Utah Real Estate Licensing - Practice Exam #1

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1. How much can a real estate agent legally accept from a lender for referring a client to the lender? *
A. $150, this is the maximum RESPA allows
B. $250, this is the maximum RESPA allows
C. $350, this is the maximum RESPA allows
D. $0, RESPA Prohibits this
2. In which of the following situations would a real estate license be required? *
A.John tells Bob that he saw a great house for sale down the road and joins him to go and see it.
B. Apartment owner Mary gives Tenant James $500 per month for collecting rent and shoveling the snow in the winter time.
C. Sally recommends to coworker Jerry that he buy a new house in her neighborhood.
D. ABC Corp. hires Agent B to lease a commercial building for a 6% commission.
3. If sally wants to only sell real estate and does not want to have any other responsibilities over other agents, what type of license should she get? *
A. Principal Broker
B. Associate Broker
C. Model Home Agent
D. Sales Agent
4. How often must licensees renew their real estate license in Utah? *
A. Every 12 months
B. Every 18 months
C. Every 24 months
D. Every 36 months
5. How many hours of continuing education must be completed each renewal cycle? *
A. 9
B. 12
C. 18
D. 24
6. How many continuing education credits that are certified as core be completed each renewal cycle? *
A. 4.5
B. 9
C. 12
D. 18
7. What would cause all of the licenses of a brokerage to be placed on inactive status? *
A. The flooding of the office
B. Death of the principal broker
C. RESPA violation of one of the agents
D. One of the agents not paying local board dues
8. How should an unlicensed assistant be compensated? *
A. Commission Based
B. Profit Sharing Based
C. Hourly or Salary Based
D. Paid based on the amount of referrals they produce
9. During the first license renewal, what must a new agent complete in order to renew their license? *
A. The 12 hour new agent course and 6 other course hours
B. 12 hours of CORE courses and 6 other course hours
C. The 18 hour new agent course
D. The 9 hour new agent course
10. What percentage of the members of the real estate commission are required to be licensed and have at least 5 years real estate experience? *
A. 20%
B. 40%
C. 60%
D. 80%
11. How many members make up the Utah Real Estate Commission? *
A. 2
B. 3
C. 4
D. 5
12. What entity is tasked with the administration and enforcement of real estate rules? *
A. The Utah Real Estate Commission
B. The Utah Division of Real Estate
C. The Utah Association of Realtors
D. Local Brokerages
13. What entity is not a government entity? *
A. The Utah Division of Real Estate
B. The Utah County Association of Realtors
C. The Utah Department of Commerce
D. The Utah Division of Water Rights
A. Commingling of Funds
B. Dishonesty
C. Neglecting Fiduciary Duties
D. All of the Above
15. Which of the following should an agent do in order to avoid losing their license? *
A. Commingle Funds within 3 business days of receiving them from the client
B. Take part in a fraud scheme
C. Make sure the fiduciary duties they have to their client are not fulfilled
D. Be honest at all times
16. The revocation of, suspension of, the placing on probation of or denial of a license by the division of real estate is an example of which of the following? *
A. Disciplinary Council
B. Disciplinary Warning
C. Disciplinary Sanction
D. License renewal
17. Agent Carl wants to give a gift to his friend James for an unsolicited referral. Which of the following gifts may Carl give legally to James? *
A. A gift card to a local store in the amount of $200
B. A new fireplace for his home installed worth $400
C. A $78 steering wheel cover for James' sportscar
D. A set of new wheels for the James' sportscar worth $500
18. What is the maximum amount you can spend on a gift for someone that gave you an unsolicited referral? *
A. $100
B. $200
C. $300
D. $150
A. 3 business days
B. 4 business days
C. 3 calendar days
D. 4 calendar days
A. Any amount below $1,000
B. Any amount above $1,000
C. $500 maximum
D, $500 minimum
A. Dual or Limited Agency
B. A commission amount over 7%
C. A commission amount over 8%
D. Submitting a counteroffer
22. Mike only helps Garrett purchase a home. What kind of agent is Mike? *
A. Universal
B. General
C. Special
D. Single
23. What type of agency relationship exists when the seller agrees to only work with one brokerage? *
