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WI Real Estate Practice Exam
Answer: C The writ of execution is a court order instructing the officer of the court to carry out the decision of the court. It is used in a judgment where the sheriff is told to seize a debtor's property so that it can be sold to pay off a debt. - All of the following would be considered an ENCUMBRANCE except: a. unpaid property taxes, b. An easement necessity, c. A writ of execution, d. A judgment Answer: A A construction lien is given as security to those who perform labor or furnish material or professional services in the improvement of real property. Construction liens establish priority from the date the first visible work commenced on the property. - Which of the following liens take priority prior to recording in public records? a. Construction lien b. Special assessment lien, c. Tax lien, d. Mortgage lien Answer A: Property taxes are calculated according to the value of the property. Special assessments are generally apportioned according to benefits received, rather than by the value of the land and buildings being assessed. - Which of the following is most likely determined by the overall value of the property? a. Property taxes b. Special assessments c. Judgment lien d. Mortgage lien Answer: D
The water softener is attached to the property and is treated as a fixture unless otherwise stated in the offer to purchase. - The sellers are closing on their property tomorrow. They may remove all of the following property from the house, except the: a. Mirror hanging on a nail on the wall, b. Master bedroom curtains and valances, c. Dog kennel sitting in the backyard, d. Rented water softener Answer: C A Warehouse is not a dwelling and therefore not a homestead. Chapter 706.01(7) "Homestead" means "the dwelling" and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, but not less than one-fourth acre, if available, and not exceeding 40 acres. - Which of the following does not meet the definition of a homestead? a. Condominium, b. 30-acre farmette, c. Warehouse, d. Single-family home Answer: B Tom. Joint tenancy has the right of survivorship. This means that the surviving owners automatically receive the interest of the deceased owner. Marital property law will not override the joint tenancy form of ownership. Tom has the rights to John's interest in the duplex upon John's death. - John and Ann are a married couple. John owns a duplex with his brother Tom as a joint tenant. If John dies, who gets his interest in the duplex? a. Ann, b. Tom, c. Tom's estate, d. The heir named in John's Answer: C Both the condo and co-op are likely to be managed by an association.
Answer: B Require the dog owner to clean up after the dog It is a violation of fair housing laws to refuse to sell or rent to an individual based upon a disability. The eviction of the individual or the requirement for extra compensation from an individual as a condition of continued residence because he keeps a service animal is also considered to be a discriminatory act. The animal must be allowed wherever any other tenant is allowed to go. - A disabled individual with a service dog wants to purchase a condo with a "no pets" policy. In this situation the condo association may: a. Charge a higher monthly association fee to pay for the extra wear and tear caused by the dog. b. Require the dog owner to clean up after the dog c. Require the individual to keep the dog in the unit at all times unless leaving or entering the unit d. Decide not to sell to the individual Answer: B Contact the local building inspector. Typically the city planner or building inspector is the best person to consult regarding any zoning questions. The uses permitted under a particular zoning classification vary based upon locality. To see what the permitted use is, one could also review the textual portion of the zoning law. - The best way to determine the permitted use for a particular property is to: a. Refer to state statutes regarding land use b. Contact the local building inspector c. look it up in the MLS d. Ask the existing landower Answer: C Permission to build a nonconforming structure.
