Free WI-REB Practice Questions

Question 1

A brokerage firm represents the seller and buyer as clients in the same transaction. Both clients signed written consent to multiple representation with designated agency, and separate agents were designated. The buyer asks her designated agent whether offering $12,000 above list price is strategically justified. What may the agent do?

Accepted Answer

Advise the buyer from available nonconfidential information while protecting the seller's confidential information

Answer

Decline to discuss price because every licensee in a multiple-representation transaction must remain neutral

Answer

Give the buyer the seller's confidential bottom line so the buyer can make an informed decision

Answer

Transfer the buyer to an outside firm before offering any opinion about price

Question 2

A buyer instructs her agent in writing to submit an offer immediately even though the property cannot be accessed until the next day. The agent submits the offer. During the prompt post-submission inspection, the agent sees fresh standing water in the basement, contradicting an engineer's report already given to all parties that says the basement is dry. Which sequence complies with Wisconsin practice rules?

Accepted Answer

Submit as instructed, inspect promptly when access opens, and disclose the contradiction in writing

Answer

Withdraw the offer because using the pre-submission inspection exception automatically voids it

Answer

Rely on the engineer's report and keep the later observation confidential

Answer

Refuse to submit any offer until the agent has personally inspected every accessible area

Question 3

Wisconsin's standard broker-experience route requires at least two years of supervised salesperson practice within the previous four years and at least 40 points. Residential closings earn 5 points each, commercial closings 10 each, property-management contracts 0.5 point per month per contract, and timeshare closings 1 each. An applicant has the required two years and documents 3 residential closings, 1 commercial closing, 24 months managing one property, and 4 timeshare closings. Which conclusion is correct?

Accepted Answer

The applicant has 41 points and meets the stated experience requirements

Answer

The applicant has 39 points and needs one more timeshare closing

Answer

The applicant has 40 points but lacks the two-year experience period

Answer

The applicant has 41 points and automatically qualifies for licensure without education or examinations

Question 4

A failed transaction leaves $12,000 of earnest money in the listing firm's trust account. Buyer and seller dispute entitlement. The seller's attorney, who represents the seller, directs the firm in writing to release all funds to the seller. There is no court order, all-party agreement, or contract authorization for unilateral release. What is the firm's best response?

Accepted Answer

Hold the funds until an all-party agreement, neutral-attorney direction, contract authority, or court action

Answer

Disburse to the seller after 30-day certified-mail notice because any attorney direction is sufficient

Answer

Return the funds to the buyer because the buyer was the original payer

Answer

Divide the funds equally and close the trust ledger

Question 5

A monthly trust-account reconciliation uses this rule: adjusted bank balance must equal the total of open transaction ledgers and the journal balance. The statement shows $52,300; deposits in transit are $1,700; outstanding checks are $4,000. Open ledgers total $50,000, and the journal balance is $50,000. What does the reconciliation establish?

Accepted Answer

The account validates; all three balances equal $50,000

Answer

The account is short $1,700 because deposits in transit are excluded

Answer

The account is over $4,000 because outstanding checks are added

Answer

A $2,300 plug entry is needed to force the records to balance

Question 6

A seller authorizes the listing agent to tell prospective buyers that multiple offers have been received. A buyer then asks for the highest competing price and whether that buyer will increase it. What may the listing agent disclose?

Accepted Answer

Only that another offer exists; its terms and the other buyer's intent remain confidential

Answer

The competing price, but not the buyer's identity

Answer

The competing price and financing terms, provided the seller believes disclosure could improve the final result

Answer

Nothing at all, because even the existence of another offer is always confidential

Question 7

At 4:00 p.m., a listing licensee receives a signed offer that expires at noon the next day. The seller says by phone, 'Hold it until tomorrow evening; I expect something better,' but gives no written instruction. What must the licensee do?

Accepted Answer

Present it promptly; waiting for another offer requires a specific written seller instruction

Answer

Wait until tomorrow evening because any seller instruction controls

Answer

Ask the buyer to extend the deadline before telling the seller about the offer

Answer

Return the offer without presentation because the seller prefers another buyer

Question 8

A licensee forms an LLC to buy a property listed by the licensee's own firm. The LLC's ownership is not obvious from its name. Before the LLC becomes a party to the transaction, what is required?

Accepted Answer

Full disclosure of the licensee's interest and prior written consent of all parties

Answer

Disclosure only to the seller because the buyer and licensee are effectively the same party

Answer

No disclosure if the offer is at list price and contains no inspection contingency

Answer

Disclosure at closing, after the seller has accepted the LLC's offer

Question 9

To help a buyer qualify for financing, the parties privately agree that the seller will return $18,000 to the buyer after closing, but they do not want the lender or closing statement to show it. The licensee learns of the agreement before submitting the offer. Which action complies with the licensee's duties?

Accepted Answer

Do not conceal it; disclose the material financing agreement to the lender

Answer

Draft the side agreement separately so it is not part of the lender's file

Answer

Proceed if the buyer and seller sign a confidentiality instruction

Answer

Stay silent because the licensee is not a party to the loan

Question 10

A married buyer asks a broker whether taking title as survivorship marital property will avoid probate and protect the buyer from a spouse's creditors. Which response stays within the broker's licensed authority?

Accepted Answer

Explain that title affects legal rights and refer the buyer to an attorney

Answer

Recommend survivorship marital property because it usually avoids probate

Answer

Select the title form the lender prefers and complete it without further discussion

Answer

Advise that either title choice is legally equivalent once the deed is recorded

Free WI-REB Practice Questions

Domain 1: Real Estate Practice

Question 1

Question 2

Question 3

Domain 2: Trust Accounts

Question 4

Question 5

Domain 3: Conduct and Ethical Practices for Real Estate Licensees

Question 6

Question 7

Question 8

Question 9

Domain 4: Approved Forms and Legal Advice

Question 10

The rest of the WI-REB blueprint

That's 10 of 1,030