Utah Real Estate Law Practive Questions Flashcards
When an agency situation is such that a licensee is working as a designated agent for a buyer, which party makes that designation:
a. The licensee’s principal broker
b. The Real Estate Commission
c. The Division
d. The Board of Realtors
A. An agency relationship is authorized by the client or principal, to whom full fiduciary duties are owed. A broker or client may designate an agent to represent one client to avoid another agent acting in a limited agent capacity, and clients have the right to approve the placement of that “designated” agent by a broker.
In order to obtain a real estate license in the state of Utah, the applicant must:
a. be a Utah resident
b. have a high school diploma or its equivalent
c. be 21 years of age
d. have no felony convictions
B. A high school diploma or its equivalent is required of real estate licensing in Utah. If a prospective licensee has ANY felony convictions within the past five years, they will not be granted a real estate license, regardless of the type of felony. However, older felonies are treated on a case-by-case basis.
When a licensee has a status change affecting their license information, the licensee must notify the Utah Division of Real Estate within how many days?
a. three business days
b. three banking days
c. 10 business days
d. 30 calendar days
C. According to administrative rules, any status changes must be reported within 10 business days.
In order to advertise or offer to sell property under an open listing, the licensee must:
a. have a verbal consent of the owner
b. not use the name of the brokerage, but may use the name of the property owner
c. have the written consent of the owner
d. pay for the advertisement from his own funds and NOT the funds of the brokerage.
C. An agent may NOT advertise any property without the written consent of the owner.
A sales agent license has expired. The agent may:
a. Reinstate by paying a late fee within 30 days, if the continuing education requirements are met.
b. Continue to participate in transactions provided the license is renewed within 30 days.
c. Still collect sales commissions for 30 days on transactions in process, but may not list properties until their license has been reinstated.
d. Assign the listings to another firm and collect a referral fee.
A. A licensee can reinstate their license within the first thirty days following expiration by paying a late fee. However, until reinstatement, the licensee no longer has an active license and must discontinue all license activity.
The real estate trust account must be reconciled at least:
a. monthly
b. quarterly
c. weekly
d. annually
A. This is a requirement of the law.
A principal broker may release disputed earnest money funds when:
a. the party who will NOT receive the funds gives written authorization
b. both parties release the funds to the broker
c. the Commission issues an “escrow disbursement order”
d. the Division gives written permission
A. While most brokers ask for signatures from both parties, only the party who will not receive the funds is required to sign the release.
When a promissory note is given as an earnest money or credited to the transaction, the promissory note must:
a. name the principal broker as payee
b. name the principal broker a payor
c. name the seller as payee
d. name the seller as payor
C. All promissory notes should be made payable to the seller.
At minimum, who should attend real estate settlements in Utah?
a. the sales agent and the title company
b. the principal broker or his authorized representative
c. no one if the broker has reviewed the documents prior to settlement/closing
d. the attorney for the principals
B. While the broker authorizes the title company to prepare the settlement documents, the broker is responsible to fulfill their fiduciary duty to their client. The principal broker’s authorized representative should attend any settlement in which their client will be present and review documents if the settlement will take place via mail.
A principal broker has failed to renew his license when due; this will cause the licenses of those affiliated with him to be:
a. placed on involuntary inactive status
b. revoked without prejudice
c. temporarily suspended
d. on non-renewal status
- A. Those affiliated with the brokerage will immediately have their licenses put on inactive status and must cease all real estate activity until their broker renews his license or until they associate with another broker.
Successful completion of the education required for licensing is valid for:
a. six months
b. one year and 90 days
c. 90 days
d. one year
D. An agent has 90-days in which to affiliate with a broker or place their license on inactive status with the Division of Real Estate following passing their real estate exams; however, that 90 days must be within the one year time frame in which the agent has completed his real estate classes. In NO event may the one-year limit be exceeded. Real estate pre-licensing education is only valid for one year.
A gift given by a principal broker to a buyer or seller in a transaction as an inducement to use the services of a brokerage is:
a. an illegal sharing of commissions
b. legal as long as the $150 limit is not exceeded
c. permissible
d. illegal unless solicited
C. The broker may give anything to his client or principal. The $150 limit applies to referrals from people not involved in the transaction; it is illegal to share commissions beyond the $150 limit with an unlicensed person who is not a party to the transaction.
J was convicted of possession of an illegal substance when he was 17 years old and assumed the conviction would be expunged when he became an adult and no one would ever know the conviction occurred. He is now an adult with a family. Upon completing real estate school, J indicated on his background check that there is no past record of criminal history. A records search of his background and fingerprint check reveals his past conviction. The first result of this finding is:
a. nothing will happen, because J was a minor at the time of his conviction
b. J will never be issued a license
c. J’s license may be immediately revoked
d. J must go before the Commission to explain his circumstances
C. When Jerry lied currently, he committed a serious offense. The past criminal history may not be serious or may have been a long time ago or when a person was a juvenile; still, it occurred, so when answering a question that begins with “Have you ever….” one should disclose properly. The Commission has determined that lying about a past offense is grounds for immediate revocation of the agent’s license.
Property management means engaging in the management of property owned by another with the expectation of receiving valuable consideration. Which of the following listed below would NOT be included in property management activity?
a. authorizing expenditures for repair of real estate
b. rental of tourist accommodations
c. advertising a transaction in order to secure a lease
d. accounting for funds and disbursing money collected for others
B. Nightly rentals or rentals of tourist accommodations for periods of less than 30 days are exempt from real estate licensing requirements.
Real estate activity may be defined in part as “doing business for another for a fee.” How many transactions may an individual perform, under these conditions, prior to obtaining a license?
a. none
b. one
c. three
d. six
A. The law states that any real estate transaction being done for another for a fee requires a person to have a real estate license. Prospective real estate licensees may not conduct any real estate business until their physical license arrives to them in the mail.