A. Excluded
B. Included
C. Exclusive
D. Open
24. What type of contract exists when an exclusive right to sell listing agreement is signed? *
A. Implied
B. Express
C. Oral
D. Fraudulent
25. Agency relationships terminated by agreement of both parties is an example of which of the following? *
A. Breach of Contract
B. Court Judgement
C. Misrepresentation
D. Mutual Consent
26. Who should an agent take compensation from? *
A. The seller
B. The buyer
C. The client of the agent
D. The agent's broker
27. Which of the following is not an economic characteristic of land? *
A. Scarcity
B. Area Preference
C. Improvements
D. Beauty
28. In order for something to be real property it must be ___________. *
A. attached to the land
B. something that used to be personal property
C. valuable
D. an improvement
29. Which of the following is part of the bundle of rights? *
A. The Right to Exclude
B. The Right to Destroy
C. The Right to Trespass
D. The Right to Encroach
30. What part of the bundle of rights includes the right to control the property? *
A. The Right of Possession
B. The Right to Exclude
C. The Right to Encumber
D. The Right to Transfer
31. What should not be questioned in the determination of whether or not something is a fixture? *
A. Functionality
B. Adaption
C. Intention
D. Value
32. If the Baseline runs West to East, what runs North to South? *
A. Middle
B. Median
C. Meridian
D. Mean
33. How many acres does 4.5 sections consist of? *
A. 640
B. 2,560
C. 2,880
D. 5,760
34. In a condominium project who owns the swimming pool and sidewalks? *
A. The corporation
B. The shareholders
C. All of the individual unit owners
D. The homeowner's association
35. Bill owns a timeshare and gets to occupy the property for 1 week every 2 years. What percentage of the property is his interest? *
A. About 2%
B. About 20%
C. About 50%
D. Less than 1%
36. Which of the following are usually large real estate developments that involve the planning and development of land into residential and commercial properties? *
A. Planned Unit Developments
B. Planned Unit Departments
C. Planned Utah Developments
D. Planned Unit Divisions
37. What is the length of one side of a section? *
A. 1 mile
B. 2 miles
C. 6 miles
D. 10 miles
38. What is the length of one side of a township? *
A. 1 mile
B. 2 miles
C. 6 miles
D. 10 miles
39. Zeek sells 5 sections of land for $3,500 per acre. What would the commission be to his brokerage at a rate of 4% of the sales price? *
A. $3,200
B. $11,200,000
C. $448,000
D. $224,000
40. An address to a property is an example of which of the following description types? *
A. Metes and Bounds
B. Plat Map
C. Rectangular
D. Informal Reference
41. Who has first rights to use the water in Utah? *
A. Whoever started using it last
B. Whoever started using it first
C. Whoever lives closest to the water
D. Whoever has the most frontage property
42. Who regulates water rights in Utah? *
A. The Utah Division of Water Shares
B. The Utah Division of Real Estate
C. The Utah Department of Water Rights
D. The Utah Division of Water Rights
43. Under a riparian system, who would have the most water rights? *
A. The first one to use the water
B. The second one to use the water
C. The landowner with the biggest well
D. The landowner with the most amount of property that borders the water
44. What type of water system is used in Utah? *
A. Riparian
B. Prior Appropriation
C. Well Only
D. Irrigation Only
45. Becky owns a property in severalty. Who else is an owner of the property? *
A. Becky's Husband
B. At least one other owner
C. Nobody, only Becky is the owner
D. At least 3 other people in her family
46. Who may hold an ownership interest in real estate? *
A. People
B. Corporations
C. Government Entities
D. All of the Above
47. How many titles are held in a joint tenancy ownership with 4 owners with 2 of the owners being corporations? *
A. 1
B. 2
C. 3
D. 4
48. What gives the right to the government to construct a highway through the fields of local farmers? *
A. The first amendment
B. Eminent Domain
C. Police Power
D. The government can print money
49. Blake grants an easement to Larry to drive across his field. What type of tenement is Blake's field? *
A. Dominant
B. Servient
C. Servant
D. Dominator
50. The purpose of __________ is primarily to regulate land use and implement the community's master plan. *
A. Variances
B. Nonconforming Use
C. Zoning
