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QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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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? a. It guarantees you'll get a commission. b. It makes her look more serious in the seller's eyes. c. It means you're representing her and not the seller. d. It's less time-consuming to you. - ANSWER: c. It means you're representing her and not the seller. Which of the following is true about the debit and credit columns on a buyer's closing statement? a. The credits will be higher, since the buyer is getting a loan. b. The debits will be higher, since the buyer is purchasing a property. c. There is no way of knowing whether debits or credits will be higher, since they're specific to the transaction. d. They'll be equal, since the purpose of the closing statement is to balance costs and incoming funds. - ANSWER: d. They'll be equal, since the purpose of the closing statement is to balance costs and incoming funds. When Utah licensees receive funds related to a transaction, which of the following is a true statement? a. They must deposit the funds within three banking days. b. They must hold onto the funds until they receive written instruction from the parties or until closing. c. They must inform their principal broker and deposit the funds immediately. d. They must inform their principal broker and immediately turn over the funds. - ANSWER: d. They must inform their principal broker and immediately turn over the funds. Your client's offer to purchase a new home in Orem was accepted. You remember to deposit her escrow funds into a brokerage trust account and to get documentation of the transaction. What else, if anything, should you do? a. Make sure that you assign this transaction a sequential transaction number. b. Nothing; you've done all that's required. c. Send all parties a copy of the transaction documentation after 30 days.
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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d. Verify that it is in an interest-bearing account. - ANSWER: a. Make sure that you assign this transaction a sequential transaction number. Which of the following statements about agency creation in Utah is true? a. The agency relationship must be created using a written agreement. b. The agency relationship must be created using a written agreement that is signed by both parties. c. The agency relationship must be created using a written agreement that is signed by both parties and notarized. d. The agency relationship must be created using a written or verbal agency agreement. - ANSWER: b. The agency relationship must be created using a written agreement that is signed by both parties. With ______, your client is saying, "You acted as my agent without authority; now, here's your authority." a. Estoppel b. Express agency c. Implied agency d. Ratification - ANSWER: d. Ratification Jeremy was found guilty of violating license law but doesn't believe he did anything wrong. Which of these actions should he take to have the most positive effect? a. Ask to speak privately to the presiding officer of the Utah Division of Real Estate. b. Call two or three witnesses to testify on his behalf. c. Conduct his own investigation against the Utah Division of Real Estate. d. Request an agency or judicial review. - ANSWER: d. Request an agency or judicial review. Aside from her license being revoked, what other consequences may licensee Kim face when the recovery fund pays a judgment on her behalf? a. Community service b. Disciplinary actions c. Negative credit rating d. Tax penalties - ANSWER: b. Disciplinary actions
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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d. Yes, if the check is made out to you personally - ANSWER: c. Yes, if the check goes through your principal broker. How will seller Todd pay the broker's commission? a. The closing agent disburses commissions from proceeds of the sale. b. Todd writes a check to his broker and to the brokerage firm. c. Todd writes a check to the closing agent for the broker's commission. d. Todd writes one check to his listing broker's managing broker. - ANSWER: a. The closing agent disburses commissions from proceeds of the sale. Mari, a managing broker, is opening an interest-bearing trust account. That means which of the following is true? a. Mari has received a written and notarized court order directing her to do so. b. Mari will invest the interest back into her brokerage. c. The account Mari is opening is out of state. d. The parties to this transaction have given Mari written permission to do so. - ANSWER: d. The parties to this transaction have given Mari written permission to do so. In the past week, Daisy received a summons for jury duty. She also changed the name of her business, received a speeding ticket, and racked up a library fine of $10. Which of these events does she need to report? a. Changing the name of her business b. The library fine c. The speeding ticket d. The summons for jury duty - ANSWER: a. Changing the name of her business Which of the following is a type of agency agreement? a. A land contract b. A listing agreement c. A rental agreement d. A sales contract - ANSWER: b. A listing agreement
