Wyoming Practice TestEscrow & Title

Wyoming Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the Wyoming exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Wyoming uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Wyoming law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Wyoming practice.

Practice Questions

Wyoming Escrow & Title — Practice Questions & Answers

108 questions on Escrow & Title from the Wyoming real estate question bank. First 10 are free — sign up to unlock all 108.

Q1. In Wyoming, which type of deed provides the greatest protection to the grantee?

A.Quitclaim deed
B.Special warranty deed
C.General warranty deed
D.Sheriff's deed

Explanation

A general warranty deed provides the greatest protection because the grantor warrants title against all defects throughout the entire chain of title, not just during the grantor's ownership.

Q2. Wyoming uses which type of legal instrument when real property is used as collateral for a loan?

A.Mortgage only
B.Deed of trust or mortgage
C.Land contract exclusively
D.Quitclaim deed

Explanation

Wyoming allows the use of either a deed of trust or a traditional mortgage as the security instrument for real property loans. Deeds of trust are commonly used because they allow non-judicial foreclosure.

Q3. In Wyoming, a title commitment (preliminary title report) issued before closing serves to:

A.Guarantee the property's fair market value
B.Identify existing liens, encumbrances, and conditions of title before the policy is issued
C.Replace the need for a survey
D.Confirm the buyer's loan approval

Explanation

A title commitment identifies the current state of title, including existing liens, easements, encumbrances, and conditions the title company requires to be met before issuing a title insurance policy.

Q4. In Wyoming, mineral rights that are severed from a property should be disclosed because:

A.The buyer receives mineral rights automatically
B.The absence of mineral rights can significantly affect the property's use, value, and the buyer's surface rights
C.Mineral rights transfer are taxed separately at closing
D.Federal law requires mineral disclosure on all property

Explanation

Severed mineral rights are a material fact in Wyoming. If mineral rights were previously conveyed to another party, the surface owner may face mineral development activity on their land. This can significantly affect the property's value and use.

Q5. In Wyoming, RESPA (Real Estate Settlement Procedures Act) applies to:

A.All real estate sales regardless of financing
B.Federally related mortgage loans used to purchase 1-4 family residential properties
C.Commercial property transactions only
D.Only VA and FHA loans

Explanation

RESPA applies to federally related mortgage loans for 1-4 family residential properties, including most conventional, FHA, and VA loans. It requires disclosure of settlement costs and prohibits kickbacks.

Q6. A Wyoming buyer receives a Closing Disclosure (CD) from the lender. Under TRID rules, the buyer must receive the CD at least:

A.1 business day before closing
B.3 business days before closing
C.5 business days before closing
D.7 business days before closing

Explanation

Under the TRID (TILA-RESPA Integrated Disclosure) rule, the buyer must receive the Closing Disclosure at least 3 business days before consummation (closing).

Q7. A Wyoming property is sold and the title search reveals an old judgment lien against the seller. At closing, this lien must be:

A.Transferred to the buyer as part of the purchase
B.Paid off from the sale proceeds before the seller receives any money
C.Ignored if it is more than 5 years old
D.Assumed by the buyer

Explanation

Judgment liens attach to real property and must be satisfied (paid off) from the sale proceeds at closing before clear title can pass to the buyer. Title companies typically pay these from escrow at closing.

Q8. An owner's title insurance policy in Wyoming protects:

A.The lender against loss from title defects
B.The buyer against loss from title defects that arose prior to the policy date
C.The seller against post-closing claims
D.Both buyer and lender under a single policy

Explanation

An owner's (buyer's) title insurance policy protects the homeowner against financial loss from title defects, liens, or encumbrances that existed prior to the policy date but were not discovered in the title search.

Q9. A Wyoming property has a mechanic's lien filed against it. This lien:

A.Only affects personal property
B.Attaches to the real property and must be resolved before clear title can pass
C.Expires automatically after 30 days
D.Only affects the contractor's equipment

Explanation

A mechanic's lien (for unpaid contractors, subcontractors, or material suppliers) attaches to the real property. It must be paid off or bonded before clear title can be conveyed to a buyer.

Q10. In Wyoming, a lis pendens recorded against a property indicates:

A.The property is in a historic preservation district
B.A pending lawsuit that could affect title to the property
C.The property has been placed in a trust
D.The property has passed a title inspection

Explanation

A lis pendens ('notice of pending litigation') is a recorded notice that a lawsuit affecting the title to real property is pending. It warns potential buyers and lenders of the dispute.

Q11. A Wyoming buyer's lender requires a lender's title insurance policy. This policy protects:

A.The buyer against title defects
B.The lender against loss if a title defect impairs the lender's security interest
🔒

98 more Escrow & Title questions

Create a free account to unlock all 108 Wyoming Escrow & Title questions with full explanations.

Free account · No credit card · Instant access to 25 questions

Ready to take the full exam? Start free.

25 free questions · No signup · Instant access to all Wyoming topics