Free Wyoming Real Estate Practice Exam

Q1.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.

Q2.In property management, what does the term 'effective gross income' represent?

• A.Total potential rental income minus operating expenses
• B.Total potential rental income minus vacancy and collection losses
• C.Net operating income minus debt service
• D.Gross rental income plus miscellaneous income

Q3.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

Q4.Under Wyoming law, when must a seller of residential real property provide the Seller's Property Disclosure form to a prospective buyer?

• A.Before the buyer makes an offer to purchase the property
• B.As soon as practicable before transfer of title, but the buyer has the right to rescind if disclosure is provided after an offer is accepted
• C.Only if the buyer requests the disclosure in writing
• D.Within 30 days after the purchase contract is signed

Q5.A state real estate licensing agency is conducting an audit of a broker's trust account records and discovers a pattern of commingling client funds with operating funds. Under general licensing law principles, which of the following best describes the agency's authority in this situation?

• A.The agency may suspend or revoke the broker's license, impose fines, and require restitution to harmed parties without needing to obtain a court order first.
• B.The agency must refer the matter exclusively to the state attorney general before taking any administrative action against the broker.
• C.The agency may only issue a written reprimand unless the broker has a prior disciplinary history.
• D.The agency's authority is limited to civil penalties; criminal prosecution for commingling must be initiated by a separate law enforcement agency before the license can be suspended.

Q6.Under RESPA (the Real Estate Settlement Procedures Act), which of the following practices is specifically prohibited?

• A.Charging a borrower a loan origination fee
• B.A title company paying a referral fee to a real estate broker for sending settlement business
• C.Providing a borrower with a Loan Estimate within three business days of application
• D.Collecting escrow funds to pay future property taxes

Q7.After a hearing, what civil penalty does A.R.S. § 32-2160.01 authorize?

• A.Up to $1,000 per infraction.
• B.Exactly $10,000 per complaint.
• C.Only license revocation.
• D.Unlimited damages without a hearing.

Q8.Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which party could be held liable for environmental cleanup costs at a contaminated property?

• A.Only the party that originally caused the contamination
• B.Only parties who were aware of the contamination at the time of purchase
• C.Only commercial property owners, not residential owners
• D.The current property owner, even if they did not cause the contamination

Q9.A broker manages a property management portfolio and also operates a residential sales division. The broker commingles security deposits collected from tenants with the sales division's escrow account. A state audit reveals no missing funds, but the accounts are not separately maintained. Which federal or general regulatory principle is primarily violated?

• A.RESPA, because security deposits constitute settlement service funds that must be separately disclosed
• B.The anti-commingling principle governing trust account management, which requires that client funds of different types and purposes be maintained in separate, identifiable accounts
• C.ECOA, because commingled accounts obscure the allocation of credit among protected classes
• D.No violation has occurred, because no funds are missing and the broker can account for all balances

Q10.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) is best described as which of the following?

• A.The true cost of credit expressed as a yearly rate, including interest and certain fees
• B.The interest rate stated on the face of the promissory note
• C.The total dollar amount of interest paid over the life of the loan
• D.The lender's prime rate plus a margin set by the Federal Reserve

Q11.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

Q12.What is the key difference between a reasonable accommodation and a reasonable modification?

• A.Accommodations are physical changes; modifications are policy changes
• B.Accommodations are policy/rule changes paid for by the housing provider; modifications are physical changes paid for by the resident
• C.Both are paid for by the housing provider
• D.Both are paid for by the resident

Q13.Under the Wyoming Real Estate License Act, which of the following activities would constitute a prohibited practice that could subject a salesperson's license to disciplinary action?

• A.Presenting all written offers to the seller, even if the seller has already accepted another offer
• B.Advertising a listed property on a public website with the broker's name and contact information
• C.Guaranteeing to a prospective buyer that the property will appreciate in value over the next five years
• D.Disclosing to both parties that the licensee represents only one party to the transaction

Q14.Who must sign an Arizona property-management agreement for the management firm?

• A.Any unlicensed receptionist
• B.The designated broker or the broker's authorized real estate licensee
• C.Only the tenant
• D.The firm's bank teller

Q15.Under Wyoming Real Estate Commission rules governing property management trust accounts, which of the following practices is REQUIRED of a Wyoming broker managing residential rental properties?

• A.Commingling client security deposits with the broker's operating funds is permissible if the total amount is under $5,000
• B.All tenant security deposits must be kept in a separate trust account and cannot be commingled with operating funds
• C.Security deposits may be held in the broker's personal savings account as long as they are itemized in the management ledger
• D.Security deposits may be deposited into the general trust account together with rents collected, provided a separate ledger is maintained