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My Library > Questions: Real Estate License - Utah Law > Flashcards

Questions: Real Estate License - Utah Law Flashcards

1
Q

Who typically pays the title company’s closing fees?

A

Buyer and seller split them equally

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2
Q

If the buyer objects to something in the seller’s disclosures, what happens?

A

The seller is given a period of time in which to decide what they will do and may, but is not obligated to fix the buyer’s concern.

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3
Q

What does the term “abrogation” mean?

A

That most of the provisions of the REPC for New Construction do not survive after the transaction is closed.

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4
Q

The Statute of __________.

A

Frauds

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5
Q

The state-approved blank addendum can be used for what (name all)?

A

1) as a counter offer;
2) to change the terms of something already in the REPC ; and
3) to request the extension of a deadline or change something previously agreed to.

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6
Q

In every transaction you do as a licensee, the REPC and its addenda must represent the true and ___________.

A

Complete; or Total.

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7
Q

Where would an agent working with the buyer get the name of the seller to include on the first page of the REPC?

A

County Records

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8
Q

A seller or listing agent who willfully hides information regarding material defects in the property is committing ___________.

A

Misrepresentation

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9
Q

In order to recover monies from the Real Estate Recovery Fund, a person must do what?

A

(1) provide written notice to the Division at the time an action is taken against a real estate licensee
(2) file a petition in the court where the judgment was entered directing payment from the fund
(3) try to collect from the agent first
(4) apply for actual damages, which may not include punitive damages, attorney’s fees, interest or court costs

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10
Q

A licensee with ABC Realty wishes to show a property listed by Roadrunner Realty, but doesn’t have a buyer-agency contract signed with the buyer. Before showing Roadrunner Realty’s listing, the ABC Realty agent must do which of the following:

A

(1) notify the listing brokerage that sub-agency is requested
(2) enter into a written agreement with the listing brokerage consenting to the sub-agency and defining the scope of the agency
(3) obtain from the listing brokerage all information about the property which the listing brokerage has obtained
(4) get permission from the ABC Realty broker

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11
Q

Why must principal brokers and licensees acting on their behalf have written agency agreements with their principals?

A

To avoid representing more than one party without the informed consent of all parties.

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12
Q

The relationship between the sales agent and the broker is presumed to be a (an)

A

independent contractor

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13
Q

An agent’s commission check may be drawn from the trust account after the transaction is settled and closed. True or False?

A

False

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14
Q

The broker must maintain disputed funds from a real estate transaction in a trust account for a period of _______.

A

5 years

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15
Q

Which lien would likely be paid off first from the proceeds of a sale?

A 
(A) 1st mortgage (correct answer)
(B) junior lien
(C) IRS judgment
(D) deficiency judgment
(E) judgment for having not paid the orthodontist
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16
Q

What is likely going on when value misrepresentation and double contracting are being used in the same transaction?

A

There is a separate contract between buyer and seller in which the seller will forgive a second mortgage after closing and the property must appraise high enough to warrant that seller carry back loan.

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17
Q

In the typical foreclosure scheme, the fraudster makes money in what ways?

A

(A) Through the use of straw buyers.
(B) By double contracting.
(C) By charging an up-front fee. (correct answer)
(D) By collecting rents. (correct answer)
(E) By selling the property.

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18
Q

There are how many sections in a township?

A

36

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19
Q

After obtaining a school certificate, an applicant must take the state real estate exam within:

A

1 year

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20
Q

The UCC is concerned with

A

(A) liens on personal property. (correct answer)
(B) real estate used as collateral for a loan.
(C) title insurance policies.
(D) appraisal codes.

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21
Q

When a shelf is mounted to the wall of a home, it is considered real property because of the concept of:

A

annexation

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22
Q

The type of deed that carries with it no warranties against liens or encumbrances but that does imply the grantor has the right to convey title is known as a(n)

A

A) bargain and sale deed. (correct answer)
(B) quit claim deed.
(C) special warranty deed.
(D) reconveyance deed.

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23
Q

The north half of the SW 1/4 of the NE quarter of the 1/2 is how many acres?

A

(A) 10 (correct answer)
(B) 40
(C) 80
(D) 320

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24
Q

When a landlord does not receive the required rent from his tenant at the same time it is required the
landlord can have the tenant evicted by:

A

bring court action

25
Q

Which of the following is a characteristic of a tenancy in common?

A

(A) Undivided interest. (correct answer)
(B) Divided interest.
(C) Remainder interest.
(D) Reversionary interest.

