WI Chapter 452 Quiz (2022) Page 1 of 46 Adverse Fact has the following meanings except? Significantly and adversely affecting the value of the propertySignificantly reducing the structural integrity of improvements to real estate Information that indicates that a party to a transaction is able to or intends to meet his or her obligations under a contract Significantly reducing the structural integrity of improvements to real estate Presenting a significant health risk to occupants of the property Page 2 of 46 A party to a transaction who has an agency agreement with a firm for brokerage services. Party Customer Firm Client Page 3 of 46 A fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement? Material Fact Material Adverse Fact Adverse Fact Adverse Possession Page 4 of 46 Significantly and adversely affecting the value of the property? Material Fact Adverse Possession Adverse Fact Material Adverse Fact Page 5 of 46 Significantly reducing the structural integrity of improvements to real estate? Material Fact Adverse Possession Adverse Fact Material Adverse Fact Page 6 of 46 Presenting a significant health risk to occupants of the property? Material Fact Adverse Possession Adverse Fact Material Adverse Fact Page 7 of 46 A licensee associated with a firm shall submit to the firm in a timely manner all the following except? Agency Agreements Offers to Purcahse Milage Reports Amendments to Agency Agreements Page 8 of 46 Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction? Material Fact Adverse Fact Adverse Possession Material Adverse Fact Page 9 of 46 Pattern of Sales means there is a pattern of transactions where someone participated in _____________________________. 5 transactions in 2 years or 10 transactions in 7 years 5 transactions in 1 year or 10 transactions in 5 years 6 transactions in 2 years or 12 transactions in 20 years 4 transactions in 12 months or 10 transactions in 5 years Page 10 of 46 Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction. Material Fact Adverse Fact Adverse Possession Material Adverse Fact Page 11 of 46 Acting, whether directly or indirectly, as an intermediary by facilitating or participating in communications between parties related to the parties' interests in a transaction. In this paragraph, providing advice or opinions on matters that are material to a transaction in which a person is engaged or intends to engage or showing a party real estate does not, in and of itself, constitute acting as an intermediary by facilitating or participating in communications between parties. Designated Agency Negotiate Adverse Fact Associated with a Firm Page 12 of 46 A relationship between a firm and 2 or more of the firm's clients in which the clients are parties in the same transaction. Designated Agency Un-Designated Agency Material Adverse Fact Agency agreement Page 13 of 46 Completing, when requested by a party, appropriate board-approved forms or other writings to document the party's proposal consistent with the party's instruction. Designated Agency Negotiate Adverse Fact Associated with a Firm Page 14 of 46 A multiple representation relationship in which each client of the firm in the multiple representation relationship receives negotiation services from the firm only from licensees associated with the firm who are not providing negotiation services to any other client of the firm in the transaction. Designated Agency Multiple Representation Relationship Material Adverse Fact Agency agreement Page 15 of 46 It would be inappropriate to act as a licensee in which of the following situations? Enter into an agency agreement with a former client Act in a transaction on behalf of the licensee's immediate family Act in a transaction on the licensee's own behalf while indicating in the offer the licensee is the buyer. Act in a transaction on behalf of the sister of an ex-spouse Page 16 of 46 A party to a transaction who is provided brokerage services by a firm and any licensees associated with the firm but who is not a client. Party Customer Client Firm Page 17 of 46 “Licensee" means any person _______________________________________. licensed under WI Chapter 452 licensed under the secretary of administration who is a REALTOR who works for an attorney Page 18 of 46 Presenting to a party the proposals of other parties to the transaction and giving the party a general explanation of the provisions of the proposal. Designated Agency Negotiate Adverse Fact Associated with a Firm Page 19 of 46 A firm that is engaged by a principal firm to provide brokerage services in a transaction, but that is not associated with the principal firm. Listing Agent Listing Broker Designated Agency Subagent Page 20 of 46 A principal firm may engage a _______________________ to provide brokerage services in a transaction for someone that is not the principal firm's client. Notary public Subagent Customer Home inspector Page 21 of 46 A person walks into an open house and meets the showing agent. The person tells the showing agent that they love the home and they want to write an offer right now. This person is considered ________________________. a client a customer a subagent designated agency Page 22 of 46 Licensees will have to renew their Real Estate License every ____________________________. 6 years 12 months 26 months 2 years Page 23 of 46 The duty to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals is owned to ____________________________. Only your client in the transaction To all parties to the transaction Only the buyer and the seller in the transaction To all agents in the transaction Page 24 of 46 A licensee lists a home on the MLS and indicates that the home has 4 bedrooms when it has 3 and a small den because they feel it will draw more potential buyers to the home in the first weekend. What is this action considered? Prohibited under Subagency Prohibited due to Advertised Price Advertising without agency agreement Prohibited due to False Advertising Page 25 of 46 Client Funds must be held in an interest bearing _________________________. Savings Account Trust Account Checking Account Trust Bonds Account Page 26 of 46 All interest earned on a Interest bearing real estate trust account must be paid to _____________________________. the brokerage the seller the local county executive the State of Wisconsin Page 27 of 46 Potential legal action against a licensee is limit to ________________________. 