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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What's a major benefit to a buyer if she signs a buyer representation agreement? a. It costs less. b. It guarantees representation. c. It guarantees the agent will get a commission. d. It makes the buyer look better. - ANSWER: b. It guarantees representation. Which of the following best demonstrates the fiduciary duty of disclosure? a. After an open house, you make sure to secure all of the doors and windows before you leave. b. You notify all parties of the existence of mold on the property. c. Your client tells you something confidential and you don't share it with the other party. d. You respond to all inquiries about your client's listing promptly. - ANSWER: b. You notify all parties of the existence of mold on the property. Your licensee friend, Jaymie, has just uncovered something shady in her brokerage: She overheard her associate Paolo bragging that most of his commission was paid directly to him, bypassing his managing broker. Jaymie confirmed that this was true, and told you, "I wish there was someone who could investigate this situation!" What should you tell Jaymie? a. "Me too, but there's really nothing you can do about this, given that you aren't a lawyer. It's out of your hands." b. "You should inform the Utah Association of REALTORS® so it can revoke his membership." c. "You should inform the Utah Division of Real Estate so it can investigate further." d. "You should inform the Utah Real Estate Commission at their meeting next month." - ANSWER: c. "You should inform the Utah Division of Real Estate so it can investigate further." The Utah statute of frauds stipulates the conditions under which ______ can take action on a credit agreement. a. Attorneys and judges b. Debtors and creditors c. Licensees and brokers d. Notary publics - ANSWER: b. Debtors and creditors
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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d. Under this system, those who own property that touches water have an automatic right to use it. - ANSWER: c. This system is also called "first in time, first in right." Your friend Ed tells you that he's just entered into a designated agency relationship with his seller clients. What does this mean? a. Ed is not a licensed broker, but his clients have authorized in writing that he can enter into an agency relationship with them. b. Ed's broker appointed him to represent only the sellers in a transaction. c. Ed will give some of the work to another licensee at his brokerage. d. Ed will represent both his seller clients and the buyer who's ready to make an offer. - ANSWER: b. Ed's broker appointed him to represent only the sellers in a transaction. Which of the following statements about disbursing trust account deposits in Utah is true? a. Principal brokers can't release escrow funds prior to the date of closing. b. Principal brokers may only disburse trust funds as the transaction's purchase contract specifies, as the parties direct via written authorization, or by court order. c. Principal brokers must always wait for court authorization before releasing any escrow funds. d. Principal brokers must disburse the funds within five days of receiving written notice of a closing or termination. - ANSWER: b. Principal brokers may only disburse trust funds as the transaction's purchase contract specifies, as the parties direct via written authorization, or by court order. Jerrold reviews the floor plan of the house he's going to sell. It's 3,800 square feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its asking price. What has Jerrold done? a. Active misstatement b. Exaggeration c. Intentional misrepresentation d. Puffery - ANSWER: c. Intentional misrepresentation Gerald was granted a license conditionally, pending his background check, but has just been notified that it may be revoked. What might he have done that warrants this action? a. Applied for a license within six months of course completion b. Failed to disclose a criminal conviction
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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c. Selected a broker to affiliate with prior to licensure d. Submitted to fingerprinting and a background check - ANSWER: b. Failed to disclose a criminal conviction Who is responsible for auditing brokerage firms transactional and trust account records? a. Department of Incorporation b. State district court c. Utah Division of Commerce d. Utah Division of Real Estate - ANSWER: d. Utah Division of Real Estate Consumers may file complaints against Utah licensees with which organization? a. Department of Labor b. Local police department c. Utah Department of Commerce d. Utah Division of Real Estate - ANSWER: d. Utah Division of Real Estate To claim adverse possession, a possessor must file an action to ______. a. Invoke the principle of tacking b. Meet hostile possession requirements c. Prove open and notorious possession d. Quiet title - ANSWER: d. Quiet title Tommy owns land and a water right appurtenant. Which of the following is true about this kind of ownership? a. The water right's deed of ownership is recorded separately from the land's deed of ownership. b. Tommy can only sell the land if he first removes the water right. c. Tommy can sell his water right separately from his land, but only if the state engineer gives approval. d. Tommy's water right is silently conveyed to a new owner if he sells the land. - ANSWER: d. Tommy's water right is silently conveyed to a new owner if he sells the land.
