Terminology

Question 1

Define agency and relationships?

Answer 1

Agency is the foundation upon which real estate brokerage is practiced. Agency describes the legal and ethical relationship between real estate licensee and a party to a transaction.

Question 2

What is a party?

Answer 2

A party could be a buyer, a seller, a landlord, or a tenant.

Question 3

What is a licensee?

Answer 3

A licensee is any person licensed under state law to practice real estate. A licensee is any person licensed as a salesperson, a broker, or a broker business entity.

Question 4

What is a broker?

Answer 4

Negotiation, pattern of sales, shows property, advertises property, issues a written report of property that is prepared for another person that is not an appraisal, must be a licensee

Question 5

Describe negotiation based on Wis. Stat. Ch. 452.

Answer 5

Negotiate means to provide assistance within the scope of the knowledge, skills, and training required under Wis. Stat. Ch. 452, real estate practice in developing a proposal or agreement relating to a transaction, including any of the following

A) acting as an intermediary by facilitating or participating in communications between parties related to the parties’ interests in a transaction

B) completing when requested by a party , appropriate board approved forms or other writings to document the party’s proposal consistent with the party’s instruction

C) presenting to a party the proposals of other party’s to the transaction and giving the party a general explanation of the provisions of the proposal

Question 6

When is a person negotiating?

Answer 6

When a person is providing assistance as an intermediary, completing board approved forms for parties, presenting proposals within the scope of the knowledge, skills, and training required under Wis. Stat. Ch. 452

Question 7

What is considered to not be acting as an intermediary or does not constitute negotiation?

Answer 7

Just providing information or showing a property

Question 8

What is a pattern of sales within the realm of real estate?

Answer 8

Five sales or exchanges in one year or ten within 5 years.

Question 9

A broker is wholly or in part in the business of selling or exchanging what?

Answer 9

Interests or estates in real estate or business, including a businesses good will, inventory or fixtures whether or not the business includes real property, to the extent that a pattern of sales or exchange is established, whether or not the person owns real estate.

Question 10

Describe negotiation based on Wis. Stat. Ch. 452 subparagraph (A)

Answer 10

A) acting as an intermediary by facilitating or participating in communications between parties related to the parties’ interests in a transaction

Question 11

Describe negotiation based on Wis. Stat. Ch. 452 subparagraph (B)

Answer 11

B) completing when requested by a party , appropriate board approved forms or other writings to document the party’s proposal consistent with the party’s instruction

Question 12

Describe negotiation based on Wis. Stat. Ch. 452 subparagraph (C)

Answer 12

C) presenting to a party the proposals of other party’s to the transaction and giving the party a general explanation of the provisions of the proposal

Question 13

Real estate practice develops what?

Answer 13

Proposals or agreements relating to a transaction.