Wisconsin Real Estate Broker Exam — All Questions

A Wisconsin broker who holds earnest money for a transaction must:

• a.Deposit it into the firm's trust account and keep it separate from the firm's business and personal funds✓
• b.Deposit it into the broker's operating account to earn interest for the firm
• c.Keep it as cash in the office until closing
• d.Send it to the Real Estate Examining Board

Wisconsin brokers must hold client funds such as earnest money in a trust account, separate from business and personal money. Commingling and improper disbursement are violations under Chapter 452 and REEB rules. Trust Accounts is its own content block on the broker exam, about 12 items.

Under Wisconsin trust-account rules, disbursing earnest money from the trust account before the parties are entitled to it is:

• a.Allowed if the broker later replaces the funds
• b.Allowed whenever the buyer requests it
• c.Required at the broker's discretion
• d.A violation, because trust funds must be disbursed only as authorized and documented✓

Trust funds may be disbursed only when the parties are entitled to them under the contract or an authorization, and disbursements must be documented. Releasing trust money early, or to the wrong party, violates the trust-account rules. Proper handling and recordkeeping protect consumers and the broker.