Utah Practice Test #3

1. Question

Which of the following are required to take and pass the real estate examination?

A person who purchases real property or a business opportunity for his own account or who in any way disposes of the same
An authorized attorney in fact
A person who intends to buy land and build homes
A person who negotiates the purchase or sale of a property for someone else

2. Question

The Real Estate Commission:

consists of five members who are appointed to four-year terms
consists of four members appointed to five-year terms
consists of five members who are appointed to five-year terms
consists of five members who have at least five years experience in the real estate business

3. Question

A real estate principal broker is alleged to have deposited a client’s earnest money deposit in his personal checking account. If the charge is true, the principal broker is guilty of:

conversion
commingling
collusion
criminal conversation

4. Question

If an owner refuses to pay the principal broker an earned commission, the principal broker may:

file an mechanic’s lien against the owner’s home
file a complaint with the Division of Real Estate
file a lawsuit against the owner
file a quiet title action naming the owner as defendant

5. Question

A sales agent’s commission is paid by:

the seller
the buyer
the principal broker
the escrow agent or other closing agent

6. Question

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

maintain a principle business location in Utah
file an irrevocable consent allo0wing service of process for legal actions to be made by the Commission or the Division
have a trust account in both states
all of the above

7. Question

A principal broker may split fees with which of the following?

An out-of-state principal broker
Any sales agent with a valid Utah real estate license
A friend who refers them a buyer
A former sales agent

8. Question

A person who is found to be operating as a real estate principal broker without a license may be fined by:

The County Attorney
The Real Estate Division
A court of law
All of the above

9. Question

The purpose of the Real Estate Recovery Fund is to:

recover funds from clients who have refused to pay earned commissions
provide funds for educating people so they can obtain a real estate license
reimburse the public for damages caused by dishonest licensees
provide funds for prosecuting licensees who have violated the rules and regulations of the Division of Real Estate

10. Question

No suit or action for a commission may be brought by a sales agent against a sellerunless the sales agent first:

proves that he was licensed at the time the listing agreement was entered and the sale occurred
gives his principle broker ten days written notice
files a lis pendens against the property at least 20 days before filing suit
none of the above

11. Question

An applicant for licensure as a real estate principal broker must meet all the following requirements except:

be eighteen years of age
have three years experience as a sales agent or substitute experience satisfactory to the Commission
complete 120 hours of education in Commission-approved courses
have a community college certificate in real estate or equivalent college-level education in real estate

12. Question

Which of the following would be grounds for suspension or revocation of a real estate license?

Charging twice the normal rate for a commission
Refusing to accept a listing
Failing to disclose agency
Not putting the listing on the Multiple Listing Service

13. Question

An applicant who fails the examination:

must submit a petition to the Commission and receive permission to retake the examination
may retake the examination by reapplying and paying the appropriate fee
may not retake the examination within 180 days
may not retake the examination within 90 days of failure

14. Question

For a first violation of the license law, which of the following criminal penalties maybe imposed?

For an individual, a $1,000 fine and/or six months imprisonment
For a corporation, a $20,000 fine
For an individual, a $1,000 fine only
For a corporation, loss of a license and a $10,000 fine

15. 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

16. Question

If a license has been on inactive status for more than one year, the licensee:

may retake the required hours of education or retake the licensing examination
must pay a fee of $300 to activate it again
may reactivate the license by submitting an application and the appropriate reinstatement fee in addition to the regular renewal fee
must complete a 12 hour re-certification course prior to reactivation

17. Question

In regard to record keeping, a principal broker is required to keep:

records relating to real estate transactions for three years following the year of the transaction
a copy of closing statements for seven years following the year of the closing
trust account records for five years following the year of the transaction
records relating to real estate transactions for five years following the year of the transaction

18. Question

The Real Estate Division will consider a real estate trust account to be commingled ifit contains the principal broker’s own money in an amount exceeding:

the amount necessary to pay the monthly service charges imposed by the bank on the account
$500
$1,000
None of the above. The account may not contain any of the principal broker’s own money

19. Question

In regard to water rights, Utah follows a(n)

Appropriation system
Riparian system
Littoral right system
All of these

20. Question

A real estate agent with a valid, active license may not legally complete

an earnest money sales agreement
any legal document necessary for a real estate transaction in which he’s acting as an agent
any legal document which is on a form approved by the Commission and which is necessary for a real estate transaction in which he is acting as a principal or agent
any legal document which is on a form approved by the Commission and which is necessary for a real estate transaction in which he is

21. Question

Which of the following do not make levies for general real estate taxes?

School boards
Counties
Police Departments
Cities

22. Question

Which of the following is the correct decimal representing one mill?

1.0
0.1
.01
.001

23. Question

If a home has an appraised market value of $100,000 and the total millage rate for allproperty tax levies is 50 mills, what would the annual property tax be?

$5,000
$500
$1,000
$100

24. Question

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

the land must have been used for agricultural purposes for at least 2 successive years and must be at least five acres in size
gross sales of agricultural products must have averaged at least $10,000 per year for the preceding five years
the owner must apply to the Division of Real Estate for the Greenbelt classification
all of the above

25. Question

A master plan for a county or municipality is adopted by:

the county or municipal
the planning commission
the land use hearing examiner
the board of adjustment

26. Question

If a landowner desires a variance from an existing zoning ordinance, the landowner would make an appeal to the

Real Estate Division
Court of Appeals
County or city Board of Adjustment
County Planning Commission

27. Question

If Subdivision A is subject to laws requiring that a plat be approved and recorded prior to the sale of land in the subdivision, which of the following consequences would not occur if the developer records the plat and commences sales without first obtainingthe necessary approvals?

