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Wisconsin Contracts
Practice Questions & Answers (2026)

Contract law questions on the Wisconsin real estate exam test both general contract principles and Wisconsin-specific transaction requirements. Wisconsin requires licensees to use state-mandated contract forms — you cannot substitute your own — and questions specifically test the provisions in those WI forms. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Wisconsin law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong WI-specific timeframe or rule.

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Updated May 2026 · Wisconsin Department of Safety and Professional Services (DSPS) exam outline

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Practice Questions

Wisconsin Contracts — Practice Questions & Answers

120 questions on Contracts from the Wisconsin real estate question bank. First 10 are free — sign up to unlock all 120.

Q1. The Wisconsin WB-11 Residential Offer to Purchase becomes a binding contract when:

A.The buyer signs and submits the offer
B.The earnest money is deposited
C.The seller accepts the offer and communicates acceptance to the buyer within the acceptance deadline
D.A title search is ordered

Explanation

A WB-11 offer becomes a binding contract when the seller accepts all terms and communicates acceptance to the buyer before the stated acceptance deadline.

Q2. In Wisconsin, the seller's property disclosure requirement for residential property is governed by:

A.Wisconsin DSPS Administrative Code
B.Wisconsin Real Estate Condition Report statute (Wis. Stat. § 709)
C.The federal lead paint disclosure law exclusively
D.The WB-11 offer form

Explanation

Wisconsin Statutes § 709 requires sellers of residential real property to provide a Real Estate Condition Report to buyers before an offer is accepted. The report discloses known defects and conditions.

Q3. Under Wisconsin's Real Estate Condition Report, a buyer who receives the report after the offer is accepted has the right to:

A.Automatically rescind the contract
B.Rescind the contract within 2 business days if the report discloses new information
C.Demand the seller fix all disclosed defects
D.Reduce the purchase price by the cost of repairs

Explanation

If a buyer receives the Real Estate Condition Report after the offer is accepted, the buyer has 2 business days to rescind the contract if the report discloses unfavorable information not previously known to the buyer.

Q4. In a Wisconsin WB-11 offer, the term 'contingency' allows the buyer to:

A.Extend the closing date indefinitely
B.Cancel the contract if the specified condition is not met
C.Renegotiate the price after acceptance
D.Transfer the contract to another buyer

Explanation

A contingency is a condition that must be met for the contract to proceed. If the contingency is not satisfied by the stated deadline, the protected party (usually the buyer) may cancel the contract.

Q5. A Wisconsin seller receives two offers simultaneously. The seller may:

A.Only accept the first offer received by time stamp
B.Accept or counter either offer, but should avoid binding themselves to two buyers simultaneously
C.Accept both offers and let the buyers decide among themselves
D.Only accept the higher offer

Explanation

A seller may consider any offers received and accept, counter, or reject them. The seller should avoid creating simultaneous binding contracts with two buyers and should clearly communicate any counters or acceptances.

Q6. A Wisconsin real estate contract that was entered into because of fraudulent misrepresentation is:

A.Void — it never had any legal effect
B.Voidable — the injured party may rescind it
C.Valid and fully enforceable
D.Unenforceable due to illegality

Explanation

A contract induced by fraud is voidable at the option of the defrauded party. The injured party may choose to rescind the contract or affirm it and seek damages.

Q7. A Wisconsin buyer makes an offer with a 48-hour acceptance deadline. The seller makes a counteroffer. What is the status of the original offer?

A.It remains open until the original 48-hour deadline
B.It is automatically extended by another 48 hours
C.It is rejected; only the counteroffer is now open
D.It becomes binding if the buyer does not respond

Explanation

A counteroffer is a rejection of the original offer and a new offer. The original offer is no longer on the table; only the counteroffer remains open for acceptance.

Q8. Which of the following is NOT a required element for a valid Wisconsin real estate contract?

A.Mutual consent (offer and acceptance)
B.Consideration
C.Written form signed by both parties
D.A witness signature

Explanation

Wisconsin real estate contracts must be in writing and signed by the parties under the Statute of Frauds, but witness signatures are not required for validity. The essential elements are offer and acceptance, consideration, legal capacity, and legality of purpose.

Q9. The WB-11 financing contingency in Wisconsin protects the buyer by:

A.Guaranteeing the buyer will obtain a loan
B.Allowing the buyer to void the contract if they cannot obtain specified financing
C.Requiring the seller to hold a mortgage if the buyer cannot get a bank loan
D.Limiting the interest rate the lender may charge

Explanation

A financing contingency allows the buyer to void the contract and recover earnest money if they are unable to obtain the financing described in the contingency within the specified timeframe.

Q10. Under Wisconsin law, earnest money in a real estate transaction is held by:

A.The seller's attorney until closing
B.The listing broker in a trust account
C.DSPS in a state escrow fund
D.The title company only

Explanation

In Wisconsin, the listing broker holds earnest money in a segregated trust account (not commingled with operating funds) until the transaction closes, is voided, or a dispute is resolved.

Q11. A Wisconsin buyer includes a home inspection contingency in the WB-11. The inspector finds a cracked foundation. The buyer may:

A.Only request a price reduction
B.Void the contract and recover earnest money, negotiate repairs, or accept as-is
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