Real Estate Exam

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How long does the seller have, from the point of accepting a contract for sale from a buyer, to provide the buyer with a real estate condition report form and/or the vacant land disclosure report form? A. 3 days B. 7 days C. 10 days D. 14 days

Broker Bob knows that the seller's house has a cracked foundation and that the previous owner committed suicide in the laundry room. Bob must disclose which of the following? A. Neither fact B. Both facts C. The suicide but not the cracked foundation D. The cracked foundation but not the suicide

Becky just bought a condominium. Which statement regarding her ownership is TRUE? a. Her property taxes are levied against her directly. b. She has a proprietary lease. c. She may not devise the property. d. She must take title as a joint tenant with other owners.

Each of these are social factors that may affect the real estate market EXCEPT a. scarcity. b. migration. c. location. d. demographic changes.

The Civil Rights Act of 1866 prohibits a. racial discrimination in the sale or lease of any property. b. only discrimination in lending. c. any discrimination in the provision of government services. d. all housing discrimination.

What is the last step necessary in order to convey title via a deed? a. acceptance b. acknowledgment c. execution d. recording

When conveying property, certain elements must be included in the deed to make it valid. Of these, which is NOT generally a requirement? a. acknowledgment b. consideration c. legal description d. words of conveyance

Which is an example of personal property? a. wheat just harvested in the field b. a picket fence around the yard c. minerals lying under the surface of the land d. custom-made draperies in an arched window

Which type of ownership has separate mortgages and taxes for each unit? a. condominium b. cooperative c. leasehold d. syndicate

A latent defect can be best described as a defect that a. has been present for some time. b. is not plainly observable. c. is unknown to the seller. d. the seller doesn't disclose.

A lender typically requires title insurance to cover the a. buyer. b. mortgagee. c. mortgagor. d. seller.

Title is passed once the deed is a. acknowledged and recorded. b. delivered and accepted. c. granted and transferred. d. signed and delivered.

Which is NOT an example of an improvement? a. the sewer line running along the front of the property b. the line of pine trees planted along the edge of the property c. the fence running along the edge of the property d. the barn on the back of the property

Which is NOT a type of judicial deed? a. executor's deed b. guardian's deed c. quitclaim deed d. sheriff's deed

Which of the situations described would LEAST LIKELY be an example of a license? a. Albert allows John to hunt on his property. b. Brenda buys a ticket to a rock concert. c. Carly's deed gives her access to the beach. d. Donnell pitches a tent at a campground.

Which statement about licenses is TRUE? a. Licenses are inheritable. b. Licenses are not revocable. c. Licenses are terminated by the death of the licensor. d. Licenses are a type of easement.

How many square miles are there in a township? a. 1 b. 6 c. 640 d. 36

A partnership, limited liability company or corporation will only be granted a license in Wisconsin under which of the following? A. The brokerage business is registered with the Department of Financial Institutions. B. At least 1 partner, member or officer is a licensed broker. C. All papers are filed with the Real Estate Board. D. Every partner, member and officer has a broker's license.

All real estate licensees, when advertising property, must A. include only the licensees address or post office box number. B. show that the ads are placed in the employing broker's name. C. only give a telephone number. D. identify the property owner.

Khalil is a seller's agent for Shanara. Khalil makes an error on the contract form for the buyer, Mario. Mario reads the contract and signs it without catching the mistake. Shanara accepts the contract without catching the mistake. Which is TRUE? A. Khalil may be disciplined by the Department of Regulation and Licensing. B. The contract is automatically voidable by Mario since the seller's agent drafted the contract. C. The contract is not voidable by Mario because he read it before signing. D. The contract can be amended within five business days of discovery of the error if Shanara has not relied on the contract or been damaged.

Looking at shopping centers in the appraisal process, the social fiber of the community and distances from schools is called A. neighborhood analysis. B. market data approach. C. site analysis. D. social analysis.

Real estate license law in Wisconsin is administered by who? A. Department of Regulation and Licensing B. Wisconsin Realtors Association C. Equal Rights Division of the Wisconsin Department of Workforce Development D. Department of Housing and Urban Development

The Federal Fair Housing Act states that a prima facie case against a broker for discrimination be established after a complaint has been received because the broker has failed to do which of the following? A. The broker has failed to display a HUD Equal Opportunity poster. B. The broker has failed to hire any minority salespeople. C. The broker has failed to join the NAACP anti-discriminatory task force. D. The broker has failed to attend mandatory classes on fair housing.

The prescriptive period in Wisconsin to acquire an easement is how long? A. 20 years B. 15 years C. 12 years D. 100 months

Which of the following must a nonresident license applicant file with the Department of Regulation and Licensing? A. An irrevocable consent to suit B. A certificate of specific performance C. The license applicant's birth certificate D. A corpus delecti

While Phil was holding an open house, Mary, a prospective buyer, asked if he could show her more houses for sale but she is reluctant to enter into a buyer agency agreement. Can Phil show Mary more houses for sale? A. Yes, but only those homes her firm has listings on, in which case Phil would act as an agent for the sellers, not for Mary. B. Yes. Phil can show Mary any houses on the market for sale, but cannot assist her with offers until a buyer's agency agreement is signed. C. No. Phil is an agent for the sellers and since he met Mary at their open house he cannot show her other properties. D. No. Phil cannot show Mary any properties until she enters into a buyer's agency agreement.

The prescriptive period in Wisconsin to acquire title to real property by adverse possession is how long? A. 25 years B. 20 years C. 15 years D. 8 years

Which title search method is used by attorneys in Wisconsin? A. Title search commitment B. Title search from an abstract and a title opinion C. Torrens certificate D. Certificate of title

The primary purpose of a deed is to A. prove ownership. B. transfer title. C. give constructive notice. D. prevent adverse possession.

B. transfer title.

What is a Schedule of Exceptions on a title policy? QID: 2409231 Mark For Review A. Encumbrances B. Tax liens C. List of things not insured in the policy D. Defects

A buyer makes an earnest money deposit of $10,000 on a $300,000 property and then withdraws her offer before the seller can accept it. The broker is responsible for disposing of the earnest money by A. turning it over to the seller. B. deducting the commission and giving the balance to the seller. C. returning it to the buyer. D. depositing it in his or her trust account.

C. returning it to the buyer.

Apartment buildings in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle of A. highest and best use. B. conformity. C. substitution. D. increasing returns.

C. substitution.

Personal property includes all of the following EXCEPT A. chattels. B. fructus industriales. C. emblements. D. fixtures.

D. fixtures

A mechanic's lien would be properly classified as a(n) A. equitable lien. B. voluntary lien. C. general lien. D. statutory lien.

D. statutory lien.

The word "improvement" would refer to all of the following EXCEPT A. streets. B. a sanitary sewer system. C. trade fixtures. D. the foundation.

C. trade fixtures.

The Blumberg family, including 4-year-old Homer, live in a house in Wisconsin that has some surfaces with lead paint. The Blumbergs have Homer tested for elevated blood lead levels, but the tests show he has no lead in his system. Does Wisconsin law require the Blumbergs to take any further action? A. Yes, they must remove all of the lead paint. B. Yes, they must remove all defective lead paint. C. No, removal of the lead paint is only required in rental housing. D. No, as long as Homer's blood lead level is normal, there is no need for abatement.

You live in a house on the shores of Lake Michigan. You are a ________ owner, which means that you ________ own the land under the water. a. riparian / don't b. riparian / do c. littoral / don't d. littoral / do

The rectangular survey system divides townships into ____ sections. a. 6 b. 12 c. 64 d. 36

An increase in the availability of money would lead to which effect? A. Interest rates would go up. B. Interest rates would go down. C. Interest rates would NOT be affected due to RESPA guidelines. D. Interest rates would NOT be affected due to Truth in Lending.