7 years 16 months 2 years 3 years Page 28 of 46 A brokerage must supervise all brokerage service activities of each licensee by doing all of the following except? Provide licensees with reasonable access to a supervising broker for the purpose of consultation regarding real estate practice issues Review all contracts, agreements and other documents tied to a transaction prior to the closing of a transaction Review all lender files and documents to verify the lenders work Review all trust account records relating to a transaction Page 29 of 46 The duty to provide brokerage services honestly and fairly is owned to ____________________________. Only your client in the transaction Only the buyer and the seller in the transaction To all agents in the transaction To all parties to the transaction Page 30 of 46 The duty to provide brokerage services with reasonable skill and care is owned to ____________________________. Only your client in the transaction Only the buyer and the seller in the transaction To all parties to the transaction To all agents in the transaction Page 31 of 46 Accept any fee or compensation related to the transaction from any person other than the licensee's client, principal firm, or firm. Acceptable under REEB 24 Prohibited by WI Chapter 452 Acceptable under WI Chapter 452 Prohibited by the Dodd Frank act Page 32 of 46 Prior written consent is needed in order for a licensee to do which of the following? Enter into an agency agreement with a former client Act in a transaction on behalf of a buyer customer Act in a transaction on behalf of the licensee's own behalf Act in a transaction on behalf of the sister of an ex-spouse Page 33 of 46 A subagent may do any of the following except? Show a home and review the attributes of the home and call out any potential defects Provide advice or opinions to parties in the transaction if providing the advice or opinions is contrary to the interests of the clients of the principal firm in the transaction Explain the general provisions of an offer to purchase or any other accompanying addenda or forms Walk the boundaries of the property to evaluate any potential issues with the property Page 34 of 46 A previous buyer calls an agent to tell them they are thinking of selling their home they bought 5 years ago. The previous buyer tells the agent that they love a home they saw online and they may want to write an offer after they see it. This person is considered ________________________. a client a customer a subagent designated agency Page 35 of 46 The time frame for potential legal action against a licensee starts as of which of the following except? An unconsummated transaction is terminated or expired A transaction is closed A listing contract is sent and not signed An agency agreement is terminated Page 36 of 46 A licensee may not do all of the following except? Use forms approved under s. 452.05 (1) (b) Represented or attempted to represent a firm without the express knowledge and consent of the firm Pursued a continued and flagrant course of misrepresentation or made false promises through other licensees or through advertising Demonstrated incompetency to act as a broker or salesperson, whichever is applicable, in a manner which safeguards the interests of the public Page 37 of 46 A licensee must always disclose the name of their brokerage ____________________________. in all documents they print in any advertisement they produce each time they meet with their buyers or sellers on the inside of all their folders Page 38 of 46 A licensee lists a home on Friday, July 29th. On Tuesday, August 9th the seller told the listing licensee he wanted to lower the price of the home for the upcoming weekend. The listing licensee sent the amendment to lower the price to the seller, but he was not able to sign it before leaving down where he had no cellular service. In keeping with this wishes the listing agent lowered the price in the MLS to invigorate the market for the weekends open house. What is this action considered? Permitted under Subagency Prohibited due to Advertised Price Permitted under Advertising without agency agreement Prohibited due to False Imprisonment Page 39 of 46 Paying referral fees to anyone ___________________________ are strictly prohibited. who is not a licensee who is a home inspector who is a customer who is a licensee Page 40 of 46 A licensee is not required to do any of the following except? Disclose that the property was the site of a specific act or occurrence, if the act or occurrence had no effect on the physical condition of the property or any structures located on the property Disclose information relating to the physical condition of the property or any other information relating to the real estate transaction, if a written report that discloses the information has been prepared by a qualified 3rd party and provided to the person Disclose to the parties to a real estate transaction any facts known by the licensee that contradict any information included in a written report Exercise the degree of care expected to be exercised by a reasonably prudent person who has the knowledge, skills, and training required for licensure Page 41 of 46 A licensee receives a request from a buyer asking if the licensee is aware of any sex offenders in the area of the home they want to make an offer on. The licensee should? Disclose any information about sex offenders if the licensee has actual knowledge of the information Disclose the sex offender register website and phone number Look up and disclose any sex offenders they can find Tell the buyer that they do not know anything even if they looked up the information the prior day Page 42 of 46 A licensee may hire an unlicensed personal assistant, but that person may not discuss ______________________________. Updates made to the property Offers to purchase submitted for a property Dimensions of the property and items included Details regarding an email that they sent to a customer Page 43 of 46 Independent contractors are different than an employee in the following ways except? They receive a 1099 and not a W2 There are no taxes withheld from their compensation They may elect to withhold taxes from their escrow accounts They are responsible to pay taxes separately when due Page 44 of 46 Licensees may not use which of the following in a real estate transaction? WB-1 Listing Agreement Real Estate Condition Report WB-11 Offer to Purchase A offer written on an napkin Page 45 of 46 A licensee must only provide ________________________________ of the provisions of any forms or contracts. specific detailed explanation highlights general explanation vague details Page 46 of 46 All records of a real estate transaction may be stored _________________________. in a locked cabinet electronically for only 24 hours in the bottom of your closet Please provide your contact information to proceed.Email Address *First NameLast NameConsent *Yes, I agree not to share any questions or answers with any other current or future students of SENSIBL Real Estate Academy. 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