Wisconsin Real Estate Sales Practice Exam

Agency disclosure is mandatory in which type of real estate transaction?

1. Only residential transactions

2. Only commercial transactions

3. All transactions

4. Only transactions over a certain value

The correct answer is: All transactions

Agency disclosure is a critical component of all real estate transactions, regardless of the type or value involved. The purpose of agency disclosure is to inform all parties about the relationships between themselves and the agents involved in the transaction. This ensures transparency and helps to establish trust, allowing buyers and sellers to make informed decisions regarding their representation and the advice they receive. In Wisconsin, as in many other states, the law requires agents to disclose their agency relationships to clients and customers in all real estate transactions, be they residential, commercial, or otherwise. This requirement applies equally to transactions of various values, not limited by thresholds. The focus on agency disclosure in all transactions aids in preventing conflicts of interest and helps to clarify the roles and responsibilities of agents. By having this mandatory disclosure, it becomes easier for the parties involved to understand who the agent is representing and any obligations that may arise from that relationship. Thus, the correct answer encompasses the broader requirement for agency disclosure that is applicable in every real estate transaction without exception.