Utah Law Flashcards
(132 cards)
1
Q
When a principal broker has an office in a model home, how many months can it be used before a branch office must be established?
A
More than 12
2
Q
What amount of ownership of a property by a licensee is the beginning where that licensee is considered a principal in a transaction?
A
Any
3
Q
The education required of sales agents, associate brokers and brokers is:
A
Sales agent, associate brokers and broker each need 120 hours
4
Q
In Utah, what is the statutory period for the Marketable Record Title Act to affect title records?
A
40 years
5
Q
What is the grace period to renew after your license expires, after which it is too late and requires the individual to start the education and testing process over again?
A
1 Year
6
Q
The required education hours for a sales agent license may be waived if you are a member of what
A
Member of the Utah Bar Association
7
Q
The statutory requirement for becoming a broker is:
A
Active real estate licensee 3 of the last 5 years.
8
Q
T/F- is a Utah standard Lease agreement form a standard state form
A
False- the following are
Uniform real estate contract (UREC)
Blank Addendum
AITD or all inclusive trust deed
9
Q
A licensed agent asks a farmer if he can advertise the farmer’s property. The farmer agrees, and they shake hands. The sales agent then places ads in the newspaper. The licensee’s actions are improper because:
A
Permission must be given in writing before he can advertise.
10
Q
Broker A in Vernal lists a property in Roosevelt under an exclusive right to sell listing. Broker B in Roosevelt does not sell through the listing broker. This could create:
A
Double commission
11
Q
Which of the following State Approved Forms does one use to make a change to an accepted offer to purchase.
A
Addendum
12
Q
An associate broker can do all of the following EXCEPT:
a. Negotiate leases
b. Pay commissions
c. Prepare closing documents with principal broker permission
d. Take listings
A
Pay commissions
13
Q
K offers an unlicensed friend $60 for helping K sell a $50,000 home. Why is this inappropriate?
A
It violates real estate licensing laws.
14
Q
When a dispute concerning a commission arises between a broker and a sales agent, if unresolved, the complaint is handled by:
A
The courts.
15
Q
If a broker or sales agent buys a property for him or herself, he/she:
A
Must disclose that he/she is a licensed real estate broker or sales agent.
16
Q
Under what circumstances could a real estate sales agent receive a referral fee from the dealer who sells a manufactured house?
A
When the fee is disclosed in writing to all parties to the transaction.
17
Q
When the buyer and seller agree to extend the closing date, the real estate agent should:
A
Have the buyer and seller sign an addendum to the contract reflecting the change.
18
Q
Which of the following is true regarding unlicensed real estate assistants?
A
They can be paid a regular salary.
19
Q
The maximum amount that would be paid from the Utah Recovery Fund for a single transaction of a dishonest licensee is:
A
$15,000
20
Q
A timeshare development company wants to hire a licensed real estate agent to sell timeshare interests. Which of the following is true?
A
The agent must register with the R. E. Division
21
Q
According to state law, an earnest money deposit must be placed in the Real Estate Trust Account within:
A
3 banking days.
22
Q
A promissory note for earnest money must name which party as the payee?
A
Seller
23
Q
How long must a broker retain rejected offers?
A
Three calendar years following the year in which an offer was rejected or the transaction
either closed or failed.
24
Q
Who can legally pay a commission to a licensed real estate sales agent?
A
The employing broker
25
Commingling is the opposite of:
segregation
26
In order to receive payment from the Real Estate Recovery Fund, a damaged citizen must:
File suit and obtain a court judgment against the licensee.
27
You list a home that has an old well on it. The seller knows nothing about it. It is not being used now, but the seller doesn’t know who has the water rights. Where would you check to find out?
Division of Water Rights.
28
The Marketable Record Title Act
Simplifies clearing title.
29
When a person owns a condominium, they own:
The Air Space
30
At closing a seller/landlord who is holding a security deposit from a tenant must
Transfer the deposit to the Buyer
31
The following may attend the settlement for Broker A, of a transaction in Broker A’s office:
A sales agent in Broker A’s office.
32
How many different counties must be represented from the Real Estate Commission?
5
33
The commissioners are appointed by the:
Governor
34
A separate Property Management Trust Account must be opened
When the number of property management accounts reaches seven.
35
A transaction is dated May 17, 2011. When is the broker allowed to destroy the records?
