Licensee Conduct 1

Question 1

Amy Agent represents Bill Buyer. He has been looking for a home for 6 months. Bill finds the perfect home, which is listed by another agent in Amy’s brokerage. Amy fails to get informed consent from both Bill and the listing agent on the property before she assists Bill in writing up an offer to purchase this home. Amy is guilty of:
A: Misrepresentation
B: Commingling
C: Incompetence
D: Acting For More Than One Party In A Transaction Without Informed Consent

Answer 1

D: Acting For More Than One Party In A Transaction Without Informed Consent

Question 2

Another way to express “substantial misrepresentation” is:
A: A Big Lie
B: A False Statement
C: A Misleading Account
D: All Of The Above

Answer 2

D: All Of The Above

Question 3

statutes

Answer 3

laws that have been legislated, approved
and enacted

Question 4

administrative rules

Answer 4

are set forth by the Division of Real Estate under the direction of the Real Estate Commission under the direction of the
Director of the Division Of Real Estate

Question 5

61-2-401

Answer 5

Grounds for Disciplinary Action

Question 6

misrepresentation

Answer 6

a willful or accidental act that leads
someone to believe different from the truth

Question 7

1. Misrepresentation

Answer 7

• substantial misrepresentation, including in a licensing
  statement.
• an intentional misrepresentation
• a construed and flagrant course of misrepresentation
• a false representation or promise through an
  agent, sales agent, advertising or otherwise. * false representation or promise of a character likely to influence, persuade or induce.

Question 8

2. Acting for more than one party without the informed consent of the parties

Answer 8

• Get it in writing
• Create agency properly and quickly before
  you touch a contract.

Question 9

3. Representation

Answer 9

• Acting as an associate broker or sales agent while not affiliated with a principal broker.
• Representing or attempting to represent a principal broker other than the principle broker
  with whom the person is affiliated; or
• Representing as sales agent or having contractual relationship similar to that of sales agent with a person other than principal broker.

Question 10

License renewal

Answer 10

It is your job to keep your licensed renewed on time.

Question 11

Agent Kristen was given a $1000 Earnest Money check, which she deposited into her own business checking account. Kristen is guilty of:
A: Misrepresentation
B: Comingling
C: Failing To Keep Records
D: Incompetence

Answer 11

B: Comingling

Question 12

Agent Courtney was given a $1000 Earnest Money check, which she forgot to give to her broker. Courtney is guilty of:
A: Misrepresentation
B: Comingling
C: Failing To Keep Records
D: Failing To Remit Money That Belongs To Another

Answer 12

D: Failing To Remit Money That Belongs To Another

Question 13

Agent Dan has a friend, Jerry. Jerry has a cousin, Carrie, who wants to purchase real estate. Jerry tells Dan about his cousin, Dan helps Carrie to purchase a home in Park City. When the transaction closes, Dan gives Jerry $5000 to thank his for the referral. This is:
A: Completely Legal
B: An Example Of Paying Valuable Consideration To An Unlicensed Person
C: An Example Of Misrepresentation
D: An Example Of Incompetence

Answer 13

B: An Example Of Paying Valuable Consideration To An Unlicensed Person

Question 14

4. Messing with money

Answer 14

• Failing, within a reasonable time. To account for or remit money that belongs to another
  and comes into the person’s possession
• Commingling money -don’t put another
  persons money with your own.
• Diverting money from the purpose for which
  the money is received.

Question 15

5. Paying an Unlicensed Person

Answer 15

No unlicensed person can take anything of value as compensation
Exceptions:
* Another principle broker in another area

Question 16

6. A principal Broker paying an agent

Answer 16

• not affiliated with that broker at the time
  the commission was earned
• Generally, it’s for not getting license renewed
  in time

Question 17

7. Incompetence

Answer 17

Being incompetent to act as a principal broker, associate broker, or sales agent in such a manner as to safeguard the interest of the public. If you are unsure of what to do ask
another agent. Don’t be afraid to ask for help.

