Wisconsin Real Estate Broker Exam — All Questions
4 questions
The single largest content area on the Wisconsin broker exam, at about 37 percent, is:
- a.National real estate law
- b.Federal tax treatment of real estate
- c.Drafting approved forms and supervision of licensees✓
- d.Residential appraisal methods
Drafting and Supervision is the largest block on the Wisconsin broker exam, about 37 of 100 items. It covers completing Wisconsin approved transaction forms, such as the WB-1 Residential Listing Contract and WB-11 Residential Offer to Purchase, and a broker's duty to supervise associated salespersons. This reflects the broker's role as the firm's responsible party.
In Wisconsin, the standardized form a licensee typically uses to write a residential purchase offer is the:
- a.WB-11 Residential Offer to Purchase✓
- b.HUD-1 Settlement Statement
- c.Form 1003 loan application
- d.Schedule E
Wisconsin uses state-approved WB forms drafted for licensee use. The WB-11 Residential Offer to Purchase is the standard form for a residential offer, and the WB-1 Residential Listing Contract is the standard listing form. Licensees complete these approved forms rather than drafting original contract language, which helps stay within the limits on giving legal advice.
A Wisconsin broker's supervision duty over associated salespersons requires the broker to:
- a.Personally attend every showing
- b.Guarantee each salesperson a minimum income
- c.Avoid reviewing transactions to limit liability
- d.Establish policies and reasonably supervise the salespersons' real estate activities and handling of documents and funds✓
A Wisconsin broker must reasonably supervise associated salespersons, which includes setting office policies and overseeing how salespersons complete forms, make disclosures, and handle client funds. Supervision is a core part of the Drafting and Supervision content and a key difference between the broker and salesperson roles.
When completing a WB-1 Residential Listing Contract, a Wisconsin licensee should:
- a.Rewrite the standard clauses to add original legal terms
- b.Fill in the approved form's blanks accurately and avoid drafting language that would amount to giving legal advice✓
- c.Leave material terms blank for the attorney to complete later
- d.Substitute an out-of-state form for convenience
Licensees complete the approved WB forms by accurately filling in the transaction-specific blanks. Adding original contract clauses or advising on legal effect can cross into the unauthorized practice of law. Drafting and Supervision questions test proper, complete use of the approved forms within those limits.