Wisconsin Real Estate Sales Practice Exam

What is the agency disclosure requirement for a buyer purchasing a duplex compared to a commercial warehouse?

1. Disclosure needed for both, acknowledgment required for residential only

2. No disclosure necessary for duplex

3. Acknowledgment required for commercial only

4. Disclosure needed only for commercial property

The correct answer is: Disclosure needed for both, acknowledgment required for residential only

In Wisconsin, agency disclosure requirements are designed to ensure that all parties involved in real estate transactions are fully informed about the nature of the agency relationship. For a buyer purchasing a duplex, which is classified as residential real estate, disclosure must be provided, and the buyer must acknowledge understanding the information. This is in accordance with Wisconsin's agency laws, which emphasize the importance of transparency and communication in residential transactions. On the other hand, while there are still agency disclosure requirements for commercial properties, the focus is more on informing the parties about the professional relationship rather than a formal acknowledgment, especially when the transactions involve business entities or individuals experienced in real estate dealings. However, best practices suggest that disclosures should still be communicated for commercial transactions. Thus, the requirement for agency disclosure applies to both residential properties, like a duplex, and commercial properties, like a warehouse, but acknowledgment is particularly emphasized in residential transactions. This understanding clarifies why the selected answer underscores the necessity of disclosure for both scenarios while highlighting the acknowledgment aspect specifically in a residential context.