Free Wyoming Real Estate Practice Exam

Q1.A buyer files a HUD complaint alleging a licensee refused to show homes in certain neighborhoods. HUD investigates and finds reasonable cause. What happens next if both parties don't elect federal court?

• A.The complaint is dismissed
• B.The case proceeds before a HUD Administrative Law Judge, who may award damages, civil penalties up to ~$24K (first offense), and injunctive relief
• C.The case is automatically referred to a criminal prosecutor
• D.Only state-court remedies remain

Q2.The Wyoming Fair Housing Act prohibits discrimination in the sale or rental of housing. Which of the following protected classes is specifically covered under Wyoming's state fair housing law but is NOT listed as a protected class under the federal Fair Housing Act?

• A.Race
• B.Marital status
• C.Religion
• D.National origin

Q3.When documenting witnessed harassment, which record is most useful in an enforcement action?

• A.A summary written weeks later with your legal conclusions included
• B.A detailed emotional account describing your personal reaction
• C.A general note stating that 'a potential fair housing violation occurred'
• D.A factual, specific record created the same day (contemporaneous) using exact words and observable conduct

Q4.Under the Federal Fair Housing Act, which of the following is NOT a protected class?

• A.National origin
• B.Familial status
• C.Sexual orientation
• D.Religion

Q5.A borrower takes out a $300,000 conventional loan and makes a down payment of less than 20%. Under the Homeowners Protection Act (HPA), when must the lender automatically cancel Private Mortgage Insurance (PMI) if the borrower has not requested early cancellation?

• A.When the loan-to-value ratio reaches 80% based on original value
• B.When the loan-to-value ratio reaches 80% based on current appraised value
• C.When the loan balance reaches the midpoint of the original amortization schedule
• D.When the borrower has made 60 consecutive on-time payments

Q6.In Wyoming, when must a licensee provide the required agency disclosure to a prospective buyer or seller?

• A.Only at the time the purchase and sale agreement is signed
• B.At the first substantive contact with the prospective client
• C.Before the property closes
• D.Only when the buyer requests written representation

Q7.Under Wyoming law, which government body is responsible for issuing real estate salesperson licenses in Wyoming?

• A.The Wyoming Department of Audit
• B.The Wyoming Secretary of State
• C.The Wyoming Real Estate Commission
• D.The Wyoming Department of Commerce

Q8.Wyoming law recognizes a specific agency relationship in which a single broker represents both the buyer and the seller in the same transaction with the written consent of both parties. This relationship is called:

• A.Subagency
• B.Designated agency
• C.Dual agency
• D.Transactional brokerage

Q9.A buyer's financing contingency specifies a 'conventional loan at no more than 7% interest' and the buyer can only get a 7.5% rate. What is the buyer's position under the contract?

• A.The buyer must proceed — interest rate variations are not grounds for cancellation
• B.The buyer can only cancel if the rate exceeds 8%
• C.The seller must reduce the purchase price to compensate for the higher rate
• D.The buyer may cancel and recover earnest money because they cannot obtain financing meeting the specified terms

Q10.A team lead conditioning referrals and mentorship opportunities on personal social interactions with team members is an example of:

• A.Quid pro quo harassment in an internal professional hierarchy
• B.Hostile environment harassment between co-equal agents
• C.Third-party harassment by a client
• D.Neither — real estate teams are not covered by harassment law

Q11.Which federal law requires disclosure of lead-based paint hazards in housing built before 1978?

• A.CERCLA
• B.Clean Air Act
• C.Safe Drinking Water Act
• D.Residential Lead-Based Paint Hazard Reduction Act

Q12.A Wyoming salesperson secures an exclusive right-to-sell listing agreement with a seller. The seller later instructs the salesperson to refuse to cooperate with any offers submitted through buyer's agents from other brokerages. Under Wyoming law and Commission rules, which response by the salesperson is most appropriate?

• A.Follow the seller's instruction because the seller has the contractual right to control how the property is marketed.
• B.Advise the seller that refusing to cooperate with other brokerages may violate anti-discrimination rules but ultimately comply if the seller insists.
• C.Inform the seller that while cooperation with other brokers is not legally mandated, such an instruction must be put in writing and documented in the file, and advise the seller of the potential impact on marketability.
• D.Immediately withdraw from the listing because accepting anti-cooperation instructions constitutes an automatic violation requiring license surrender.

Q13.A broker is completing a HUD-1 Settlement Statement (used in a pre-TRID transaction for instructional purposes) and discovers that the lender charged the buyer a fee that was not disclosed on the Good Faith Estimate. Under RESPA, which action is the broker legally required or best positioned to take?

• A.The broker must refuse to close the transaction until the lender removes the undisclosed fee, or the broker faces personal RESPA liability.
• B.The broker should inform the buyer of the discrepancy so the buyer can seek clarification or cure from the lender, and the broker should document the disclosure, recognizing that RESPA imposes the primary compliance obligation on the lender and settlement agent, not the broker.
• C.The broker should instruct the escrow officer to remove the fee from the HUD-1 without lender authorization to protect the buyer.
• D.The broker has no duty to review the HUD-1 or disclose settlement fee discrepancies to the buyer.

Q14.A lender charges a borrower three discount points on a $200,000 mortgage loan. What is the dollar amount the borrower will pay for these discount points at closing?

• A.$2,000
• B.$4,000
• C.$6,000
• D.$8,000

Q15.A real estate salesperson is drafting a purchase offer for a buyer who wants to purchase a home built in 1975. Under EPA and HUD regulations implementing the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d), which of the following contractual requirements is MANDATORY before the buyer is obligated to proceed?

• A.The seller must remove all lead-based paint from the property prior to closing.
• B.The buyer must be given a 10-day opportunity to conduct a risk assessment or inspection for lead-based paint hazards before becoming obligated under the contract.
• C.The buyer must waive in writing any right to a lead-based paint inspection as a condition of contract execution.
• D.The contract must contain a clause requiring the seller to warrant that the property is free of lead-based paint.