Utah Law Flashcards by Scammy McGee

Trust accounts are designed for:

Holding other people’s money

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The Real Estate Trust Account can draw interest not to exceed ____%

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According to Utah Law, the earnest money must be deposited within _______ business/banking/working days

3 Days

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In the real estate trust account, the broker can deposit no more than $________ of his/her own money

$500

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If brokers place more than the allowed amount of their own money in the trust account, they are guilty of:

Commingling

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Typically, earnest money checks would be written in the name of the _____ _______.

trust account

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If there is no agreement to the contrary, can earnest money be used to complete construction?

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If there is no agreement, can large amounts of money be used as a non-refundable deposit?

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A separate property management trust account must be opened if servicing more than ____ accounts

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Which is NOT one of the ways a principal broker is allowed to disburse money from the trust account?

As directed by the lender

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T or F. Audits are ordered by the real estate division and are to be done by a certified public accountant at the expense of the sales agent.

False

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The name of the trust account must contain the words:

Real Estate Trust Account

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According to the REPC, the earnest money must be deposited in accordance with State law after:

Acceptance

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If a promissory note is taken as earnest money, it is to be kept in the transaction file and the maker of the note is called the:

Payor

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When a dispute between seller and buyer arises, the principal broker has _____ days to notify the parties involved in the dispute.

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All of the following can perform real estate activities without having a real estate license:

Persons buying or selling property for themselves
An attorney-in-fact in isolated situations
A trustee auctioning property at a Trustee’s Sale
A sheriff selling property at a Sheriff’s Sale

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To obtain a sales agent license, the sales agent candidate must do all of the following:

Pass the Utah State Exam with a score of at least 70%
Complete a real estate licensing course of 120 hours.
Be at least 18 years old.

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Which of the following does not need to satisfy the 120 hour education requirement?

Licensed attorney

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When obtaining a non-resident sales agent license,

the candidates must sign the legal form called Irrevocable Consent.

True

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If a sale fails, the broker is entitled to a portion of the earnest money only with _________ of the buyer and seller.

Written consent

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In writing an offer on a property where no certificate of occupancy has been issued, the agent is to use the REPC for:

Residential construction

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If an agent received earnest money in the following amounts, $500 cash, $500 personal check, the agent would be responsible for:

$1,000 earnest money

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How many counties does the Commission represent? 5

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Which of the following is NOT one of the three types of real estate licenses in Utah. They are:

a. Sales Agent
b. Mortgage Lender
c. Principal Broker
d. Associate Broker

b. Mortgage Lender

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21. A real estate license authorizes a person to be paid for all of the following activities EXCEPT: a. Sign documents for and in behalf of a buyer or seller b. Act as a property manager c. Negotiate the exchange of real estate d. Arrange for the purchase and/or sale of real estate

a. Sign documents for and in behalf of a buyer or seller

If a main office has a branch, the name of the branch must be:

The same as the main office

The Branch Manager must be a(n):

Associate Broker

Property managers are never required to have a real estate license.

False

People who work as secretaries in a property management office do not need to have a license.

True

Bookkeepers in a property management office must have a real estate license.

False

Property managers who are required to have a license must work under the supervision of a principal broker.

True

Resident property managers do not need a real estate license.

True

The sales office and the property management office can have different names, but agents must be assigned to one office or the other.

True

A property manager acts as a general agent of the owner.

True

Both forms of the license are the responsibility of the:

Licensee

The wall license is placed in the principal broker’s:

File

An inactive licensee must obtain ____ hours of continuing education each two years.

With regards to the complaint process, how much time is given to respond to a complaint?

30 Days

The Real Estate Division’s representative during the complaint process is:

The State Attorney General

The Licensee’s representative during the complaint process is

The agent complained against or counsel of that agent

The Real Estate Commission CANNOT suspend a license

False- They CAN

The Real Estate Commission is limited to fining the licensee up to $1,000 per violation.

False

The Real Estate Commission can fine up to $5,000 for each violation.

True

A sales agent and principal broker disagree on the split of a commission. If they cannot settle it, who would resolve the matter?

Courts

Name 3 State Approved Forms:

1. Real Estate Purchase Contract 2. Addendum 3. Real Estate Purchase Contract for Residential Construction

All of the following are State Approved Forms EXCEPT: a. Agency Disclosure Form b. Uniform Real Estate Contract c. All Inclusive Trust Deed d. All Inclusive Promissory Note

a. Agency Disclosure Form

Which of the following can a licensee NOT legally fill out?

Any form created by the principal broker under the direction of the buyer or seller.

T/F. The Commission decides which questions will be on the State exam.

False

T/F. The Commission makes rules and regulations.

True

T/F. The Director is a member of the commission.

False

The Director prepares a _____________ for the governor and the legislature each year.

Report

Candidates obtaining a non-resident broker license who choose to be principal brokers must establish a real estate ______________ in Utah.

Trust account

Records of branch office transactions are to be kept in the _____________ office or in the _________________ as appropriate.

Main, branch

There are two forms of any real estate license. They are:

The pocket and wall license

If the license is not renewed in the ____ month period after it expires, it lapses and the licensee must _____________.

12, start over

T/F. After passing the State exam, the candidate must pay for the license within 60 days and either make the license active or inactive.

False

To maintain a license, each licensee must complete _______ hours of continuing education every _____ years. The required Core Course is _____ hours of the total.

18, 2, 9

T/F. Before working for a broker or changing brokers, the Real Estate Division must be notified as required.

