Utah Real Estate Licensing - Practice Exam #2

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1. Which type of agent is most likely to have a power of attorney to act in the name of their client? *
A. General Agent
B. Special Agent
C. Buyer Agent
D. Universal Agent
2. If a floor costs $7.89 per square foot installed, what is the cost to install the floor in a department store with the floor dimensions of 100 yards x 500 feet? *
A. $394,500
B. $1,183,500
C. $789,000
D. $500,000
3. Agents that deceive people in marketing materials may lose their license for which of the following reasons? *
A. Misrepresentation and False Advertising
B. Honesty
C. Loyalty
D. Dual Representation
4. How many TOTAL hours of continuing education must be completed per renewal period? *
A. 24
B. 20
C. 18
D. 16
5. Who is the owners of a condominium building's individual units? *
A. Individual unit owners
B. A corporation with shareholders
C. The local government
D. The homeowner's association
6. Who appoints members to the Utah Real Estate Commission? *
A. The Utah Division of Real Estate Board
B. The Utah Division of Real Estate Director
C. Utah Brokers and Agents
D. The Governor of the State
7. What percentage of the members of the real estate commission are not required to hold an active real estate license? *
A. 10%
B. 20%
C. 80%
D. 10%
8. According to the Fair Housing Act, a potential renter should only be denied based on which of the following: *
A. Color
B. Race
C. Religion
D. Financial Qualifications
A. $50
B. $500
C. $5,000
D. $50,000
A. 5 Business Days
B. 5 Calendar Days
C. 3 Business Days
D. 3 Calendar Days
11. Who may an agent legally take compensation from for real estate services? *
A. Only the title company
B. Only the buyer
C. The buyer or seller
D. Only the agent's broker
A. Evidence of affiliation with a broker
B. Marketing Plan
C. Proof of completing 24 continuing education credits
D. Licensing Exam Score
13. Broker Gary sells a property for $1,299,000 and earns a 3.75% commission. How much was the commission? *
A. $37,500.00
B. $4,871.25
C. $1,299.00
D. $48,712.50
14. What must a new licensee do in the first renewal period to renew a license? *
A. Qualify as a broker
B. Take the 12 hour new agent course
C. Sell at least 5 properties
D. Take at least 18 continuing education credits certified as Core.
15. 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
16. 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.
17. If Agent Kary wants to buy a gift for a friend that referred a client, what is the maximum amount that Kary may legally spend on the gift? *
A. $50
B. $100
C. $150
D. $200
18. If George owns 25% of a joint tenancy property, how many total parties have an ownership interest in the property? *
A. 1
B. 2
C. 3
D. 4
19. 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
20. The Bundle of Rights Includes which of the following items? *
A. Right of Ownership
B. Right of Title
C. Right to Transfer
D. Right of Settlement
21. Representing a buyer and seller on the same transaction is illegal unless... *
A. The buyer gives written approval
B. The seller gives written approval
C. The Utah Division of Real Estate gives written approval
D. The buyer and seller give written approval
22. Agents may only give a thank you gift to a friend for which type of referral? *
A. Bribed
B. Solicited
C. Unsolicited
D. A referral of a buyer only
23. Representing a buyer and seller on the same transaction is which of the following? *
A. Single Representation
B. Single Agency
C. Dual or Limited Agency
D. Double Contracts
24. 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
A. Only $1,000 of the broker's own funds should be deposited in it
B. Brokers should use it as the operating account to pay commissions to agents
C. Only $750 of the broker's own funds should be deposited in it
D. The broker should keep accurate records of the account activities
26. How often must licensees renew their real estate license in Utah? *
A. Every 6 months
B. Every year
C. Every 2 years
D. Every 5 years
27. For how many years does a real estate commission member serve for? *
A. 1
B. 2
C. 3
D. 4
28. Revealing important information to a client is an example of which fiduciary duty? *
A. Care
B. Confidentiality
C. Loyalty
D. Disclosure
29. Which of the following is real property? *
A. A car
B. Land with a shed built on it
C. A temporary swimming pool
D. A camping trailer parked on 3 acres
30. Which of the following should you do as an agent in working with the public? *
A. Keep Secrets about who you represent or about your licensee status or broker affiliation
B. Disclose confidential information
C. Mislead people
D. Disclose your status as a real estate licensee
31. What type of lease has a defined start and ending date and does not require the landlord to give notice to the tenant to move out on the ending date? *
A. Estate for Years
B. Period to Period
C. Estate at Will
D. Sale and Leaseback
32. In Utah, which of the following is not a type of available license? *
A. Sales agent
B. Principal broker
C. Associate broker
D. Model home agent
33. What act prohibits kickbacks from lenders to real estate agents? *
A. RESPA
B. UCC
C. HUD
D. GFE
34. Which of the following statements is not true? *
A. Without a Broker's license an agent may not conduct real estate transactions unless affiliated with a broker.
B. Sales agents may also work as employees of a broker. Once licensed a sales agent will work under the name, and direction of a broker.