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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In Utah, generally, a person in a position of loyalty and trust is a(n) ______. a. Attorney-in-fact b. Client c. Fiduciary d. Mortgage lender - ANSWER: c. Fiduciary Sales agent Ayana just lost her appraisal license, which she first received four years ago. Which of the following is true about this situation? a. She doesn't have any obligation to disclose this to the division. b. She needs to disclose this the next time she gets her license renewed. c. She should report this to the division within 10 business days. d. Since she received it more than two years ago, she doesn't have to report its loss. - ANSWER: c. She should report this to the division within 10 business days. Shauna has just gotten a license from the division that lets her conduct her real estate business as principal broker and run her property management company as well. Shauna is a ______. a. Dual broker b. Limited agent c. Real Estate Commission member d. REALTOR® - ANSWER: a. Dual broker Utah licensees who engage in a prohibited practice as identified in Utah Code or the Administrative Rules are subject to disciplinary action, which can include which of the following? a. Fines of up to $10,000 for the first offense b. License sanctions and fines, but no imprisonment c. License sanctions, but no fine d. License sanctions, fines of up to $5,000, and imprisonment - ANSWER: d. License sanctions, fines of up to $5,000, and imprisonment Michael doesn't have a Utah real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation? a. Michael doesn't hold a real estate license in Utah. He can't be paid for helping her sell her home.
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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b. Michael doesn't need a Utah real estate license to help Nancy, so she can compensate him whatever amount they agree upon. c. Since Michael doesn't hold a real estate license in Utah, Nancy can only compensate him 1% of the sales price. d. Since Michael doesn't hold a real estate license in Utah, Nancy can only compensate him with gift cards. - ANSWER: a. Michael doesn't hold a real estate license in Utah. He can't be paid for helping her sell her home. A consumer filed suit against licensee Karen and won a judgment against her. Karen doesn't have the funds to compensate the consumer, who files a claim with the division of real estate. What are Karen's responsibilities now? a. She has to pay the division a flat fee of $1000. b. She has to repay the judgment amount and all accrued interest. c. She must repay the division the judgment amount. d. She's liable to pay the division a $500 deductible fee per successful claim. - ANSWER: b. She has to repay the judgment amount and all accrued interest. 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? a. No, because Estelle is unlicensed b. Yes, if the payment is for $200 or less c. Yes, if the payment is for $250 or less d. Yes, if the payment is for $350 or less - ANSWER: b. Yes, if the payment is for $200 or less How many hours of continuing education do licensees need to document to meet the biannual CE requirement in Utah? a. 12 b. 16 c. 18 d. 22 - ANSWER: c. 18
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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c. It states that marriage contracts don't have to be in writing to be legally enforceable. d. It was designed to protect financial institutions and their interests. - ANSWER: a. It adds further stipulations to the national version. Tonya has been asked to set up a branch office for the brokerage where she works. She has a question about one of the steps in this procedure and wants to make sure she does it right. Which of the following associations has the authority to help her? a. The Utah Association of Branch Brokerages b. The Utah Association of REALTORS® c. The Utah real estate commission d. The Utah Real Estate Lawmakers Society - ANSWER: c. The Utah real estate commission "I understand why you want a Utah buyer representation agreement," your buyer tells you. "But what's in it for me?" You answer: a. "It is required by law." b. "Without it, I owe you no duties." c. "Without it, I won't work very hard for you." d. "Without it, you are unrepresented." - ANSWER: d. "Without it, you are unrepresented." Property management standards in Utah require written property management agreements between the property owner and _____. a. The brokerage b. The property manager c. The Utah Association of REALTORS® d. The Utah Division of Real Estate - ANSWER: a. The brokerage Chloe's license in Utah lapsed 10 months ago. What's its status? a. Active b. Canceled c. Expired d. Revoked - ANSWER: c. Expired
