Utah State Exam Practice
Dale is a Utah licensee and a property manager. He's had a vacant apartment in the complex he manages for quite some time, but a current tenant, Estelle, has just referred a new tenant, and the lease was signed today. Can Dale pay Estelle for her help? No, because Estelle is unlicensed Yes, if the payment is for $200 or less Yes, if the payment is for $250 or less Yes, if the payment is for $350 or less
$200 or less It's usually a violation of Utah law to pay an unlicensed person a referral fee, but in property management transactions, licensees are allowed to pay an unlicensed employee or current tenant up to $200 per lease for help with securing/retaining a tenant.
Brooke is a broker who wants to open a branch office 15 miles across town. Who will need to manage this office? A hired office manager An associate broker A senior licensee Brooke herself
Brooke Herself Since the new office isn't more than 25 miles away from the main office, Brooke can manage it herself.
How is the amount of a new conventional loan recorded on the buyer closing statement? Balance due to buyer Buyer credit Buyer debit Not on the closing statement
Buyer Credit Since the buyer receives the loan proceeds at closing, this is a buyer credit on the closing statement.
Which of these is the best definition of "water appropriation?" Diverting available water for a beneficial use Forfeiting a water right due to nonuse Making an offer to buy part of someone's water right Temporarily putting a water use on hold because of drought
Diverting available water for a beneficial use Appropriating water means diverting available water for a beneficial use.
As a penalty for some financial misdeeds, licensee Gavin receives a fine of $7,500 from the division. What is true about this situation? Gavin may have obtained money illegally as part of his violation. Gavin must divide this money equally between all of the division members. Gavin must have committed this offense at least once before. Gavin's penalty is more than the legal limit and is therefore unenforceable.
Gavin may have obtained money illegally as part of his violation. While the division usually imposes a fine of no more than $5,000, they can require more if Gavin obtained money illegally as part of his violation.
David spoke with his client, Gillian, on the phone, and learned that she was on her way over with an earnest money check. David called the seller's agent to let her know that he had the earnest money. When Gillian dropped off the check, his principal broker was at an open house, so he called her to let her know he received it, and told her he'd lock it in the office safe. She texted him that she'd pick up the check later and deposit it into the brokerage trust account. What did David do wrong? He didn't deposit the funds himself. He didn't immediately turn the funds over to his principal broker. He didn't inform his broker in person that he'd received the check. He said he had the funds when he really didn't.
He said he had the funds when he really didn't. It's illegal for licensees to say they've received funds when they haven't.
Lori is a new licensee in Utah preparing to take the world by storm. Which of the following is a true statement about her advertising? Her broker's name must appear and be in a font at least half as large as Angie's name. Her broker's name must appear and be larger than her own name. Her broker's name must appear first. She doesn't have to include the name of her broker.
Her broker's name must appear and be in a font at least half as large as Angie's name. The name of the licensee's affiliated broker must appear and be in a font at least half as large as that of the licensee's name.
Which of the following is true about the Utah statute of frauds? It adds further stipulations to the national version. It encourages verbal-only agreements for the sale of goods less than $500. It states that marriage contracts don't have to be in writing to be legally enforceable. It was designed to protect financial institutions and their interests.
It adds further stipulations to the national version. The Utah statute of frauds is based on the national version, and it adds a few more stipulations.
Lily is considering signing a buyer representation agreement with you, a Utah licensee, but she's unconvinced. "What's in it for me?" she asks. What's one major benefit to her when she signs the buyer representation agreement? It guarantees you'll get a commission. It makes her look more serious in the seller's eyes. It means you're representing her and not the seller. It's less time-consuming to you.
It means you're representing her and not the seller. Without a buyer representation agreement, the buyer isn't receiving representation. This means the buyer won't receive all the fiduciary duties of a client, just those due to a customer.
Lloyd has been busy. He provided a statement of transaction status to seller Sean 30 days before closing. He also reviewed final settlement statements for accuracy before the actual closing in three days. However, Lloyd will not be attending the closing. What's Lloyd's job? Lloyd is a principal broker. Lloyd is the buying agent. Lloyd is the selling agent. Lloyd is the title insurance agent.
Lloyd is a principal broker. Principal brokers like Lloyd provide statements of transaction status and review final settlement statements prior to closing. They don't have to attend the closing themselves.
Which of the following individuals is exempt from having a real estate license in Utah? Lori is an attorney and a member of the state bar association. She's regularly required to perform real estate activities as part of her duties. Rebecca is an attorney and member of the state bar association. She focuses on real estate and property law for her firm and supervises a real estate salesperson. Sandy is helping an acquaintance with the homebuying process. He's going to pay Sandy 1% of the property's sales price for her time and effort. Stan is a property manager and collects rent on behalf of the owners of the eight properties he's currently managing.
Lori is an attorney and a member of the state bar association. She's regularly required to perform real estate activities as part of her duties. Attorneys acting as brokers are exempt from licensure if they are practicing real estate as a part of their regular duties as an attorney and not specifically as a real estate agent.
Nathan, a principal broker, needs to change the managing broker at one of his branches because that branch manager, Leilani, is retiring. He chooses Frances, an associate with five years' experience, and gives her training. He notifies the Utah Division of Real Estate with its preferred forms. What, if anything, has Nathan forgotten to do? He must remove all unlicensed administrative and support personnel at that branch office, since Frances is not yet authorized to manage them. He needs to remind Frances to get her managing broker's license within the next year. He should register the branch office with the Utah Division of Real Estate and pay a fee. Nathan hasn't forgotten anything.