The economic life of an investment can be described as A. the remaining chronological life of the improvements. B. the time over which value generated exceeds cost of operation. C. the time when yield is attributable to the land itself. D. the actual age of the property.

The essential elements of a contract include all of the following EXCEPT A. offer and acceptance. B. notarized signatures. C. competent parties. D. consideration.

The system of ownership of real property in the United States is what? A. Incorporeal B. Allodial C. Command D. Feudal

Which of the following liens does not need to be recorded to be valid? A. Materialman's lien B. Real estate tax lien C. Judgment lien D. Mechanic's lien

From which sources may a licensee learn about fair housing laws and regulations? A. Just HUD and EEOC B. The US Federal government, the Wisconsin state government, local counties, towns and municipalities C. The International Fair Housing Act of 2007 D. Local counties, towns and municipalities only

In an installment land contract, what type of title did the seller retain? A. Joint B. Legal C. Equitable D. Record

Bob listed a home for sale. The owner is moving and needs to sell quickly, so she confided in Bob she would take a lower price. To expedite the sale, Bob tells prospective buyers the owner will take $5,000 less than asking price. Which is TRUE? A. Bob was performing according to the wishes of the seller and his disclosure was therefore permissible. B. A broker must disclose all pertinent facts regarding the sale of the home to potential purchasers. C. Bob violated his fiduciary duty to the seller. D. A broker may disclose a lower asking price only when an expedited sale is required.

Which of the following would be used to clear a defect from the title records? A. A lis pendens B. An estoppel certificate C. A suit to quiet title D. A writ of attachment

C. A suit to quiet title

A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executedXXX. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage? A. Void B. Voidable C. In Breach D. Enforceable

D. Enforceable

Jim, Manny, and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend Wendell. After the conveyance, Jim and Manny A. become tenants in common. B. continue to be joint tenants with Harry. C. become joint tenants with Wendell. D. remain joint tenants owning a two-thirds interest.

D. remain joint tenants owning a two-thirds interest.

Carl Chauvinist, the owner of an apartment complex, lives in one unit of a triplex and routinely refuses to rent either of the other two units to a female. Can he do this? A. Yes. He may do this if he does not use a broker or discriminate in advertising. B. Yes. He may do this if he doesn't ask the tenant's age. C. No. Carl can never discriminate on sex. D. No. Carl must live in a single family home to discriminate.

A. Yes. He may do this if he does not use a broker or discriminate in advertising.

A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed A. applies only to a definite limited time. B. covers the time back to the original title. C. is implied and is not written in full. D. protects all subsequent owners of the property.

A. applies only to a definite limited time.

The maximum permissible amounts are based on "loan to value ratios" A. based on sale price or appraised value, whichever is lower. B. not determined by federal statute in the case of FHA loans. C. based on the banker's competitive market analysis. D. fixed by law for conventional loans.

A. based on sale price or appraised value, whichever is lower.

Alvin is a licensee but wants to sell his own home without using his employing broker. Forrest decides to buy the property and wants Alvin to draft the purchase offer because he isn't familiar with any contractual provisions. In this case Alvin A. must use a Wisconsin approved form. B. must insist Forrest draft the contract since licensee's may not draft a contract. C. can use any sale form available as long as it was drafted by an attorney. D. can draft his own contract without using an approved form since he is selling the property without listing the property.

A. must use a Wisconsin approved form.

In valuing a single family residence by the sales comparison approach, an appraiser would make adjustments to A. the comparable properties. B. the subject property. C. both the comparable and the subject property. D. current properties being offered for sale.

A. the comparable properties.

The ________ is the culmination of the real estate transaction. A. title closing B. inspection C. signing of the sales contract D. default of the mortgage

A. title closing

The local utility company dug up Charlotte's garden to install a natural gas line. The company claimed it had a valid easement and proved it through the county records. Charlotte claimed the easement was not valid because she did not know about it. The easement A. was valid even though the owner did not know about it. B. was an appurtenant easement owned by the utility company. C. was not valid because it had not been used during the entire time that Charlotte owned the property. D. was not valid because Charlotte was not informed of its existence when she purchased the property.

A. was valid even though the owner did not know about it.

A 3.45 acre lot sells for 50 cents per square foot. What is the selling price? a. $37,570 b. $75,141 c. $76,230 d. $78,712

The most typical land sales transaction involves the conveyance of a. real and personal property. b. real property only. c. real estate only. d. personal property only.

Which household does NOT qualify as a protected class under the federal Fair Housing Act? a. single mother with three toddlers b. retired couple over 65 c. pregnant woman d. grandparents raising their 10-year-old grandchild

When an agency agreement states, "Broker will receive the agreed upon compensation regardless of whether Broker, Client, or some other party locates the property ultimately purchased by Client", what kind of agreement is it? A. It is an exclusive agency agreement. B. It is an exclusive buyer-agency agreement. C. It is subagency agreement. D. It is an exclusive subagency agreement.

Which of the following best describes an exclusive right-to-buy contract in Wisconsin? A. It only requires the signature of the principal. B. It has the same legal requirements as a listing contract except the specific property does not need to be identified in the contract. C. It is the same as a listing agreement. D. It is illegal.

Which of the following falls under the authority of the Real Estate Board? A. Composing questions for the state exam B. Enforcing rules made by the Department of Regulation and Licensing C. Administering to exams D. Enacting the laws that govern real estate licensees

Anna owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective purchaser? A. An easement in gross B. An appurtenant easement C. An easement by necessity D. A license

B. An appurtenant easement

A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan? A. Tuesday, midnight B. Thursday, midnight C. Friday, midnight D. There is no rescission on a house.

C. Friday, midnight

H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest money with Broker L. However, V is unable to clear the title to the property, and H demands the return of his earnest money as provided in the purchase contract. Broker L should A. deduct his commission and return the balance to H. B. deduct his commission and give the balance to V. C. If both sides agree, return the entire amount to H. D. give the entire amount to V to dispose of as he decides.

C. If both sides agree, return the entire amount to H.

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support? A. When applying for a VA or FHA loan if the parent's income is less than $25,000 B. If more than 50% of the parent's income is from non-wage sources C. If the parent was relying on the income for repayment of the loan D. This type of income never needs to be disclosed. It would be a violation of ECOA.

C. If the parent was relying on the income for repayment of the loan

An individual that engages in the real estate business without a real estate license is subject to what penalties? A. Civil penalty as much as $5,000 and a mandatory prison term not to exceed 5 years. B. Fine of as much as $1,000 and/or 6 months imprisonment. C. Fine not to exceed $10,000. D. Civil penalty of $5,000 plus added penalties as provided by law.

B. Fine of as much as $1,000 and/or 6 months imprisonment.

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan? A. Interest rate B. Monthly payments C. Finance charge D. Annual rate

B. Monthly payments

A broker and seller terminate the listing contract. An offer is received in the mail by the broker after the termination of the listing contract. The offer is for full price and includes all of the terms and conditions of the seller. Why is this NOT a valid contract? A. There is no consideration involved. B. No acceptance has been given. C. No earnest money has been enclosed. D. There is no current listing agreement.

