Wisconsin Real Estate Broker Exam — All Questions

Under Wis. Stat. § 452.136 (2) (a), advertising by a licensee must disclose the firm's name exactly as printed on the license, or a trade name previously filed with the department, and must also clearly indicate that:

• a.the property is listed with a multiple listing service member
• b.the advertised price is subject to the owner's final approval
• c.the licensee is compensated only by the seller of the property
• d.the firm is a business enterprise and not a private party✓

Paragraph (2) (a) requires the licensee to disclose the firm's name or filed trade name "and shall in either case clearly indicate that the firm is a business enterprise and not a private party." The rule exists to stop blind ads that read like a for-sale-by-owner listing. Section 452.136 (2) (c) carves out the occasional sale or purchase of the licensee's own real estate, provided the licensee clearly identifies himself, herself, or itself as a real estate licensee in the advertisement. Wis. Admin. Code § REEB 24.04 simply directs licensees to follow § 452.136.

A Wisconsin firm wants to advertise a property it has not listed. Under Wis. Stat. § 452.136 (3), the firm may do so only if:

• a.it discloses that it is not the listing firm in the ad copy
• b.the property has been on the market for more than 90 days
• c.it has obtained consent to advertise from the listing firm✓
• d.the owner has signed a one-party listing with the firm

Subsection (3), captioned ADVERTISING WITHOUT AGENCY AGREEMENT PROHIBITED, allows a firm to advertise a property only where the firm is the listing firm or where the firm or an associated licensee "has obtained consent to advertise the property from the listing firm for the property." A disclaimer in the copy is not a substitute for consent, and neither days on market nor a one-party listing with a different arrangement supplies it. Section 452.136 (4) separately bars advertising a property at a price other than the price agreed on with the owner, though a range or general terms are allowed if they reflect that price.

Wis. Admin. Code § REEB 24.05 (5) requires a licensee acting as a principal to disclose the licensee's license status and intent to act as a principal. That disclosure must be made:

• a.orally at the first showing and in writing before the offer is drafted
• b.in writing, at the earliest of first contact, a showing, or negotiation✓
• c.in writing, no later than the time the offer to purchase is presented
• d.in the transaction contract, before the parties sign the closing papers

Paragraph (5) (a) requires the disclosure at the earliest of the first contact where information about the other party or the transaction is exchanged, a showing of the property, or any other negotiation with the seller, the listing firm, or the other party or its firm. Paragraph (5) (b) then requires that "[t]he disclosure under this subsection shall be made in writing to the other party in a transaction or to an agent representing the other party." Waiting for the offer or for closing is too late, and an oral disclosure does not satisfy (5) (b).

Under Wis. Admin. Code § REEB 24.05 (4), a listing firm may pay compensation or an incentive to a licensee who is acting as a buyer in the transaction only with:

• a.prior written consent from the seller✓
• b.prior written approval of the department
• c.prior consent of the buyer's own lender
• d.prior oral notice to the seller's agent

Subsection (4), captioned DISCLOSURE TO SELLER, provides that "[a] listing firm may not pay any compensation or incentive to a licensee who is acting as a buyer in a transaction without prior written consent from the seller." The consent must come from the seller, in writing, and in advance. The related compensation restrictions in Wis. Stat. § 452.133 (3) (a) and (c), which § REEB 24.05 (1) and (2) point to, also turn on written consent or written disclosure to the parties.

Wis. Admin. Code § REEB 24.07 (1) (a) requires a licensee engaging in real estate practice involving real estate improved with a structure to conduct a reasonably competent and diligent inspection of:

• a.accessible areas of the structure and immediately surrounding areas✓
• b.every room, crawl space and attic in the structure without exception
• c.only those areas the seller identifies on a real estate condition report
• d.the structure's mechanical systems, operated to confirm they function

Paragraph (1) (a) requires an inspection "of accessible areas of the structure and immediately surrounding areas of the property to detect observable, material adverse facts." Paragraph (1) (d) then sets the limits: the inspection does not require operating mechanical equipment, opening panels, doors or covers, moving furniture or boxes, entering areas presenting an unreasonable risk of injury, or reaching areas accessible only by ladder or by crawling. For vacant land, paragraph (1) (a) requires an inspection only if the land is accessible, and paragraph (1) (d) requires observation from at least one point on or adjacent to the property.

A licensee learns that a buyer has a side agreement with the seller that the buyer has not disclosed to the buyer's lender. Wis. Admin. Code § REEB 24.07 (4) requires the licensee to:

• a.advise the buyer to disclose it and take no further action
• b.terminate the agency agreement with the buyer immediately
• c.disclose the fact to the party's secured lender in writing✓
• d.report the fact to the board within 48 hours of learning it

Subsection (4), captioned DISCLOSURE OF SIDE AGREEMENTS, requires a licensee who becomes aware that a party has not disclosed that party's entire agreement regarding the transaction to that party's secured lender to "disclose this fact, in writing and in a timely manner, to the party's secured lender." Advising the client and stopping short of disclosure does not satisfy the rule, and neither termination nor a report to the board is what it calls for. "Secured lender" is defined in § REEB 24.02 (15) as an individual or organization originating a loan secured by the real estate or by business assets.

