Free Wisconsin Real Estate Broker Exam Practice Test

Sample Wisconsin Broker practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Commission Calculations

   A Wisconsin licensed real estate broker is acting as a dual agent in a transaction. The seller's property has a listed price of $500,000, and the buyer, represented by the same broker, offers $480,000. The seller accepts the offer. The agreed-upon commission is 6% of the sale price, to be split equally between the listing broker and the buyer's broker (who is the same individual). What is the total commission amount the broker will receive before any potential referral fees or expenses?

   • A.$24,000
   • B.$28,800(Correct)
   • C.$14,400
   • D.$30,000

   Explanation

   The total commission is 6% of the sale price of $480,000. Commission = $480,000 * 0.06 = $28,800. In dual agency, the broker represents both parties, and the commission is earned from the seller (typically), but the full commission amount is what the broker receives before splitting it internally or with other agents in their firm.

2. Question 2Advertising and Disclosure

   A Wisconsin real estate broker advertises a property for sale. The advertisement states, 'Owner financing available! Low down payment required!' In reality, the seller is not offering financing, and the broker intends to arrange third-party financing. What is the most likely legal implication of this advertisement under Wisconsin real estate law?

   • A.The advertisement is permissible as long as the broker ultimately secures financing for the buyer.
   • B.The broker has engaged in misrepresentation and potentially deceptive advertising, which could lead to disciplinary action by the Wisconsin Department of Safety and Professional Services (DSPS).(Correct)
   • C.The statement about 'owner financing' is a puffing statement and not legally binding.
   • D.The broker is only liable if the buyer can prove intent to deceive, which is difficult to establish.

   Explanation

   Advertising owner financing when none exists is a form of misrepresentation. This is deceptive advertising and violates advertising regulations, subjecting the broker to disciplinary actions by the DSPS, including fines or license suspension/revocation.

3. Question 3Contract Contingencies

   A buyer in Wisconsin has entered into a purchase agreement for a property. The contract includes an inspection contingency. After the inspection, the buyer's inspector identifies a significant foundation issue requiring $15,000 in repairs. The seller refuses to pay for the repairs or provide a credit. According to typical Wisconsin contract law for real estate, what is the buyer's most likely recourse?

   • A.The buyer can sue the seller for the cost of repairs, as the inspection revealed a material defect.
   • B.The buyer can typically terminate the contract and receive a full refund of earnest money, as the contingency was not satisfied.(Correct)
   • C.The buyer can demand a reduction in the sale price equal to the repair costs, which the seller must accept.
   • D.The buyer must proceed with the purchase and absorb the repair costs, as the seller is not obligated to make repairs.

   Explanation

   When an inspection contingency is not met due to an unsatisfactory condition and the seller refuses to negotiate, the buyer generally has the right to terminate the contract and recover their earnest money. The seller is not obligated to make repairs unless specified in the contract.

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