Key Takeaways
- Wyoming follows the Statute of Frauds requiring real estate contracts to be in writing and signed
- Valid contracts require offer, acceptance, consideration, legal capacity, and lawful purpose
- Earnest money should be deposited into the responsible broker's trust account by the first banking day after receipt
- Wyoming uses standardized purchase agreement forms prepared by the Wyoming Association of Realtors
- Contingencies (financing, inspection, appraisal) must be clearly specified in the contract
Wyoming Contract Requirements
Wyoming real estate contracts must meet specific legal requirements to be valid and enforceable.
Statute of Frauds
Under Wyoming's Statute of Frauds, contracts for the sale of real property must be:
- In writing
- Signed by the party to be charged (or their authorized agent)
Key Point: Oral agreements to sell real estate are generally unenforceable in Wyoming.
Essential Elements of a Valid Contract
| Element | Description |
|---|---|
| Offer | Clear proposal with definite terms |
| Acceptance | Unequivocal agreement to the offer's terms |
| Consideration | Something of value exchanged (usually money) |
| Legal capacity | Parties must be competent to contract |
| Lawful purpose | Contract cannot be for illegal purposes |
| In writing | Required for real estate contracts |
Common Contract Forms
Wyoming real estate professionals typically use:
| Form | Use |
|---|---|
| Purchase and Sale Agreement | Standard residential purchase |
| Commercial Contract | Business property transactions |
| Lease Agreement | Rental property |
| Listing Agreement | Seller representation |
| Buyer Agency Agreement | Buyer representation |
Note: The Wyoming Association of Realtors provides standardized forms used by most licensees.
Earnest Money
Earnest money (also called a good faith deposit) shows the buyer's serious intent:
Handling Requirements
| Requirement | Details |
|---|---|
| Deposit timeline | First banking day after receipt (unless otherwise agreed in writing) |
| Where deposited | Responsible broker's trust account |
| Who holds | Responsible broker (not salesperson) |
| Disbursement | Per contract terms or mutual agreement |
Critical Rule: Earnest money can be held by the listing broker's trust account, buyer's broker trust account, or a designated funds holder as agreed in writing.
Common Contract Contingencies
Contingencies allow parties to exit the contract if certain conditions aren't met:
Financing Contingency
| Element | Details |
|---|---|
| Purpose | Buyer can cancel if financing not obtained |
| Deadline | Must apply for loan within specified days |
| Documentation | May require denial letter from lender |
Inspection Contingency
| Element | Details |
|---|---|
| Purpose | Buyer can inspect property and negotiate repairs |
| Timeline | Inspection period specified in contract |
| Options | Accept, negotiate repairs, or cancel |
Appraisal Contingency
| Element | Details |
|---|---|
| Purpose | Protects buyer if property appraises below price |
| Options | Seller reduce price, buyer pay difference, or cancel |
Termination of Contracts
Contracts may be terminated by:
| Method | Description |
|---|---|
| Performance | Both parties fulfill obligations |
| Mutual agreement | Both parties agree to cancel |
| Contingency not met | Condition specified in contract fails |
| Breach | One party fails to perform |
| Impossibility | Performance becomes impossible |
Time is of the Essence
Many Wyoming real estate contracts include a "time is of the essence" clause:
- Deadlines are strict and legally binding
- Missing a deadline may constitute breach
- Extensions require written agreement
Exam Tip: Understand the difference between an executory contract (not yet performed) and an executed contract (fully performed).
Cooperative Transactions
In Wyoming, when brokers from different offices cooperate:
| Situation | Handling of Earnest Money |
|---|---|
| Cash or check | Buyer's broker delivers to listing broker for deposit |
| Promissory note | Delivered to listing broker who holds it |
| Unless agreed otherwise | Written agreement can specify different handling |
Under Wyoming's Statute of Frauds, which statement is TRUE about real estate contracts?
By when must earnest money be deposited in a Wyoming real estate transaction?