B. No acceptance has been given.

A buyer assumes the mortgage. How is the owner relieved of the liability? A. Subject to mortgage B. Novation (or "full assumption) C. Substitution D. Graduation

B. Novation (or "full assumption)

How does one determine the gross rent multiplier? A. Monthly rent divided by the capitalization rate B. Property value divided by the monthly rent C. Property value divided by the net income D. Property value divided by the gross income

B. Property value divided by the monthly rent

The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home? A. Yes, because of functional obsolescence. B. Yes, because of economic obsolescence. C. No, because value would increase due to the location close to the airport. D. No, because noise from aircraft passing overhead is not recognized as affecting property values.

B. Yes, because of economic obsolescence.

A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this? A. Yes. The buyer can do as he wishes if the Commission approves the action. B. Yes. This is acceptable as long as the seller agrees. C. No. Only money can be used for consideration. D. No. Only the seller can write a promissory note

B. Yes. This is acceptable as long as the seller agrees.

The appraisal approach most likely to be used in valuing a public library building would be the A. sales comparison. B. cost. C. income. D. residual.

B. cost.

The recording of a deed A. is all that is required to transfer the title to real estate. B. gives constructive notice of the ownership of real property. C. insures the interest in a parcel of real estate. D. warrants the title to real property.

B. gives constructive notice of the ownership of real property.

Sam and Nancy bought a store building and took title as joint tenants. Nancy died testate. Sam now owns the store A. as a joint tenant with rights of survivorship. B. in severalty. C. as a tenant in common with Nancy's heirs. D. in trust.

B. in severalty.

A void contract is one that is A. not in writing. B. not legally enforceable. C. rescindable by agreement. D. voidable by only one of the parties.

B. not legally enforceable.

Unit 13C in a condominium complex was the site of a well-publicized murder 3 years ago. The unit was then sold to a man who died of AIDS complications. What must the agent for the man's estate disclose about the property? A. Nothing, the agent is specifically prohibited from disclosing either event. B. The AIDS death must be disclosed but not the murder. C. The murder must be disclosed if the agent believes it adversely affects the property value. D. Both incidents must be disclosed.

When a broker establishes a trust account, which of the following is TRUE? A. An individual account is required for each transaction. B. The account cannot be in the same bank as the broker's personal account. C. Accounts must include the name of the broker as registered with the Department of Regulation and Licensing and must state "Trust Account". D. All checks, deposit slips and bank statements must include "Escrow" as part of the account name.

When must a licensee give a prospective buyer or tenant the Disclosure of Real Estate Agency form? A. At the open house B. At closing C. Before the buyer or tenant discloses any confidential information D. Before the buyer or tenant is shown any property

Which of the following does a salesperson NOT need to do to prepare for a closing? QID: 2409121 Mark For Review A. Maintain a time schedule and provide prorating data B. Explain closing procedures to both parties C. Conduct any required title searches D. Coordinate inspections and deliver documents and monies to the appropriate attorney

Which of the following is NOT true regarding Wisconsin listing agreements? A. A listing agreement must be in writing and signed by the broker and the seller. B. A listing agreement must state the exact fee or how the fee will be computed. C. A listing agreement must be accompanied by a qualified expert's report on the condition of the property. D. The seller must receive a copy of the agreement after signing it.

Which of the following should a written listing agreement NOT include? A. The proposed gross sales price of the property B. The time length of the listing C. The complete legal description of the property and an anti-discrimination clause D. A statement detailing the amount of commission the broker will earn

On an 8% straight loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan? A. 30 months B. 36 months C. 42 months D. 48 months

C. 42 months Eight percent of $6,071 is $486 per year or $40.50 per month. $1,700 divided by $40.50 means the borrower held the loan for forty-two months.

Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what? A. Easement appurtenant B. Easement by necessity C. Estate in land D. License

D. License

Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr. Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease expires, which of the following requirements would not have to be met by Mr. Smith? A. Mr. Smith must remove the "grab rails" in the bathroom that were installed for his use. B. Mr. Smith must raise the kitchen cabinets that were lowered for his use. C. Mr. Smith must repair the walls where the "grab rails" in the bathroom were removed. D. Mr. Smith must restore the wide doorways, that were installed for him, to the original size.

D. Mr. Smith must restore the wide doorways, that were installed for him, to the original size.

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? A. Equitable right of redemption B. Right of acceptance C. Vendee's right of redemption D. Statutory right of redemption

D. Statutory right of redemption

When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as what? A. Caveat emptor B. Surety bonding C. Subordination D. Subrogation

D. Subrogation

Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' express intent? A. Community property B. Tenancy in common C. Condominium ownership D. Tenancy by the entireties

D. Tenancy by the entireties

A broker is convicted of possession and distribution of a controlled substance in Michigan. Two months later the broker calls the Department of Regulation and Licensing leaving a message about the conviction. Based on these facts, which of the following is TRUE? A. The broker has properly informed the Department within the required 60 days, so the broker's license can be renewed. B. The conviction is irrelevant because it did not occur in Wisconsin. C. The conviction is evidence of fraud and improper dealing. D. The broker violated regulations by not informing the Department within 30 days.

D. The broker violated regulations by not informing the Department within 30 days.

An owner was selling his own home. Can he advertise the down payment? A. No, because it violates RESPA. B. No, because it violates Regulation Z. C. Yes--as long as it was listed with a broker. D. Yes, because it was his own home.

D. Yes, because it was his own home.

Restrictive covenants that run with the land A. are no longer effective when the title is transferred. B. apply only until the developer has conveyed the title. C. can be removed by a court of competent jurisdiction. D. apply to and bind all successive owners of the property.

D. apply to and bind all successive owners of the property.

The primary purpose of Truth in Lending is to A. control interest rates on behalf of the consumer. B. control the true costs to close a transaction. C. prevent usury. D. disclose the true costs of obtaining credit.

D. disclose the true costs of obtaining credit.

Seller Jolita lists her house with Broker Fred. Fred then buys Jolita's house and collects the agreed-upon commission. This is an example of A. commingling monies. B. a Regulation Z violation. C. truth in marketing. D. self-dealing.

D. self-dealing.

A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT A. sue the seller for specific performance. B. rescind the contract and recover the earnest money. C. sue the seller for damages. D. sue the broker for non-performance.

D. sue the broker for non-performance.

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called A. blanket financing. B. package financing. C. warehousing. D. discounting.

C. warehousing.

A VA loan may be granted for the purchase of a one-family to four-family property if A. the veteran certifies the rent collected will equal the mortgage payments. B. the loan will be amortized for not more than 20 years. C. the down payment will be at least 10%. D. the veteran agrees to live there.

Darwin is a city bus driver but also holds a salesperson's license even though he is not employed by a broker. He refers some friends that are looking for a house to broker Felicia. Felicia contacts the friends and shows them a house, which they buy. When can Felicia pay Mark For Review A. After the funds are released from escrow B. After the sale closes C. As soon as the sales contract is signed D. Any time

Greg is visiting open houses and runs across a nice looking home for sale. Can the listing agent show Greg the home? A. No, Greg must contact another agency to secure an appointment to see the home. B. Yes, if Greg agrees to sign a dual agency agreement. C. Yes, as long as Greg does not have an agent already representing him in the purchase process. D. Yes, as long as the listing agent gives Greg an agency disclosure notice which states he represents the seller.

If a buyer wants the licensee, who is the seller's agent, to use added language to refer to blanks found on the approved form, the licensee may do what? A. May not supplement the blanks without written permission from the employing broker and the seller. B. May not supplement the blanks because it is an approved form and the licensee represents the seller. C. Must state on the approved form that there are added provisions. D. Must use a pre-prepared addendum prepared by an attorney of the broker or employing broker.

