complete four topics in each course. No. Kevin must complete three topics in all six required courses. Yes. Four Wisconsin CE courses require that licensees complete three topics, and two CE courses require that licenses complete two topics. Yes. The requirement is that licensees complete 16 total topics selected from any of the six courses.
No. Kevin must complete three topics in all six required courses.
Lease types, space planning, area design, and building layout are especially important for a property manager who's working with a ______. Condominium property Non-residential property Residential property Vacation property
Non-residential property
Sisters Sheila and Vickie entered into a contract together to buy a vacation property. The sisters get into a dispute, and Vickie no longer wants any part of the deal. Sheila is in agreement with this idea, and talks her younger brother Joe into replacing Vickie on the contract. Sheila, Joe, Vickie and the seller agree to the substitution. Of what is this an example? Assignment Fraud Mutual mistake Novation
Novation
As an agent, you owe fiduciary duties to your client. Among these are loyalty, reasonable skill and care, confidentiality, accounting, and disclosure. What fiduciary duty is missing from this list? Kindness Obedience Profitability Strategy
Obedience
Real property rights include the right ______. Of enjoyment To avoid taxation To encroach on a neighboring property To pollute a neighboring property
Of enjoyment
Wanda wants to use some copyrighted material on her website. The law _______. Allows her to legally use up to 15% of the original work Offers no rules permitting the use of a specific number of words or percentages of a work Permits her to use whatever she wants States that she can legally use 300 words
Offers no rules permitting the use of a specific number of words or percentages of a work
In terms of encumbrances, what's a license? Permission to alter someone's land or property Permission to do something on another's land while also possessing an interest or ownership in the land Permission to do something on one's own land Permission without possession, interest, or ownership
Permission without possession, interest, or ownership
Emblements are considered to be ______. A subsurface right Land Personal property Real property
Personal property
You've signed a listing agreement with a client. Which of the following activities will you address next in order to complete the sales process for your listing? Deposit the earnest money check. Hold an open house. Prepare a features list. Publish the MLS listing with photos.
Prepare a features list.
When a higher-quality property is adjacent to a lower-quality property, it can increase the lower-quality property's value. What economic principle of value is this? Anticipation Contribution Progression Regression
Progression
Which of these is a requirement when licensees present a party's written proposal to their client? Ensure the client's decision is given to the party in person. Ensure the party is promptly notified of the client's acceptance; rejection doesn't require notification of the party. Present the client's decision to the other party within 24 hours of receiving the written proposal. Promptly notify that party of their client's decision.
Promptly notify that party of their client's decision.
Which of the following describes a timeshare? Non-transferable property Property with a divided form of ownership or use rights that is usable during defined periods Real property that can be used at any time Theoretical property
Property with a divided form of ownership or use rights that is usable during defined periods
Which of the following actions does the secondary mortgage market commonly take? Issues loans to consumers. Purchases loans from lending institutions. Regulates lending institutions. Sets interest rates.
Purchases loans from lending institutions.
REEB has received information that leads the board to believe that a broker has pursued a continuing course of mortgage fraud. Which of these statements about the board's authority is true? REEB may issue a summary suspension pending a disciplinary investigation and hearing. REEB may petition the attorney general's office for a temporary injunction against the broker. REEB must give the licensee an opportunity to appear at a hearing before taking any action against the licensee. REEB must schedule a show cause hearing before beginning an investigation or commencing any disciplinary action.
REEB may issue a summary suspension pending a disciplinary investigation and hearing.
Based on the duty of reasonable skill and care, if clients ask agents for advice in areas outside of an agent's scope of expertise, what should agents do? Give the clients the best advice they can based on personal experience. Refer their clients to a competent professional in that field. Tell the clients they need to do a little research and that they will get back to them shortly. Wing it and then check later to make sure the answers are accurate.
Refer their clients to a competent professional in that field.
Which of these scenarios is legal in Wisconsin? Catherine, a licensed salesperson, is associated with a Madison real estate firm and also operates independently (with her broker's permission). Regal has been a licensed Wisconsin salesperson for four years, and she's associated with a Wisconsin brokerage firm. Trina is a Wisconsin licensed broker associated with a large Madison real estate brokerage that deals only in residential real estate. Without her broker's knowledge, she also operates independently selling commercial real estate. William, a licensed broker, is an associate broker with Best Kept Secret Realty and Modern Homes Realty. Both firms are in Milwaukee.
Regal has been a licensed Wisconsin salesperson for four years, and she's associated with a Wisconsin brokerage firm.