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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Utah licensees must safely hold and account for all funds entrusted to them, which means what? a. They must deposit the funds immediately in the brokerage trust account. b. They must immediately turn the funds over to their principal broker. c. They must turn all funds received from clients over to their principal broker within five banking days. d. They must turn all funds received from clients over to their principal broker within three banking days. - ANSWER: b. They must immediately turn the funds over to their principal broker. Before applying for relief from the recovery fund, what must consumers do when they receive a judgment against a licensee for wrongdoing? a. Exhaust other legal remedies. b. Have the judgment notarized. c. Publish the notice in the local newspaper. d. Wait two years. - ANSWER: a. Exhaust other legal remedies. Esther is thinking of signing an exclusive right-to-sell agreement with broker Sully, but first she asks, "What kinds of things does this agreement cover?" How should Sully answer? a. "It includes a description of the property you're selling and my obligations to you, such as my duty to assist in negotiations." b. "It includes a description of the property you're selling, my obligations, such as showing your property, and a description of the kind of buyer we're looking for." c. "It includes the method and timing of my compensation as well as details of your financial history." d. "It includes your duties to me, such as authorizing me to proceed with the transaction, and a promise that you won't seek out your own buyer." - ANSWER: a. "It includes a description of the property you're selling and my obligations to you, such as my duty to assist in negotiations." Utah licensee Amos is helping his clients, Jim and Jana, make an offer on a property in Salt Lake City. The couple is putting down a 5% earnest money deposit on the $200,000 house. Their total down payment will equal 10% of the property's purchase price, and they're planning to obtain a conventional loan. Which of the following contracts should Amos use for this transaction? a. The Conventional Loan Deposit to Purchase Real Estate b. The Earnest Money Contract c. The Purchase Transaction Form for Utah Buyers
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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Which of these statements about the prior appropriation water management system is true? a. It's also known as the riparian water management system. b. Rights to use the water reasonably can't be forfeited. c. Those who own land that touches water also own a right to use that water. d. Water diversion is a key aspect of this system. - ANSWER: d. Water diversion is a key aspect of this system. Jamal, a Utah licensee, is listing a great new luxury property, but the owner has requested he not put any for sale signs on the property, as they are a violation of subdivision rules. Jamal knows the owner will be out of town on business for two months, so he decides to put a sign on the lawn, but plans to remove it before the owner returns. Which of the following is a true statement? a. Jamal could be subject to a fine of up to $15,000 for the first offense. b. Jamal could have his license suspended and be subject to a fine of up to $2,000. c. Jamal could have his license suspended and be subject to a fine of up to $20,000. d. Jamal could lose his license, be subject to a fine of up to $5,000, and spend time in jail. - ANSWER: d. Jamal could lose his license, be subject to a fine of up to $5,000, and spend time in jail. Which of the following situations counts as misrepresentation and can incur penalties under Utah law? a. Client Ramona wants to work with a principal broker. Agent Bryan tells her that he's an associate broker, but also explains that his years of experience and knowledge of the market make him qualified to represent her. b. Market values in a certain section of town are starting to go up, so Al includes the phrase "a great value!" when advertising a house for sale in that area. c. Maryann includes "broker with High West Properties" on her business cards because next month she'll start working for that brokerage. d. Nora advertises a property as "the prettiest in the neighborhood!" even though she thinks the house next door is nicer. - ANSWER: c. Maryann includes "broker with High West Properties" on her business cards because next month she'll start working for that brokerage. Which of these is the best definition of "water appropriation?" a. Diverting available water for a beneficial use b. Forfeiting a water right due to nonuse c. Making an offer to buy part of someone's water right
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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d. Temporarily putting a water use on hold because of drought - ANSWER: a. Diverting available water for a beneficial use You just helped your client Wayne purchase 100 acres in a nice little valley. It didn't come with any water rights. Wayne is now creating a system of pipes to bring water to his fields from a nearby river. What, if anything, should you say to him? a. Nothing. It's Wayne's property, free and clear, and he has the freedom to do what he wants on it. b. "Since you live less than half a mile away from that river, the right to divert it is yours by vicinity." c. "Water rights in Utah are carefully managed. You have to get a water right before you continue that project." d. "You just need to pay a fee to the Division of Water Rights, and you should be good to go." - ANSWER: c. "Water rights in Utah are carefully