26
Q

The Statute of Frauds applies to:

A

(A) mortgage fraud.
(B) all contracts, otherwise they are not enforceable.
(C) instruments of conveyance. (correct answer)
(D) fraudulent acts of any kind committed by a real estate licence.

27
Q

The seller and buyer are closing on November 15. The seller has already paid this year’s taxes of $2,282 which are for the entire year. How should the credits and debits be reflected on the settlement statement?

A

(A) The buyer should receive a credit of $285.30 and the seller should have a debit of $1,996.70.
(B) The buyer should have a debit of $285.30 and the seller should receive a credit of $1,996.70.
(C) The buyer should have a debit of $285.30 and the seller should have a credit for that same amount.
(correct answer)
(D) The buyer should have a debit of $1,996.70 and the seller should have a credit for that same amount.

28
Q

In a series of townships, which section number will be immediately to the west of section 7?

A

12

29
Q

L purchased a commercial lot from M based on M’s fraudulent representation as to the lot size, zoning
and sewer connections. L cannot use the parcel purchased. What remedy should L seek?

A

(A) Rescission. (correct answer)
(B) Reformation.
(C) Waiver.
(D) Specific performance.

30
Q

Which term best describes a court order to carry out the terms of a signed real estate sales contract?

A

A) Specific performance. (correct answer)
(B) Lis pendens. ***
(C) Attachment.
(D) Subpoena.

31
Q

To create a joint tenancy relationship in the ownership of real estate, there must be unities of:

A

possession, time, interest and title.

32
Q

According to the Americans with Disabilities Act, existing barriers must be removed when:

A

removal may be accomplished in a “readily-achievable manner”.

33
Q

After showing a property a number of times and not securing an acceptable offer, the broker decides to
buy the property for himself. He must do which of the following?

A

(A) Make his true position known to the seller. (correct answer)
(B) Wait until the listing expires and then make an offer to purchase.
(C) Wait until he receives an offer and then offer a higher price.
(D) Wait at least 30 days and then offer a full asking price.

34
Q

What is the rate of return on a property purchased for $75,000 and sold for $90,000?

A

(A) 12%
(B) 16%
(C) 20%
(D) 120% (correct answer)

35
Q

When a title company issues an ALTA extended policy of title insurance, such a policy usually extends coverage beyond the risks normally insured under the standard policy to include all of the following EXCEPT:

A

(A) unrecorded mechanic’s liens.
(B) unrecorded physical easements.
(C) the rights of parties in possession.
(D) the effect of zoning regulation. (correct answer)

36
Q

All of the following statements are true of the promissory note used to finance real property EXCEPT that it is:

A

(A) typically recorded. (correct answer)
(B) the written promise of the borrower to repay the loan.
(C) the fundamental loan document.
(D) signed by the mortgagor.

37
Q

An apartment lease that contains an automatic renewal clause is a:

A

A) periodic tenancy. (correct answer)
(B) tenancy for years
(C) tenancy at will.
(D) tenancy by the entirety.

38
Q

One of the keys of 1031 exchanges is that:

A

(A) the seller cannot access any of their funds from the sale of the property being exchanged, and all
funds must be invested in the purchase of another real property within the specific time limits.
(B) the buyer and seller must agree to purchase each other’s properties.
(C) all of the funds generated in the sale of the first property must be invested in the purchase of the
second property. (correct answer)
(D) the two transactions must take place within the same year.

39
Q

The most common type of syndicate is the:

A

(A) general partnership.
(B) limited partnership. (correct answer)
(C) real estate investment trust.
(D) joint venture.

40
Q

All of the following are covered under the Federal Fair Housing Act because of the addition of familial
status EXCEPT:

A

(A) condominiums that have a specific exemption as defined under a “grandfathering” provision of state
law.
(B) one or more individuals under the age of 18 living with a parent.
(C) families where one or more members are pregnant.
(D) housing

41
Q

When an agent receives an earnest money deposit, it must be deposited in the broker’s trust account
within:

A

(A) three banking days of the acceptance of an offer by all parties. (correct answer)
(B) three calendar days of the acceptance of the offer.
(C) three banking days of receipt of the money.
(D) three calendar days of receipt of the money.

42
Q

The act of transferring property to another is know as:

A

(A) alienation. (correct answer)
(B) accession.
(C) consideration.
(D) contribution.