Wis. Admin. Code § REEB 24.075 (2) prohibits a licensee from conditioning the sale of real estate the licensee owns or effectively controls on the buyer's agreement to:

• a.use a title company the licensee has an interest in
• b.list the buyer's own real estate with the licensee✓
• c.waive the buyer's right to a home inspection report
• d.pay the licensee's commission directly at the closing

Subsection (2) bars conditioning such a sale "upon the buyer's agreement to list the real estate or other real estate owned by the buyer with the licensee," and the code note gives requiring a buyer to list a present home with the licensee as one of the two classic examples. Subsection (1) covers the parallel case of conditioning the sale on the buyer's agreement to purchase another parcel. A violation of § REEB 24.075 is expressly treated as improper, fraudulent or dishonest dealing under Wis. Stat. § 452.14 (3) (k) by § REEB 24.01 (4).

Under Wis. Admin. Code § REEB 24.075 (3), a licensee selling vacant real estate the licensee controls may condition the sale on the buyer's employing a specific builder if:

• a.the builder has been recommended in writing by at least two prior buyers of the land
• b.the builder owns a bona fide interest in the real estate, with full disclosure✓
• c.the buyer is given a written estimate from that builder before the closing
• d.the builder agrees to pay the licensee a referral fee that is disclosed

Subsection (3) states the prohibition and then lists the exceptions. Paragraph (3) (a) applies where "[t]he builder owns a bona fide interest in the real estate; and there is full disclosure as specified under s. 452.133 (3) (c), Stats." Paragraph (3) (b) covers the case where the builder and the licensee or owner are the same person or commonly controlled corporations selling improved property, again with full disclosure, and paragraph (3) (c) permits a bona fide effort to maintain development quality or architectural uniformity where no consideration passes from the builder to the licensee. A referral fee is the opposite of what (3) (c) allows.

Wis. Admin. Code § REEB 24.08 requires a licensee to put listing contracts, buyer agency agreements, offers to purchase and similar proposals in writing, expressing:

• a.the firm's standard office practice
• b.the licensee's opinion of fair terms
• c.the board's recommended language
• d.the exact agreement of the parties✓

Section REEB 24.08 requires the licensee to put those documents in writing "expressing the exact agreement of the parties." The section does not apply where the writing is completed by the parties or their attorneys, or where the writing is outside the scope of the licensee's authority under ch. REEB 16. Substituting office practice, the licensee's view of fairness, or generic language for what the parties actually agreed is the failure the rule is aimed at.

Wis. Admin. Code § REEB 24.09 bars a licensee from misleading a potential client about the benefits of the licensee's services and also about:

• a.the length of time the property is expected to be on market
• b.the market value of the real estate or business opportunity✓
• c.the number of other clients the licensee is serving already
• d.the commission rates charged by competing brokerage firms

Section REEB 24.09 provides that a licensee "may not mislead a potential client regarding the benefits that might be realized by using the licensee's services" and "also may not mislead a potential client regarding the market value of real estate or a business opportunity to be leased, rented, purchased, optioned, or sold under an agency agreement." Inflating a listing price to win the listing is the conduct the rule targets. A related but separate prohibition, § REEB 24.085, bars drafting or using any document the licensee knows falsely portrays an interest in real estate.

Wis. Admin. Code § REEB 24.10 prohibits a licensee from obtaining or negotiating a listing contract that provides for:

• a.a stipulated net price to the owner, with the excess as commission✓
• b.a term longer than one year without the owner's written renewal first
• c.a commission earned when a ready, willing and able buyer is produced
• d.a commission stated as a flat dollar amount rather than a percentage

Section REEB 24.10, captioned NET LISTING PROHIBITED, bars a licensee from obtaining, negotiating or attempting to obtain or negotiate "any listing contract providing for a stipulated net price to the owner with the excess over the stipulated net price to be received by the firm as commission." Flat-fee commissions are lawful, and the WB-1 leaves the commission blank precisely because rates are negotiable. Earning a commission when a ready, willing and able buyer submits a bona fide written offer at the list price is a standard WB-1 term, not a prohibited one.

Under Wis. Admin. Code § REEB 24.12 (1), what may a Wisconsin licensee disclose to a competing prospective buyer without the seller's authorization?

• a.The purchase price in a pending offer
• b.That other offers on the property exist✓
• c.The financing terms of a pending offer
• d.The closing date a competing buyer set

Subsection (1) forbids disclosing "any of the terms of one prospective buyer's offer to purchase, exchange agreement, or option to any other prospective buyer," then expressly permits a different disclosure: "A licensee may, but is not required to, disclose information known by the licensee regarding the existence of other offers on the property, that a seller has accepted an offer, that the offer is subject to contingencies, and that the offer is subject to a clause requiring removal of certain contingencies upon the occurrence of an event." Price, financing terms and the closing date are all terms, so all three are barred. The rule also directs licensees to encourage all prospective buyers to submit their best offers.

