Wisconsin Real Estate Sales Practice Exam 2026 – Complete Prep Guide

When a buyer's Offer to Purchase is rejected, the correct outcome is that the earnest money is returned to the buyer. This reflects the purpose of earnest money, which is typically a show of good faith by the buyer indicating their serious intent to purchase the property. Since the offer is not accepted by the seller, the buyer is entitled to the return of their earnest money, as there is no further obligation or agreement in place.

The options regarding the seller keeping the earnest money or donating it to charity do not align with standard real estate practices, as earnest money is specifically meant to secure the buyer's interest in a transaction that is underway. If the offer does not proceed due to rejection, the buyer retains their right to the funds. Additionally, the option suggesting that the earnest money is kept in escrow until a next offer is misleading; earnest money would only remain in escrow related to the specific transaction where it was initially placed. Once the offer is rejected, it should be returned to the buyer without any subsequent conditions.