Utah State Final Exam #2

1. Question

A properly filed mechanic’s lien has priority as of

a. the beginning of construction on the project
b. the last day of work on the project
c. the date the claim of lien is filed
d. the last day of work on the project, or the date of filing, whichever is earlier

2. Question

Which of the following statements is true?

a. New real estate licenses expire at midnight on December 31 of each year in which they are issued
b. Licenses are renewed for four-year periods
c. Licenses are renewed every two years
d. Licenses expire on the birthday of the licensee

3. Question

The license laws of Utah require a licensee to inform the seller that he has a real estate license if

a. the licensee is buying a home in which he will live
b. the licensee is buying property for investment
c. the licensee is buying property for a corporation he has an interest in
d. all of the above

4. Question

Residential taxes in Utah are assessed at

a. 20% of market value
b. 70% of market value
c. 45% of market value
d. 55% of market value

5. Question

The Real Estate Division director is appointed by the

a. governor
b. Department of Commerce executive director
c. elected by the licensees
d. legislator

6. Question

If a broker moves his place of business without advising the Real Estate Commission

a. his license is cancelled
b. his license may be suspended
c. he is required to retake several licensing classes
d. nothing

7. Question

To renew a license, the licensee must

a. complete 6 hours of approved education for every 6 months
b. complete 12 hours of approved education for every 6 months
c. complete 18 hours of approved education for every 12 months
d. complete 18 hours of approved education for every 24 months

8. Question

Subcontractors not employed by an original contractor must file a mechanics lien within

a. 80 days of beginning work
b. 100 days of beginning work
c. 100 days of the last day at work
d. 90 days of completion of their own work

9. Question

A real estate broker sold property on Friday morning and received a $2,000 deposit in
cash. Afraid to carry the money, he quickly deposited it in his own account in a nearby
branch of his bank. This is clearly an example of

a. judicious caution
b. conversion
c. commingling
d. cohabitation

10. Question

Regarding Utah property taxes, which of the following is correct?

a. taxes are liens on January 1 and due November 30
b. taxes are liens and are due by November 30
c. taxes are liens on November 30 and due by December 31
d. taxes are liens and are due on January 1

11. Question

The Marketable Title Act can reduce the complexity of title searches if an owner can provide evidence of a clear title for at least the previous

a. 30 years
b. 40 years
c. 50 years
d. 75 years

12. Question

A Utah broker may pay part of his commission to any of the following except

a. the salesman of a cooperating broker
b. his own salesman
c. another Utah broker
d. an out of state broker who is licensed in his own state

13. Question

Branch offices must do all of the following excep

a. maintain the same name as the main office
b. be managed by an associate broker
c. use the same trust account as the main office
d. operate under the same principal broker as the main office

14. Question

In water rights, Utah follows the doctrine of

a. correlative use
b. prescriptive use
c. prior riparian development
d. prior appropriation

15. Question

A broker places a blind ad in the paper. He has not disclosed

a. the broker’s address
b. the broker’s name
c. the sales price of the property
d. the address of the property

16. Question

If a recovery fund claim is made against a licensee, his/her license is automatically

a. subject to a director’s hearing
b. suspended
c. revoked
d. sustaining; no action can be taken unless criminally

17. Question

Farmer Smith has not used an irrigation water right for the past four years. He capped
off his well, filled in his ditches and removed all pipelines. Smiths’ water right would
likely be lost because of

a. statutory forfeiture
b. abandonment
c. adverse possession
d. rescission

18. Question

After a Real Estate Purchase Contract has been signed and accepted by all parties, the
real estate agent should deliver final copies to all parties

a. immediately
b. within three business days
c. within five business days
d. within seven business days

19. Question

Which one is not required to have a real estate license to practice?

a. trustee in bankruptcy
b. one who sells for a builder on a subdivision
c. person who lists properties but is not involved in selling
d. a property manager who just leases

20. Question

Which of the following actions on the part of a real estate broker or salesman could
result in disciplinary action by the Real Estate Division against the licensee

a. failing to submit to an owner, before his acceptance of an offer, all formal, written offers received for property listed for sale
b. quoting to prospective buyers of a property a sales price other than the one stipulated by the owner
c. failing to respond to a complaint within 10 days
d. all of the above

21. Question

The Utah Land Sales Practices Act requires developers to

a. provide a good faith estimate of closing costs
b. provide a public offering statement
c. notify prospective purchasers of a ten day rescission period
d. use any portion of the public offering statement in promotional advertising

22. Question

All of the following are requirements of real estate auctions except

a. auctions are to be conducted under the direction of a principal broker
b. auctioneer must be a real estate licensee
c. all purchases are to be written on the state approved Real Estate Purchase Contract
d. all earnest monies are to be deposited in the principal broker trust account or in an escrow agreed to in writing by the parties

23. Question

Funds received by a broker in a real estate transaction must be deposited in a trust
account no later than

a. first banking day after funds received
b. four banking days after funds received
c. within 24 hours after funds received
d. within first banking day after deal closes

24. Question

According to Real Estate License Law, a transaction and trust account record must be
kept for a minimum of how many full calendar years?

a. seven
b. six
c. three
d. two

25. Question

To obtain a Utah real estate salesman license, a person must

a. be 18 years old and complete 90 hours of approved education
b. be 21 years old and complete 90 hours of approved education
c. be 18 years old and complete 120 hours of approved education
d. be 21 years old and complete 120 hours of approved education

