Free Brokers Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Brokers Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A Wisconsin individual begins advertising that she will negotiate real estate sales for others, but she has no Chapter 452 license. Which conclusion follows?

   1. A. She may advertise but may not collect compensation
   2. B. She may act temporarily if a licensed firm later ratifies the work
   3. C. She may not act or hold herself out as a broker or salesperson without a license
   4. D. She may negotiate only residential transactions

   Answer: C

   Explanation: Wis. Stat. § 452.03(1) says, "no person may engage". The proposed activity is therefore prohibited.

   Reference: Wi Statutes 452 — Wis. Stat. § 452.03(1)

2. 2A Wisconsin firm receives client earnest money on Tuesday while its depository is open. By when must the firm deposit it in a real estate trust account?

   1. A. Within 12 hours of receipt
   2. B. Within 24 hours of receipt
   3. C. Within 48 hours of receipt
   4. D. Within 72 hours of receipt

   Answer: C

   Explanation: REEB 18.031(1) states, "A firm shall deposit". Tuesday receipt therefore starts the 48-hour rule.

   Reference: Reeb 18 — Wis. Admin. Code § REEB 18.031(1)

3. 3A condition significantly reduces the structural integrity of improvements to Wisconsin real estate. How is that condition classified under REEB 24?

   1. A. A material adverse fact only after a party objects
   2. B. An adverse fact
   3. C. A confidential fact
   4. D. A non-depositable item

   Answer: B

   Explanation: REEB 24.02(1)(a) includes a condition "Significantly reducing the structural" of improvements. This condition is an adverse fact.

   Reference: Reeb 24 — Wis. Admin. Code § REEB 24.02(1)(a)2

4. 4Which document meets REEB 16's definition of an approved form?

   1. A. A form prepared by a trade association
   2. B. A form prepared or approved by the Board
   3. C. A form prepared by a transaction party
   4. D. A form prepared by a title company

   Answer: B

   Explanation: REEB 16.02(1e) includes a form "prepared and approved by" or approved under the rule. Signatures alone do not create approved status.

   Reference: Reeb 16 — Wis. Admin. Code § REEB 16.02(1e)

5. 5Under WB-1, when can a listing firm's commission be earned even though the seller rejects the buyer's offer?

   1. A. Whenever any buyer makes an oral inquiry
   2. B. When a ready, willing, and able buyer submits a bona fide written offer at or above list price on substantially the listed terms
   3. C. Only when the buyer deposits earnest money equal to ten percent
   4. D. Only after a court finds the seller acted unreasonably

   Answer: B

   Explanation: WB-1 includes an earning event when "A ready, willing and" meeting the stated price and terms.

   Reference: WB-1 Final 2024 no highlighting — WB-1 (2024), lines 34-42

6. 6A Wisconsin landlord rejects an otherwise qualified applicant solely because the applicant's income is lawful public assistance. Does state open-housing law protect that applicant?

   1. A. No, source of income is never protected
   2. B. Yes, lawful source of income is a protected classification
   3. C. Only if the applicant is also married
   4. D. Only for federally owned housing

   Answer: B

   Explanation: Wis. Stat. § 106.50 protects housing opportunity regardless of "lawful source of income.". The rejection rests solely on a protected ground.

   Reference: Wi Statutes 106 — Wis. Stat. § 106.50(1), (1m)(h)

7. 7A broker associated with a Wisconsin firm wants to conduct a separate transaction in the broker's own name. What must the broker obtain before engaging in that independent practice?

   1. A. Written approval from each firm with which the broker is associated
   2. B. Oral approval from the listing client
   3. C. A salesperson license in addition to the broker license
   4. D. A court order authorizing the transaction

   Answer: A

   Explanation: Wis. Stat. § 452.30(6)(a) provides that the broker may engage in independent practice "if the broker obtains". Written firm approval is required.

   Reference: Wi Statutes 452 — Wis. Stat. § 452.30(6)(a)

8. 8Who is the beneficial owner of interest accruing on a Wisconsin interest-bearing common trust account for client funds, minus service charges?

   1. A. The firm
   2. B. The client who supplied the largest deposit
   3. C. The depository institution
   4. D. The Wisconsin Department of Administration

   Answer: D

   Explanation: REEB 18.031(3)(a) says, "the department of administration". The firm may not take that interest.

   Reference: Reeb 18 — Wis. Admin. Code § REEB 18.031(3)(a)

9. 9A licensee lacks competence for a requested brokerage service. Under what condition may the licensee still provide it?

   1. A. The client signs a blanket waiver
   2. B. The licensee engages competent assistance and identifies that person and contribution in transaction records
   3. C. The licensee completes the work first and discloses the limitation at closing
   4. D. The service involves only residential property

   Answer: B

   Explanation: REEB 24.03(2)(a) permits the service if the licensee "engages the assistance of" and documents that contribution.

   Reference: Reeb 24 — Wis. Admin. Code § REEB 24.03(2)(a)

10. 10Who may use board-approved contractual forms for Wisconsin real estate practice under REEB 16.03?

    1. A. Attorneys and licensed title insurers
    2. B. Brokers and salespersons authorized by the rule
    3. C. Appraisers and licensed home inspectors
    4. D. Unrepresented buyers and property sellers

    Answer: B

    Explanation: REEB 16.03 approves specified forms "for use by brokers" and also authorizes specified forms for salespersons. Both license classes can qualify.

    Reference: Reeb 16 — Wis. Admin. Code § REEB 16.03(1)-(2)