Nathan hasn't forgotten anything. Nathan has taken all the necessary steps to change the managing broker at this branch.
Joann's Utah license has been expired for two years. How much CE is she required to take to reactivate her license? 18 hours of CE 18 hours of CE plus an additional 24 18 hours of CE plus an additional six None; she must complete 120 hours of pre-licensing education again.
None; she must complete 120 hours of pre-licensing education again. Licensees who let their licenses remain expired for more than a year must retake the 120 hours of pre-licensing education.
According to the statute of frauds, which of the following agreements needs to be in writing to be legally enforceable? Condo owner Freya agreed to let her friend's daughter stay in her spare room for four months. Geoffrey agreed to work on his uncle's farm for a few days to pay off the $300 he owes him. Lara sold her book collection to her friend for $450. Pam agreed to rent her house to Miguel for three years.
Pam agreed to rent her house to Miguel for three years. Since Pam and Miguel's arrangement lasts for longer than a year, they need to get the contract in writing for it to be legally enforceable.
Jillian grew up visiting her grandmother, who owned five acres of forested land and a pond that the two of them swam in frequently. When Jillian's grandmother left her the property, Jillian moved in and put a fence around the forest and pond. When her neighbor went to sell his property, he discovered via survey that the pond was actually on his property. Jillian wants to claim adverse possession and keep the pond, but she's only lived there for three years. What, if anything, can she to do valid She can create a "color of title." She can file a claim of estoppel by deed. She can't do anything; the pond will be sold with the neighbor's property. She can use the principle of tacking.
She can use the principle of tacking. Jillian can use the principle of tacking, meaning that she can "tack" her grandmother's usage onto her own to get to the seven years that are required. She can then claim adverse possession that way.
Abby is about to take her licensing exam. Which of the following, if any, events from her life must she disclose? She doesn't have to report any of these things. She failed her exam to become a property inspector six months ago. She received a warning last year for disorderly conduct. She's engaged in a legal dispute with a neighbor over property rights.
She doesn't have to report any of these things. Abby doesn't have to disclose any of these things.
Which of the following is true about NAR's Code of Ethics? NAR can sanction all licensees for COE violations. NAR members can decide whether or not to abide by the Code of Ethics. State REALTOR® associations can develop their own codes of ethics and use those instead of NAR's Code of Ethics. The Code of Ethics is widely accepted as a guideline for professionals who serve the public.
The Code of Ethics is widely accepted as a guideline for professionals who serve the public. Although NAR is a member-based organization, the COE is widely accepted as a guideline for professionals who serve the public.
Broker Zane wants to prepare a closing statement estimate for his seller client. Where can he find the information he needs to complete the statement? The balanced closing worksheet The estimated net loan proceeds The executed contract The lender's loan statement
The balanced closing worksheet The closing worksheet is used to create the seller closing statement.
The commission issues a cease and desist order to a licensee and takes the matter to district court. What could be the cause? The licensee doesn't pay violation fines. The licensee is found to have taken the same action that resulted in the violation. The licensee's license expires. The licensee violates a restraining order.
The licensee is found to have taken the same action that resulted in the violation. A repeated action may result in the matter being brought to court.
Which of these is the last step of a formal adjudicatory hearing against Karina, a licensee? Client Elias explains how her intentional misrepresentation caused him to pay more than the house was worth. Karina's principal broker denies that Karina misspoke to client Elias and cites the fact that she has many satisfied clients. The presiding officer announces that he used the legal definition of fraud in the order he's just issued. The presiding officer reviews the written evidence that Karina and Elias brought with them.
The presiding officer announces that he used the legal definition of fraud in the order he's just issued. The last step is when the presiding officer issues the order reflecting the finding of the facts and conclusions of law, among other things.
Your buyer clients had a home inspection done, and it turns out that the water heater is on its last legs and should be replaced immediately before it bursts. What advice do you provide to your buyers? To ask the sellers to replace the water heater or issue a credit To pay for the replacement immediately, even before closing To schedule the replacement immediately after closing To walk away, because if the water heater is bad, there are likely other issues
To ask the sellers to replace the water heater or issue a credit The buyers can ask the sellers to either replace the defective water heater or issue a credit so the buyers can replace it after closing.
A ______ is when two or more people jointly own a piece of Utah real estate through tenancy in common or other fee estate (but not joint tenancy). Divided fractionalized long-term estate Tenancy by entirety Timeshare Undivided fractionalized long-term estate
Undivided fractionalized long-term estate This describes an undivided fractionalized long-term estate, and Utah licensees who sell and market these properties are required to obtain specific information from sellers (sponsors) and disclose it to potential buyers.
Under an agency relationship, the actions of the agent are implied to be on the principal's behalf, and therefore carry _________. Estoppel Lis pendens Ratification Vicarious liability
Vicarious liability Vicarious liability means that the client can be held responsible for an action of the agent if it's found that the agent was acting on the client's instructions.
Principal broker Dawn is getting ready for an audit. She made sure she has her license, the licenses of everyone who works at her brokerage, all branch office items, trust account records, transactional records, and business records. Did she forget anything? No, she has everything she needs. Yes. She forgot to provide brokerage statements of profit and loss. Yes. She has to find proof of her post-licensing education. Yes. She needs to include all agency agreements.
Yes. She needs to include all agency agreements. Agency agreements are important! Dawn had better find them.