Question 18

Agent Susan has allowed her license to lapse. She continues representing her Seller, Bill, as they are days away from closing. Her broker, Bob, does not realize Susan has allowed her license to lapse. The transaction closes and Bill pays Susan her share of the commission. Bill is guilty of:
A: Misrepresentation
B: Comingling
C: Paying A Sales Agent Who Is Not Licensed
D: Acting For More Than One Party In A Transaction Without Informed Consent

Answer 18

C: Paying A Sales Agent Who Is Not Licensed

Question 19

Steven is a very busy agent. He has many clients and is having difficulty keeping his paperwork straight. After taking yet another listing, Steven fails to furnish a copy of the listing agreement to his Sellers. Steven is guilty of:
A: Incompetence
B: Failing To Furnish Copies Of Documents After They Are Signed
C: Paying A Sales Agent Who Is Not Licensed
D: Acting For More Than One Party In A Transaction Without Informed Consent

Answer 19

B: Failing To Furnish Copies Of Documents After They Are Signed

Question 20

9. Failure to Keep Records

Answer 20

Must keep records AND make them available to
the Division for inspection.
* Names of buyers and sellers (and lessors and
* lessees)
* The identification of real estate
* The sale or rental price
* Money received in trust
* Agreements from the parties

Question 21

10. Failing to disclose, in writing,

Answer 21

in the purchase, sale, or rental of real estate, whether the purchase, sale or rental is made
for that person or for an undisclosed principal. - Undisclosed principal is doing business on behalf of someone who chooses to remain anonymous in the transaction.

Question 22

Sam is a brand new agent. He is excited to learn everything about real estate. At a family party, Sam’s brother-in-law, Dan, mentions that he wants to purchase a gas station. Sam is excited to assist Dan with this transaction, although Sam knows nothing about commercial real estate. Sam proceeds with the transaction. This is an example of:
A: Incompetence
B: Failing To Furnish Copies Of Documents After They Are Signed
C: Paying A Sales Agent Who Is Not Licensed
D: An Eager Agent Who Will Go Far In Real Estate

Answer 22

A: Incompetence

Question 23

Matt, a Principal Broker, is operating a very large brokerage with more than 300 agents. He does not have the time, the energy, or the staff to supervise all of these agents. Some of them violate the law on a regular basis. Matt is guilty of:
A: Incompetence
B: Misrepresentation
C: Dishonest Dealing
D: Failing To Exercise Reasonable Supervision

Answer 23

D: Failing To Exercise Reasonable Supervision

Question 24

11. Being convicted, within 5 years

Answer 24

of the most recent application for licensure, of a criminal offense involving moral turpitude
regardless of whether: a) The criminal offense is related to real estate or b) The conviction is based on a plea of nolo contendere (no contest)

Question 25

12. Having, within 5 years

Answer 25

of the most recent application for licensure, entered into any of the following related to a criminal offense involving moral turpitude;
* A plea in abeyance agreement
* A diversion agreement
* A withheld judgement or * An agreement in which a charge was held in suspense during a period of time when the license was on probation or was obligated to comply with condition outlined by a court.

Question 26

13. Advertising

Answer 26

the availability of real estate or the services of a licensee in a false, misleading, or deceptive manner.

Question 27

14. In the case of

Answer 27

principal broker or a branch broker, of real estate or the services of a licensee in a false,
misleading, or deceptive manner.

Question 28

Laura was convicted of a felony three years ago. She feels she was completely set up by her exhusband, and that the charges were false. She is now applying for a real estate license, and decides not to disclose her felony conviction to the Utah Division of Real Estate. This is an example of:
A: Failure To Disclose A Felony Conviction
B: Failing To Exercise Reasonable Supervision
C: Misrepresentation
D: Failing To Furnish Records To The Utah Division Of Real Estate

Answer 28

A: Failure To Disclose A Felony Conviction

Question 29

15. Violating

Answer 29

or disregarding Division Orders or Rules

Question 30

16. Breaching

Answer 30

a fiduciary duty owed by a licensee to the
licensee’s principal in a real estate transaction.

