Wisconsin Real Estate Broker Exam — All Questions
3 questions
Wisconsin's Conduct and Ethics rules, administered by the Real Estate Examining Board (REEB), prohibit which of the following practices?
- a.Presenting all written offers to the seller
- b.Disclosing known material adverse facts
- c.Net listings, in which the broker keeps everything above a stated net price to the seller✓
- d.Recommending that a buyer obtain an inspection
Wisconsin's REEB conduct rules prohibit net listings, where the broker's compensation is whatever exceeds a set net amount to the seller, because they create a conflict of interest. The other choices describe proper practice. Conduct and Ethics is the second-largest block on the exam at about 22 items.
Under Wisconsin conduct rules, when a licensee receives multiple written offers on a property, the licensee generally must:
- a.Present all written offers to the seller and keep the existence and terms of competing offers confidential unless authorized to disclose✓
- b.Present only the highest offer
- c.Disclose every offer's price to all competing buyers
- d.Discard offers below the list price without telling the seller
Wisconsin licensees must present all written offers to the seller and must keep the existence and terms of offers confidential unless the seller authorizes disclosure. Revealing one buyer's offer terms to a competing buyer without authorization violates the confidentiality expected under the conduct rules.
A 'tie-in' arrangement, in which a Wisconsin broker conditions the sale of a property on the buyer also using the broker's other services, is:
- a.Encouraged as good business
- b.Required for all transactions
- c.Permitted without disclosure
- d.Prohibited under Wisconsin conduct and ethics rules✓
Tie-in arrangements that force a consumer to buy additional services as a condition of a real estate transaction are prohibited. Wisconsin's Conduct and Ethics rules bar such coercive practices, along with net listings and other conduct that harms consumers or creates conflicts of interest.