January 1, 2015
36
The Utah property tax calendar is:
January 1 through December 31
37
The responsibility for the accuracy of the settlement statement belong to:
Principal broker
38
A broker may be consider commingling funds if the amount of commission funds in the Real Estate Trust Account exceeds:
$500
39
Passing results on the state real estate exam are good for:
90 days
40
A real estate agent must renew their license:
Every two years by the expiration date.
41
What are the qualification requirements for a real estate licensee to become a real estate commissioner?
Have a real estate license and five years experience in the industry
42
How many real estate commissioners sit on the commission and what is their professional background requirement if any?
Five commissioners, requiring real estate experience of four.
43
Which of the following is NOT correct regarding the Division of Real Estate and the Association of Realtors®
Separate government entities, one administering licensing and enforcement of rules, the other education and support services.
44
What is the difference between a principal broker and an associate broker
The principal broker is designated by the brokerage owner and Division is appropriately notified of the licensee functioning in the position.
45
The Director of the Division of Real Estate is appointed by the:
Director of the Department of Commerce, with approval of the Governor
46
Of the following items that an agent may change, which would NOT need to be reported to the Division of Real Estate?
Phone Number
47
Who has the responsibility to hear an appeal of a decision rendered by the Real Estate Commission?
The Executive Director of the Department of Commerce
48
An agent is allowed to sign the Receipt of Earnest Money located on the Real Estate Purchase Contract, without receiving funds in the following situation
This is never allowed.
49
What is the limit of Trust Accounts that a principal broker may have open at any given time
No limit on accounts.
50
Under what circumstance is an agent allowed to advertise a property where the owner is not a client:
With written permission.
51
Under what circumstance is a licensee allowed to solicit business and offer a referral fee to the public:
Never
52
Who has responsibility and liability for a sales agent operating from a branch office:
Principal broker and branch broker
53
T/F: agents have to pass the state test with a 70% and a broker has to pass with a 75%
True
54
How would an agent best protect the Buyers in a transaction including a riding lawn mower?
Note it as personal property included on the Real Estate Purchase Contract, and ensure a Bill of Sale is
issued at closing
55
Seller backs out of a transaction just before closing. Which of the following is are options of the Buyer?
a. Accept an amount equal to the earnest money the Buyer submitted as liquidated damages
b. Pursue in court an amount they feel they can justify and prove as damages that are above the earnest money amount.
c. Sue for specific Performance
56
Which of the following is correct in reference to a licensee when giving gifts to a client?
There is no restriction as long as the other party to the transaction is notified if they are paying the
commission in the transaction.
57
When the Buyer and Seller create a second contract that is different from the one given to the lender, what is it
Loan fraud,
Double contract
Second contract is considered a false devise
58
What State approved form is used at closing to finance a transaction and creates equitable title and does not transfer legal title?
Uniform Real Estate Contract
59
When using the state approved form, Real Estate Purchase Contract, the language in the contract states that the condition of the property will be:
Condition to be “as is”.
60
The Real Estate Division and Commission have the power to create:
Administrative Rule
61
The time frame allowed for a principal broker to retain disputed earnest money in the brokerage trust account before remitting to the Division is:
5 yrs
62
In a Guaranteed Sales Plan, all of the following are true
agreement in writing
all cost to seller to be disclosed
agent advertising a plan must disclose any conditions
63
A potential Buyer read an ad that stated, “Three bedroom home, deep backyard, in nice city location for $210,000. Phone (888) 234-5678.” When they called on this ad a real estate agent answered. What is the most accurate statement about this situation:
This is a prohibited practice referred to as blind ads.
64
Can a non-resident of Utah receive and practice with a Utah sales agent license?
Yes, if they obtain a license through the required process and place their license with an active Utah principal broker.
65
What are the requirements for a licensee upon executing contracts with clients
Must always furnish signed contracts to clients in a timely manner.
66
property management branch office must
All agents in the office are restricted to property management activity only.
branch may be managed by the principal broker of the main office
principal broker may do property management and traditional transactions
67
What happens to the sales agents’ licenses in a brokerage if the principal broker’s license expires?
They are automatically suspended and need to be activated with a change card when the broker’s license is activated.
68
What is the time period an agent has to respond to a request for information from a client?
