Free Wyoming State Law Practice Test — LicenseIQ

Question 1

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 2

How does a disciplinary action against a licensee ordinarily begin under the Commission's rules?

Accepted Answer

Rule 8-2 starts discipline with a sworn written complaint (the Act also allows investigation on the Commission's own motion). A lawsuit is a separate civil remedy, and bonds relate to recovery fund joinder.

Question 3

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 4

When a salesperson's affiliation with a responsible broker ends, who must notify the Commission and when?

Accepted Answer

W.S. 33-28-109 requires the responsible broker to notify the Commission immediately so the license can be cancelled under that broker.

Question 5

A candidate passed the national portion but failed the state portion. Within what period must the state portion be passed to avoid retaking the whole exam?

Accepted Answer

Rule 1-4 requires partial exams to be completed within six months after the last failure date. Ninety days is the deadline to apply after passing everything.

Question 6

What is the maximum payment from the real estate recovery account on a qualifying judgment?

Accepted Answer

W.S. 33-28-202 caps payment at $10,000 of unpaid actual damages. $20,000 and $50,000 are fund balance thresholds.

Question 7

Which name may a licensee use in advertising?

Accepted Answer

Rule 6-4(b) requires the legal name registered with the Commission, and W.S. 33-28-119 requires first and last names (nicknames only if on the license).

Question 8

Under Commission rules, when may an applicant with a prior felony conviction be considered for licensure?

Accepted Answer

Rule 1-3 allows consideration 12 months after all sentencing requirements are complete. Felonies are not an automatic permanent bar; the Commission weighs factors under W.S. 33-28-106(h).

Question 9

What is the minimum per-claim limit of E&O coverage per licensee under the Commission's group program terms?

Accepted Answer

Rule 7-4 sets $100,000 per claim and $500,000 annual aggregate. $500,000 is the aggregate, a likely confusion.

Question 10

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 11

Where must a Wyoming responsible broker's trust account be maintained?

Accepted Answer

W.S. 33-28-122(a) requires an in-state institution, or a funds holder (title company, closing agent or attorney).

Question 12

An owner of two single-family houses rents one through a licensed property manager and tells the manager not to rent to families with children. Which statement is correct?

Accepted Answer

W.S. 40-26-110(a) exempts owner sales or rentals only when made without a broker or agent. Familial status is protected.

Question 13

After receiving notice that all exam portions are passed, how long does the candidate have to file the complete license application?

Accepted Answer

The application must be filed within 90 days of the most recent passing notice, or the application is cancelled and scores terminate. Six months is the partial-pass window.

Question 14

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 15

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 16

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 17

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 18

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 19

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 20

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 21

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 22

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 23

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 24

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 25

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Wyoming real estate state law practice test

1. Which statement about dual agency is correct?

2. How does a disciplinary action against a licensee ordinarily begin under the Commission's rules?

3. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

4. When a salesperson's affiliation with a responsible broker ends, who must notify the Commission and when?

5. A candidate passed the national portion but failed the state portion. Within what period must the state portion be passed to avoid retaking the whole exam?

6. What is the maximum payment from the real estate recovery account on a qualifying judgment?

7. Which name may a licensee use in advertising?

8. Under Commission rules, when may an applicant with a prior felony conviction be considered for licensure?

9. What is the minimum per-claim limit of E&O coverage per licensee under the Commission's group program terms?

10. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

11. Where must a Wyoming responsible broker's trust account be maintained?

12. An owner of two single-family houses rents one through a licensed property manager and tells the manager not to rent to families with children. Which statement is correct?

13. After receiving notice that all exam portions are passed, how long does the candidate have to file the complete license application?

14. A salesperson receives an earnest money check from a buyer. The salesperson should:

15. Which statement about FHA-insured loans is correct?

16. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

17. A real estate licensee who is not an attorney may:

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

19. 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:

20. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

21. A salesperson wants to buy a FSBO home for his own investment. He must:

22. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

23. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

24. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

25. Which action may a life tenant take WITHOUT the remainderman's consent?

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