Wisconsin Real Estate Salesperson Exam — All Questions
12 questions
Wisconsin real estate licensing is governed by Chapter 452 of the Wisconsin Statutes and regulated by the Real Estate Examining Board within the:
- a.Department of Safety and Professional Services (DSPS)✓
- b.U.S. Department of Housing and Urban Development
- c.National Association of REALTORS
- d.Department of Motor Vehicles
The Wisconsin Real Estate Examining Board, part of the Department of Safety and Professional Services (DSPS), licenses and regulates salespersons and brokers under Chapter 452 of the Wisconsin Statutes and the REEB administrative rules.
In Wisconsin, a licensed salesperson may conduct real estate brokerage activities only when:
- a.Working completely independently
- b.Employed by or associated with a licensed broker✓
- c.Ten or more years have passed
- d.Paid only in cash
A Wisconsin salesperson must be associated with and supervised by a licensed broker and may provide brokerage services only through that broker. The salesperson is compensated by the broker, not directly by clients.
Wisconsin real estate transactions commonly use standardized forms approved for state use, known as the:
- a.WB forms✓
- b.MLS forms
- c.HUD forms
- d.NAR forms
Wisconsin licensees use standardized, state-approved 'WB' forms (such as the WB-1 listing and WB-11 residential offer to purchase) for many transactions. These approved forms help licensees complete transactions consistently within the limits of their license.
An unlicensed Wisconsin investor buys and resells houses on her own account. Under Wis. Stat. 452.01 (2) (b), how many sales or exchanges in one year are presumptive evidence that she is engaged in a pattern requiring a broker's license?
- a.Three sales or exchanges in one year, or 6 in 5 years
- b.Four sales or exchanges in one year, or 8 in 5 years
- c.Five sales or exchanges in one year, or 10 in 5 years✓
- d.Seven sales or exchanges in one year, or 12 in 5 years
Section 452.01 (2) (b) sweeps in a person engaged in selling or exchanging real estate to the extent that a pattern is established, whether or not the person owns the real estate, and fixes the presumption at 5 sales or exchanges in one year or 10 in 5 years. Cite: Wis. Stat. 452.01 (2) (b).
How is the Wisconsin Real Estate Examining Board composed?
- a.Nine members, all of whom must be licensed real estate brokers
- b.Five members: three licensees and two public members
- c.Seven members: three licensees and four public members
- d.Seven members: five licensees and two public members✓
Section 15.405 (11m) creates the board in the Department of Safety and Professional Services with 7 members on staggered 4-year terms: 5 must be real estate brokers or salespersons licensed in this state and 2 are public members. No member may serve more than 2 terms. Cite: Wis. Stat. 15.405 (11m).
A Wisconsin resident holds himself out as a real estate salesperson without any license. What penalty does Wis. Stat. 452.17 (1) authorize?
- a.A civil forfeiture only, capped at $1,000 per transaction
- b.A fine of up to $5,000, up to 6 months in jail, or both✓
- c.A fine of up to $25,000 and a felony conviction
- d.A written reprimand from the board and nothing further
Section 452.17 (1) makes unlicensed practice prosecutable by the district attorney or the attorney general and allows a fine of not more than $5,000 or imprisonment for not more than 6 months or both. Section 452.17 (3) applies the same range to other violations of the chapter. Cite: Wis. Stat. 452.17 (1).
Besides reprimanding, limiting, suspending or revoking a license, what monetary penalty may the Real Estate Examining Board assess against a licensee?
- a.Restitution to the complaining party, but no forfeiture
- b.A forfeiture of not more than $1,000 for each violation
- c.A forfeiture of not more than $5,000 for each violation✓
- d.A forfeiture of not more than $10,000 for each violation
Section 452.14 (4m) (a) lets the board assess a forfeiture of not more than $5,000 for each violation enumerated in sub. (3), in addition to or in lieu of discipline, and sub. (4m) (b) lets it order extra education or training. Cite: Wis. Stat. 452.14 (4m) (a).
A Wisconsin licensee is found to have intentionally discouraged buyers from purchasing in a particular area on the basis of race. What does Wis. Stat. 452.17 (4) (a) require for a FIRST offense?
- a.Suspension of the license for not less than 90 days✓
- b.Suspension of the license for not less than 30 days
- c.Immediate revocation of the license
- d.A written reprimand and mandatory fair housing training
Racial steering violates s. 452.14 (3) (jm), and s. 452.17 (4) (a) 1. requires the board to suspend the license for not less than 90 days for a first offense and, under subd. 2., to revoke it for a second. The penalty may be imposed on top of any other under the chapter or ss. 66.1011 or 106.50. Cite: Wis. Stat. 452.17 (4) (a).
A Wisconsin broker's license is revoked for a second racial steering offense under Wis. Stat. 452.17 (4) (a) 2. How soon may a new license be issued to that person?
- a.After one year, if the board is satisfied the person is rehabilitated
- b.After two years, on proof of continuing education
- c.Never; that revocation is permanent
- d.Not less than 5 years, as the board determines✓
Section 452.15 (1) bars a new license to a person whose license has been revoked until a period the board determines in each case; where the revocation was under s. 452.17 (4) (a) 2., that board-set period may not be less than 5 years from the date the revocation became finally effective. Cite: Wis. Stat. 452.15 (1).
Within what period must a buyer commence a civil action against a Wisconsin firm over an act or omission relating to brokerage services?
- a.Six years after the date of the act or omission
- b.Three years after the buyer discovers the injury
- c.Two years after the earliest of closing or termination✓
- d.There is no limit; the general contract statute of limitations governs
Section 452.142 (1) requires such an action to be commenced within 2 years after whichever occurs first: the transaction is completed or closed, the agency agreement is terminated, or an unconsummated transaction is terminated or expires. Sub. (2) forbids shortening it by agreement, and sub. (3) exempts board discipline. Cite: Wis. Stat. 452.142.
A Wisconsin salesperson wants to keep a second affiliation with another brokerage on weekends. What does the law permit?
- a.Nothing; only one firm at a time for a salesperson✓
- b.Two firms, if each firm consents to the other in writing
- c.Two firms, if the salesperson notifies the department of both
- d.Any number of firms, so long as one is designated supervising
Section 452.30 (7) (a) allows a salesperson to be associated with only one firm at a given time, and sub. (7) (b) bars a salesperson from independent practice altogether. Only a broker may hold a second affiliation, and only through independent practice under sub. (6) or as a business representative. Cite: Wis. Stat. 452.30 (7).
A Wisconsin firm hires an assistant who schedules showings, files paperwork and answers the phone. When is a license required?
- a.Whenever the assistant is paid any share of a transaction commission
- b.Never, if the work stays purely administrative or clerical✓
- c.Whenever the assistant speaks with a buyer by telephone
- d.Always, because the assistant works for a licensed firm
Section 452.03 (2) exempts an individual who, on behalf of and under the direction of a firm or its licensees, provides services limited to those that are purely administrative, clerical or personal. Section 452.34 then requires a written agreement with the firm and bars the assistant from working an open house without a licensee present. Cite: Wis. Stat. 452.03 (2).