What type of tenant uses a percentage lease most often? Manufacturing Residential Retail Triple net
Retail
Complete this formula: Net to seller = ______ x (100% - commission rate) Closing costs Commission rate Market value Sales price
Sales price
Jackson intends to apply for a Wisconsin real estate license. He's 29. He has completed 72 hours of pre-licensing coursework and the 13-hour broker's education program, and he's a licensed Wisconsin environmental attorney. For which of these licenses would Jackson be eligible? He can verify 15 experience points. Associate broker Broker Entity Salesperson
Salesperson
Sara's Wisconsin salesperson's license is expired. Her renewal requirements include payment of any fees and proof of completing the necessary continuing education for the previous licensing biennium. Which of these statements about Sara must be true? Sara is renewing her expired broker's license. Sara is renewing her expired salesperson's license. Sara's license expired less than five years ago. Sara's license expired more than five years ago.
Sara's license expired less than five years ago.
Determine which of the following statements is TRUE when an as-is clause is used. Sellers are exempt from lead-based paint disclosure requirements. Sellers are required to fill out Real Estate Condition Reports. Sellers have no disclosure obligations. Sellers must still disclose any potential material adverse facts.
Sellers must still disclose any potential material adverse facts.
What is it called when a seller removes an item or fixture from a property (so that it becomes personal property instead of real property) before an agreement of sale has been signed or after negotiations have commenced? Adaptation Annexation Detachment Severance
Severance
Vanessa has just returned $200 to a former tenant whose security deposit was $800. What else, if anything, must she do? She doesn't have to do any of these things. She must send a letter to the tenant that confirms the end of the lease in writing. She must send the tenant an itemized statement that details how the missing money was spent. She must use the missing $600 to fix the damage caused by the tenant's normal wear and tear.
She must send the tenant an itemized statement that details how the missing money was spent.
Listing agent Paula receives three offers for the property overnight and finds them in her inbox first thing in the morning. How should she handle them? For any offers that a buyer has submitted directly, she must first verify the source. Those that come from other agents should be presented to the seller promptly. She must present them one at a time in the order received, according to the time stamp on the email. The seller must make a decision on the offer before she presents the next one. She should present them all promptly to the seller for review. She should present them promptly to the seller unless the seller already has an offer under consideration. If so, she must hold all other offers until the seller has made a decision.
She should present them all promptly to the seller for review.
In most transactions involving a buyer or seller, real estate agents have limited authority to act on behalf of their clients. Therefore, which type of agency relationship are they in? Designated General Special Universal
Special
Which of these statements regarding the purpose of real estate governance is the most accurate? Real estate governance organizations are created primarily to ensure that licensees have the appropriate education and experience before becoming licensed. Real estate licensing law is in place to assure that brokers treat licensees equitably. States enact licensing laws to ensure that licensees are well-qualified and that they act within the law. Wisconsin's real estate governing bodies function mainly to protect the public from unscrupulous real estate developers and out-of-state sellers.
States enact licensing laws to ensure that licensees are well-qualified and that they act within the law.
Which one of the following terms refers to a tract of land divided into lots or plots and used for building purposes? Plat Site plan Subdivision Topography
Subdivision
The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. What's this type of rate called? Bait and switch Balloon payment Fixed rate Teaser rate
Teaser rate
Of what must a Wisconsin lender inform borrowers when an escrow payment is required? That the borrower has the right to tell the escrow agent how to pay taxes. That the escrowed funds may be used for emergency purposes. That the lender must pay interest on the escrowed funds. That they can stop making the escrow payment at any time.
That the borrower has the right to tell the escrow agent how to pay taxes.
Which law requires the EPA to establish air quality standards? The Clean Air Act of 1970 The Clean Air Act of 2010 The Environmental Quality Act of 1970 The EPA Air Quality Standards Act
The Clean Air Act of 1970
Which of these pieces of legislation work together to prevent discriminatory lending practices? The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act The Housing and Economic Recovery Act, the American Recovery and Reinvestment Act, and the Consumer Financial Protection Act The Housing and Urban Development Act, the Fair Housing and Employment Act, and the Community Development Act The Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Consumer Credit Protection Act
The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act
Which of these documents clearly spells out the results of accepting or rejecting designated agency in a multiple representation relationship? The buyer agency agreement The independent contractor agreement The MLS listing The Wisconsin designated agency disclosure form
The Wisconsin designated agency disclosure form
A Wisconsin salesperson hires another licensee to work as a personal assistant. Which of these is correct? The assistant can perform any tasks that the employing licensee can perform. The assistant's license must be made inactive. The assistant, though licensed, is considered an unlicensed assistant and can't perform any activities requiring a license. Wisconsin law prohibits salespersons from hiring personal assistants.
The assistant, though licensed, is considered an unlicensed assistant and can't perform any activities requiring a license.
What figure results when you subtract the buyer credits from the buyer debits on the closing statement? The amount the broker will distribute on behalf of the buyer The balance due from the buyer at closing The balance due to the seller at closing The buyer's total expenses and fees
The balance due from the buyer at closing
You represent a buyer of a $1 million property. The seller's agent, through the seller, offers a 2.5% cooperative agent commission. Who's your client? The buyer The seller The seller's agent The seller's agent's broker
The buyer
What is a capitalization rate? The expected rate of return on investment The rate at which assets depreciate over time The rate of capital recapture The value of a business as an investment
The expected rate of return on investment
Which of the following is something the seller is required to disclose to a buyer in a transaction? Any and all offer amounts from other buyers. The kitchen drain often clogs and backs up into the sink. The seller has HIV. The seller's willingness to offer seller financing.