If a license broker decides to change the name or location of his business, which is TRUE? A. A new license is issued immediately. B. A new license will be issued for a full term. C. The new address must be approved by the Department of Regulation and Licensing. D. The broker's license may be revoked if the Department of Regulation and Licensing is not notified.

If a real estate company has agency agreements with both a seller and a buyer, and the buyer wants to make an offer on the seller's property, is this legal under Wisconsin license law? A. No, the real estate company would be acting as an illegal dual agent. B. Yes, if the seller agrees to pay the commission. C. Yes, if agency agreements with both clients were signed at the same time. D. Yes, if the buyer and seller give informed and written consent to dual agency.

In a gift of a parcel of real estate, one of the two owners was given an undivided 60 percent interest and the other received an undivided 40 percent interest. The two owners hold their interests as what? A. Cooperative owners B. Joint tenants C. Community property owners D. Tenants in common

In regards to leases that are for more than 1 year, either the landlord or the tenant, instead of the actual lease, may record what? A. A lis pendens B. A notice of constructive occupancy C. A rent supplement notice D. A notice of lease

Licensee Shawna has a brokerage agreement with Jane to help her find an apartment to rent. Shawna receives a commission from landlords rather than charging prospective tenants a fee. Shawna tells a landlord that Jane could probably afford to pay a higher rent than the landlord is charging. Which of the following statements is TRUE? A. Shawna is not violating license law since she is not charging a fee to Jane. B. Shawna only owes fiduciary duty the landlords that pay her commissions. C. Shawna's disclosure to the landlord is appropriate. D. Shawna's disclosure violated her fiduciary duty to Jane.

One of the main purposes of RESPA regulations is? A. to protect the real estate agent from fraud. B. to better inform the real estate agent about the financing of a real estate transaction C. to protect the home buyer from fraud. D. to better inform the buyer about the financing of a real estate transaction

Owner Grace's property has been foreclosed. After the property was sold for $340,000, she still owed $60,000 to the lender. The lender may be able to get a personal judgment against Grace for the $60,000. This is called a A. leverage lien. B. partition lawsuit. C. reverse foreclosure judgment. D. deficiency judgment.

Regarding the homestead exemption, which of the following is TRUE? A. The homeowner must file for the exemption and indicate financial difficulties. B. The exemption applies only to married persons that occupy the home for at least one year. C. The exemption is protection against unpaid real estate taxes and mortgages against the property. D. The exemption is automatic; every homeowner has one.

The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a A. wraparound mortgage. B. package mortgage. C. balloon note. D. part (junior) purchase money mortgage.

The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement? A. $310,500. Credit the buyer and debit the seller. B. $248,400. Debit both the seller and the buyer. C. $ 248,400. Credit both the seller and the buyer. D. $ 248,400. Credit the buyer only.

The finance charges recorded on the Truth in Lending statements would include all of the following EXCEPT A. loan fees charged by the lender. B. insurance premiums for mortgage insurance payment. C. discount points and service fees. D. recording fees and title insurance premiums.

The primary survey line running north and south in the rectangular survey system is the A. township line. B. base line. C. range line. D. principal meridian.

The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank? A. Loan balance $171,800; interest due $850 B. Loan balance $170,000; interest due $2,550 C. Loan balance $270,000; interest due $862.50 D. Loan balance $170,000; interest due $425

Usury MOST nearly means A. making loans without the benefit of co-signors. B. lending money at fluctuating interest rates. C. redlining. D. illegal interest.

What 3 types of real estate agency relationships between brokers and members of the public are recognized in Wisconsin? A. Seller, buyer, and full fiduciary B. Seller, buyer, and undisclosed multiple representation C. Subagency, disclosed multiple representation, and seller D. Seller, buyer, and disclosed multiple representation

What is a licensee required to do when obtaining a listing? A. Cooperate with every real estate office that wants to market the property. B. Set up a listing file, issuing a number to the listing in compliance with the Wisconsin Real Estate License Law and Rules. C. Place advertisements in the local newspaper. D. Give the seller a legible, signed, true and correct copy of the listing agreement.

What is the statutory usury ceiling in Wisconsin on first mortgage loans that are secured by 1- to 4-family, owner-occupied residential real estate? A. 10% B. 15% C. 25% D. There is no ceiling.

When a prospective buyer makes a written purchase offer that the seller accepts, then the A. buyer may take possession of the real estate. B. seller grants the buyer ownership rights. C. buyer receives legal title to the property. D. buyer receives equitable title to the property.

When must a Real Estate Condition Report be delivered to the buyer? A. When the seller accepts an offer B. Prior to closing C. At the time the property is inspected D. Within 10 days of accepting a sales contract

Which of the following best describes adverse possession? A. A person occupying another person's land and paying rent to use that land. B. A person occupying another person's land and building upon that land without the owner's permission. C. A person selling another person's land without the owner's consent. D. A person occupying another person's land and acquiring legal title to that land after a period of time.

Which of the following is true of a second mortgage? A. It has priority over a first mortgage. B. It cannot be used as a security instrument. C. It is subject to termination with mortgagor notification. D. It is usually issued at a higher rate of interest.

D. It is usually issued at a higher rate of interest.

Rick was the buyer's agent for Tom, whose offer for Jim's house was countered at $5,000 below list price. This was still more than Tom wanted to pay. Tom finds another house and buys that instead. Now Rick is a buyer's agent for Harry, who wants to make an offer on Jim's house. Can Rick tell Harry that Jim would accept $5,000 below list? Why or why not? a. No, Tom's negotiations with the seller are confidential. b. Yes, Rick has no fiduciary obligation to seller Jim. c. Yes, Rick must act in Harry's best interest. d. Yes, Rick's relationship with Tom was over when he found another house.

Sally died testate. She has no spouse, no children, and no surviving siblings. Who would inherit Sally's estate? a. her alma mater, to which she left everything in her will b. her Grandma Sadie c. her Uncle Joe d. the state where she lived

Which situation would NOT require a licensee to disclose his or her compensation arrangement? a. A selling agent gets a bonus from a client for selling above the listing price. b. The licensee receives a commission split from another broker. c. The licensee in a dual agency situation receives compensation from both parties. d. A buyer's agent receives a bonus from the listing agent for submitting an offer by a certain date.

Which statement about legal descriptions is FALSE? a. A legal description describes the land and its improvements. b. A legal description does not change. c. A legal description must be included in a deed. d. A legal description is prepared by a land surveyor.

Which type of co-ownership requires ONLY the unities of possession, interest, time, and title? a. joint tenancy b. tenancy by the entirety c. tenancy in common d. tenancy in severalty

Your client Rob is selling his lakefront cottage. On one side of the property, Rob discovered an old underground storage tank when doing some landscaping. He left it alone and planted ground cover in that part of the yard. You are unaware of it. What type of defect would this be considered, and is Rob required to disclose it? a. latent defect; must disclose b. latent defect; not required to disclose c. patent defect; must disclose d. patent defect; not required to disclose

A buyer buys interest in a condominium in Mexico. She has one week's use of the property each year. Such an ownership is best described as a. fee simple absolute. b. fee simple conditional. c. a life estate. d. a timeshare.

Blanche, Rose, and Dorothy co-own a condominium. Dorothy owns a one-half interest in the property, while Blanche and Rose each own a one-fourth share. What is this type of co-ownership? a. joint tenancy b. leasehold estate c. tenancy by the entirety d. tenancy in common

David's parents let him move back in for a while to help him get back on his feet. Unfortunately, David acts like he is back in high school by not paying rent, asking his mom to cook, clean, and wash his clothes, without paying his parents any money. His parents are considering kicking him out. This is a. adverse possession. b. estate for years. c. tenancy at sufferance. d. tenancy at will.