30 days
69
All of the following are duties of an agent to a principal
Loyalty
Accountability
Obedience
70
A sales agent took a six month listing with a Seller. One month into the listing the sales agent died suddenly of a heart attract. Which statement best describes the situation as it pertains to agency:
The agency relationship continues without interruption between the Seller and the sales agent’s broker
71
Which is the most accurate statement about Limited agency:
Requires informed consent from Buyer and Seller.
72
Who is responsible for appropriation and distribution of water in Utah?
State Engineer’s Office
73
What is the difference between water rights represented by shares, vs. water rights that are appurtenant to the land?
Water shares are considered personal property while water rights appurtenant to the land are considered real property rights.
74
Time Shares in Utah
To market Time Shares in the state a sales person must be registered.
75
A lease has an initial date of February 1, 2014; and an expiration date of August 31, 2014. Which statement is correct regarding this contract:
The Utah Statute of Frauds states that it does not have to be in writing to be enforceable.
76
A licensee shall notify the division of all of the following within 10 business days by a signed statement
- entry of a plea in abeyance to a felony
- Filing of a personal or brokerage bankruptcy, if the licensee is a principal broker.
- A conviction of a misdemeanor involving financial services
77
What is required of a sales agent who holds a license from another state, of a different profession that has been surrendered or denied:
A signed notification within 10 business days if either of these occur.
78
A licensee must do the following when renewing their license
If required, complete continuing education requirements by the 15th day of the month of expiration
79
The Utah Marketable Record Title Act has a statutory period for title records of how long?
40 yrs
80
A brokerage conducts business in a new model home. How long do they have before they must register this location as a branch office?
It’s considered an exemption and therefore does not need to be registered as a branch office.
81
A brokerage opens an exhibit booth in a mall for marketing activity. How long do they have before they must register this location as a branch office?
If used more than twelve months it must be registered as a branch office.
82
Which of the following circumstances automatically satisfies the 120 hour pre-license education:
Membership in the Utah State Bar.
83
Of the following real estate forms, which are considered a Standard State Approved Form:
- Addendum to the Real Estate Purchase Contract
- All Inclusive Promissory Note Secured by All Inclusive Trust Deed
- FHA/VA Loan Addendum to Real Estate Purchase Contract
84
An agent who has a property management agreement with a landlord on a 20 unit apartment, and is holding the security deposits in a Property Management Trust Account. Who owns the actual funds in the account?
The respective tenants.
85
The most accurate depiction of condominium ownership is as follows
Air space, and additional ownership of common area.
86
Assuming a REPC is accepted on January 25th and a check for $1,000 earnest money is given the same day, what is the latest it can be deposited into the Brokerage Trust Account?
January 28
87
A sales agent asks a farmer if he can advertise the farmer's property. The farmer agrees, and they shake hands. The sales agent then places ads in the newspaper. The sales agent's actions are improper because:
The listing must be in writing before the sales agent can advertise
88
The listing must be in writing before the sales agent can advertise
Two years from the date of the class
89
K offers an unlicensed friend $50 for helping K sell a $50,000 home. This is inappropriate because:
it violates real estate licensing laws
90
If a person owns a share in a stock cooperative, so they have the right to live in their individual unit undisturbed, what do you call their rights?
Proprietary lease
91
A sales agent who offers a guarantee that if the listing does not sell within six months the agent will buy the listing, must also:
Provide complete written details of the
92
If a person perfected his/her claim under the Utah Exemption Act, the maximum protected amount a single person could get would be:
$30,000.00
93
What is the difference in educational requirements between a principal broker and an associate broker?
Associate broker needs 120 hours, principal broker needs 30 additional hours.
94
When the Division thinks a licensee is violating Utah Real Estate Law, before the hearing they may:
Issue a "Cease and Desist Order."
95
The maximum amount that would be paid from the Utah Recovery Fund for a single transaction of a dishonest licensee is:
$15,000
96
According to the rules, the broker must furnish a statement of account showing the current status of the transaction when:
it is demanded by either party, or 30 days have passed from acceptance.
97
The term for Utah's water law, which determines who gets to have rights to use and distribution of water, is:
Prior appropriation
98
Which of the following is a requirement for a licensed person to be a commissioner?
Be an active licensee for five years.
99
Who can legally pay a commission to a licensed real estate sales agent?
the employing broker
100
If a licensee has a complaint filed against him/her by a member of the public, upon receiving notice of the complaint, what is next in the complaint process?
