Wisconsin Real Estate Broker Exam — All Questions

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.

The WB-44 carries a CAUTION about how counter-offers relate to one another: a Counter-Offer does not include the terms or conditions in any other counter-offer or multiple counter-proposal unless:

• a.the parties have initialed them all
• b.they are incorporated by reference✓
• c.the earlier form is attached to it
• d.the Firm has retained a copy of it

The caution reads: "This Counter-Offer does not include the terms or conditions in any other counter-offer or multiple counter-proposal unless incorporated by reference." A closing note explains how: provisions from a previous counter-offer may be included by reproducing the entire provision or by incorporation by reference, indicated by specifying the number of the provision or the lines containing it, and in transactions involving more than one counter-offer the counter-offer referred to should be clearly specified. The WB-46 carries the identical caution.

The WB-45 Cancellation Agreement and Mutual Release is effective only if all Parties to the Contract have signed an identical copy and the fully executed form has been delivered to:

• a.the Firm that drafted the underlying contract of sale
• b.the escrow agent named in the original transaction
• c.the department, on the form it prescribes for that use
• d.the Party initiating the CAMR by the stated deadline✓

The form provides that the CAMR "shall be effective only if all Parties to the Contract have signed an identical copy of this CAMR (including signatures on separate but identical copies of the CAMR), and if the fully-executed CAMR has been delivered to the Party initiating the CAMR on or before" the date written in, with delivery made in any manner authorized in the Contract. A note adds that the initiating Party may withdraw the CAMR prior to acceptance and delivery. The same form releases the Firms and their licensees from liability for disbursing the trust funds as directed and states the disbursement amounts.

The WB-46 Multiple Counter-Proposal states that Buyer's approval of the Multiple Counter-Proposal is not binding on either Party until:

• a.Seller's binding acceptance of the approved proposal✓
• b.the earnest money has been deposited by the Buyer
• c.the Buyer's financing contingency has been waived
• d.the Seller's listing firm delivers a written notice

The APPROVAL BY BUYER block states that approval "is not binding on Buyer or Seller until binding acceptance of this approved Multiple Counter-Proposal by Seller," and the ACCEPTANCE BY SELLER block makes the terms binding only if Seller delivers a copy of the accepted Multiple Counter-Proposal to Buyer by the stated deadline in a manner authorized in the Offer. Until then either Party may withdraw. The form warns Seller not to sign the acceptance if there is an existing accepted offer unless the Multiple Counter-Proposal provides for a secondary offer.

The WB-46 carries a NOTE telling a buyer who does not approve the Seller's Multiple Counter-Proposal in its entirety to instead use:

• a.a WB-40 Amendment signed by the Buyer and Seller
• b.a WB-41 Notice delivered to the Seller's listing firm
• c.a second WB-46 identifying the changed provisions
• d.a WB-44 Counter-Offer or a new offer to purchase✓

The note reads: "If the above Multiple Counter-Proposal by Seller is not approved by Buyer in its entirety, do not use this form for a counter-offer by Buyer. Instead, submit a Counter-Offer (WB-44) or a new offer to purchase." The WB-46 exists so a seller can put differing terms to several prospective buyers at once without binding anyone until Seller's own acceptance; it is not designed to carry a buyer's counter. The WB-40 and WB-41 both presuppose an already accepted Offer.

Wis. Admin. Code § REEB 24.07 (8) (c) requires licensees to state whom the licensee represents as an agent in the transaction in which document?

• a.The firm's internal transaction file, kept only for the record
• b.The written disclosure statement given to the customer
• c.The offer to purchase, lease, option or exchange agreement✓
• d.The closing statement prepared for the settlement agent

Paragraph (8) (c), captioned WRITTEN PROPOSALS, provides that "[l]icensees shall state, in the offer to purchase, the lease, the option to purchase, or the exchange agreement, whom the licensee represents as an agent in a transaction." The WB-11 implements it on line 1, where the drafting licensee strikes all but the applicable choice among agent of Buyer, agent of Seller or listing Firm, and agent of Buyer and Seller. The customer and client disclosure statements required by Wis. Stat. § 452.135 are separate documents governed by § REEB 24.07 (8) (a) and (d).

Under Wis. Admin. Code § REEB 24.07 (8) (b) 2., a firm may permit another firm to act as a subagent in a transaction only if:

• a.the firm's client authorized a subagent in the agency agreement✓
• b.the subagent firm carries errors and omissions coverage first
• c.the other party to the transaction consents to it in writing
• d.the subagent's compensation is disclosed on the closing form

Subdivision (8) (b) 2. provides that "[n]o firm or licensees associated with the firm may permit other firms to act as subagents in a transaction unless the firm's client has authorized the use of a subagent in the agency agreement." Subdivision 1. adds that firms must explain the responsibilities of listing agents, buyer's agents and subagents to their clients before entering into an agency agreement. The SUBAGENCY paragraph printed in the WB-1 and WB-36 gives the client that authorization and explains that a subagent firm will not put its own interests ahead of the client's.