Frank allows Rich to use his ice fishing shack while he's in Florida for the winter. This is MOST LIKELY an example of a(n) a. appurtenance. b. easement in gross. c. encroachment. d. license.

If the title to the property is held for the benefit of a beneficiary, this legal arrangement is called a a. corporation. b. general partnership. c. limited partnership. d. trust.

It would be a violation under the Fair Housing Act to a. restrict the number of people living in a single apartment unit. b. refuse to rent a room in your private residence to someone of a different gender. c. refuse to rent a unit in a club-owned building to someone who is not a club member. d. refuse to allow a tenant who is blind to have a guide dog in a pet-free building.

Of these, which agency termination is due to operation of law? a. The listing broker abandons the seller before the listing period ends. b. The listing broker does not find a buyer before the listing period ends. c. The listing broker sells the house. d. The seller dies before the listing period ends.

Tamara and her friend Josie buy a house together. The deed indicates that Tamara owns an 80% interest, and Josie owns a 20% interest. Tamara sells half of her interest to Henry. Henry has the right to live in how much of the house? a. 25% b. 33% c. 40% d. 100%

Tess has an appurtenant easement that allows her to cross over her neighbor's land to get to her house. When the neighbor sells his land to Tess, the easement is terminated through a. abandonment. b. destruction. c. failure of purpose. d. merger.

What term describes a right that transfers with ownership of real property? a. fixture b. emblement c. encroachment d. appurtenance

Who are the parties to a property management agreement? a. tenant, landlord, and property manager b. tenant and landlord c. listing broker and landlord d. landlord and property manager

Discrimination is prohibited in lending practices under A. ECOA. B. RESPA. C. Truth in Lending Act. D. FNMA.

For a listing broker to be entitled to a commission, which of the following is NOT necessary? A. A signed listing agreement. B. Being properly licensed at all times during the course of dealings. C. Closing of title by the purchaser. D. Procuring a ready, willing and able buyer who offers to purchase on the terms of the listing contract.

If a licensee is found guilty by the Department of Fair Housing Discrimination, what are the penalties? A. $10,000 fine for a first offense, $25,000 for a second offense and $50,000 for more than 2 offenses. B. $1,000 fine for a first offense, $2,000 for a second offense and $5,000 for more than 2 offenses. C. $5,000 fine for a first offense, $12,000 for a second offense and $20,000 for more than 2 offenses. D. $500 fine for a first offense, $1,000 for a second offense and $2,000 for more than 2 offenses.

If property is transferred to an individual under a statute or under a provision in a governing instrument that requires the individual to survive an event and it is not established that the individual survived the event by at least _____, the individual is considered to have predeceased the event. A. 120 hours B. 24 hours C. 12 hours D. 240 hours

Jon dies and is survived by his wife Lucretia and their two daughters. While the couple's marital property is worth $80,000, Jon has a separate estate worth $200,000. Because Jon did not leave a will, Lucretia A. acquires sole ownership of all the property. B. receives half of the entire estate, $40,000 of the marital property and $100,000 from Jon's separate property, while the daughters receive the other half. C. receives all of the marital property, and her daughters split Jon's separate estate. D. receives all the marital property and half of Jon's separate property, while the daughters split the other half of Jon's separate estate.

Julia agrees to buy a residential condominium unit from Francesca, who originally bought the unit from the developer. Julia has the right to cancel the contract within what timeframe? A. 5 business days of receiving the condominium disclosure documents. B. 5 business days of receiving the accepted offer to purchase. C. 15 days of receiving the accepted offer to purchase. D. 15 business days of receiving the condominium disclosure documents.

When an easement only has a servient tenement, it would be an easement a. appurtenant. b. by prescription. c. in gross. d. via license.

Housing discrimination charges must be filed within A. 30 days. B. 6 months. C. 1 year. D. 2 years.

Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt? A. Real estate tax lien B. Mechanic's lien C. Judgment lien D. Assessment lien

Any funds that a broker receives from the seller or buyer must be deposited into a trust account within how long? A. 72 hours of receiving the offer B. 36 hours of signing the contract C. 48 hours of receiving the funds D. 5 banking days of receiving the offer

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? A. The mortgagee B. The trustee C. The trustor D. The beneficiary

C. The trustor

To create a joint tenancy relationship in the ownership of real estate, there must be unities of A. desires, ownership, claim of right, and possession. B. title, interest, liens, and survivorship. C. possession, time, interest, and title. D. ownership, possession, heirs, and title.

An agent is one who a. acts, or has the power to act, for another. b. is owed a fiduciary duty. c. is represented by another. d. represents the agent of another.

An option A. requires the optionor to complete the transaction. B. gives the optionee an easement on the property. C. does not keep the offer open for a specified time. D. makes the seller liable for a commission.

Carlos has passed his salesperson exam, how long does he have to apply for his salesperson license? A. 1 year B. 6 months C. 2 years D. 5 years

A broker has a listing for a small office building and one of the broker's salespeople wants to purchase it as an investment. What must the salesperson do in order to purchase the building? A. Inform the building owner in writing about the salesperson's status as a licensee before making an offer. B. Resign as the broker's agent and make an offer. C. Have a friend buy the building, then buy the building from the friend. D. Obtain permission from the Wisconsin Department of Regulation and Licensing.

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to A. any approved lending institution such as a bank or savings and loan association. B. an FHA appraiser in the area. C. the Federal Housing Administration Office. D. the Federal National Mortgage Association.

A homeowner owned a house on a lot. The front ten feet of the lot were taken by eminent domain for a sidewalk. Would the homeowner be entitled to compensation? A. Yes. The land was taken for public use by eminent domain. B. Yes. He must be paid for the use of the sidewalk. C. No. He still had use of the house and lot. D. No. Compensation is not given on land taken for public use.

A person agrees to sell a property for $500,000. The buyer gives the seller $150 as valuable consideration for a six-month option. Which of the following statements is true? A. The $150 is valuable consideration if the seller accepted it. B. The buyer must have at least 5% down as valuable consideration. C. The buyer must have at least 20% down. D. The seller cannot accept money for the option.

A salesperson with a realty firm who is working with Joe, without a buyer agency agreement, may show Joe an in-house listing under which conditions? A. the salesperson gives Joe an agency disclosure statement indicating that the company represents the seller. B. The salesperson has the seller's permission. C. Joe verbally agrees to buyer agency. D. The salesperson gives Joe a dual agency consent form.

A seller knows the property's roof leaks but tells the agent not to tell prospective buyers about the problem and the agent agrees. 4 months after a buyer purchases the house, the roof leaks during a rainstorm. The buyer complains but the agent says he never asked about the roof. Which is TRUE? A. The buyer can sue the agent for nondisclosure. B. The buyer can sue the seller for nondisclosure. C. The buyer cannot sue the agent. D. The buyer can sue the building inspector because the leaking roof should have been discovered during an inspection.

A three-story apartment complex built in 1965 does not meet with the handicapped access provisions for the 1988 Fair Housing Act. The owner must A. make the ground floor handicapped accessible. B. make the 1st and 2nd floors accessible. C. make the entire building accessible. D. the owner doesn't have to comply since it's less than 4 stories.