D. Building Codes
51. How much equity does Mary have if her property is worth $23,000 and she has a loan of $5,000 on it? *
A. $23,000
B. $28,000
C. $18,000
D. $5,000
52. If Mike buys a property for $200,000 and invests $45,000 into it and then sells it for $560,000 what amount would be subject to capital gains taxes on the transaction? *
A. $200,000
B. $245,000
C. $360,000
D. $315,000
53. In order to do a 1031 exchange what must be done? *
A. The owner's asset must always be exchange for something worth more than the original
B. The owner's asset must always be exchange for something worth less than the original
C. The owner's asset must always be exchange for something that is "like kind" with the original
D. The owner must take a loss on the property
54. A lead based paint disclosure must be included with the REPC for homes built before which year? *
A. 1968
B. 1978
C. 1988
D. 1998
55. What must real estate agents do when selling a home built during the time that lead based paint was used? *
A. Give the buyer an information pamphlet produced by their brokerage
B. Give a workshop to the buyer about lead based paint
C. Give the buyer an information pamphlet produced by the EPA
D. Inspect the home for any lead based paint issues
56. What requires contracts to be in writing? *
A. Statue of Frauds
B. Statute of Frauds
C. Statute of Limitations
D. The Statue of Liberty
57. _______________ contracts are contracts that are yet to be completed. *
A. Executed
B. Executory
C. Offer
D. Fraud
58. The amount paid to a seller by a buyer for a property is known as which of the following? *
A. Down Payment
B. Duress
C. Earnest Money
D. Consideration
59. Winning a suit for which of the following would require a party to move forward with the terms of the contract? *
A. Monetary Damages
B. Liquidated Damages
C. Duress
D. Specific Performance
60. What should a licensee do in regards to the completion of contracts? *
A. Write the entire contract
B. Only fill in the blanks of a state approved contract
C. Nothing, agents do not get involved with contracts
D. Hire an attorney always
61. Who is the purchaser of an option? *
A. Optionor
B. Optionee
C. The seller
D. The agent
62. What gives the right to purchase a property to someone before anyone else is able to purchase it? *
A. First right to purchase
B. First right of response
C. First right of refusal
D. None of the Above
63. A listing agent charging a commission of any amount greater than what the owner is asking is what type of listing? *
A. Net Listing
B. Open Listing
C. Legal Listing
D. Exclusive Listing
64. What type of listing is illegal in Utah? *
A. Net Listing
B. Open Listing
C. High Commission Listing
D. Exclusive Listing
65. What kind of payment is due at the end of a term loan? *
A. Big payment
B. Balloon payment
C. Disclosure payment
D. Closing payment
66. Who determines whether giving a loan to a potential borrower is a good idea for the lending company? *
A. The loan officer
B. The underwriter
C. The agent
D. The borrower
67. What is the loan to value ratio of a property worth $450,000 and a loan amount of $350,000 *
A. 77.77%
B. 22.22%
C. 35%
D. 45%
68. How long does a buyer have to cancel the purchase contract for a new construction property? *
A. 5 days after signing the contract
B. 10 days after signing the contract
C. 30 days after signing the contract
D. 180 days after signing the contract
69. The income approach to estimating value is most likely to be used on which type of property? *
A. Single family homes
B. Recreational property
C. A commercial storage income property
D. Single family condominium
70. The Truth in Lending Act is part of which regulation? *
A. Regulation W
B. Regulation X
C. Regulation Y
D. Regulation Z
71. What must lenders provide to borrowers because of RESPA? *
A. Good Faith Entrance
B. Good Faith Estimate
C. Good Forth Estimate
D. Great Faith Estimate
72. At closing, the earnest money paid by the buyer would appear as which of the following on the settlement statement? *
A. Debit to the buyer
B. Credit to the buyer
C. Allowance for the buyer
D. Charge to the buyer
73. A title that doesn't have any defect that would prevent transfer of the title is known as which type of title? *
A. Marketable
B. Executable
C. Perfect
D. None of the Above
74. A property manager is paid 4% of the yearly revenue on a property with 300 units. If the average unit rents out for $750 per month, and is vacant for one month per year, how much will the manager be paid? *