A licensee knows that a listed property is subject to a right of first refusal. Under Wis. Admin. Code § REEB 24.12 (2), the licensee must disclose it, in writing and in a timely manner, to:

• a.the holder of the right of first refusal and no one else at all
• b.all persons seeking to acquire an interest subject to the right✓
• c.the seller's attorney, who then notifies interested purchasers
• d.the multiple listing service in which the property is listed

Subsection (2) requires disclosure "in writing and in a timely manner, to all persons seeking to acquire an interest subject to the right of first refusal." After that disclosure the licensee may deliver a copy of that party's offer, exchange agreement, option or lease to the holder of the right, and licensees are not responsible for implementing any right-of-first-refusal terms. "Right of first refusal" is defined in § REEB 24.02 (16m) as the right to have the first opportunity to purchase or lease real property.

Wis. Admin. Code § REEB 24.13 (1) says a licensee may refuse to draft or submit a written proposal only where the terms of the proposal would be:

• a.contrary to specific written instructions of the other party✓
• b.so low that the licensee considers them not worth presenting
• c.outside the price range stated in the firm's listing contract
• d.unlikely to be accepted by the seller of the listed property

Subsection (1), captioned REFUSAL PROHIBITED, provides that "[l]icensees shall not refuse to draft or submit any written proposal unless the terms of the written proposal would be contrary to specific written instructions of the other party." A licensee's own judgment about the price is not a permitted ground. "Written proposal" is defined broadly in § REEB 24.02 (19) to include notices, offers, counteroffers, options, exchanges, rental agreements and amendments.

Under Wis. Admin. Code § REEB 24.13 (3) (b), a licensee associated with the listing firm may not submit a personal offer to purchase the listed property when the licensee:

• a.has knowledge of the terms of any pending offer✓
• b.has shown the property to more than one buyer
• c.has not disclosed the offer to the buyer's agent
• d.has held the listing for less than ninety days

Paragraph (3) (b) provides that where a firm has a property listed, no licensee associated with the listing firm and no listing firm "may submit a personal written proposal or offer to purchase a property, if the licensee has knowledge of the terms of any pending offer, except that a firm may arrange for a guaranteed sale at the time of listing." Knowledge of the pending terms is the disqualifier, not the number of showings, a disclosure step, or the age of the listing. Paragraph (3) (a) separately requires licensees to present all written proposals objectively and to explain their advantages and disadvantages.

Wis. Admin. Code § REEB 24.13 (5) bars a licensee from negotiating directly with a party the licensee knows has granted another licensee an unexpired exclusive right to sell, lease or negotiate. Negotiations must instead be conducted with:

• a.the party's own attorney of record
• b.the multiple listing service system
• c.the firm holding that exclusive right✓
• d.the department's mediation service

Subsection (5), captioned NEGOTIATION THROUGH FIRM, requires that "[a]ll negotiations shall be conducted with the firm holding the exclusive right to sell, lease, or negotiate, and not with the party," except with that firm's consent or where its absence or similar circumstances reasonably compel direct negotiation. A listing firm has no duty to investigate whether a buyer has granted a buyer's agent an exclusive right to negotiate, and the code note adds that the department's approved WB-36 does not grant the buyer's agent an exclusive right to negotiate.

Wis. Stat. § 452.132 (2) (b) requires a Wisconsin firm to notify each licensee associated with the firm of what?

• a.Which continuing education courses the board has approved
• b.Where a copy of the board's conduct rules may be obtained✓
• c.How the firm calculates the commission split for each deal
• d.When the firm's real estate trust account was last audited

Paragraph (2) (b) requires the firm to "[n]otify each licensee associated with the firm where a copy of the rules promulgated by the board related to the conduct, ethical practices, and responsibilities of licensees may be obtained." That is the current home of the "availability of rules" duty listed in the exam outline; there is no longer a section by that name in ch. REEB 24. Paragraph (2) (a) adds a related duty to give each licensee a written statement of the firm's procedures for handling leases, agency agreements, offers to purchase and other transaction records.

A Wisconsin licensee is convicted of a crime. Under Wis. Admin. Code § REEB 24.17 (1), the licensee must send the board a copy of the complaint or other information describing the crime and the judgment of conviction within:

• a.10 days after the judgment of conviction
• b.30 days after the judgment of conviction
• c.48 hours after the judgment of conviction✓
• d.5 days after the judgment of conviction

Subsection (1) requires a licensee convicted of a crime to send the board, "within 48 hours after the judgment of conviction," a copy of the complaint or other information describing the nature of the crime and the judgment, so the board can decide whether the circumstances are substantially related to real estate practice under Wis. Stat. § 111.335 (3) (a). Under § REEB 24.17 (2m) the board may revoke a license based on a felony conviction that bars licensure under § 452.25 (1) (a). A separate 30-day clock in § REEB 24.17 (5) governs responses to department or board requests for information.