Under 40 CFR 745.113 (a), the attachment required in each contract to sell target housing must include the Lead Warning Statement, the seller's disclosure, a list of available records, the purchaser's acknowledgment, and a statement that the purchaser has:

• a.read the EPA pamphlet within ten days of receiving the offer
• b.hired a certified lead risk assessor before signing the contract
• c.agreed to accept the property in its present painted condition
• d.received or waived the opportunity to conduct an evaluation✓

Paragraph (a) (5) requires "[a] statement by the purchaser that he/she has either: (i) Received the opportunity to conduct the risk assessment or inspection required by § 745.110 (a); or (ii) Waived the opportunity." Paragraph (a) (6) adds, where an agent acts for the seller, statements that the agent informed the seller of the seller's obligations under 42 USC 4852d and that the agent is aware of the duty to ensure compliance. Paragraph (a) (7) requires the signatures of the sellers, agents and purchasers, with dates, certifying to the accuracy of their statements.

A licensee faxes only the signature page of an accepted offer to the other firm. Which requirement of Wis. Admin. Code § REEB 15.02 (1) does that fail?

• a.To deliver the document within 48 hours of the signing
• b.To confirm the transmission with a follow-up telephone call
• c.To obtain the other firm's written consent to use a fax
• d.To provide an exact and complete copy of the document✓

Subsection (1) requires a licensee to "promptly provide an exact and complete copy of any document utilized, prepared, or received by the licensee in real estate practice to any person who has signed the document." Sending part of a multi-page contract is not an exact and complete copy, which is why sending every page is the practice the exam outline refers to. The rule imposes no 48-hour deadline, no consent requirement for fax, and no confirming call; the WB-11 separately lists fax as one of the five authorized methods of delivery, alongside personal, commercial, U.S. Mail and email.

On the WB-11, terms preceded by an OPEN BOX are part of the Offer:

• a.unless the parties strike the box before signing
• b.only if the box is marked, such as with an X✓
• c.in every case, because the form is board-approved
• d.whenever the drafting licensee fills in the blanks

The INCLUSION OF OPTIONAL PROVISIONS paragraph states that terms preceded by an OPEN BOX "are part of this Offer ONLY if the box is marked such as with an 'X'. They are not part of this offer if marked 'N/A' or are left blank." That is why optional contingencies must be affirmatively selected, and why the form warns that if the financing commitment contingency box is not marked, the not-contingent-on-financing provisions apply instead. Wis. Admin. Code § REEB 16.06 (1) (b) protects the same mechanism by forbidding reproductions that drop optional provisions without showing where they occur.

Wis. Admin. Code § REEB 15.02 (2) requires prompt distribution of exact and complete copies of an accepted offer to purchase to the seller, the buyer, and:

• a.the closing agent and the buyer's title insurer
• b.the listing broker and the selling broker✓
• c.the lender and the appraiser of record
• d.the department and the local assessor

Subsection (2) lists four recipients for accepted and fully signed offers to purchase, amendments to contracts of sale, counter-offers, exchange agreements and grants of option: the seller, the buyer, the listing broker and the selling broker. Subsection (3) covers leases and rental agreements, requiring a copy to the tenant on execution and to the landlord on request. Subsection (1) is the general rule: an exact and complete copy of any document to any person who signed it.

Under Wis. Admin. Code § REEB 15.04 (1), how long must a firm retain copies of listing contracts, offers to purchase, closing statements and trust account records?

• a.At least 5 years from the date of closing
• b.At least 7 years from the date of closing
• c.At least 2 years from the date of closing✓
• d.At least 1 year from the date of closing

Subsection (1) requires a firm to retain those records "for at least 2 years, unless required by federal law or there is an active or ongoing investigation by the Board," with the period running from the date of closing or, if the transaction was not consummated, from the date the listing contract or agency agreement terminated. The records must be available for inspection and copying by the board, and the board may not require copies beyond the retention period. Electronic or digital retention is permitted, and Wis. Stat. § 452.42 (2) says the same.

Wis. Admin. Code § REEB 15.02 (4) requires a broker or salesperson to promptly distribute an exact and complete copy of a signed listing contract or agency agreement to the client:

• a.at the first showing of the listed property
• b.within 48 hours of the firm's acceptance
• c.when the client signs an agency agreement✓
• d.no later than the closing of the transaction

Subsection (4) requires the copy of a listing contract or agency agreement "that has been accepted and signed by all parties" to go to the client "when the client signs an agency agreement." The trigger is the client's signature, not a later deadline. Wis. Admin. Code § REEB 15.04 (2) adds the internal counterpart: a licensee associated with a firm must submit transaction documents and records to the firm in a timely manner, which Wis. Stat. § 452.132 (6) (b) also requires.