WI Real Estate key terms

A person licensed by the state to negotiate, for compensation, the sale, exchange, purchase, or lease of real estate, and to supervise salespersons and manage property on behalf of clients.

A licensee who may perform real estate brokerage acts for compensation only while employed by and supervised by a licensed broker, whose license the salesperson's license is tied to.

A separate bank account a broker maintains for money belonging to others, such as earnest money deposits; mixing client funds with the broker's own money or using them personally is prohibited.

The uninterrupted series of efforts that brings about a sale, used to decide which licensee earned a commission when more than one licensee was involved in producing the buyer.

The body attached to the Department of Safety and Professional Services that licenses brokers and salespersons, adopts rules governing conduct, reviews complaints, and imposes discipline.

The Wisconsin state agency that houses the Real Estate Examining Board and administers licensing, credential renewal, and enforcement for real estate professionals and other regulated occupations.

The real estate practice statute that defines brokers and salespersons, sets licensing and education requirements, regulates advertising and trust accounts, and authorizes discipline by the Real Estate Examining Board.

The state fair housing statute, Wis. Stat. ch. 106.50, which prohibits discrimination in the sale, rental, or financing of housing based on protected characteristics such as race, religion, sex, disability, familial status, marital status, ancestry, and age.

The duties a licensee owes a client, including loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, reasonable care and skill, and accounting for money and property entrusted to the licensee.

A condition or occurrence that a reasonable person would consider important when deciding whether to enter a transaction, or that could significantly reduce the property's value; licensees must disclose such facts to the parties.

A situation in which one brokerage firm represents both the buyer and the seller, or two buyers, in the same transaction; Wisconsin permits it only after written disclosure and the written consent of all parties.

A brokerage practice in which one firm serves both sides of a transaction but assigns a different licensee to each client, so that no individual licensee personally represents both parties.

A written contract in which a buyer engages a broker to represent the buyer's interests, stating the term of the agency, how the broker is paid, and whether the relationship is exclusive.

The legal rule requiring certain agreements, including contracts for the sale of real estate and leases longer than one year, to be in writing and signed by the party to be charged.

A contract provision that makes a party's obligation depend on a stated event, such as a satisfactory inspection or loan approval, allowing that party to cancel if the condition is not met.

A reply to an offer that changes one or more of its terms; it operates as a rejection of the original offer and creates a new proposal that the other party must accept or further counter.

A contract clause making stated deadlines critical, so that failing to perform by the required date is a material breach rather than an unimportant delay.

A deposit a buyer provides to show good faith, credited toward the purchase price at closing; the offer identifies who holds it, when it becomes nonrefundable, and how disputes over it are resolved.

The standard Wisconsin form for most residential resale transactions, covering price, earnest money, financing and inspection contingencies, title evidence, the deed to be delivered, and closing terms.

The standard Wisconsin form used to respond to an offer by restating the original terms as amended, so a single document shows the current proposal that the other party may accept.

A standard form signed by both parties that cancels a contract and releases each from further claims under it, commonly used to return earnest money when a transaction fails.

A conveyance that transfers whatever interest the grantor may hold in the property with no promise about the quality of title, leaving the grantee to bear the risk of defects.

A deed in which the grantor promises that title is good and free of undisclosed encumbrances and agrees to defend the grantee against lawful claims to the property.

Title that is free from reasonable doubt and from defects that would make a prudent buyer hesitate, which a seller is typically required to deliver at closing.

A right held by one person to use another's land for a specific purpose, such as a driveway or utility line, without owning the land; it burdens the property and passes with it.

A statutory claim filed by a contractor, subcontractor, or supplier for unpaid labor or materials that attaches to the improved property and must be cleared for good title.

An agreement in which the buyer takes possession and pays the price in installments while the seller retains legal title until the balance is paid, a common form of seller financing in Wisconsin.

Wisconsin's community property system under Wis. Stat. ch. 766, in which property acquired during marriage is generally presumed to belong equally to both spouses, and a homestead cannot be conveyed without both spouses signing.

The borrower's written promise to repay a loan, stating principal, interest rate, payment schedule, and the consequences of late payment or default; it is separate from the security instrument.

A written instrument pledging real estate as security for a debt, giving the lender the right to foreclose if the borrower defaults; Wisconsin lenders use mortgages rather than deeds of trust.

The four components of a typical monthly housing payment: principal, interest, property taxes, and hazard insurance; lenders compare it to income when qualifying a borrower.

The loan amount divided by the property's purchase price or appraised value, expressed as a percentage; higher ratios mean more lender risk and often require mortgage insurance.

An independent opinion of value developed by a state-licensed or certified appraiser using recognized methods; a real estate licensee may not perform one, though a licensee may prepare a market analysis.

The use of a property that is legally permitted, physically possible, financially feasible, and produces the greatest value, forming the basis for an appraiser's conclusion.

A valuation method that estimates value by comparing the subject to recently sold similar properties and adjusting for differences in size, condition, features, and location.

A number found by dividing a property's price by its gross rent; appraisers and investors apply a market-derived multiplier to a subject's rent to estimate its value.

A listing in which the broker earns a commission no matter who finds the buyer during the listing term, including the owner; it is the most common residential listing arrangement in Wisconsin.

A listing in which the broker is paid only if the broker or another licensee produces the buyer, so the owner may sell to a buyer the owner personally finds without owing a commission.

A buyer identified by name in a listing agreement who remains subject to a commission claim for a stated period after the listing expires if the owner later sells to that buyer.

A licensee's study of recent sales, current listings, and expired listings to estimate a probable selling price; it must be presented as an opinion of price and not as an appraisal.