Wis. Admin. Code § REEB 24.17 (5) requires Wisconsin licensees and applicants to respond to a request for information from the department or the board within:

• a.10 days of the date of the request
• b.60 days of the date of the request
• c.30 days of the date of the request✓
• d.14 days of the date of the request

Subsection (5), captioned DUTY TO COOPERATE WITH THE BOARD AND THE DEPARTMENT, provides that "[l]icensees and applicants shall respond to the department and the board regarding any request for information within 30 days of the date of the request." A violation of any rule in ch. REEB 24 demonstrates incompetency to act as a broker or salesperson under Wis. Stat. § 452.14 (3) (i), by force of § REEB 24.01 (3). Subsection (3) also makes it a violation to breach, or aid or abet a breach of, ch. 452, chs. REEB 11 to 25, or any board order.

Wis. Admin. Code § REEB 16.02 (2) defines an "exclusive agency listing" as a listing containing all the elements of an exclusive right to sell listing, except that the owner retains the right to:

• a.cancel the listing at any time without giving any notice
• b.list the property with any number of other brokerage firms
• c.set a net price and keep any excess over that net amount
• d.sell the property personally without owing a commission✓

Subsection (2) defines the exclusive agency listing as one with all the elements of an exclusive right to sell listing "except that the owner retains the right to sell the property himself or herself without owing the listing broker a commission." A listing given to any number of firms, with the first to secure a buyer earning the commission, is an open listing under § REEB 16.02 (4). A net arrangement is not a listing type at all; it is prohibited by § REEB 24.10.

Under Wis. Admin. Code § REEB 16.03 (1) (a), which forms does the board approve for use by brokers in addition to the forms the board itself prepares and approves?

• a.State bar of Wisconsin forms for deeds, mortgages and land contracts✓
• b.Forms published by any national or state real estate trade association
• c.Forms drafted by a title insurance company doing business here
• d.Forms sold by a commercial legal-forms publisher in this state

Paragraph (1) (a) approves "[f]orms prepared and approved by the state bar of Wisconsin for deeds, mortgages, mortgage notes, truth-in-lending disclosures, land contracts, release of mortgage, satisfaction of mortgage, assignment of mortgage, and assignment of land contract." The rest of § REEB 16.03 (1) approves specified uniform commercial code forms, out-of-state contractual forms customarily used where the property lies, forms prepared by governmental, quasi-governmental and tribal agencies for their own programs, and property management agreements prepared by the broker, an attorney or the landlord. Trade association, title company and commercial publisher forms are not on that list.

For a kind of transaction for which the board has approved no contractual form, Wis. Admin. Code § REEB 16.04 (2) lets a licensee use a form drafted by a party or an attorney if:

• a.the drafter's name is imprinted on the form before the licensee uses it✓
• b.the licensee attaches a written explanation of each material provision
• c.the board grants written permission for that particular transaction type
• d.both parties initial every page of the form at the time of the signing

Subsection (2) permits a licensee acting as agent or party to use contractual forms drafted by a party or an attorney "if the name of the drafter is imprinted on the form before use by a licensee," and adds that for this purpose a listing firm is a party to the listing contract transaction. Subsection (1) states the default: except as provided in subs. (2) and (3), a licensee shall use approved forms. Subsection (3) allows the licensee to negotiate an agreement and let the parties or an attorney draft the contract embodying the negotiated terms.

Wis. Admin. Code § REEB 16.05 permits a Wisconsin licensee to do which of the following?

• a.Advise a party on the legal effect of a specific contract clause
• b.State an opinion about the condition of the title to the property
• c.Explain the legal rights the parties will have after the closing
• d.Give a general explanation of the provisions in an approved form✓

Subsection (1) bars a licensee from providing "advice or opinions concerning the legal rights or obligations of parties to a transaction, the legal effect of a specific contract or conveyance, or the state of title to real estate," and subsection (2) then permits "a general explanation of the provisions in an approved form to the parties to a transaction at the time of completing the form or when delivering an approved form for the seller's or buyer's acceptance." Wisconsin Statute § 452.40 (2) states the identical rule. The WB-11 prints the boundary in capitals: the Firm and its agents may give a general explanation of the Offer's provisions but are prohibited by law from giving advice or opinions on legal rights or how title should be taken.

Wis. Admin. Code § REEB 16.05 (4) prohibits a licensee from doing what in connection with an approved form?

• a.Attaching an attorney-drafted addendum to the form
• b.Making a separate charge for completing the form✓
• c.Crossing out a provision the parties do not want
• d.Filling in blanks at the instruction of the parties

Subsection (4) reads: "A licensee may not make a separate charge for completing an approved form in connection with a transaction." The other three are permitted: § REEB 16.06 (4) and (5) allow pre-prepared addenda on stated conditions, § REEB 16.06 (3) allows crossing out provisions to reflect the parties' agreement provided the deleted text remains legible, and "use a form" is defined in § REEB 16.02 (5) as filling in the blanks or modifying printed provisions at a party's instruction. Section REEB 16.05 (3) also limits form use to transactions where the licensee acts as a licensee or as a principal.

