Conduct and Ethics (REEB)
The Real Estate Examining Board's conduct rules are the second-largest block on the broker exam, about 22 items. This chapter covers prohibited practices and the duties licensees owe consumers.
Prohibited Practices
Wisconsin conduct rules prohibit net listings, in which the broker keeps whatever exceeds a set net price to the seller, and tie-in arrangements that force a consumer to buy additional services as a condition of a transaction. These practices create conflicts of interest or coerce consumers and are barred under REEB rules.
Presenting Offers and Confidentiality
Licensees must present all written offers to the seller and keep the existence and terms of competing offers confidential unless authorized to disclose them. Revealing one buyer's offer terms to a competing buyer without authorization violates the confidentiality expected under the conduct rules.
Honesty and Material Adverse Facts
Licensees owe honesty to all parties and must disclose material adverse facts they know or should know. Conduct and Ethics questions test the licensee's judgment about fair dealing, confidentiality, and disclosure in realistic situations.