43
Q

The owner’s title policy is:

A

(A) issued for the amount equal to the purchase price and is transferable.
(B) issued for the amount equal to the purchase price and is not transferable. (correct answer)
(C) a separate policy for the amount of the unpaid balance of the loan and is transferable.
(D) a separate policy for the amount of the unpaid balance of the loan and is not transferable.

44
Q

In the REPC, closing is defined as:

A

(A) when buyer and seller have signed and delivered all documents required by the contract and paid all
monies.
(B) four calendar days after settlement.
(C) when the proceeds of any new loan have been delivered to Seller and closing documents have been
recorded. (correct answer)
(D) when the property appraises for not less than then purchase price.

45
Q

If a subject property has a flat roof or is located on a busy street, the appraiser would typically:

A

(A) adjust the subject property down. ***
(B) adjust comparative properties without these deficits up.
(C) make concessions in the selling prices of the other properties.
(D) adjust the comparative properties without these deficits down. (correct answer)

46
Q

A hospital receives a gift of real property from an elderly couple who reserve to themselves a life estate.
The hospital is which of the following?

A

A) Grantor.
(B) Reversionary party.
C) Remainderman. (correct answer)
(D) Donor.

47
Q

Truth in Lending is part of the:

A

(A) Consumer Protection Act. (correct answer)
(B) Americans with Disabilities Act.
(C) Fair Housing Act. ***
(D) RESPA.

48
Q

Under the Truth in Lending Act, disclosure of which of the following will trigger disclosure of other credit
terms?

A

(A) 10% annual percentage rate.
(B) 10% down payment. (correct answer)
(C) No down payment.
(D) Reasonable financing available.

49
Q

To assign a contract for the sale of real estate means to:

A

(A) record a contract with the county recorder’s office.
(B) permit another broker to act for the principal.
(C) transfer one’s rights under the contract. (correct answer)
(D) allow the seller and buyer to trade places.

50
Q

A Principal Broker desires to have both a real estate sales office and a separate property management company. Which of the following is true in Utah?

A

(A) It would not be possible for the Broker to have a separate property management team.
(B) This is possible if the sales agents do sales only and the property management agents do only
property management. (correct answer)
(C) This is possible as long as the Broker has the offices in separate buildings.
(D) This is not possible because Utah does not have a separate license.

51
Q

To which of the following would you give a public offering statement?

A

(A) The buyer. (correct answer)
(B) The lender.
(C) The broker.
(D) The developer.

52
Q

What element is peculiar to a sale-leaseback transaction?

A

The property is sold on condition the new owner leases it back to the seller at the time the title
passes.

53
Q

All of the following would appear as a debit to the seller on a seller’s closing statement EXCEPT:

A

(A) balance in loan impound accounts. (correct answer)
(B) title insurance.
(C) real estate broker’s commission.
(D) payoff of existing loan.

54
Q

An accelerate clause in a mortgage or deed of trust can be enforced to make:

A

(A) the entire debt due immediately if the borrower defaults on an installment payment or other covenant.
(correct answer)
(B) the monthly payments gradually increase over the term of the loan.
(C) the mortgage cancel.
(D) the entire debt immediately due if the property is sold.

55
Q

An investor is borrowing against his existing primary residence in order to purchase a four-plex. On
January 30th, he closes on that second mortgage. He is supposed to close on the four-plex no later than January 31st, but asks the seller for an extension until February 3rd. What is the likely reason for his
extension request?

A

(A) The investor needs more time for his due diligence.
(B) Second mortgages take longer for the banks to process than first mortgages.
(C) The investor cannot access his funds from the second mortgage for three days because of
Regulation Z. (correct answer)
(D) The investor won’t have his funds from the second mortgage until February 3rd because his bank has
to arrange a wire transfer

56
Q

A person died testate. After an extensive search, no additional heirs were found. The person’s real property would transfer by

A

A. escheat to the state.
B. by descent and distribution.
C. by demise.
D. by devise. (correct answer)

57
Q

Which of the following would be future interests in a fee simple defeasible estate?

A

A. Remainder/ Reversion
B. Possibility of Reverter/ Right of Re-Entry (correct answer)
C. Reconveyance/ Redemption
D. Dower/Curtesy

58
Q

A habendum clause would be found in a/an

A

deed

59
Q

An agent received a thank you note from a lender for the referral of a buyer. The note included a $35 gift card to a local restaurant. The law that makes this kickback illegal is

A

A. Regulation Z
B. RESPA (correct answer)
C. CRA
D. ECOA

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