Wisconsin Real Estate Sales Practice Exam

Does a buyer’s broker need to be directly involved in negotiations to earn a commission in an unmodified WB-36 agreement?

1. Yes

2. No

3. Only for large transactions

4. Only if specified

The correct answer is: No

In an unmodified WB-36 agreement, a buyer's broker does not need to be directly involved in negotiations to earn a commission. The WB-36 form is designed to outline the terms of the buyer's agency agreement, which typically specifies that the broker earns a commission based on the transaction regardless of their active participation in the negotiation process. Earned commissions can result from the broker introducing a buyer to a property, thereby fulfilling their duty of providing the buyer with access to that property and facilitating the transaction. This reflects the underlying principle that once the broker has performed their duty as outlined in the agreement and the transaction closes, they are entitled to the agreed-upon commission. Thus, the focus is on the level of service agreed upon in the terms of the contract rather than the broker's active involvement during the negotiation phase. In contrast, the other options suggest circumstances that would imply the necessity of direct involvement in negotiations, but the contractual terms of the WB-36 provide a clear allowance for commission entitlement that does not hinge on such involvement.