Under Wis. Admin. Code § REEB 16.06, which of the following is a licensee required to do?

• a.Retype an approved form to remove unused optional terms
• b.Erase provisions the parties strike so they are unreadable
• c.Add extra blank lines when the parties need more room
• d.Use the latest approved version of a board-approved form✓

Subsection (7) states flatly that "[a] licensee shall use the latest approved version of a board-approved form." The other three are prohibited. Paragraph (1) (b) forbids reproducing a form so that optional provisions are omitted and blank lines filled in without any indication of where they occur on the board-approved form; subsection (3) permits crossing out provisions only if the deleted provisions remain legible; and paragraph (1) (d) forbids adding blank lines or lines containing textual content, directing the licensee instead to fill in the blank lines provided or to use an addendum under subs. (4) and (5).

The WB-1 Residential Listing Contract provides that the Firm's commission is earned if, during the term of the Listing, a ready, willing and able buyer submits a bona fide written offer at or above the list price on substantially the same terms. The form adds that the commission is earned:

• a.only after the closing of the sale actually occurs
• b.even if Seller does not accept the buyer's offer✓
• c.only if the offer is accepted within three days
• d.only where the buyer waives all contingencies

Item 5) in the WB-1 EARNED provision covers a bona fide written offer at or above the list price on substantially the same terms as the Listing and the current WB-11, "even if Seller does not accept the buyer's offer," and defines a ready, willing and able buyer as one with the ability to complete the buyer's obligations under the written offer. The four other earning events are a sale or accepted offer, a granted option later exercised, an exchange or binding exchange agreement, and a transaction causing an effective change in ownership or control. Under item 5) the percentage commission is calculated on the total offered purchase price.

Under the WB-1 EXTENSION OF LISTING provision, the Listing term is extended as to any Protected Buyer for a period of:

• a.six months
• b.ninety days
• c.one year✓
• d.two years

The provision reads: "The Listing term is extended for a period of one year as to any Protected Buyer," and it applies on the same terms for one year after a Seller-initiated early termination. A Protected Buyer is defined as one who during the term delivers a written offer, exchange or option, views the Property with Seller or negotiates directly with Seller, or attends an individual showing or communicates with agents about potential acquisition terms — the last only if the Firm delivers the buyer's name to Seller in writing no later than three days after the earlier of expiration or termination of the Listing.

The WB-1 provides that once earned, the Firm's commission is due and payable in full at the earlier of closing or the date set for closing:

• a.unless the buyer's financing is denied
• b.only when the deed has been recorded
• c.even if the transaction does not close✓
• d.after the trust funds are disbursed

The DUE AND PAYABLE provision reads: "Once earned, the Firm's commission is due and payable in full at the earlier of closing or the date set for closing, even if the transaction does not close, unless otherwise agreed in writing." Earning and payment are two different questions on this form; the EARNED provision lists the five events that earn the commission and this provision fixes when it must be paid. A failed closing does not undo an earned commission unless the parties have agreed otherwise in writing.

Under the WB-1 TERMINATION OF LISTING provision, a termination by the Firm before the stated end date is effective only if it is stated in writing by:

• a.the listing agent and delivered to the Firm's office
• b.the supervising broker and delivered to Seller✓
• c.the Seller and delivered to the listing agent
• d.the board and delivered to both the parties

The provision states that termination by the Firm is "effective by the Firm only if stated in writing by the supervising broker and delivered to Seller" using the form's delivery methods, while termination by Seller is effective only if stated in writing and delivered to the Firm. The same provision warns that neither party has a legal right to terminate unilaterally absent a material breach, and that agents for the Firm have no authority to agree to a mutual termination, amend the commission or shorten the term without the written consent of the agents' supervising broker.

On the WB-11 Residential Offer to Purchase, the earnest money line naming who holds the funds is left with nothing struck and no other holder named. Under the form, the earnest money is held by:

• a.the closing agent
• b.the drafting Firm
• c.the listing Firm✓
• d.the Seller's attorney

The parenthetical default printed on that line reads: "(listing Firm if none chosen; if no listing Firm, then drafting Firm; if no Firm then Seller)." The form also cautions that if a Firm does not hold the earnest money, an escrow agreement should be drafted by the Parties or an attorney because the form's disbursement provisions will not apply — the same point Wis. Admin. Code § REEB 18.06 makes by barring the licensee from drafting that escrow agreement.

The WB-11 Inspection Contingency is deemed satisfied unless Buyer delivers the written inspection report and a Notice of Defects within how many days after acceptance, where the blank is left blank?

