Utah Real Estate Exam 2 - I

Question 1

John, a licensed broker, finds a buyer for his seller-principal, the Iams. After accepting the buyer’s offer in writing, the Iams change their minds and withdraw their acceptance. Which of the following is John’s recourse?

Answer 1

John is entitled to collect a commission.

Question 2

When a real estate company has agency agreements with both a seller and a buyer, can the buyer make an offer on the seller’s property?

Answer 2

Yes, if both parties have completed written agency agreements.

Question 3

Gene’s listing agreement with Mr. and Mrs. Wilson has expired and they have listed with a different brokerage firm. When Gene has a buyer who is interested in the Wilson property, which of the following is correct?

Answer 3

Gene cannot disclose to the buyer any offers received on the Wilson property while he had the listing.

Question 4

Fred is a real estate salesman who is often asked by buyers for assistance with securing a mortgage. He knows a lender who pays a referral fee. Should
Fred refer them to this lender?

Answer 4

No, because salespeople may only be compensated by their employing broker.

Question 5

Mitch contacts a real estate office and indicates an interest in buying a home in the community. Janet is a salesperson at the agency who meets with Mitch
during his visit. Which of the following actions should NOT be taken by Janet?

Answer 5

She may advise Mitch on how much to offer for a home in the area.

Question 6

Bonnie does not wish to enter into a buyer agency agreement, but she is interested in seeing a house they have listed. Which of the following conditions must be met in order for a salesperson from the agency to show Bonnie the listing?

Answer 6

The salesperson must provide Bonnie an agency disclosure stating that the real estate company represents the seller.

Question 7

Which of the following best describes an exclusive right-to-buy contract in Utah?

Answer 7

It is equivalent to an exclusive right-to-sell listing agreement.

Question 8

When should an Agency Disclosure form be provided to a prospective buyer or seller of real estate in Utah?

Answer 8

At the first personal meeting held for the purpose of discussing a specific
property

Question 9

Which types of agency are recognized in Utah?

Answer 9

Seller’s, buyer’s, subagency, disclosed dual

Question 10

When is a Property Condition Statement required?

Answer 10

It is not required in Utah.

Question 11

Alyse is selling her house and has no knowledge of any plumbing problems. However, the plumbing stack is seriously corroded and will require replacement soon. In the seller property condition disclosure, how should Alyse respond when asked whether she has any knowledge of plumbing systems problems?

Answer 11

Alyse has no knowledge of any problems so the

only answer is no.

Question 12

When a broker is listing a home in Utah and asks the seller to complete a property condition disclosure, which of the following statements is true?

Answer 12

Disclosure is optional as Utah is not a mandatory

property disclosure state.

Question 13

Howard represents Jim in selling his property. When potential buyers ask to see the property, which of the following is an appropriate step for Howard to take?

Answer 13

This disclosure must be made in writing on the
mandatory Agency Disclosure form and presented to the potential buyer early on so that he or she realizes they are not being represented by Howard.

Question 14

Greg is the agent for an estate that includes a detached villa in a residential community. The former owner of the villa died on the property and her cause of death was the AIDS virus. Greg also knows that a highly publicized murder took place in the villa?

Answer 14

Fair Housing Laws prohibit discussion of the AIDS

related death. The Stigmatized Property Law in Utah does not require disclosure of a murder under directly asked.

Question 15

Ryan is a broker who has listed a small office building which is in excellent condition and produces steady income. His salesperson Tom would like to purchase it as an investment. Which of the following actions is necessary in order for Tom to buy this property?

Answer 15

The only requirement is that Tom, the salesperson,

notify the owner in writing that he is a licensee. This must be done before making an offer.

Question 16

When Rick listed his house he told his broker that the basement leaked and they agreed not to tell any prospective buyers. Six months after the new buyer moved in, the basement leaked and considerable damage resulted. Because the buyer did not ask about the basement, the broker claims he is not responsible. What recourse does the buyer have?

Answer 16

The broker is required by law to disclose any fact that would materially affect the buyer’s decision to purchase a
home. The buyer can sue the broker for nondisclosure of a material fact as required by Chapter 93A of the Consumer Protection Statute.

Question 17

Christy is a real estate licensee who has signed a buyer brokerage agreement with Diana, a prospective home buyer. Christy will receive her commission from the seller and does not charge Diana a fee. Christy tells the seller that Diana could probably pay a somewhat higher amount than the seller is asking. Which of the following statements is true?

Answer 17

Christy’s disclosure violated the statutory duty of

confidentiality which she owed to Diana.

Question 18

Which of the following does NOT have to be disclosed by a real estate agent under Utah Stigmatized Property Law?

Answer 18

According to Stigmatized Property Law in Utah, a
real estate agent has no affirmative obligation to disclose ghosts, murders, and suicides. UFFI is a separate disclosure.

Question 19

Gayle, a licensed salesperson, obtains a premium listing and within a few days has interested buyers. She tells the Thompsons, “I am the listing agent for this property, and so I am very familiar with it.” Which of the following best describes Gayle’s action?

Answer 19

The Agency Disclosure form must be provided at
the first personal meeting between a prospective purchase or seller and the broker/salesperson for the purpose of discussing a specific property. Thus, she failed to property disclose this relationship.

Question 20

A broker knows that the property he represents has a roof that leaks and that its previous owner committed suicide in the garage. What is the broker required to disclose?

Answer 20

The roof leak is a material defect and must be dis-

closed. The agent is not required to disclose the suicide unless specifically asked.

Question 21

Burt is a broker who has a listing agreement with a seller. The buyer ‘s broker has learned about the property through the MLS. When should the cooperating broker identify his representation to Burt?

Answer 21

Before even showing the property, the cooperating

broker must identify who he represents.

Question 22

Bell Realty Company has entered into agency agreements with both a seller and a buyer who have signed a Dual Agency Consent Agreement. Which of the following actions may be taken by a Bell salesperson who had been working with the buyer?

Answer 22

The dual agent may not disclose financial qualifications or capabilities of either party to either party. After the buyer requests and receives market data, the salesperson may provide comparable data to the seller as well.

Question 23

Is it acceptable in Utah for a broker to “sweeten” a MLS property listing by making a blanket offer of subagency?

Answer 23

A broker may place a blanket offer of subagency

through the MLS or may offer subagency through a specific agreement between parties

Question 24

When must a brokerage relationship as agent for a buyer or seller be determined and all agreements finalized?

Answer 24

Prior to the time that a contract to purchase is

formulated, the brokerage relationship as an agent with a buyer or seller must be determined and agreements executed.

Question 25

Sam wishes to purchase a house that Charles, a broker, has for sale. Sam is also one of Charles’ clients. Which of the following is true in this situation?

Answer 25

In this situation, the seller and the buyer must con-

sent to dual agency and then there is no problem.