The licensee has 30 days to respond to the R. E. Division.
101
Which of the following is NOT a purpose for the Real Estate Recovery Fund?
Pay the per diem expense of commissioners
102
Division rule
- A principal broker cannot keep part of the earnest money unless both parties agree.
- Licensees shall keep their broker informed regarding their transactions.
- Net listings shall not be taken by a licensee.
103
A timeshare development company wants to hire a licensed real estate agent to sell timeshare interests
The agent must register with the R. E. Division
104
What best describes the responsibility of the listing licensee regarding the details about the property for sale?
Make reasonable efforts to verify the accuracy of the listing content.
105
If a principal broker dies, and it is a sole proprietorship, what should be done with the records of the company?
The Division should be notified as to where the records will be stored.
106
J wanted to get a real estate license, but was a little concerned because of a past instance of getting in trouble with the law. If J had actually been convicted of the offense, how long would the wait be to be able to be licensed?
Three years for misdemeanor and five years in the case of a
107
A promissory note for earnest money should be made out in the name of the:
Seller
108
. If a person living in a condominium project did not pay their homeowner fee, what might the consequences be?
A lien would be placed against the property.
109
Where are the water right records stored?
State Engineer's Office
110
what changes need to be reported to the R.E division?
- A change of name, such as a woman who got married.
- The personal address change of a licensee.
- A personal or brokerage bankruptcy.
111
what can a property management company specifically an activity related to property management do
- Arranging for and paying for maintenance
- Negotiating agreements on behalf of the lessor.
- Advertising for buyers for the property
112
The Marketable Record Title Act
simplifies clearing title
113
State Approved Forms
Addendum, AITD or anti-inclusive trust deed, Utah Uniform Real Estate contract (UREC) Lease with an option to buy (but not just a lease)
114
In order to receive payment from the Real Estate Recovery Fund, a damaged citizen must:
file suit and obtain a court judgment against a licensee.
115
In the following sales situations, which person is required to have a real estate license?
An employee of the phone company buying property for the company.
116
If, upon examination by the Division's representative, gross mismanagement of the records is found,
- The Division could appoint a receiver.
- The Division could freeze the trust account.
- If there is an audit, the broker must pay for it.
117
Commingling is the opposite of:
Segregation
118
. How long must a broker retain rejected offers?
3 years following the year of the transaction
119
The statutory requirement for becoming a broker is:
Have three years' full-time experience as a real estate
120
unlicensed auctioneer to conduct an auction of real property must:
- The Real Estate Purchase Agreement is used and filled out by a licensee
- A principal broker is present at the auction.
- The earnest money is deposited in the broker's trust account.
121
A person who owned a condominium might own any of the properties described
A medical/dental building
A nine-hole golf course
A unit in a light industrial complex
122
If a broker or sales agent buys a property for him or herself, he/she:
must disclose that he/she is a licensed real estate broker or sales agent
123
A plumber did some work on a home. After waiting a few weeks while the owner kept promising to pay, the plumber decided to place a mechanic's lien against the property
File a lis pendens at the county recorder's office.
124
The buyer wants J, the agent, to write up the offer as a seller carry back for the financing of the sale. What statement is applicable to this situation?
J must disclose to both parties there might be a "due on sale" clause and its effect.
125
According to state law, an earnest money deposit must be placed in the Real Estate Trust Account within:
3 banking days after acceptance or as agreed to in writing
126
In the relationship between the lender and the real estate licensee
- The licensee can arrange a meeting for the lender to propose a financing plan to the client.
- The lender may send a copy of the loan estimate to the agent.
- The licensee may refer clients to specific lenders.
127
When a dispute concerning a commission arises between a broker and a sales agent, the complaint should be handled by which of the following?
the Utah Real Estate Division.
128
Why is a real estate license not sufficient when selling investment opportunities in a large real estate project that will involve multi-use properties?
It is a security and needs a securities license.
129
. The Real Estate Recovery Fund had to pay money on a real estate licensee. What happens to the agents license?
It is automatically revoked.
130
You list a home that has an old well on it. The seller knows nothing about it. It is not being used now, but the seller doesn't know who has the water rights. Where would you check to find out.
Division of Water Rights.
131
Marketable Record Title Act?
Nullifies most liens over forty years old.
132
unlicensed real estate assistants?
They can be paid a regular salary only
