Wisconsin Real Estate Sales Practice Exam

What must occur before a licensee can submit a third party buyer's offer to a party holding a right of first refusal?

1. It must be disclosed in writing before the buyer submits the offer

2. The buyer must verbally agree

3. The seller must provide written consent

4. The offer must be made publicly known

The correct answer is: It must be disclosed in writing before the buyer submits the offer

A licensee must disclose in writing the existence of a right of first refusal before submitting a third-party buyer's offer. This requirement ensures transparency and gives the party holding the right of first refusal an opportunity to respond to the offer appropriately. The written disclosure is crucial as it prevents any misunderstandings and provides the holder of the right the chance to exercise their option in accordance with the terms specified in their agreement. By informing all parties in writing, the licensee maintains professional standards and upholds the contractual rights of the involved parties. In contrast, simply obtaining verbal agreement from the buyer doesn't meet the standard for disclosure. Additionally, while written consent from the seller might be necessary in other scenarios, it is not a prerequisite for submitting the buyer's offer in this context. Making the offer publicly known is also not required and doesn't pertain to the protection of the right of first refusal holder's interests.