Question 31

17. Any other conduct

Answer 31

involving dishonest dealing.

Question 32

18. Unprofessional conduct

Answer 32

as defined by statue or rule.

Question 33

19. Having one of the following

Answer 33

suspended, revoked, surrendered, or cancelled on the basis of misconduct in a professional capacity that relates to character, honesty,
integrity, or truthfulness:

Question 34

19. Having one of the following

Answer 34

a) A real estate license, registration, or
certificate issued by another jurisdiction
b) Another license, registration, or certificate to engage in an occupation or profession
issued by the state or another jurisdiction.

Question 35

As a sales agent or associate broker, placing a lien on real property for an unpaid commission or other compensation related to real estate brokerage services can cause you to lose your license
A: True
B: False
C: Depends On The Seller And Buyer
D: None Of The Above

Answer 35

A: True

Question 36

20. Failing to respond to a request

Answer 36

by the Division in an investigation authorized
by this chapter, including:
* Failing to respond to a subpoena
* Withholding evidence
* Failing to produce documents or records

Question 37

21. In the case of a dual licensed

Answer 37

title licensee as defined in Section 31A-2-402 a) Providing a title insurance product or service
without the approval required by Section 31A-2-405 b) Knowingly providing false or misleading
information in the statement required by Subsection 31A-2-405(2)

Question 38

22. Violating

Answer 38

an independent contractor agreement between a principal broker and a sales agent or associate broker as evidenced by a final
judgement of a court.

Question 39

23. Loan Modifications and Foreclosure Rescue

Answer 39

1. Engaging in an act of loan modification assistance that requires licensure as a mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act, without being licensed under that chapter.
2. Engaging in any act of foreclosure rescue without entering into a written agreement specifying what one or more acts of
   foreclosure rescue will be completed.
3. Inducing a person who is at risk of
   foreclosure to hire the licensee.
4. To engage in an act of foreclosure rescue by; a. Suggesting to the person that the licensee has a special relationship with
   the person’s lender or loan service
5. Falsely representing or advertising that the
   licensee is acting on behalf of:
   a. a Government Agency
   b. the person’s lender or loan servicer; or
   c. a nonprofit or charitable institution; or
   d. recommending or participating in a foreclosure rescue that
   requires a person to: i. transfer title to real estate to the licensee or to a third party with whom the licensee has a business relationship or financial interest ji. make a mortgage payment to a person other than the persons’
   loan servicer; or iii. refrain from contacting the person’s; 1. lender, 2. loan service, 3. attorney, 4. credit counselor, 5. housing counselor

Question 40

24. As a principal broker

Answer 40

placing a lien on real property, unless
authorized by law.

Question 41

25. As a sales agent or

Answer 41

associate broker, placing a lien on real property for an unpaid commission or other compensation related to real estate brokerage
services.

Question 42

Melissa, a brand new agent, has written up her first offer for her buyer clients. She is so excited. In her excitement, she forgets to furnish a copy of the signed REPC to her clients. Melissa is guilty of:
A: Incompetence
B: Failing To Furnish Copies Of Documents After They Are Signed
C: Paying A Sales Agent Who Is Not Licensed
D: Acting For More Than One Party In A Transaction Without Informed Consent

Answer 42

B: Failing To Furnish Copies Of Documents After They Are Signed

Question 43

Max had a real estate license in California 5 years ago. It was revoked by the State. He feels the charges were false. No criminal charges were ever filed. He is now applying for a real estate license and decides not to disclose his license revocation to the Utah Division of Real Estate. This is an example of:
A: Failure To Disclose A Felony Conviction
B: Failing To Exercise Reasonable Supervision
C: Failing To Disclose A License Revocation In Another Jurisdiction
D: Failing To Furnish Records To The Utah Division Of Real Estate

Answer 43

C: Failing To Disclose A License Revocation In Another Jurisdiction

Question 44

Agent David has violated his Independent Contractor Agreement with Broker Thayne. Thayne has pursued the matter in court and has obtained a judgment against David. David is guilty of:
A: Knowingly Providing False Or Misleading Information
B: Incompetence
C: Failing To Disclose A Felony Conviction
D: Violating An Independent Contractor Agreement