True

THE UTAH REAL ESTATE RECOVERY FUND ACT | The primary purpose of the Utah Real Estate Recovery Fund Act is to protect the:

Public

With regards to the Utah Real Estate Recovery Fund Act: | At the beginning of the fiscal year, the fund must have a balance of at least $____________.

$100,000

With regards to the Utah Real Estate Recovery Fund Act: | For a single transaction, no more than $___________ will be paid.

$15,000

With regards to the Utah Real Estate Recovery Fund Act: | When a license has been revoked, the licensee must wait _____ years to reapply

There's no waiting period, the funds just have to be repaid.

According to the Utah Exemption Act (The Homestead Act), exemptions are granted for debts not secured by the property. Which of the following would NOT apply? a. Mortgages b. Business debts c. Doctor bills d. Credit cards

a.Mortgages

Condominium development and ownership is governed by the:

Condominium Ownership Act

With regards to Condominiums, the taxes on the individual units (air space) and the undivided interest in the common area are considered a parcel and are paid by the _____________________.

Owner

Condominium projects can include the 4 following examples:

1- Commercial, (industrial or manufacturing projects) 2- Offices 3- Stores 4- Multiple-family residences

The law governing the distribution of water in Utah is prior appropriation, sometimes called ________ ____________.

statutory appropriation.

With regards to Water Law, other states adhere to the law of ________ ______.

riparian rights. (traditional rights, waterfront)

Shares of water are personal property and, unless specifically noted, are the property of the:

Seller

An acre foot of water contains ____________ cubic feet.

43,560

There are three categories of people who can place mechanic’s liens. 1-3 priority:

Unlicensed laborers, Subcontractors and material suppliers, General contractors

Mechanics lien ______ be placed on government property.

Cannot

Define: General contractor

An individual who arranges with someone for labor and materials

Define Mechanic's Lien:

A lien placed by a person who has integrated labor or materials into a property and has NOT BEEN PAID.

Filing a mechanic’s lien for an amount greater than the debt owed is considered to be a

Misdemeanor

Regarding the Utah Real Estate Recovery Fund Act: The source of funds include a portion of licensing fees and fines from disciplinary actions.

True

Regarding the Utah Real Estate Recovery Fund Act: To get money from the fund, wronged persons must:

Take the licensee to Court and win.

Regarding the Utah Real Estate Recovery Fund Act: The suing party must also show that the licensee has no _____________ to satisfy the judgment.

Assets

If money is paid for a licensee from the recovery fund, the license is automatically:

Revoked

Regarding the Utah Real Estate Recovery Fund Act: If the division is paid back, with interest, the licensee can reapply for a license.

True

Regarding the Utah Real Estate Recovery Fund Act: If a broker’s license is revoked, after five years that person may reapply for a:

Sales Agent License

The purpose of the Utah Exemption Act (The Homestead Act) is:

To protect only a portion of equity money.

Define Homestead:

A person's Primary Residence

The Utah Uniform Land Sales Practices Act pertains primarily to ____________.

Subdivisions.

The Timeshare and Camp Resort Act is administered by the

Division of Real Estate

A condominium is a ____ __ _________rather than a type of building.

form of ownership

If an owner fails to pay a condominium fee in a timely manner, the Homeowners' Association can place a lien on the unit

True

The owner in a co-op owns personal property in the form of a:

Stock certificate

With regards to Stock Cooperatives, the owner is assigned a unit by means of a propriety lease.

True

With regards to Stock Cooperatives, taxes are paid by the:

Co-op

With regards to Utah Water Law, the most important principle upon which decisions relative to the distribution of water are made is called _________ ___.

beneficial use.

Water rights are real property and pass with the deed unless there is a(n) _________ in the deed.

Exclusion

When applying for a water right one would apply to the office of the:

State Engineers

To check on existing water rights, one could look up the records at the:

State Engineers Office

When payment is made after a mechanic’s lien has already been filed, the mechanic must file a ____________ of lien within ______ days.

Release, 10

Mechanic’s liens can only be perfected upon default. Default occurs when: Work _________ and payment not received.

Is completed

One purpose of the Marketable Record Title Act is to extinguish _________ and _______ that are old and inactive.

Liens, encumbrances

Another purpose of the Marketable Record Title Act is to __________ and ___________ title searches and transfer of title.

Simplify, stabilize

The statutory period that must pass before the Marketable Record Title Act becomes effective is _______ years.

Which of the following is responsible for the content and accuracy of the closing statement?

Principal Broker

Who is required to attend the closing?

Either the principal broker or the principal broker's authorized representative

T/F. In a guaranteed sales program, all advertising must disclose costs and conditions of the plan.

True

An unlicensed personal assistant can do all of the following EXCEPT: a. Deliver documents b. Make appointments when the buyer or seller initiated the contact c. Place signs on property d. Make cold calls to generate business

d. Make cold calls to generate business

Give 2 examples of Blind ads:

* A newspaper ad without the name of the company. | * A “For Sale” sign or ad on an unlisted property (FSBO) by a licensee that doesn’t state owner/broker or owner/agent.

A licensee cannot advertise a property for less than the listed price without the _________ ______ of the owner.

Written consent

T/F An agent can make changes in a purchase contract based on the instructions from the client given over the phone.

False

A licensee must notify the Division of changes, such as address, name, etc. in writing within _______ days.

A licensee has an affirmative duty to disclose a possible Due on Sale clause in a loan that will be assumed or part of a wraparound.

True