Free Wyoming Contracts Practice Test — LicenseIQ

Question 1

In a transaction, neither the buyer nor the seller has a written agency or intermediary agreement with any licensee involved. Under Commission rules, what is the result for a licensee who participates?

Accepted Answer

Rule 6-1(a)(xxi) makes it a disciplinary ground to participate in a transaction in which all parties are customers and no written agency or intermediary relationship exists.

Question 2

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 3

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 4

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 5

In Wyoming, absent a written agency or intermediary agreement, what relationship exists between a licensee and a party to a transaction?

Accepted Answer

W.S. 33-28-302(p) makes customer the default. Intermediary is the tempting answer because older materials describe it as the default, but intermediary status now requires a written agreement.

Question 6

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 7

A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

Accepted Answer

Liquidated damages are a sum agreed in advance as compensation for breach - often the earnest money deposit.

Question 8

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 9

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 10

Adding a new financing contingency to an existing sales contract is done by a(n) ____, while changing the existing closing date is done by a(n) ____.

Accepted Answer

An addendum ADDs new terms; an amendment changes existing terms. Both require agreement of both parties.

Question 11

An owner decides repair costs are unreasonable relative to the rent and terminates the rental agreement. How much time must the renter be given to find substitute housing?

Accepted Answer

W.S. 1-21-1203(d) requires 10 to 20 days from the notice, with rent prorated and the deposit handled under 1-21-1208.

Question 12

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 13

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 14

When must a responsible broker deposit an earnest money check received for others, absent a different written agreement of all parties?

Accepted Answer

Rule 5-1(e)(v) and W.S. 33-28-111(a)(xxvii) require deposit within one banking day unless all interested parties agree otherwise in writing.

Question 15

A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:

Accepted Answer

RESPA prohibits kickbacks and unearned referral fees between settlement service providers and real estate licensees, even if disclosed.

Question 16

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 17

Under the Act's definition, which document is a "written listing agreement"?

Accepted Answer

The definition includes buyer brokerage agreements, seller listing contracts and property management contracts: real estate employment agreements.

Question 18

A trust account earns interest and the parties have no written agreement about it. To whom does the interest go when the funds are withdrawn?

Accepted Answer

W.S. 33-28-122(c) gives interest to the person who provided the funds absent a written agreement.

Question 19

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 20

The property is under contract and the seller's agent receives a second offer. What must the agent do?

Accepted Answer

Seller's agents must present all offers to and from the seller even when the property is under contract (33-28-303(a)(iii)(B)).

Question 21

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 22

A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

Accepted Answer

The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).

Question 23

A cooperating broker wants to present an offer directly to the listing broker's seller. When is this permitted?

Accepted Answer

Rule 3-1(c) requires cooperating brokers to present offers through the listing broker unless the listing responsible broker consents in writing.

Question 24

Who holds proprietary ownership of a written listing agreement obtained by a salesperson?

Accepted Answer

W.S. 33-28-302(q) vests ownership of written listing agreements in the responsible broker.

Question 25

In a cooperative sale, unless the parties agree otherwise, what does the buyer's broker do with the contract and earnest money check?

Accepted Answer

W.S. 33-28-122(g) and Rule 5-1(e)(v) route earnest money to the listing (seller's) broker.

Wyoming real estate contracts practice test

1. In a transaction, neither the buyer nor the seller has a written agency or intermediary agreement with any licensee involved. Under Commission rules, what is the result for a licensee who participates?

2. Under a land contract (contract for deed), during the payment period the buyer holds:

3. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

4. A party making an offer to buy is the , and the party receiving it is the .

5. In Wyoming, absent a written agency or intermediary agreement, what relationship exists between a licensee and a party to a transaction?

6. A contract that is missing an essential element, such as consideration, is:

7. A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

8. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

9. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

10. Adding a new financing contingency to an existing sales contract is done by a(n) , while changing the existing closing date is done by a(n) .

11. An owner decides repair costs are unreasonable relative to the rent and terminates the rental agreement. How much time must the renter be given to find substitute housing?

12. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

13. A contract clause stating that 'time is of the essence' means:

14. When must a responsible broker deposit an earnest money check received for others, absent a different written agreement of all parties?

15. A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:

16. Under the statute of frauds, a real estate sales contract must be:

17. Under the Act's definition, which document is a "written listing agreement"?

18. A trust account earns interest and the parties have no written agreement about it. To whom does the interest go when the funds are withdrawn?

19. A licensee representing the seller who learns the buyer will pay more than the offer must:

20. The property is under contract and the seller's agent receives a second offer. What must the agent do?

21. Which event terminates a listing agreement by operation (force) of law?

22. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

23. A cooperating broker wants to present an offer directly to the listing broker's seller. When is this permitted?

24. Who holds proprietary ownership of a written listing agreement obtained by a salesperson?

25. In a cooperative sale, unless the parties agree otherwise, what does the buyer's broker do with the contract and earnest money check?

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