Free Wyoming Real Estate Practice Exam

Q1.Under Wyoming law, a real estate salesperson may receive a commission or compensation for a real estate transaction only from whom?

• A.Directly from the seller, provided the seller agrees in writing
• B.The buyer, if the salesperson represented the buyer
• C.Their employing broker
• D.Any party to the transaction, with the Commission's written approval

Q2.A Wyoming qualifying broker operating a property management division receives security deposits from tenants. Under Wyoming Statutes § 33-28-305 and WREC trust account rules, which of the following practices is MOST compliant with Wyoming law?

• A.Security deposits must be placed in a separate trust account or a designated trust account clearly identified as holding security deposits, kept separate from the broker's operating funds, and individual ledgers maintained for each tenant's deposit.
• B.Security deposits may be commingled with the broker's general operating account as long as the broker maintains a spreadsheet tracking each tenant's deposit amount.
• C.Security deposits are the property of the landlord-client upon receipt, so the broker may immediately disburse them to the landlord without maintaining a trust account.
• D.Wyoming law allows a qualifying broker to place all security deposits into the same trust account used for sales transaction earnest money, provided the total balance is reconciled monthly.

Q3.After a formal disciplinary hearing, the Wyoming Real Estate Commission finds that a salesperson has engaged in fraudulent misrepresentation. Under Wyo. Stat. Title 33, Chapter 28, which of the following is NOT an authorized disciplinary action the Commission may impose?

• A.Suspension of the salesperson's license
• B.Revocation of the salesperson's license
• C.Imprisonment of the salesperson for up to one year
• D.Imposition of a civil fine against the salesperson

Q4.A broker is the listing agent and the buyer's agent in the same transaction (dual agency) in a state that permits dual agency with informed written consent. Just before closing, the broker learns that the seller's underground storage tank has a known leak that was never disclosed to the buyer. The broker has already obtained dual-agency consent forms from both parties. What is the broker's primary obligation?

• A.Maintain confidentiality for the seller and disclose nothing, because the dual-agency consent agreement supersedes disclosure duties
• B.Immediately disclose the material defect to the buyer, because a broker's duty to disclose known material facts that adversely affect value overrides the confidentiality component of dual agency
• C.Withdraw from representing the buyer only, and continue representing the seller with full confidentiality
• D.Disclose the defect only if the buyer specifically asks about underground storage tanks

Q5.Under RESPA, which of the following practices is prohibited when referring borrowers to settlement service providers?

• A.Providing a list of preferred vendors
• B.Recommending specific title companies
• C.Receiving kickbacks for referrals
• D.Suggesting mortgage brokers

Q6.A brokerage's leasing agent conditions a showing on a sexual favor, without the broker's knowledge. Under the FHA, which statement is correct?

• A.The brokerage has no liability because the broker did not know
• B.Only the agent is personally liable
• C.The brokerage may face vicarious liability because the agent acted within the scope of employment
• D.The brokerage is only liable if the conduct was part of a pattern

Q7.Under Wyoming law, which of the following actions by a salesperson constitutes a prohibited practice that could result in license discipline by the Wyoming Real Estate Commission?

• A.Advertising a listed property on a personal social media page with the employing broker's name clearly displayed.
• B.Accepting a referral fee paid directly to the salesperson by an out-of-state broker without the knowledge or consent of the Wyoming employing broker.
• C.Representing both a buyer and a seller in the same transaction as a disclosed dual agent with written consent from both parties.
• D.Presenting all written offers to the seller, even after the seller has accepted an offer, unless the seller instructs otherwise in writing.

Q8.Under the Truth in Lending Act (TILA), when must a lender provide the initial Truth in Lending disclosure to a mortgage applicant?

• A.Within 3 business days of receiving a completed application
• B.Within 7 business days of loan closing
• C.At the time the loan application is submitted
• D.Within 30 days of loan approval

Q9.Under the general agency duty to investigate, an Arizona listing agent who observes visible signs of water damage in a basement during the listing appointment is required to:

• A.Say nothing unless the seller specifically identifies it as a defect
• B.Disclose the visible signs of water damage to prospective buyers
• C.Commission a structural inspection before listing the property
• D.Include a general disclaimer in the MLS remarks

Q10.Under the Equal Credit Opportunity Act (ECOA), a lender instructs a broker to discourage loan applications from buyers in a particular ZIP code because of high default rates in that area. The broker follows the instruction. Which statement best describes the legal consequence for the broker?

• A.The broker has no ECOA exposure because ECOA applies only to creditors, not real estate brokers.
• B.The broker may face ECOA liability as a participant in a credit transaction who refers or discourages applicants, and the conduct also constitutes redlining in violation of the Fair Housing Act.
• C.The broker is protected from liability by following the lender's instructions, which shifts all ECOA liability to the lender.
• D.The broker's conduct is lawful because using geographic default data is a facially neutral, non-protected-class criterion.

Q11.In Wyoming, water rights follow which legal doctrine, making them especially important in real estate transactions involving agricultural or ranch property?

• A.Prior appropriation ('first in time, first in right')
• B.Riparian rights tied to ownership of adjacent land
• C.Correlative rights shared equally among all users
• D.Reasonable use doctrine based on proportional need

Q12.Under federal fair housing law, which statement about reasonable accommodations for disabled tenants is correct?

• A.Landlords must make all requested modifications at their own expense
• B.Landlords must allow reasonable modifications to be made at the tenant's expense
• C.Landlords can charge additional rent for disabled tenants
• D.Landlords are not required to make any accommodations

Q13.Under federal fair housing law, which accommodation must a property manager provide for a tenant with a disability?

• A.Reducing the security deposit amount
• B.Allowing a service animal even in a 'no pets' property
• C.Providing a larger apartment at the same rent
• D.Waiving application fees for disabled applicants

Q14.A Wyoming seller knowingly conceals a material defect—a cracked foundation—on the Seller's Property Disclosure form. Under the Wyoming Residential Real Property Disclosure Act, which of the following best describes the buyer's remedy?

• A.The buyer may rescind the purchase contract and recover any costs directly caused by the seller's failure to disclose
• B.The buyer's only remedy is to file a complaint with the Wyoming Real Estate Commission
• C.The buyer must proceed to closing but may sue for punitive damages only
• D.No remedy exists because the buyer had an opportunity to conduct an inspection

Q15.Under Wyoming Statutes § 33-28-303 and the WREC's designated agency framework, a Wyoming brokerage simultaneously represents both the seller and the buyer in the same transaction through two different affiliated salespersons acting as designated agents. The seller's designated agent learns material information about the buyer's financial distress. What is the CORRECT handling of this information under Wyoming law?

• A.The designated agency structure creates a confidentiality barrier within the brokerage; the seller's designated agent must NOT disclose the buyer's confidential financial information to the seller, though the managing broker who appointed the designated agents must ensure the barrier is maintained and documented.
• B.Because both salespersons work under the same broker's license, all material information known to either designated agent is automatically imputed to both clients, and the seller's agent must disclose the buyer's financial distress to the seller.
• C.The broker must immediately convert the transaction to dual agency with written consent from both parties before any further negotiation can occur, since confidential information has been shared across the designated agency barrier.
• D.The buyer's designated agent must withdraw from the transaction upon learning of financial distress, and the broker must represent the seller exclusively for the remainder of the transaction.