Wisconsin Real Estate Sales Practice Exam

What is NOT a requirement to create a valid agency agreement?

1. Signed by all parties

2. Described property

3. Oral agreement

4. Commission stated

The correct answer is: Oral agreement

In Wisconsin, an agency agreement can indeed be established through an oral agreement, making it a valid option for creating such a relationship. While written agreements are often preferred for clarity and proof of terms, an oral agreement is valid as long as the essential elements of the agency relationship are met. The other options listed are typically considered important elements in formalizing an agency agreement. For example, having all parties sign the agreement ensures that there is mutual consent and understanding of the terms. Similarly, describing the property is crucial as it provides clarity regarding what is being represented or managed under the agency. Finally, stating the commission helps to outline the financial expectations and responsibilities of the parties involved. Thus, the requirement that is not necessary for the creation of a valid agency agreement is the stipulation for it to be in written form, which can be satisfied through an oral agreement.