Wisconsin Real Estate Sales Practice Exam

What must a seller disclose in the agency agreement?

1. Future plans for the property

2. Personal financial status

3. Property’s zoning status

4. Accurate description of the property

The correct answer is: Accurate description of the property

In an agency agreement, a seller is required to provide an accurate description of the property. This is crucial because it ensures that the agent has the correct information to market the property effectively and to represent the seller's interests. An accurate description includes details such as the address, type of property (e.g., residential, commercial), square footage, number of bedrooms and bathrooms, lot size, and any amenities. This information is essential for potential buyers and helps to prevent misunderstandings or legal issues that could arise from misrepresentation. While the other options may involve relevant information in broader discussions about the property or the selling process, they are not mandatory disclosures within the agency agreement itself. For instance, a seller's future plans for the property or personal financial status may be pertinent during negotiations but do not need to be disclosed in the agency agreement. Zoning status, while important for buyers to know, typically pertains more to the property itself rather than what must be included in the agency agreement. Thus, the emphasis on an accurate property description aligns with the requirement for full transparency and effective representation in real estate transactions.