The recording is deemed void
Any sales are automatically cancelled
The developer is guilty of a misdemeanor
The subdivision is forfeited to the county

28. Question

If a transaction is subject to the Utah Uniform Land and Timeshares Sales Practices Act, the developer must do all of the following except:

register the development with the Office of Interstate Land Sales Registration
give each prospective purchaser a public offering statement
notify each prospective purchaser of his right to rescind
permit each purchaser to rescind a purchase agreement up until the fifth day following signature with or without cause

29. Question

Once a developer has properly registered a subdivision or development, the publicoffering statement:

may be used in its entirety in advertising or promotional activity by the developer
may be used in whole or in part, as long as excerpts do not distort the meaning of the disclosure statement
may only be used in its entirety, but particular words or phrases may be italicized or printed in bold by the developer in order to emphasize certain elements, as long as no words are changed or deleted from the registered offering statement
may not be used in advertising or promotional activity by the developer

30. Question

Utah recognizes:

appropriative water rights
riparian water rights
littoral water rights
all of the above

31. Question

Established water rights may be lost through statutory forfeiture if the water right isnot exercised for:

one year
five years
seven years
20 years

32. Question

Which of the following steps in a mortgage foreclosure must occur first:

sheriff’s sale
sheriff’s deed issued
acceleration of the note
statutory period of redemption

33. Question

All of the following are true in regard to a deed of trust foreclosure, except:

the trustee has the power of sale
the trustee may issue a deficiency judgment if the sale proceeds do not satisfy the debt
the buyer at the trustee’s sale is entitled to a trustee’s deed without waiting for a period of redemption
the debtor must be given notice of default

34. Question

A double contract would most likely be created between a

broker and a seller
buyer and a seller
mortgage broker and a seller
two brokers representing principals

35. Question

Which of the following is true regarding unlicensed assistants?

They can be paid a base salary plus a bonus with each closing
They can make phone calls trying to solicit buyers or sellers
They can answer questions at open houses when the agent is not present
They can be paid a regular salary and answer questions off a preprinted flyer

36. Question

If a person owns three parcels of real estate and a money judgment is entered againsthim, the judgment will create a lien against:

only the property which was the subject of the lawsuit
the property first acquired
only properties which are not homestead property
all three properties

37. Question

If a money judgment is entered against Martin on June 1, 1970 and docketed in Sagebrush County on June 6, 1970, it would not constitute a lien against which of the following properties:

Martin’s home which was purchased in April, 1970 and on which a homestead was declared on May 10, 1970
Five acres of vacant land purchased on July, 1975
A vacant lot purchased June 4, 1970
A ten-unit apartment building purchased August 10, 1979

38. Question

Which of the following statements are true regarding the homestead exemption in Utah?

The exemption is limited to $8,000 for a single head of family
It must be declared prior to the beginning of execution proceedings
The exemption may be claimed by a head of family on land on which the owner resides
Mobile homes are not eligible for the homestead exemption

39. Question

Which of the following liens would be given the highest priority?

The real estate taxes for the current year
A mortgage recorded January 15 of last year
A judgment that was docketed today
A mechanic’s lien that was property recorded after the mortgage was recorded for work that began before the mortgage was recorded

40. Question

If several mechanic’s liens have been filed against a property and the sale proceedsare not enough to satisfy all the mechanic’s liens, which would be paid off first?

Original contractors
Subcontractors
Laborers working by the day
Construction Mortgage

41. Question

The priority date for a mechanic’s lien is:

the date the claim of lien is recorded
the date the original contractor’s claim of lien is recorded
the date work was finished or halted on the project
the date that work started on the project.

42. Question

If Carl McIntosh has a wife and three dependent children, what would be the maximum homestead exemption claimed on their residence?

$8,000
$20,000
$40,000
The maximum would depend upon the amount of their equity in the home

43. Question

A condominium could be:

ownership of a single unit in a multi-unit industrial park, together with an interest in common areas and facilities of the project
ownership of a single apartment in a duplex, together with an interest in common in the common areas and facilities of the duplex
ownership of space in a multi-unit project, together with an interest in common of the common areas
all of the above

44. Question

For federal income tax purposes, limited partnerships are taxed as:

corporations
nonprofit corporations
subchapter “S” investment trusts
none of the above

45. Question

In a cooperative apartment project, the owners:

have leases to their apartments instead of deeds
may be required to pay additional amounts for mortgage or tax payments if some owners fail to make their monthly assessment payments
can be evicted
all of the above

46. Question

To terminate a lease:

the landlord must give at least five days notice to terminate a tenancy at will
either party may terminate a periodic estate with five days notice before the rent day
either party must give written notice anytime before the lease expires
either party can just violate the lease terms and declare it void

47. Question

To initiate an unlawful detainer action, the property owner must first:

return the tenant’s security deposit
give the tenant five days notice to pay or surrender
give the tenant three days notice to pay or surrender
have the sheriff serve the tenant with a writ of possession

48. Question

Which of the following is/are necessary in order to acquire ownership by adverse possession?

Implied permission from the owner to occupy the property
Payment of taxes
Using the property without the owners consent
Both B & C

49. Question

In order to acquire an easement by prescription, the prescriptive user must establish all the following elements of adverse possession, except:

use without permission
color of title
continuous use
open and notorious use

50. Question

The Marketable Record Title Act provides protection against claims arising out of:

adverse possession
prescriptive sue
utility easements
none of the above

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