Wisconsin Real Estate Sales Practice Exam

If an agent agrees to write an offer on a property for a buyer only if the buyer then agrees to list his current property with that agent, this would be considered an illegal:

1. Commission

2. Negotiation

3. Referral

4. Tie-in

The correct answer is: Tie-in

The correct answer is tie-in. A tie-in arrangement occurs when a service provider conditions one service on the purchase of another, which is considered illegal in real estate practices. In this case, the agent is requiring the buyer to list their current property with them as a prerequisite for writing an offer on a new property. This practice is illegal because it restricts the buyer's ability to choose their preferred agent freely and can limit competition in the market. This concept of tie-in agreements is intended to protect consumers from being forced into transactions that might not be in their best interests and to promote fairness in the property market. By ensuring that clients are not coerced into working with specific agents, real estate laws aim to foster an environment where buyers and sellers can make decisions based purely on their preferences and the merits of the services provided.