A(n) _______ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price. A. option B. contract of sale C. right of first refusal D. installment agreement

Salesperson Betty violates Wisconsin Fair Housing laws by blockbusting and discriminating against an individual because of their disability. She also cashes a $20,000 earnest money deposit from a prospective buyer and uses it to buy a new minivan. Betty's broker, Paul, is totally unaware of any of her activities. What will be the impact on Paul's license when Betty's violations are brought before the Real Estate Board? A. Paul's license will not be revoked or suspended because of Betty's actions. B. Paul will be held liable for the Fair Housing violation. C. Paul will have to pay any fines imposed against Betty from his personal account. D. Paul will be subject to the same disciplinary action as Betty whether he knew about her violations or not, since he, as her employing broker, is responsible for her activities.

The main methods for delineating property boundaries or legal descriptions in Wisconsin are? A. The rectangular survey system, subdivision plats, and metes and bounds B. The colonial block grant and triangular survey system C. The system of metes and bounds and prime meridan method D. The Torrens system and riperian method

Twyla wants to see a house that is listed with PQR Realty but does not want to have a buyer agency agreement. A salesperson from DEF Realty can show Twyla a house under which circumstance? A. If PQR Realty has the seller's written consent to subagency, which allows DEF Realty to act as a subagent of PQR Realty, and Twyla is given a disclosure form stating that DEF Realty represents the seller. B. If PQR Realty receives DEF Realty's consent to subagency and Twyla receives a disclosure that PQR Realty represents the seller. C. If Twyla verbally agrees to buyer agency. D. This cannot occur.

Under what circumstances in Wisconsin can a homeowner that has a first mortgage loan secured by the home be charged a late payment penalty? A. When at least 14 days have passed since the payment due date. B. Under no circumstances. C. If more than 1 monthly payment is unpaid for more than 30 days. D. Within 7 days if the homeowner didn't purchase disability insurance when making the loan.

When Mike's listing agreement with Tom expired, he decided to list his home for sale with a different brokerage firm. Since then, Tom located a buyer for Mike's home. Which of the following statements is TRUE? A. Tom cannot tell the buyer about any other offers Mike received while Tom was the listing agent. B. Tom can represent both Mike and the buyer, since there was a prior existing relationship. C. Tom is prohibited from telling the buyer any information about the property's condition that he had previously ascertained while representing Mike. D. Tom must request another agent with his brokerage firm represent his buyer because of the prior relationship with Mike.

The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee? A. $14,040 B. $15,600 C. $16,500 D. $70,200

A. $14,040 90% of the $780,000 purchase price results in a $702,000 mortgage. Since the origination fee is based on the amount of the mortgage, not the price of the home, the fee is 2% of $702,000 or $14,040.

Broker Kiki is trying to sell a unique $15,000,000 mansion in South Beach. What advertising medium would probably be the best option for Kiki to sell this particular property? A. A magazine ad B. A billboard ad C. A telephone directory ad D. A radio ad

A. A magazine ad

What do liens and easements have in common? A. Both are encumbrances. B. Both must be on the public record to be valid. C. Neither can be done without the consent of the owner. D. Both are money claims against the property.

A. Both are encumbrances.

Which of the following closing costs is typically paid by the buyer? A. Private mortgage insurance (PMI) B. Broker's commission C. Satisfy existing liens D. A flip tax

A. Private mortgage insurance (PMI)

Which of the following is a closing expense typically paid by the seller? A. The broker's commission B. Inspections C. The mortgage recording Fees D. The recording of the deed

A. The broker's commission

A broker that receives an earnest money deposit from a buyer should do what with the money? A. Deposit it in a separate escrow account that contains funds for this transaction only. B. Deposit it in an escrow account that may also have earnest money deposits from other transactions. C. Hold it in a safe place at the broker's office until the offer is accepted. D. Deposit it into the broker's personal account.

A broker-in-charge must keep records of each transaction for which of the following periods of time? A. A broker-in-charge must maintain records of each transaction for 1 year after the date of the transaction. B. A broker must maintain records of each transaction for 3 years after the date of the transaction. C. A broker-in-charge must maintain records of each transaction for 6 years after the date of the transaction. D. There is no specific time frame established for keeping transaction records in Wisconsin.

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? A. He must exercise his option within 6 months under state law. B. He must exercise his option under the terms of the option contract. C. He must exercise his option when the optionor demands it. D. He can exercise his option whenever he wants.

Can a contract paying commission for a leasing real estate be written to last over 3 years in duration? A. No, all such contracts must be for 2 years or under. B. Yes, provided it states the rent, commission, lease length, and real estate description. C. No, all such contracts can only be for a maximum of 1 year. D. Yes, with the written permission of the Real Estate Board.

Constance completes her real estate prelicense course and offers to help Simon sell his house. Simon agrees to pay Constance a 5% commission and she negotiates the sale which closes before she receives her license. Simon refuses to pay Constance the commission. Can Constance sue to collect her commission? A. No, since Constance doesn't have a permanent place to display her license, Simon doesn't have to pay her. B. No, Simon does not have to pay because Constance did not have her license when the commission agreement was made. C. Yes, Constance and Simon had an oral agreement. D. Yes, Constance passed the exam before the offer was made so the commission agreement is binding.

Dwayne crosses Mario's property to get to a state beach. Mario wants to stop Dwayne for fear that he will acquire an easement to cross his land. To effectively stop Dwayne, Mario can do what? A. Put up a "No Trespassing" sign B. Write Dwayne a letter giving him permission to cross the property C. Report Dwayne to HUD D. Write Dwayne a letter forbidding him from crossing the property

Licensee Fatima is unhappy with her present employment at Sasquatch Realty. She decides to go to work for Schaffitzel Realty instead. Before she can begin actively selling for the new company, she must do what? A. Have her Sasquatch broker transfer her license to the Schaffitzel office. B. Fill out the proper forms notifying the Department of Regulation and Licensing of the change and pay the appropriate fee. C. Take her license to Schaffitzel Realty with her and notify the Department of Regulation and Licensing within three days of her new location. D. Send her license to the Department of Regulation and Licensing with proper fees and forms and give her new license to her broker at Schaffitzel Realty.

Phillip is relocating for work and calls ahead to a real estate agency to help him find a home. Which of the following can the real estate agent do for Phillip before an agency agreement is signed? A. The agency can do nothing for Phillip prior to receipt of a signed agency agreement. B. The agency can send Phillip information about homes for sale in the area. C. Since Phillip will not be in town until he locates a home, the agency can extend offers of purchase on Phillip's behalf. D. The agency can take Phillip's personal information and assist him in prequalifying for a mortgage.

Salespeople in Wisconsin are NOT allowed to use which of the following? A. Property management forms prepared by the employing broker B. Uniform Commercial Code forms C. Forms prepared by government agencies for use in the programs administered by those agencies D. Sales contract forms from another state that licensed salespeople may use in that state

The property manager for Hide Post Apartments lives on site and is responsible for showing apartments but does not negotiate apartment leases. Which is TRUE? A. The manager must have a broker's license. B. The manager is exempt from licensing requirements. C. The manager must have a written contract with the owner. D. The manager must have a salesperson's license.

Unclaimed probate property reverts to the state and is used for Wisconsin's A. first time buyer's mortgage fund. B. school fund. C. general fund. D. real estate recovery fund.

All of the following are true of conventional loans except what? A. They are made to the buyer without governmental insurance or guarantee. B. The policy requirements of the lenders are not uniform. C. The qualification requirements are uniformly fixed by state law. D. They require a higher down payment than non-conventional loans.

A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? A. 4% B. 7% C. 5% D. 9%

A recorded subdivision plat is used in the QID: 2409195 Mark For Review A. metric survey system. B. rectangular survey system. C. lot and block system. D. metes and bounds system.

