Utah Practice Test #2

1. Question

All of the following would be required to have a real estate license, except:

a property manager collecting rents for the property owner
a property owner leasing an office in his own five-story office building
a person taking a listing on a business opportunity
a person who deals in options on a fee or commission basis

2. Question

If a real estate licensee is acting for an undisclosed principal:

he should not disclose that fact to the seller
he is permitted to disclose to the seller that he is acting for an undisclosed principal, but agency law prohibits the name of the principal
he must disclose in writing that he is acting for an undisclosed principal
none of the above. A real estate licensee should never act on behalf of an undisclosed principal because he would then be guilty of constructive fraud

3. Question

When an earnest money agreement has been prepared by a real estate licensee andsigned by both buyer and seller, a copy should be given to each party:

immediately
within three business days of signature
within three business days of closing
within a reasonable time

4. Question

In Utah, administration of the law governing the licensing of real estate brokers andsales agents is the responsibility of the:

Division of Real Estate
state legislature
state and county courts
real estate commissioners

5. Question

To appeal the revocation of his license, a real estate sales agent:

should appeal to the Utah Supreme Court
should ask the State Attorney General to review the revocation hearing
should appeal the suspension to the district court within 30 days
file an appeal with the Division of Real Estate

6. Question

A real estate license would not be necessary for:

a sales agent who sells only for a builder
a sales agent who sells lots to builders only
an executor who sells property of an estate for a commission or a fee
a sales agent who only lists property and does not sell to buyers

7. Question

In a suspension or revocation hearing, the accused licensee:

must appear in person
must be given written notice of the hearing
must provide an adequate defense
all of the above

8. Question

Upon being notified of passing the examination, a license applicant must pay theappropriate license fee within:

30 days
60 days
90 days
Six months

9. Question

When a sales agent or associate broker ceases to represent a principal broker:

the license is cancelled
written notice must be given to the Division
the principal broker must return the license to the sales agent of associate broker who is leaving
the sales agent or associate broker must give his pocket card to the principal broker

10. Question

The first requirement for a principal broker who wishes to sue a client for acommission is

to find a ready, willing and able buyer
to have a listing agreement
to have a valid license
to have a proper employment contract with the sales agent who negotiated the listing

11. Question

Which of the following practices could result in license revocation or suspension?

Accepting compensation from more than one party in transaction without making a full disclosure
Felony fraud conviction
Incompetence
All of the above

12. Question

An earnest money deposit received by a sales agent should be turned over to the:

seller of the property
the Real Estate Commission
the sales agent’s principle broker
the seller’s attorney

13. Question

A real estate sales agent should normally advise a husband and wife who are buying ahome to take title as:

joint tenants
tenants in common
community property
none of the above. A real estate sales agent should not give advice on this subject

14. Question

When a real estate licensee misrepresents facts in a property transaction, he may besubject to:

civil lawsuit for damages
criminal fines or imprisonment
license suspension or revocation
all of the above

15. Question

A real estate broker sold a piece of property late Tuesday afternoon and received$2,000 in cash as an earnest money deposit. It was too late to reach the bank where thetrust account was located, and the broker did not want to carry the cash so he put it inhis personal account in a nearby branch. The next day he withdrew the money anddeposited it in the trust account. This is an example of:

judicious caution of handling of trust funds
commingling
conversion
stealing

16. Question

A licensee who places a blind ad has failed to disclose:

the licensee’s status as a real estate licensee
the name of the principal broker
the listing price of the property
the phone number of the listing agent

17. Question

A real estate sales agent who has a valid active license may accept compensationfrom:

his employing principal broker
any licensed principal broker in the United States
any Utah licensed principal broker
any client with whom he has a written agreement

18. Question

According to the real estate license law, a principal broker must keep transaction andtrust account records for:

90 days following closing or failure of the transaction to close
90 days following execution of the document or the trust account transaction
three years following signature of the listing agreement or the trust account transaction
three years following the year in which the transaction occurred

19. Question

All of the following are requirements for a sales agent’s license, except:

18 years of age
passing the examination
high school degree or G.E.D. certificate
completion of 90 hours of classroom education in courses approved by the Commission

20. Question

Which of the following statements are true regarding the Real Estate Recovery Fund?

The purpose of the fund is to provide revenue for the real estate education and to provide a fund to compensate members of the public who are defrauded by real estate licensees
If payment is made out of the fund on account of a real estate licensee, it is not grounds for suspension or revocation of his or her license
If there is money left over at the end of a year, the money is divided equally among all the people who were paid out that year
This money is managed by the Associations

21. Question

Which of the following is supported in whole or part by real property taxes?

School districts
Counties
Cities
All of the above

22. Question

If a property owner has a house on a lot that is owner occupied, which have acombined market value of $90,000, what would be the assessed value for property taxpurposes?