Because the sun room would be a permanent structure that would violate the setback and therefore the current zoning laws, a variance would be required. A variance allows a landowner to use the land in a manner not permitted by the current zoning ordinance - A property owner wants to add a sun room to her home. The sun room addition would violate the required setbacks. What does the property owner need to build the sun room? a. A permitted use permit b. Permission to build a nonconforming structure c. A variance d. Spot zoning Answer: A 5 days Chapter 703.33(4): Any purchaser may at any time within five (5) business days following receipt of all disclosure information rescind in writing a contract of sale without stating any reason and without any liability on his or her part, and purchaser is entitled to the return of any deposits made in account of the contract. - After receiving condo documents, how many business days does a buyer have to rescind an offer? a. 5 b. 10 c. 15 d. 20 Answer: D Planned Unit Development (PUD) is a zoning district written and negotiated specifically for the subject property. It may allow a developer to cluster building and services together in a way that would not be possible or permissible according to a municipality's regular zoning ordinances. A condo complex and a PUD can look similar on the surface. The differences between the two is found within the documents that created the development. - A concept in housing design that allows for high density dwellings and maximum use of open spaces to create park and recreation space is known as a: a. Condominium b. Cooperative
$275,300 x .003 = $825.90 - The seller has a sales contract for $275,250. What is the seller's transfer fee? a. $820. b. $825. c. $825. d. $830. Answer: B Substitution is the most commonly used principal to determine value. The principal of substitution states that the maximum value of a property is established by value of similar properties. - The principle of value most heavily relied upon for the determination of market value in an existing residential property is: a. Regression b. Substitution c. Contribution d. Change Answer: C A balloon loan A balloon is one that is originated with a short term while being fully amortized for 30 years. - A borrower has obtained a loan amortized over 30 years, but the borrower needs to pay it off in five years. This is most likely: a. An adjustable-rate loan b. A fixed-rate loan c. A balloon loan d. A land contract Answer: A
Agency disclosure language is required Agency disclosure must be addressed with a client before entering into an agency agreement - When entering into a WB-36 BuyerAgency/Tenant Representation Agreement: a. Agency disclosure language is required b. If the buyer agrees to multiple representation, a separate form is required c. The buyer must agree to multiple representation d. Agency disclosure is not required because the agent will be representing the buyer Answer: A Private Mortgage Insurance (PMI) Lenders will originate loans to borrowers with a down payment of less than 20% of the value of the real estate if the borrowers participate in a private mortgage insurance program. Private mortgage insurance insures the top 20% of the loan. - A borrower is obtaining a conventional loan for 95% of the purchase price. Because of the 5% down payment, the buyer must pay which of the following at closing? a. Private Mortgage Insurance (PMI) b. Discount points c. Origination fees d. Appraisal fees Answer: B The Real Estate Settlement Procedures Act (RESPA) prohibits the payment of kickbacks for the referral of real estate business to settlement service providers. - Which of the following is prohibited under the Real Estate Settlement Procedures Act? (RESPA) a. A lender refusing to issue a loan based upon a person's religion. b. A broker receiving a fee from a lender for the referral of a client. c. A creditor stating the required down payment in an advertisement while neglecting to disclose other loan terms. d. A lender originating a loan without disclosing to the borrower the total finance charges, the annual percentage rate, the total amount financed and the total payments that will be made.
b. The Veterans Administration c. A bank d. The seller taking a second mortgage Answer: C The term "nothing down: is considered to be too general to be a triggering term under the Truth in Lending Act Triggering Terms are advertising phrases that may NOT be used unless all of the terms of the loan are disclosed in the advertisment - Which of the following would NOT be considered a triggering term? a. 10% down b. Up to four years to pay c. Nothing down d. Payments of only a $100 per month Answer: D A licensee would NOT continue with the transaction if secondary market mortgage fraud is thought to be taking place. Agency duties cannot require a licensee to participate in illegal activity. If a licensee believes mortgage fraud is taking place, he should speak to his/her broker immediately and if necessary remove himself from the transaction. - A licensee would NOT do which of the following in regards to secondary market mortgage fraud? a. Report apparent fraud situations to the Department of Financial Institutions b. If asked to rewrite an offer, prepare it accurately c. Get suspicious requests from lenders in writing d. Continue with the transaction, placing the clients interests first. Answer: B The selling broker becomes an agent of the listing broker
The selling broker has a customer relationship with the buyer and as a subagent is the agent of the principal broker, or in this case the listing broker. - A selling broker procures a buyer for another broker's listing. The selling broker is: a. An agent of the buyer b. An agent of the listing broker c. A customer of the buyer d. A principal broker