C. Sales agents typically may work for 2 different brokers in the same state.
D. Sales agents are typically independent contractors under the supervision of a branch or principal broker.
35. Which one of the following is not a unique physical characteristic of land? *
A. Imperfect
B. Immobile
C. Indestructible
D. Non-homogeneous
36. Which of the following is not a typical duty of a broker? *
A. Supervise, direct and train agents.
B. Do a formal inspection of the property before the sale is final.
C. Manage affairs of the real estate office.
D. Compensate agents according to agreed upon terms.
37. How many square feet are in 75% of an acre? *
A. 43,560
B. 10,890
C. 32,670
D. 640
38. Which of the following is not a step in the process for changing broker affiliation? *
A. The licensee simply moves on to another broker.
B. The licensee submits a change form through RELMS to transfer their license.
C. The old broker affirms the changes electronically through RELMS
D. The new broker affirms the new affiliation electronically through RELMS
39. Which one of the following is not one of the three categories of the Rights to real estate? *
A. Surface Rights
B. Air Rights
C. Tenancy Rights
D. Subsurface Rights
40. How many states require agents to be licensed in order to conduct real estate transactions? *
A. All 50
B. Only 49
C. Only 48
D. Only 25
41. When a principal broker dies, what happens to the licensees that are currently affiliated with that broker? *
A. Nothing, they may continue selling homes as normal
B. Their licenses are placed on expired status
C. They lose their licenses
D. Their licenses are placed on inactive status
42. What organization is in charge of reviewing and handling complaints against licensees? *
A. The Utah Division of Real Estate
B. The Utah Association of Realtors®
C. The Utah Supreme Court
D. The licensee's real estate office
43. A _________ is someone that has been trusted to act for and in the best interest of another person. *
A. Client
B. Customer
C. Principal
D. Fiduciary
44. Who is the owner of a cooperative building's individual units? *
A. Individual unit owners
B. A corporation with shareholders
C. The local government
D. The homeowner's association
45. Which of the following is not a government organization? *
A. The Utah Division of Real Estate
B. The Utah Division of Water Rights
C. The Utah Association of Realtors
D. The Utah Department of Commerce
46. Kevin owns a 3% share in a ski property time share. How many days per year is he given to use the property? *
A. 3
B. 6
C. 11
D. 22
47. An agent seeking to be the only agent helping a potential client should seek what type of contract? *
A. Open Agency
B. Non-Exclusive Agency
C. Exclusive Agency
D. Special Agency
48. Which of the following is an example of using the subsurface rights of real estate? *
A. Constructing a wind turbine on the property
B. Building a tower on the property
C. Mining for coal deep below the surface of the property
D. Building a home on the property
49. How much does the division make sure is in The Real Estate Education, Research, and Recovery Fund each year? *
A. $1,000
B. $5,000
C. $10,000
D. $100,000
50. What type of contract exists when one accepts the work of another party without an official agreement taking place? *
A. Express Contract
B. Implied Contract
C. Written Contract
D. Duty Contract
51. What type of contract exists when a Real Estate Purchase Contract is accepted by the buyer? *
A. Express Contract
B. Implied Contract
C. Oral Contract
D. Duty Contract
52. A broker not performing his responsibilities according to the terms of the contract is an example of which of the following? *
A. Breach of Duty
B. Breach of Conduct
C. Breach of Necessity
D. Breach of Desire
53. What term is used for the cancellation of a contract? *
A. Withdrawal
B. Rescission
C. Disappearance
D. Withholding
54. 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
55. Which of the following would not terminate the agency contract between a buyer and broker? *
A. Mutual Consent
B. Court Judgement
C. Argument between the parties
D. The termination date of the contract is reached
56. Which of the following is personal property? *
A. Fencing permanently installed on 500 acres
B. Fencing in the back of a pickup truck
C. A ranch of 5,000 acres
D. A condominium unit
57. In Utah, how many days should a landlord allow for a tenant to pay rent or move out when the landlord gives eviction notice to the tenant? *
A. 2
B. 3
C. 4
D. 5
58. Which of the following is not part of the bundle of rights? *
A. Right of Possession
B. Right to Use
C. Right to Transfer
D. Right to Construct
59. Which of the following is an example of an improvement? *
A. The land
B. The water rights
C. A skyscraper
D. A car
60. A __________ is something that was once personal property but has been converted to real property through attachment. *
A. Fixture
B. Property
C. Pond
D. Water Share
61. How many square miles are in one section? *
A. 1
B. 2
C. 3
D. 4
62. In a township, which section is directly above section #19? *
A. 18
B. 20
C. 30
D. 29
63. Who normally creates a CMA? *
A. Appraiser
B. Homeowner
C. Bank
D. Agent or Broker
64. The principle of _______________ states that when a superior property is placed in an area of properties that are of lower quality, the superior property's value is diminished. *
A. Progression