Both the buyer and the seller in a land contract sale want the broker to receive the $3,000 monthly land contract payments by check, cash them, then hold the cash in an interest bearing escrow account for 6 months before sending the money to the seller. The money will earn quite a bit of interest, which both parties want to split when the payment is made to the seller. Which is TRUE? A. The broker should have deposited the money into the broker's personal account and kept the interest as a special service fee. B. The broker should have deposited the money into the broker's trust account. C. The broker should get written authorization from both parties stating the interest will be split upon payment to the seller. D. The broker should charge a monthly fee for services rendered.

Broker Sheila plans to open a branch office in a nearby town. She notifies the Department of Regulation and Licensing, gives the office a name that clearly ties it to the main office and hires a licensed salesperson as the branch office manager. Has Sheila complied with license law? A. Yes, she has fully complied with license law. B. Yes, because she hired a branch manager, she is complying with the requirement that a broker may only be in direct operational control of 1 office. C. No. A branch office manager must be a licensed broker. D. No. Brokers cannot have branch offices in more than one municipality.

Buyer Bob wants Fred, the agent for the seller, to add language to the preprinted language on the approved contract form. Fred may do what? A. May not supplement the approved language because Fred represents the seller. B. May not supplement the approved language unless he gets permission from the employing broker and the seller. C. Must use a pre-prepared addendum drafted by an attorney to supplement the language. D. Must state on the approved form that there are additional provisions.

Catalina is drafting an offer to purchase for her buyer, Luke. Luke believes that some of the language in the contract is irrelevant and asks Catalina to strike out that wording so the seller won't be confused about what is important to Luke. Catalina must do what? A. Completely remove the irrelevant language B. Leave the language alone since the form is approved C. Strike out the language in a way that the seller can still read what is stricken D. Leave the language alone and indicate on an addendum to the offer that the language is irrelevant

Fred is a broker that receives an offer from the Byrnes to purchase a house that is listed with his real estate company. After the Byrnes sign the offer to purchase and give Fred their earnest money deposit, Fred must do what? A. File the agreement in his records and after receiving two or three more offers, present them all to the sellers at the same time. B. Deposit the earnest money in his personal checking account. C. Provide the Byrnes a copy of the agreement as a receipt for their deposit. D. Fill out a second earnest money agreement form for the Byrnes that exaggerates the selling price so they will be sure to obtain sufficient financing for the purchase.

How long does a licensee that has allowed their license to expire have to reinstate the license without a monetary penalty? A. As much as 30 days B. No more than 365 days C. There is no grace period. D. 1 year from the date the licensee last took a continuing education course

If a salesperson decides to terminate relations with the employing broker, what are the procedures the salesperson must follow? A. Return the license with a letter of termination to the Real Estate Board. B. Return all customer cards to the employing broker. C. Notify the Department of Regulation and Licensing in writing within 10 days of termination. D. Give the broker an official letter of termination that the broker sends to the Real Estate Board.

In general, the Foreign Investment in Real Property Tax Act (FIRPTA) requires a buyer to withhold estimated taxes equal to ____ of the sale price in any sale or exchange of property owned by a foreigner (not a US citizen). A. 3% B. 5% C. 15% D. 20%

Of the following, which is NOT exempt from the Chapter 709 Disclosures by Owners of Residential Real Estate Property law? A. A foreclosure sale B. Sale by a personal representative that never lived in the house C. Sale by a licensee of a 3-unit residential property D. Conveyance of a primary residence from one former spouse to another under a divorce decree

Of the following, which must have a real estate broker's license to conduct business? A. Superintendent of a large apartment complex, whose regular duties include showing apartments to prospective tenants. B. Unlicensed individual who has parental authority to negotiate the sale of the parent's residence and will receive a fee of less than $100. C. Person who negotiates the sale of an entire business, including stock, equipment and buildings for a fee. D. Owner of a 6-unit apartment who also manages the property.

On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender? A. $490,000 B. $500,000 C. $510,000 D. $520,000

The Closing Disclosure (CD) form is A. the document used to make Fair Housing complaints. B. provided after signing a listing agreement. C. a statement of actual charges and adjustments. D. the document that must be displayed in brokerages.

The Swansons purchased their home 20 years ago with a 30-year mortgage at 9% interest. Now they want to pay off the loan early. Which of the following statements is TRUE? A. The lender can charge a prepayment penalty of not more than 8% of the current outstanding loan balance. B. The lender is entitled to charge a prepayment penalty equal to 1 year's interest on the current loan balance. C. The lender cannot charge a prepayment penalty since the mortgage is older than 5 years. D. The state does not take an official position on the issue of prepayment penalties.

The covenant in a deed which states that the grantor is the owner and has the right to convey the title is called A. covenant of power. B. covenant of warranty forever. C. covenant of seisin. D. covenant against encumbrances.

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the A. sales price. B. appraised price. C. loan amount. D. down payment.

The seller under a land contract is called A. the grantor. B. the grantee. C. the vendor. D. the vendee.

To assign a contract for the sale of real estate means to A. record the contract with the county recorder's office. B. permit another broker to act as agent for the principal. C. transfer one's rights under the contract. D. allow the seller and the buyer to exchange positions.

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? A. Yes. Acreage is not exempt from Regulation Z. B. Yes--since a down payment was stated. C. No. Owners are not covered by Regulation Z. D. No. Brokers can advertise the down payment.

C. No. Owners are not covered by Regulation Z.

A partition suit is used for which of the following? A. Determination of party fences B. To allow construction of additional bedrooms or bathrooms in a house. C. To force a division of property without all the owners' consents D. To change a tenancy by entireties to some other form of ownership

C. To force a division of property without all the owners' consents

A defaulting borrower who faces foreclosure may avoid court actions and costs by voluntarily deeding the property to the mortgagee. This is accomplished with a __________, which transfers legal title to the lienholder. A. short sale B. deficiency judgment C. deed in lieu of foreclosure D. caveat emptor

C. deed in lieu of foreclosure

When the grantor does not wish to convey certain property rights, he or she A. must note the exceptions after the closing. B. may not do so, since the deed conveys the entire premises. C. may note the exceptions in the deed of conveyance. D. must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor.

C. may note the exceptions in the deed of conveyance.

The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of A. diminishing return. B. balance. C. regression. D. substitution.

C. regression.

An important part of the relationship between a broker and an independent contractor licensee is that the licensee a. is paid for the number of hours worked. b. is not subject to any direction or control by the broker. c. earns commission based on the results of his or her work efforts. d. cannot be charged for office space or supplies provided by the broker.

At the end of the year, what form will a real estate salesperson who files a tax return as an independent contractor receive that details his or her compensation for the year? a. W-4 b. W-2 c. 1099-MISC d. 1040 ICA

Jack is the listing agent for Guy's ranch home, and he is also Ginny's buyer's agent. After a long day of showing two-story homes to Ginny, which is what she requested, Jack drives past Guy's house and she excitedly asks to see it. Guy is out of town and has given Jack permission to show the house in his absence, so he sees no harm in letting her in. Jack may have a. created an undisclosed dual agency. b. performed ministerial acts for his client. c. violated his duty of loyalty to Guy by letting himself into his property when Guy wasn't there. d. violated his duty of obedience to Ginny by showing her a ranch instead of the requested two-story.

Mary's lease expired, but she continues living in the apartment without her landlord's permission. This situation is considered a(n) a. estate at sufferance. b. estate at will. c. estate for years. d. periodic estate.

Otis sells land to Amy, who dies before she records the deed. Otis then sells the same land to Beatrice, who records the deed. If Amy's heirs prove that Beatrice saw Otis grant the deed to Amy, Beatrice has a. actual notice and Amy's heirs have right to the land. b. actual notice but retains her right to the land. c. constructive notice and Amy's heirs have right to the land. d. constructive notice but retains her right to the land.