• a.15 days✓
• b.10 days
• c.20 days
• d.5 days

The contingency reads "within ____ days ('15' if left blank) after acceptance" for delivery of a copy of the written inspection report dated after the date on line 1 and a written notice listing the Defects objected to. The form cautions that a proposed amendment is not a Notice of Defects and will not satisfy the notice requirement. The Radon Testing Contingency uses a different default of 20 days, and the Seller's election to cure under the Inspection Contingency defaults to 10 days.

Under the WB-11 Radon Testing Contingency, Buyer objects by delivering a report indicating an EPA average radon level of:

• a.2.0 picoCuries per liter or higher
• b.10 picoCuries per liter or higher
• c.4.0 picoCuries per liter or higher✓
• d.0.4 picoCuries per liter or higher

The contingency is written around a report "indicating an EPA average radon level of less than 4.0 picoCuries per liter (pCi/L)" and is deemed satisfied unless Buyer delivers, within the stated period, test results "indicating a radon level of 4.0 pCi or higher" together with a written notice objecting. If Seller has the right to cure, curing means installing a mitigation system in conformance with EPA standards and giving Buyer a post-remediation test report below 4.0 pCi/L no later than three days prior to closing.

The WB-11 provides that if a written earnest money disbursement agreement has not been delivered to the Firm holding the earnest money within a stated period after the date set for closing, the Firm may then disburse under the listed alternatives. That period is:

• a.30 days
• b.45 days
• c.90 days
• d.60 days✓

The DISBURSEMENT IF EARNEST MONEY HELD BY A FIRM provision sets that period at 60 days after the date set for closing, after which the Firm may disburse as directed by an attorney who has reviewed the transaction and represents neither party, into a court hearing a lawsuit involving the money and all Parties, as directed by court order, on an authorization granted within the Offer, or as otherwise required or allowed by law. The Firm may deduct costs and reasonable attorneys' fees not to exceed $250 before disbursement. The separate 30-day figure in the LEGAL RIGHTS/ACTION provision is the advance certified-mail notice period where the Firm knows a Party disagrees, matching Wis. Admin. Code § REEB 18.09 (2).

Under the WB-11 PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING provision, Buyer may terminate the Offer at Buyer's option if the damage exceeds:

• a.ten percent of the agreed purchase price
• b.two percent of the purchase price
• c.one percent of the purchase price
• d.five percent of the purchase price✓

The provision splits at five percent: damage of not more than five percent of the purchase price obliges Seller to notify Buyer promptly in writing and to restore the Property to materially the same condition as of the date on line 1, while damage exceeding five percent gives Buyer the option to terminate. A Buyer who elects to proceed despite the damage is entitled to the insurance proceeds relating to the damage plus a credit toward the purchase price equal to Seller's deductible.

The WB-11 defines Deadlines expressed as a number of "days" from an event as calculated by excluding the day the event occurred and counting subsequent calendar days, with the Deadline expiring at:

• a.Midnight on the last day, meaning 11:59 p.m. Central Time✓
• b.5:00 p.m. on the last day, in the Property's time zone
• c.Noon on the Business Day following the last day counted
• d.Midnight at the end of the next Business Day that follows

The DEADLINES definition states that the Deadline "expires at Midnight on the last day" and then defines "Midnight" as 11:59 p.m. Central Time. Deadlines stated in Business Days are counted the same way except that only Business Days are counted; Deadlines stated in hours run from the exact time of the event, counting 24 hours per calendar day; and Deadlines tied to a specific calendar day or a specific event such as closing expire at Midnight of that day. "Business Day" is separately defined to exclude Saturdays, Sundays and legal public holidays under Wisconsin or federal law.

Under the WB-11 CONVEYANCE OF TITLE provision, Seller conveys the Property by warranty deed, unless Seller is a trust or an estate, in which case the form calls for:

• a.a quit claim deed executed by the fiduciary in charge
• b.a special warranty deed with covenants against grantor
• c.a deed of conveyance prepared by the buyer's attorney
• d.a trustee's deed or a personal representative's deed✓

The provision requires conveyance "by warranty deed (trustee's deed if Seller is a trust, personal representative's deed if Seller is an estate or other conveyance as provided herein), free and clear of all liens and encumbrances" except the listed permitted exceptions — municipal and zoning ordinances and agreements under them, recorded utility and municipal service easements, recorded building and use restrictions and covenants, disclosed present uses in violation of those, and general taxes levied in the year of closing. Seller pays the cost of the documents necessary to record the conveyance and the Wisconsin Real Estate Transfer Fee.

Wis. Stat. § 709.02 (1) requires the owner to furnish a completed real estate condition report to the prospective buyer no later than:

• a.10 days before the closing of the transaction occurs
• b.10 days after acceptance of a contract of sale✓
• c.5 days after the offer to purchase is drafted
• d.the day the property is first listed for sale

Subsection (1) requires the owner to furnish the report "not later than 10 days after acceptance of a contract of sale or option contract." The WB-11 quotes that sentence verbatim in its REAL ESTATE CONDITION REPORT provision. The report may substitute information supplied by a licensed engineer, professional land surveyor, structural pest control operator, qualified third party, contractor within the contractor's occupation, or a public agency, and it is considered complete only if the owner answered, or supplied § 709.035 information for, each item.