Answer 44

D: Violating An Independent Contractor Agreement

Question 45

Keaton, a new real estate licensee, assists his brother and sister-in-law with a loan modification. He does not have a mortgage license. This is:
A: Completely Legal, As He Has A Real Estate License
B: An Example Of Paying Valuable Consideration To An Unlicensed Person
C: An Example Of Engaging In A Loan Modification Without A Mortgage License
D: An Example Of Incompetence

Answer 45

C: An Example Of Engaging In A Loan Modification Without A Mortgage License

Question 46

Morgan, a new real estate licensee, wants to assist her best friend, Shauna, with a foreclosure rescue. Morgan’s husband works at the bank who holds the note on Shauna’s home. Morgan tells Shauna that she has a special relationship with the bank, and can help her save her home from foreclosure. This is:
A: Completely Legal, As Her Husband Works At The Bank And Can Likely Help
B: An Example Of Paying Valuable Consideration To An Unlicensed Person
C: An Example Of Engaging In A Loan Modification Without A Mortgage License
D: An Example Of Suggesting To Shauna That Morgan Has A Special Relationship With The Loan Servicer

Answer 46

D: An Example Of Suggesting To Shauna That Morgan Has A Special Relationship With The Loan Servicer

Question 47

Kyle has been a real estate agent for many years. He wants to help sellers who have fallen on hard times and cannot continue making their mortgage payments. In his listing appointments, he promises to help sellers avoid foreclosure by having them recommending the sellers transfer title to the property to him. This is:
A: Completely Legal
B: An Example Of Recommending A Foreclosure Rescue That Requires A Person To Transfer Title To The Licensee
C: An Example Of Engaging In A Loan Modification Without A Mortgage License
D: An Example Of Suggesting To The Seller That The Agent Has A Special Relationship With The Loan Servicer

Answer 47

B: An Example Of Recommending A Foreclosure Rescue That Requires A Person To Transfer Title To The Licensee

Question 48

A complaint has been filed to the Utah Division of Real Estate against Agent Alex. Alex is very busy with a number of clients and ignores the Division’s requests for records related to the transaction in question. The Division subpoena’s Alex’s records. Alex ignores this request, as well. Alex is guilty of:
A: Failing To Respond To A Subpoena
B: Withholding Evidence
C: Failing To Produce Documents Or Records
D: All Of The Above

Answer 48

D: All Of The Above

Question 49

While searching for property for one of his buyers, Agent Dan finds a beautiful home he would like to purchase for himself and his family. Dan writes up an offer and submits it to the seller, without disclosing that he, himself, is a real estate agent. This is:
A: Completely Legal, As He Is Purchasing Property For Himself
B: Incompetence
C: Misrepresentation
D: Failing To Disclose, In Writing, That The Principal Is A Real Estate Licensee

Answer 49

D: Failing To Disclose, In Writing, That The Principal Is A Real Estate Licensee

Question 50

As part of his marketing practices, Agent Ken advertises all of his listings on KSL.com. Ken continues actively advertising all of his listings even after they are sold, in order to solicit more buyers. This is:
A: Completely Legal
B: Commingling
C: Advertising The Availability Of Real Estate In A False Or Deceptive Manner
D: Incompetence

Answer 50

C: Advertising The Availability Of Real Estate In A False Or Deceptive Manner

Question 51

Amanda Agent represents Barney Buyer. After searching, Barney finds a home, & wants to make an offer on it. Amanda also likes the home as she tours it and wants to buy it for herself. After writing up Barney’s offer, she writes up her own offer, which is $5,000 less than Barney’s offer. Amanda submits both offers at the same time. This is:
A: Completely Legal
B: Incompetence
C: Acting For More Than One Party In A Transaction Without Informed Consent
D: Breaching A Fiduciary Duty Owed By A Licensee To A Principal

Answer 51

D: Breaching A Fiduciary Duty Owed By A Licensee To A Principal