Wisconsin allows which type of brokerage relationship?
Audio Lesson
Duration: 2:34
Question & Answer
Review the question and all answer choices
Only seller agency
A is incorrect because Wisconsin law does not restrict brokerage relationships to only seller agency. The state recognizes buyer agency and other relationship types as valid and legally permissible.
Agent of seller, buyer, or both (with consent), or non-agent
Only buyer agency
C is incorrect because Wisconsin law does not limit brokerage relationships to only buyer agency. Seller agency remains a valid and common relationship type in the state.
Only transaction brokerage
D is incorrect because Wisconsin law does not mandate transaction brokerage as the only permissible relationship. Transaction brokerage is one option among several allowed by state law.
Why is this correct?
B is correct because Wisconsin law explicitly permits agents to function in multiple roles: as an agent for sellers, as an agent for buyers, as a dual agent representing both with consent, or as a non-agent transaction broker. This flexibility allows agents to adapt to various transaction scenarios while maintaining legal compliance.
Deep Analysis
AI-powered in-depth explanation of this concept
Agency relationships form the foundation of real estate transactions, defining the legal and ethical duties between agents and their clients. This question tests your understanding of Wisconsin's flexible approach to brokerage relationships. The core concept is that Wisconsin permits multiple agency configurations rather than restricting to just one type. To arrive at the correct answer, you must recognize that option B encompasses all possibilities: seller agency (traditional representation), buyer agency (representing purchasers), dual agency (representing both with consent), and transaction brokerage (acting as a non-agent without fiduciary duties). This question is challenging because it requires understanding that Wisconsin's law is comprehensive rather than restrictive, contrary to some states that limit certain relationships. The question connects to broader real estate knowledge about agency law variations across states and the importance of understanding local regulations.
Knowledge Background
Essential context and foundational knowledge
Wisconsin's approach to agency relationships reflects a balanced perspective that protects consumers while allowing flexibility in real estate transactions. The state's regulations acknowledge that different clients may need different types of representation. Seller agency (traditional representation) focuses on the seller's interests, buyer agency prioritizes the purchaser's needs, dual agency requires consent to avoid conflicts, and transaction brokerage serves as a limited service option. These distinctions emerged as real estate evolved, with consumer advocates pushing for more buyer representation while recognizing that some transactions might benefit from neutral facilitation rather than strict agency relationships.
SABN - Seller, Agent (buyer), Both (dual agency), Non-agent (transaction broker)
Remember Wisconsin's four agency types using SABN. Each letter represents a permissible brokerage relationship in Wisconsin.
When questions ask about permissible agency relationships, look for comprehensive options that include multiple relationship types. Wisconsin specifically allows all agency forms with proper consent and disclosure requirements.
Real World Application
How this concept applies in actual real estate practice
Imagine a married couple looking to sell their home while simultaneously searching for a new one. In Wisconsin, their agent could represent them as sellers of their current property while also acting as their buyer's agent for the new purchase, with proper disclosure and consent. Alternatively, if the couple prefers a more hands-on approach, the same agent could switch to a transaction brokerage role, facilitating both transactions without representing either party's interests exclusively. This flexibility allows Wisconsin agents to accommodate diverse client needs while maintaining legal compliance.
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