Barbie and Ken own their home as tenants by the entirety. After 50 years together, they decide they are not compatible and get a divorce. The divorce is final before they can sell their dream house. This property is owned by Barbie and Ken a. as joint tenants. b. as tenants by the entirety. c. as tenants in common. d. in severalty.

Glen, Ryan, and Pierce co-own property as joint tenants. Pierce sells his share to Grace. What form of co-ownership is this? a. All are joint tenants. b. All are tenants in common. c. Glen and Ryan are joint tenants; Grace is a tenant in common. d. Glen and Ryan are tenants in common; Grace is a tenant in severalty.

A mortgage lending company refuses to make loans for homes in a minority neighborhood. This is an illegal action called a. steering. b. redlining. c. coercion. d. blockbusting.

Actual notice refers to a. documents that are recorded at the courthouse regarding a person's property. b. something you actually have seen or know to be true. c. the reasons why you should record a deed. d. the information you are presumed to know.

Broker Bob is retained by Big Town Developer to sell condo units for 5.5% commission on each sale. If every condo unit sells for $145,000, how many condos does Bob have to sell to earn at least $70,000? a. 12 b. 9 c. 6 d. 8

Brokers and salespeople in Wisconsin may do which of the following? a. Explain the legal significance of specific wording in a preprinted contract to a buyer or seller after the offer is accepted. b. Fill in the blanks on approved preprinted contracts. c. Sign an offer to purchase with permission from the principal. d. Add contract language to a preprinted offer to purchase if the licensee feels it benefits both parties.

Darla rents Phil's house. When Phil dies suddenly, she must vacate the property. What type of leasehold estate does this most likely represent? a. All are equally affected. b. tenancy at will c. periodic tenancy d. estate for years

Harold and Joanne have been neighbors for years. Until recently, Harold has used Joanne's drive as the only way to get to his garage. Harold buys the lot behind his house, tears down the old garage and builds a new one with his own driveway from the street behind his house. How is this easement being terminated? a. destruction b. failure of purpose c. merger d. This easement is not terminated.

Lizzy and Emma buy a $100,000 vacation cottage together. Lizzy makes a $25,000 down payment, and Emma takes out a $75,000 mortgage. The deed simply states the ownership as "Lizzy D. and Emma K. as tenants in common." What is Emma's interest in the house? a. 25% b. 50% c. 75% d. whatever Lizzy and Emma agreed to

Of these types of deed, which would MOST LIKELY be used to clear a cloud on the title? a. bargain and sale deed b. quitclaim deed c. referee's deed d. limited warranty deed

The multiple listing service (MLS) was created so that a. sellers and buyers could find each other. b. member brokers could share listings with a blanket offer of cooperation and compensation. c. brokers could have a secure place to record a client's confidential information. d. agency agreements and disclosures would not be necessary.

The term "right of survivorship" is associated with a a. corporation. b. joint tenancy. c. tenancy in common. d. trust.

Tina is a licensee at Lakeside Realty, where she has a 55-45 commission split with her employing broker. Her buyer bought a house for $432,000. The listing broker offered 3% to a cooperating broker. How much did Tina earn on the sale? a. $5,832 b. $7,128 c. $9,504 d. $7,776

Which is LEAST LIKELY to be a factor that influences migration trends? a. local taxation policies b. federal environmental laws c. changes to the economic base d. aging population

A real estate licensee who works with a buyer must disclose agency representation to the buyer a. after first receiving confidential information. b. after the first property showing. c. at the first substantive contact. d. at the time the buyer wished to make an offer on the property.

An area in a condominium complex that is owned by all but only used by one person is a a. common area. b. declared area. c. limited common area. d. proprietary usage area.

Helen has lived in her home for 30 years with her sister-in-law Amy. Helen has one daughter, Erin. If Helen dies before Amy, Helen wants to make sure that Amy is still allowed to live in the home, so she grants Amy a life estate. Helen dies. After ten years, Amy also dies. Which statement is TRUE? a. Amy's life estate ends when Helen dies, at which point Erin will take possession of the property as reversioner. b. Amy is the measuring life of this life estate and Erin is the life tenant with a reversionary interest. c. Amy is both the life tenant and the measuring life for the estate; Erin has a reversionary interest. d. Amy has a life estate where she is the life tenant and Helen is the measuring life. Erin is the remainderman.

Jake purchases a house, gets a loan from his aunt and a mortgage. His aunt records her loan May 1; the bank records its loan May 10. Jake hires a contractor in June to build a deck. Jake loses his job and never pays the contractor, the bank, his aunt, or his property taxes. When the bank forecloses, in what order will the liens be paid? a. aunt's loan, mortgage lien, mechanic's lien, tax lien b. aunt's loan, tax lien, mortgage lien, mechanic's lien c. tax lien, aunt's loan, mortgage lien, mechanic's lien d. tax lien, mortgage lien, aunt's loan, mechanic's lien

Juan, who speaks with a strong accent, calls the number on a "To Let" sign on a large apartment building. The broker tells him that the unit is rented, but she has not had time to remove the sign. A week later, Juan sees that the sign is still up. His wife Ida, who has no accent, calls and is told the unit is available. If Juan decides to file a complaint with HUD, he must do so within a. 90 days. b. 6 months. c. 1 year. d. 18 months.

Mike conveys a life estate to his youngest son Ned for as long as Mike's wife Olive shall live, and then to his son Paul. Ned dies before Olive dies. Now who has the present interest in the estate? a. Paul b. Olive c. Ned's heirs d. Mike

Physical land and all improvements that are permanently attached to it is known as a. real and personal property. b. real property. c. real estate. d. land.

Rich rents a house from Allison for a year. At the end of the year he refuses to move out. This is an example of a. easement by prescription. b. reversionary interest. c. tenancy at sufferance. d. statutory life estate.

Seller Oliver will pay 6% of the sales price of his home, equally split between the listing broker and the selling broker. Hilltop Realty earns $6,750 in commission when its client buys Oliver's house. Find the sales price of the property. a. $40,500 b. $112,500 c. $225,000 d. $405,000

Tammy signs a contract with XYZ Real Estate to represent her in her search for the perfect house. She intends for the seller to compensate XYZ. What type of agency situation does this represent? a. indirect agency b. implied agency c. express agency d. tacit agency

Terry is ready to purchase his first house. He has a contract with a broker to help him find a house and represent his interests throughout the purchase process. What type of contract is this? a. purchase agreement b. option to buy agreement c. buyer agency agreement d. broker employment agreement

What duty would require a licensee to limit showings to a one-hour block on Sunday mornings if the seller insists? a. accountability b. loyalty c. obedience d. The licensee would actually be in breach of the duty of reasonable care if he did not make every appropriate effort to market the property.

What factor is NOT likely to contribute to a buyer's market? a. migration away from the area b. low construction costs for labor and materials c. limited new construction d. increased layoffs at a local factory

What provides the best protection against loss or damages from defects in title? a. abstract of title b. certificate of title c. title insurance d. title report

Which situation describes blockbusting? a. Despite the ethnic character of a neighborhood and the implication the seller would like to see it remain that way, the broker insists on showing the property to any buyer who expresses an interest. b. A broker shows a minority client only properties in areas mostly populated by the same minority. c. A broker moves a minority person into a neighborhood with the intent of buying other houses in the neighborhood at a greatly reduced price. d. A bank refused to lend to residents of certain neighborhoods because of their racial makeup.

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