B. Supply and Demand
C. Anticipation
D. Regression
65. 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
66. What may a contractor legally use to assure themselves of getting paid for work completed on a property? *
A. Mechanic's Lien
B. Threats to homeowner
C. Threats to the homeowner's association
D. Threats to vandalize the property
67. What type of title insurance policy gives the most protection to the insured party? *
A. Extended
B. Standard
C. ALTA
D. Ultimate
68. Homes built before what year are most likely to contain lead based paint? *
A. 1978
B. 1988
C. 1989
D. 1997
69. A garden accidentally planted on Susan's property by her neighbor is an example of which of the following? *
A. Easement
B. Encroachment
C. License
D. Theft
70. What type of contract would work best for a builder if he thinks the price of construction materials will go up dramatically? *
A. Fixed Cost
B. Cost Plus
C. Fixed Rate
D. Fixed Supply
71. In the metes and bounds method of describing real estate, where does the description start? *
A. Point of Beginning
B. Point of Ending
C. The Baseline
D. The Meridian
72. Which of the following would cause a contract to be voidable? *
A. Mutual Consent
B. Legal Purpose
C. Valuable Consideration
D. Misrepresentation
73. In the metes and bounds method of describing real estate, where does the description end? *
A. Point of Beginning
B. Point of Ending
C. The Baseline
D. The Meridian
74. 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
75. Which of the following characteristics would an oral contract most likely have? *
A. Unacceptable
B. Unrejectable
C. Unenforceable
D. Not Valid
76. Who is most likely to own water rights? *
A. A local farmer
B. A homeowner
C. A water company
D. A local cattle rancher
77. What type of water system is used in Utah? *
A. Riparian
B. Prior Appropriation
C. Water Drainage
D. Irrigation
78. Who has rights to water under the prior appropriation system? *
A. Landowners bordering the water
B. Whoever begins using the water first
C. Whoever is currently needing the water
D. Landowners that own the most frontage property to the water
79. How long does a freehold estate last? *
A. Only up to a year
B. Indefinitely
C. Until the contract expires
D. Up to 10 years
80. Which valuation approach involves the calculation of what it would cost to replicate the property and its improvements? *
A. Cost
B. Sales Comparison
C. Income
D. None of the Above
81. In order to own a property in severalty how many owners must there be to the property? *
A. At least 1
B. Only 1
C. Several
D. At least 2
82. 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
83. What kind of notice does a buyer receive of the seller's ownership right when the buyer looks at the deed and sees the owner's name? *
A. Active
B. Actual
C. Construction
D. Constructive
84. A ______________________________ exists when one party has agree to perform and the other party is only obligated to perform upon the performance of the other party. *
A. Bilateral contract
B. Unilateral contract
C. Void contract
D. Duress Contract
85. In the income approach to estimating value what is the formula to calculated the value? *
A. NOI / Rents
B. NOI / Income
C. NOI / Capitalization Rate
D. NOI / Index Rate
86. Which form of ownership is used by husband and wife? *
A. Joint Tenancy
B. Tenancy in Common
C. Tenancy by the Entireties
D. Severalty
87. If George owns 25% of a joint tenancy property and then dies, how many total parties have an ownership interest in the property after his death? *
A. 1
B. 2
C. 3
D. 4
88. What type of deed is used when the grantor only wants to release any right of ownership that they have of the property to another party? *
A. General Warranty
B. Quitclaim
C. Grant
D. Special Warranty
89. What type of ownership allows one owner in a group of owners to sell his interest without approval of the other owners? *
A. Joint Tenancy
B. Tenancy in Common
C. Severalty
D. Single Tenancy
90. What act prohibits price fixing? *
A. Sherman Anti-Trust Act
B. National Price Fixing Act
C. RESPA
D. Civil Right Act
91. Barney has an easement to cross Jay's property to access his farm. Who has the dominant tenement? *
A. Barney
B. Jay
C. Neither Barney or Jay
D. Both Barney and Jay
92. How many feet are in 20 miles? *
A. 5,280
B. 52,800
C. 105,600
D. 1,056,000
93. What is the area of a parcel of land measuring 10 miles by 20 miles? *
A. 128,000 acres
B. 640 acres
C 128,000 square feet
D. 20 square miles
94. How many days after the signing of a purchase contract of a new timeshare does the buyer have to cancel the contract? *
A. 3
B. 5
C. 10
D. 30
A. Dividing Wall
B. Party Wall
C. Structure Wall
D. Partition Wall
96. Through ____________________the local government may acquire properties to fulfill the local goals and plans for the community. *
A. Eminent Domain
B. Servient Domain
C. Official Domain
D. Effective Domain
97. A property assessed at a value of $350,000 is taxed at a yearly rate of 22 mils. How much is the tax per year? *
A. $2,200
B. $7,000
C. $77,000
D. $7,700
98. What is the correct term of forcing someone to sign a contract? *
A. Duress
B. Rescission
C. Just Cause
D. Chattel
99. How many sections are in a township? *
A. 640
B. 36
C. 18
D. None of the Above
100. Who controls the discount rate? *
A. Banks
B. The Federal Reserve
C. The Real Estate Market
D. The NYSE