A prospective buyer receives no real estate condition report within the 10-day period. Under Wis. Stat. § 709.02 (1), the buyer may rescind the contract of sale in writing within:

• a.5 business days after the end of that 10-day period
• b.10 business days after the end of that 10-day period
• c.2 business days after the end of that 10-day period✓
• d.30 calendar days after the end of that 10-day period

Subsection (1) provides that a prospective buyer who does not receive a report within the 10 days "may, within 2 business days after the end of that 10-day period, rescind the contract of sale or option contract by delivering a written notice of rescission to the owner or to the owner's agent and is entitled to the return of any deposits or option fees paid in the transaction." Section 709.05 (3) applies the same 2-business-day window to rescissions based on a report, amended report or amendment received after the contract was submitted. The 5-business-day period belongs to the condominium disclosure cover sheet in § 703.33 (2) (a).

Under Wis. Stat. § 709.01 (2), which seller is excused from the ch. 709 condition report requirements if that seller has never occupied the property transferred?

• a.An owner selling a two-unit duplex
• b.A relocation company acting as owner
• c.A personal representative of an estate✓
• d.A landlord selling a rented condo unit

Subsection (2) exempts personal representatives, trustees, conservators, and fiduciaries appointed by or subject to the supervision of a court, but only "if those persons have never occupied the property transferred." A duplex is real property with 1 to 4 dwelling units under § 709.001 (5) (a) and is squarely covered, as is a condominium unit under § 709.01 (1), which names condominium units and time-share property expressly. A relocation company gets no exemption for its status. The other general exclusions are transfers exempt from the real estate transfer fee under § 77.25 and property that has never been inhabited.

Wis. Stat. § 709.035 requires an owner who, before acceptance of a contract, learns of a condition that would change a response on a completed report to submit to the prospective buyer:

• a.an amended report or an amendment to the report✓
• b.a written notice of rescission of the prior report
• c.a report prepared by a licensed home inspector
• d.a supplemental report signed by the listing firm

Section 709.035 requires the owner to submit "a complete amended report or an amendment to the previously completed report," together with a copy of the previously completed report if not already given, stating the property address, the owner's name, the date of the report being amended, the number of each affected statement, and how the original response changed, with an explanation where the response becomes "yes." The WB-1 carries the same obligation as a contract term: Seller agrees to amend the report on learning of any Defect after completing it but before accepting a buyer's offer.

The WB-25 Bill of Sale states that it becomes effective only upon:

• a.the signature of the seller and delivery of a copy to the buyer
• b.the successful closing of the buyer's offer to purchase✓
• c.acceptance of the offer by all buyers and sellers
• d.the recording of the deed at the register of deeds

The EFFECTIVE DATE provision reads: "This Bill of Sale is only effective upon the successful closing of Buyer's offer to purchase, dated ____, to purchase Seller's property located at ____ and payment of additional consideration (if any)." A form note adds that a copy of the fully executed closing statement and a receipt or other reasonable evidence of payment of any required additional consideration confirms the Effective Date. Signature, acceptance and recording of the deed are each insufficient on their own under the form's own terms.

The seller's warranty printed on the WB-25 Bill of Sale covers which of the following?

• a.Title to the personal property only✓
• b.The working order of the property
• c.The property's fair market value
• d.Fitness for the buyer's purpose

The form has the seller warrant ownership of the personal property free and clear of all liens and encumbrances, good right to sell it, and a promise to warrant and defend it against the lawful claims and demands of all persons, subject to stated exceptions. The printed note immediately below is explicit: "The above warranty applies only to title. If there are any other warranties or representations as to other characteristics of the personal property a separate agreement must be drafted." Condition, value and fitness therefore need their own agreement.

Under the WB-36 Buyer Agency Agreement, when is the Firm's commission earned?

• a.When Buyer acquires or contracts to acquire an Interest in Property✓
• b.When Buyer's offer is accepted at or below the stated price range
• c.When the closing of Buyer's purchase actually takes place in full
• d.When the Firm shows Buyer a property that is within the stated price range

The COMMISSION EARNED provision states the Firm has earned its commission if during the term, or any extension, "Buyer or any Person Acting on Behalf of Buyer acquires an Interest in Property or enters into an enforceable contract to acquire an Interest in Property, at any terms and price acceptable to owner and Buyer, regardless of the purchase price range." The price range is only an initial search parameter; the Firm's authority extends to all property in Wisconsin except the properties excluded on the form. As with the WB-1, the commission is due and payable at the earlier of closing or the date set for closing even if the transaction does not close.