$9,000
$27,500
$49,500
$90,000

23. Question

To avoid delinquency, real property taxes must be paid by:

January 1
January 15
November 30
December 31

24. Question

Arrange the following steps in subdivision development in the proper order:I. Record the subdivision plateII. Obtain approval of subdivision plat from planning commissionIII. Sales may be made

I, II, III
II, III, I
III, II, I
II, I, III

25. Question

The Utah Uniform Land and Timeshares Sale Act is administered by:

The BIM
the Department of Natural Resources
the Division of Real Estate
the Office of Interstate Land Sales Registration

26. Question

The Uniform Land and Timeshare Sales Act:

permits a purchaser to rescind a purchase agreement up until the fifth day following signature, upon showing good cause
permits a purchaser to rescind a purchase agreement up until the fifth day following signature, with or without cause
permits a purchaser to rescind a purchase agreement up until seven days following signature, upon showing good cause
permits a purchaser certain rescission rights for vacant land but not for timeshare purchases

27. Question

In Utah, water rights may be lost through:

statutory forfeiture if there is a four year period of non-use
abandonment
lack of water
all of the above

28. Question

If the sale proceeds at a mortgage foreclosure sale exceed the amount necessary topay the costs of sale and satisfy the mortgage, the excess:

is paid to the mortgagor
is paid to the mortgagee
is held in trust by the trustee
is paid to the county

29. Question

A termination date is not required for an

Option
Exclusive right to sell listing
Exclusive agency listing
Open listing

30. Question

The successful bidder at a sheriff’s sale receives a:

certificate of sale
deed in lieu of foreclosure
sheriff’s deed
trust deed

31. Question

Following recordation of the notice of default by the trustee under a deed of trust:

the beneficiary has the right to accelerate the note and refuse anything other than full payment from the borrower
the borrower has up to three months to reinstate the note
the sheriff is required to advertise the sale at least once a week for three weeks preceding the sale
the borrower has six months to redeem the property

32. Question

In the case of a forfeiture of a real estate contract, the vendor may retain as liquidateddamages:

no more than ten percent of the purchase price
no more than 20 percent of the payments received
no more than one-third of the payments received
none of the above

33. Question

The debtor always has a right of redemption following foreclosure and sale under a:

mortgage
deed of trust
real estate contract
all of the above

34. Question

An involuntary lien is a lien which:

is signed by the property owner under financial duress
is placed against the property against the express wishes of the property owner
does not require the consent of the property owner
occurs without the necessity of recordation by property owner or creditor

35. Question

Which of the following could be homesteaded?

A triplex, one-third of which is owner-occupied
A family dwelling with a fair market value of $150,000
A family dwelling with a fair market value of $8,000 if claimant is single
All of the above

36. Question

A judgment lien is an enforceable lien:

until the debtor has sufficient funds to pay the judgment
for one year following filing
for eight years after the judgment is docketed
only in the county where the judgment is rendered

37. Question

Arrange the following liens according to their priority:I. A mortgage recorded March 17II. A judgment docketed April 23III. A mechanic’s lien filed September 29 for work which began February 27 and was completed July 15IV. Property taxes under a special levy passed by the county voters on November 12

I, II, III, IV
III, I, II, IV
IV, I, II, III
IV, III, I, II

38. Question

A properly declared homestead provides limited protection against:

judgment liens
mechanic’s liens
mortgage liens
all of the above

39. Question

Everett Jones is a single parent in financial straits. He has four children and onegrandchild who are dependents living in his house. The house is worth approximately$85,000 and has an outstanding mortgage of $45,000. A judgment in the amount of$25,000 was recently entered against him. The judgment creditor is attempting to haveJones’s house sold by the sheriff to pay the $25,000 judgment. Jones filed a properdeclaration of homestead the day after the lawsuit was filed against him.

The creditor may force the sale of the property because the declaration of homestead was not filed until after the lawsuit was filed
The creditor may not force the sale of the property because the declaration of homestead was filed prior to the time indicated in the notice of the sale
The creditor may force the sale of the property because there is sufficient equity in the property to pay the homestead exemption amount and the judgment
The creditor may not force the sale of the property because homestead property is protected from execution and sale to satisfy judgments

40. Question

A syndication can be a:

General partnership
Corporation
REIT
All of the above

41. Question

The minimum number of persons necessary for a corporation is:

one
two
thirty-five
one hundred

42. Question

Which of the following statements best describes a condominium ownership interest?

An undivided interest in the whole
A separate interest in a unit space and undivided interest in the common areas
An undivided interest in common in the unit space and a separate interest in the common areas
A separate interest in the whole

43. Question

A condominium may be:

Residential apartments
Commercial offices
Industrial Properties
All of the above

44. Question

In which of the following business organizations would the personal assets of theprincipals be subject to claims of creditors of the organization?

Corporation
Partnership
Limited partnership
None of the above

45. Question

If a landlord retains any of a deposit on a residential property, the tenant must begiven an itemized list of the deductions

at the termination of the lease
within 14 days of termination of the lease
within 30 days of termination of the lease
within a reasonable length of time after termination of the lease or the time the tenant vacates, whichever occurs later

46. Question

If a lease is assigned, the assignee becomes:

primarily responsible for the rent
secondarily responsible for the rent
the lessor
the lessee

47. Question

All of the following could result in termination of a lease, except:

failure to pay rent
breach of warranty of habitability
use of the premises according to terms of the lease
breach of covenant of quiet enjoyment

48. Question

A holdover tenant may be held liable for:

three times the rent accruing after termination
breach of the warranty of quiet enjoyment
rent for the entire month they leave during
damages to the next tenants

49. Question

An adverse possessor who has color of title:

must pay taxes during the adverse possession period of seven years
is deemed to be in possession only of the property which is actually enclosed, cultivated, improved, or irrigated
is in possession without a deed, will or other document which supports to convey title
all of the above

50. Question

The Utah Marketable Title Act provides some protection to property owners whohave a chain of title which can be traced to a recorded document at least:

seven years ago
ten years ago
20 years ago
40 years ago

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