managed. You have to get a water right before you continue that project." Your friend Cambria is about to take her licensing exam but can't remember much about reporting requirements. Which of the following should you tell her? a. "Actually, you have to report any criminal activity in your past." b. "You don't have to, but it's a good idea to report felony convictions based on fraud, misrepresentation, or deceit." c. "You need to report any felony convictions, which will result in a fine from the division." d. "You only have to report criminal history involving the real estate industry." - ANSWER: a. "Actually, you have to report any criminal activity in your past." Your client asks you, "How much do you think this property will appreciate in the next ten years?" What should you answer? a. "How about we just focus on the facts of this property and not worry about speculation?" b. "I really couldn't say, but I do know a couple of professionals in that field who can tell you." c. "Oh, at least 30% since this whole neighborhood is very up and coming." d. "That shouldn't be a factor for you in purchasing this property." - ANSWER: b. "I really couldn't say, but I do know a couple of professionals in that field who can tell you." How is the amount of a new conventional loan recorded on the buyer closing statement? a. Balance due to buyer b. Buyer credit
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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The division allocates what amount each year to the Real Estate Education, Research, and Recovery Fund? a. $100, b. $150, c. $1 million d. $50,000 - ANSWER: a. $100, Terence, the CEO of a large mortgage company, has sent you 45 clients in just the last three months alone. To say thank you, you send him a check for $500, which is less than 10% of your commission from these sales. What is true about this situation? a. This act could get you in trouble, since it counts as paying a referral fee to a lender. b. This act counts as breaching a fiduciary duty to your 45 clients. c. This is allowable, since the fee is less than 10% of your commission. d. This is an effective and legal way to build rapport with a business partner and strengthen your relationship with him. - ANSWER: a. This act could get you in trouble, since it counts as paying a referral fee to a lender. Gus, a principal broker, tells his licensee Diego, "... and if you don't, it can be construed as another violation, and you'll probably get further penalties—and that means trouble!" Gus is describing the consequences for what? a. For committing fraud against a member of the real estate division or the commission b. For failing to appeal the division's initial judgment against him c. For not responding to the division's notice that it received a complaint against him d. For not reviewing the written evidence from his client that was brought to the hearing - ANSWER: c. For not responding to the division's notice that it received a complaint against him Which of the following would be considered an open listing in Utah? a. One in which anyone can find the buyer, but the listing agent still gets paid b. One in which only the person who finds the buyer gets paid c. One in which the price is negotiable within a specified range d. One in which there's no end date - ANSWER: b. One in which only the person who finds the buyer gets paid
QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+
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Sally is a Utah licensee. To whom is she allowed to give a referral fee? a. Anyone, as long as it's for less than $ b. Lenders and title companies c. Other licensees with an active license status (if it's paid through their broker) d. Other licensees with an active or inactive license (if it's paid through their broker) - ANSWER: c. Other licensees with an active license status (if it's paid through their broker) Which of these statements about the doctrine of prior appropriation is true? a. It allows and encourages the use of water for recreational activities. b. It allows everyone to have as much water as they need, as long as they have a permit. c. It helps solve the very real problems of water management in dry areas. d. It prioritizes people with larger water needs (i.e., the need to water large fields of crops) over people who have smaller water needs. - ANSWER: c. It helps solve the very real problems of water management in dry areas. Why would you fill out a nonuse application for your water right? a. To avoid forfeiting your water right for non-usage b. To protect the quality of that water c. To protect the water right against drought d. To transfer the water right to someone else - ANSWER: a. To avoid forfeiting your water right for non-usage Jayna has been showing her friend Wallace houses for almost a month. Finally, Wallace says, "let's do this!" and the two of them sign a buyer agency agreement. Which of the following best describes this action? a. Jayna and Wallace now have an agency agreement. b. Jayna is now Wallace's transaction broker. c. Wallace is Jayna's customer, but not her client. d. Wallace is no longer responsible for Jayna's actions. - ANSWER: a. Jayna and Wallace now have an agency agreement.