The WB-36 LIEN NOTICE states that under Wis. Stat. § 779.32 the Firm has authority to file a lien for commissions earned but not paid when due against:

• a.any residential property the Buyer has viewed with the Firm
• b.commercial real estate that is the subject of the Agreement✓
• c.the Buyer's homestead once a judgment has been obtained
• d.any Wisconsin property in which the Buyer owns an interest

The notice states the lien reaches "the commercial real estate, or the interest in the commercial real estate, if any, that is the subject of this Agreement," and then defines commercial real estate as all real estate except real property containing 8 or fewer dwelling units, residentially zoned property containing no buildings or structures, and agriculturally zoned real property. A buyer's agent therefore has no statutory commission lien against an ordinary house or a residential vacant lot.

The WB-36 Buyer Agency Agreement provides that the Firm cannot receive compensation for brokerage services from any source that:

• a.is paid before the closing of the Buyer's transaction
• b.exceeds the amount or rate agreed to in the Agreement✓
• c.comes from the listing firm rather than from the seller
• d.was not disclosed to the seller before the offer is made

The note under PAYMENT BY OWNER OR OWNER'S AGENT reads: "The Firm cannot receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in this Agreement." The same provision authorizes the Firm to seek payment from the owner or the owner's agent provided all parties to the transaction give prior written consent, with Buyer paying the Firm's compensation reduced by whatever the Firm collects from that source. A separate note requires the amount or rate to be objectively ascertainable and forbids open-ended compensation such as whatever the seller happens to be offering.

The WB-40 Amendment to Offer to Purchase carries a CAUTION directing the user to a different form where a Party is giving a notice that does not require the other Party's agreement. That form is:

• a.the WB-41 Notice Relating to Offer to Purchase✓
• b.the WB-44 Counter-Offer used by either Party
• c.the WB-45 Cancellation Agreement and Release
• d.the WB-46 Multiple Counter-Proposal by Seller

The caution printed at the top of the WB-40 reads: "Use a WB-40 Amendment if both Parties will be agreeing to modify the terms of the Offer. Use a WB-41 Notice if a Party is giving a Notice which does not require the other Party's agreement." The WB-41 carries the mirror-image caution. The WB-44 and WB-46 operate before there is an accepted offer, and the WB-45 cancels a contract rather than giving notice under one.

The WB-40 Amendment states that the Party offering the Amendment may:

• a.withdraw it prior to acceptance and delivery✓
• b.revoke it at any time before the closing date
• c.amend it unilaterally after the other signs it
• d.reject it after the other Party has signed it

The form's note reads: "The Party offering this Amendment may withdraw the offered Amendment prior to acceptance and delivery as provided at lines 33-34." Those lines make the Amendment binding only if a copy of the accepted Amendment is delivered to the offering Party by the stated deadline, with Time of the Essence. Once that delivery occurs the window closes. The form also states that all other terms of the Offer and any prior amendments remain the same.

The WB-41 Notice Relating to Offer to Purchase carries a CAUTION stating that once delivered, a Notice cannot be withdrawn by the Initiating Party without:

• a.the approval of the Firm holding the earnest money
• b.an amendment signed by both of the Parties
• c.the written consent of the Receiving Party✓
• d.a written statement from the Initiating Party's Firm

The caution reads: "Once delivered, a Notice cannot be withdrawn by the Initiating Party without the written consent of the Receiving Party." That is the practical difference between the WB-41 and the WB-40: an Amendment offered but not yet accepted and delivered can still be withdrawn, while a delivered Notice cannot. The form is used for one-sided acts under an accepted Offer, and the Notice block invites the drafter to attach supporting documents if required.

The WB-41 Notice includes an ACTUAL RECEIPT block that is completed only when:

• a.the Notice is delivered by U.S. Mail
• b.the Parties are not represented by firms
• c.the Offer requires Actual Receipt✓
• d.the Notice changes the date for closing

The block is introduced by the line "ACTUAL RECEIPT If the Offer requires Actual Receipt the following may be completed," and it records who sent the Notice, when, and the Receiving Party's initialed acknowledgment of the date and time Actual Receipt occurred. The WB-11 defines Actual Receipt as the Party, not the Party's recipient for delivery, having the document physically in the Party's possession regardless of the method of delivery, with electronic delivery treated as Actual Receipt when the Party opens the transmission.

The WB-44 Counter-Offer opens by stating what about the offer to which it responds?

• a.The Offer to Purchase remains open until the deadline stated in it
• b.The Offer to Purchase is accepted subject to the new terms
• c.The Offer to Purchase is withdrawn by the Buyer who signed
• d.The Offer to Purchase is rejected and a Counter-Offer is made✓

The opening sentence reads that the identified Offer to Purchase "is rejected and the following Counter-Offer is hereby made," followed by the statement that all terms and conditions remain the same as in the Offer except those written in. The Counter-Offer is binding only if a copy of the accepted Counter-Offer is delivered to the Party making it by the stated deadline, with Time of the Essence, and the Party making it may withdraw it prior to acceptance and delivery. The form directs users to number counter-offers sequentially.