The kitchen drain often clogs and backs up into the sink.
Which one of the following is information that a Wisconsin licensee is NOT allowed to share with prospective buyers? The existence of other offers The fact that an accepted offer includes a bump clause The fact that a seller has accepted an offer The terms of another prospective buyer's offer
The terms of another prospective buyer's offer
Which of the following best describes a property's assessed value? A broker's opinion of the property's value based on market comparables. The seller's assessment of the property's worth based on all known facets and features of the property; used to set the listing price. The value placed on the property by the local jurisdiction's taxing authorities to calculate property taxes. The value placed upon a property by a certified appraiser.
The value placed on the property by the local jurisdiction's taxing authorities to calculate property taxes.
Which of the following is designed to protect buyers from financial loss if the title to the property they buy has defects? Abstract of title Chain of title Title insurance Title search
Title insurance
Why does HUD test for housing discrimination? To create revenue through fines To educate the public To punish blatant discrimination To uncover hidden discrimination
To uncover hidden discrimination
REEB automatically suspended the licensee's real estate license when the board found the licensee guilty of which of these offenses? Cynthia, a salesperson, accepted a commission payment from her buyer client. Jeannie, a salesperson, failed to properly remit an earnest money deposit she received. Teresa, a broker, failed to disclose to the buyer a property defect that her seller client told her about but didn't want to disclose. Tom, a real estate licensee who works in property management, denied a rental application from Ram and Aarthi Ramesh because of their race.
Tom, a real estate licensee who works in property management, denied a rental application from Ram and Aarthi Ramesh because of their race.
The ease with which the property can be conveyed to another describes which factor that influences value? Demand Scarcity Transferability Utility
Transferability
For what length of time are Wisconsin brokerage firms required to retain transaction-related records? Four years One year Three years Two years
Two years
Which entity guarantees loans? Federal Deposit Insurance Corporation Federal Housing Administration U.S. Department of the Interior U.S. Department of Veterans Affairs
U.S. Department of Veterans Affairs
What responsibilities does a real estate professional have regarding property taxes? Assist with paying property taxes at closing Determine whether property taxes have been correctly assessed Testify at property tax hearings Understand how property taxes are calculated and disclose to buyers what their property taxes will be based on true taxes, not assessed value nor taxes after exemptions are taken
Understand how property taxes are calculated and disclose to buyers what their property taxes will be based on true taxes, not assessed value nor taxes after exemptions are taken
In which type of contract does only one of the parties offer consideration? Bilateral Executed Mutual Unilateral
Unilateral
Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable? Up to $100,000 for corporations and $1,000 for individuals Up to $100 million for corporations and $1 million for individuals Up to $10 million for corporations and $1 million for individuals Up to $1 million for corporations and $100,000 for individuals
Up to $100 million for corporations and $1 million for individuals
REALTOR® Jim wants to become a social media influencer to get his name out there as an exceptional real estate professional. Why might this be a good idea? It isn't; NAR prohibits REALTORS® from becoming social media influencers. Social media platforms are exempt from license law. The Code of Ethics doesn't apply to social media, so he can get away with more ruthless marketing tactics. Used the right way, it can be a great way to find clients.
Used the right way, it can be a great way to find clients.
When a lender charges a borrower more than the highest allowable interest rate, it is called ______. A discount point A note Interest Usury
Usury
The ______ is the most commonly used residential purchase offer agreement used in Wisconsin. WB-11, Residential Offer to Purchase WB-13, Vacant Land Offer to Purchase WB-14, Residential Condominium Offer to Purchase WB-1, Residential Listing Contract Exclusive Right to Sell
WB-11, Residential Offer to Purchase
The ______ form is used to form the type of contract that only binds the seller, who must not sell the property to anyone else during the specified time period. The buyer, on the other hand, isn't bound by the contract. WB-1 WB-11 WB-24 WB-35
WB-24
Which of the following DSPS-approved forms in Wisconsin is used to submit a counter-offer? WB-1 WB-11 WB-44 WB-46
WB-44
Jay's new loan to purchase a property includes the seller's existing mortgage. What type of loan is this? Blanket Package Unsecured Wraparound
Wraparound
Shelly is a landlord and places an advertisement for her apartment complex saying, "Bienvenido! These Spanish-style apartments are perfect for the Spaniard in you." Is this a fair housing violation? No, because as the property owner, Shelly can advertise as she likes No, because it appeals to a certain style of housing Yes, because it's discriminating based on national origin Yes, because Shelly doesn't know for a fact that the housing is Spanish-style
Yes, because it's discriminating based on national origin