A. $8,250
B. $9,000
C. $108,000
D. $99,000
75. What regulates the sale of personal property? *
A. RESPA
B. HUD
C. The Uniform Commercial Code
D. ADA
76. Which of the following was not directly affected by the Americans with Disabilities Act? *
A. Employment
B. Public accessibility
C. Telecommunications
D. Accessibility to private properties
77. What should an agent do before calling a certain number to solicit for business? *
A. Check to make sure the number is on the Do-Not-Call Registry
B. Check to make sure the number is NOT on the Do-Not-Call Registry
C. Ask his broker if it is okay
D. Call the division of real estate
78. What act requires Utah developers to submit an application to the Division of Real Estate in order to create a subdivision? *
A. The Uniform Land Sales Practices Act
B. RESPA
C. The Utah Subdivision Act
D. The Utah Construction Registry Act
79. What is the volume of a cube measuring 10 inches on every side? *
A. 100 square inches
B. 100 cubic inches
C. 1,000 square inches
D. 1,000 cubic inches
80. A property assessed at a value of $255,500 is taxed at a yearly rate of 11 mils. How much is the tax per year? *
A. $2,810.50
B. $28,105.00
C. $281.05
D. None of the Above
81. How much profit would Earl make if he buys a property for $100,000 invests $35,500 into the property and sells the property for $1 million after 10 years? *
A. $135,500
B. $864,500
C. $500,000
D. $1,000,000
82. How many square feet are an acre? *
A. 43,560
B. 43,580
C. 44,560
D. 44,580
83. How many acres are in the following property? SE 1/4, NW ¼, Sec. 8, T1S, R2W, Salt Lake Meridian *
A. 640
B. 320
C. 80
D. 40
84. What is the correct term of forcing someone to sign a contract? *
A. Duress
B. Rescission
C. Just Cause
D. Encouragement
85. The sales price of a property is the best indicator of which of the following? *
A. Market Value
B. Appraised Value
C. Market Index
D. Depreciation
86. When a trigger term is used in an advertisement, what also must be disclosed? *
A. The Capitalization Rate
B. The APR
C. The BPA
D. The COR
87. What is the correct label of a township that is located one township west of the meridian and two townships north of the baseline? *
A. T2N R2E
B. T1N R1W
C. T2N R2W
D. T2N R1W
88. What principle states that when a lower quality property is placed in an area of properties that are of higher quality, the lower quality property's value is increased? *
A. Regression
B. Progression
C. Substitution
D. Demand
89. In a township, which section is directly above section #19? *
A. 18
B. 20
C. 30
D. 29
90. Which of the following is not an example of a possible disciplinary sanction issued by the real estate commission? *
A. Ordering an education requirement
B. Revoking a license
C. Suspending a license
D. Ordering a short term jail sentence
91. Which of the following is not an encumbrance? *
A. Mortgage
B. Lien
C. Encroachment
D. Improvement
92. How deep into the earth do subsurface rights go? *
A. 10 feet down
B. 100 feet down
C. As far as the owner can dig
D. To the center of the earth
93. Which of the following is not a direct lender? *
A. Banks
B. Credit Unions
C. Mortgage companies that do not lend their own funds
D. Grandpa Eddie loaning Susan $40,000 on her first property
94. Which of the following is a listing of all of the transfers of a property? *
A. Chain of Title
B. Marketability of Title
C. Link of Title
D. Chance of Title
95. Who may a broker legally accept a referral fee from? *
A. The lender
B. The Escrow Officer
C. A Licensed Real Estate Broker
D. The Loan Officer
96. Regarding real estate transactions, what can an agent legally do with an inactive license? *
A. Represent buyers only
B. Represent sellers only
C. Act as an active agent.
D. None of the above.
97. The right to ___________ is the right to use the property as collateral for a debt or to allow other liens to be place on the property. *
A. Possess
B. Sell
C. Encumber
D. Execute
98. What term is used for the cancellation of a contract? *
A. Withdrawal
B. Rescission
C. Disappearance
D. Withholding
99. What act prohibits boycotting among real estate brokers? *
A. Sherman Anti-Trust Act
B. National Price Fixing Act
C. RESPA
D. Civil Right Act
100. What act encourages competition and discourages monopolies? *
A. Sherman Anti-Trust Act
B. National Price Fixing Act
C. RESPA
D. Civil Right Act