26. Question

If a licensee whose license has expired wishes to reinstate his license without taking
the licensing exam or taking additional hours, he must send in the appropriate fees
within

a. 15 days of the license expiration date
b. 30 days of the license expiration date
c. 60 days of the license expiration date
d. 180 days of the license expiration date

27. Question

Dual agency is discouraged; but it is allowed if the

a. agent has a disclaimer in the seller listing agreement
b. agent has properly disclosed his position to the principal broker and the real estate division
c. agent holds a broker’s license
d. agent obtains written consent from buyer and seller prior to property negotiations

28. Question

A sales agent may complete which of the following forms?

a. Listing agreement
b. Power of attorney prepared by buyer’s lawyer
c. Real Estate Purchase Contract
d. all of the above

29. Question

In order to apply for and obtain a Utah non-resident principal broker’s license, the
non-resident principal broker must

a. maintain a place of business in Utah
b. file an irrevocable consent to be sued in Utah
c. maintain a trust account in Utah
d. All of the above

30. Question

In order to be eligible for special tax treatment under the Utah Greenbelt Assessment Act

a. the land must have been used for agricultural purposes for the preceding 2 years and must be at least 5 acres in size
b. gross sales of agricultural products must have averaged at least $10,000 per year for the preceding 5 years
c. the owner must apply the Division of Real Estate for the Greenbelt classification
d. All of the above must occur

31. Question

Which of the following statements is not true regarding the homestead exemption in Utah?

a. The exemption is limited to $20,000 for a single head of household
b. It must be declared prior to the beginning of execution proceedings
c. The exemption may be claimed by a head of household on land on which the owner resides
d. Mobile homes are not eligible for the homestead exemption

32. Question

The licensing laws list several ways a license may be revoked or suspended, which of
the following is not listed?

a. Misrepresentation
b. Making false promises
c. Taking an open listing
d. Taking a net listing

33. Question

The Real Estate commission consists of 5 people who do/are all of the following except

a. meets at least monthly
b. must be from different counties
c. must all be brokers
d. serve rotating 4 year terms

34. Question

Application for water rights should be directed to

a. the city engineer
b. the county engineer
c. the state engineer
d. the civil engineer

35. Question

Double contract means

a. making two copies of a contract
b. preparing two copies of a real estate purchase contract to deceive the lender
c. holding two licenses simultaneously
d. working for two brokers at the same time

36. Question

Which of the following statements is true?

a. net listings are prohibited and should not be taken
b. it is necessary to have a termination date on a listing contract
c. the broker, upon accepting a listing submitted by a salesperson is responsible for the accuracy of the listing
d. all of the above statements are true

37. Question

If a broker has his license revoked, all agent licensees within that office

a. are placed on inactive status forever
b. can assume the broker position
c. will be inactivated, but may be transferred to another broker
d. will be subject to a hearing

38. Question

Filing a judgment lien with the clerk of the district court is known as

a. foreclosing
b. docketing
c. recording
d. forfeiting

39. Question

Duties of the Real Estate Commission include

a. establishing fees for real estate licenses
b. conducting hearings related to the conduct of real estate licensees
c. taking administrative action, in conjunction with the Executive Director, including the imposition of fines, or the suspension or revocation, or the denial of re-issuance of a real estate license
d. all of the above

40. Question

At the beginning of the fiscal year, the Real Estate Recovery Fund must maintain a
minimum balance of

a. $10,000
b. $50,000
c. $100,000
d. $150,000

41. Question

A seller’s agent should reveal all of these known facts to a prospective buyer except that

a. the zoning is inconsistent with the buyer’s intended use
b. an addition was built without a permit
c. there are serious problems with the septic system
d. the seller must sell quickly or will be foreclosed

42. Question

An owner refuses an offer exactly in accordance with a valid exclusive right to sell
listing. The owner

a. does not have to sell
b. is liable to the buyer for money damages
c. likely would be sued by the broker for specific performance
d. is liable to the buyer for specific performance

43. Question

A sales agent applicant may solicit listings and negotiate with prospects when he

a. has filed an application for a license
b. obtains his license
c. takes the exam
d. passes the exam

44. Question

Activities of a real estate salesperson may properly include all of these EXCEPT

a. buying or selling real estate as a principal
b. accepting a commission from other than his/her own broker
c. showing property on which her office has no listing
d. representing both buyer and seller in a transaction

45. Question

Commingling, one of the major reasons for revocation of real estate licenses, occurs
when a licensee

a. puts earnest money deposits in a personal account
b. engages in blockbusting
c. fails to indicate an agency relationship
d. uses unlicensed people to solicit business

46. Question

One reason a tenant prefers to sublease rather than assign the lease is to

a. reduce lease liability
b. increase leverage
c. take advantage of the difference in interest rates
d. take advantage of increase in rental value

47. Question

To be treated by the IRS as independent contractors, real estate salespeople must meet
all of these criteria, EXCEPT

a. being licensed as real estate salesperson
b. working without direct broker control
c. being paid based on sales success, not hours worked
d. having a written contract stating they will be treated as independent contractors for tax purposes

48. Question

A termination date is not required for an

a. Option
b. Exclusive right to sell listing
c. Exclusive agency listing
d. Open listing

49. Question

A licensed broker can establish a main office in

a. a room of his/her residence in a residential zone
b. the residence of one of his/her salespeople
c. a commercially zoned office building
d. a post office

50. Question

A principal broker may authorize a salesperson in the office to

a. deposit client’s money to the firm’s trust fund
b. withdraw client’s money from the firm’s trust fund
c. divert client’s money into the broker’s account
d. commingle personal funds with client’s money

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