Wisconsin Real Estate Sales Practice Exam

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Prepare for the Wisconsin Real Estate Sales Exam. Utilize flashcards and multiple choice questions with detailed explanations. Achieve success on your test!

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Which listing contract is considered illegal in Wisconsin?

Open listing
Exclusive agency listing
Net listing
Buyer's exclusive contract

The correct answer is: Net listing

The net listing is considered illegal in Wisconsin due to the way it defines the broker's commission. In a net listing, the seller agrees to accept a specified amount for their property, and any amount above that specified price is kept as the broker's commission. This arrangement can lead to potential conflicts of interest, as it may encourage brokers to prioritize their commission over the seller’s best interest. This structure does not foster a fair negotiation atmosphere and can lead to unethical practices, making it prohibited under Wisconsin law. In contrast, open listings, exclusive agency listings, and buyer's exclusive contracts are all legitimate agreements under Wisconsin real estate law. Open listings allow sellers to work with multiple brokers, exclusive agency listings establish a primary broker without giving them the right to earn a commission if the seller produces a buyer, and buyer's exclusive contracts create a commitment from the broker to represent a buyer. These contracts align more closely with the ethical standards and practices that promote transparency and fairness in real estate transactions.