Utah real estate license exam (with Complete Solutions)2024
State approved forms: correct answers 1. Purchasing property
2. Seller financing
NOT
Agency agreements or lease agreements
Responsibilities of an associate broker correct answers Negotiate leases, take listings, and
prepare closing documents.
Not: Pay commissions
Who owns the supporting structure in condos? correct answers All tenants own it as tenants in
common.
The owner owns the airspace of his or her own unit, and an undivided interest in the common
area(including structure).
What are the duties of real estate commissioners correct answers They make and enforce rules
and regulations, advising director, and regulate Property Management
Not
Passing laws(only legislature can)
Utah recovery fund correct answers A fund to protect and compensate the public in the case of
licensee mistreatment.
Limits
$15,000 per transaction
$50,000 per licensee
How can the divisions representative take action against gross mismanagement? correct answers
They can issue a cease and assist, conduct an audit by an independent CPA at the expense of the
broker, or appoint a receiver
Not: freeze the trust account(neither can a court freezer an account)
What activities require a person to have a real estate license for Property Management activities?
correct answers If you assist in a real estate transaction and receive compensation.
How long do you need to keep continuing education proof? correct answers Three years from the
date of the class.
When is earnest money supposed to be deposited? correct answers Utah law says within three
days, unless the contract says otherwise. The REPC says within four days after acceptance.
,Section 21 of the REPC dictates that the clock begins on the day after acceptance. Therefore, a
four day timeframe.
Ex. If received on the 25th, it would need to be deposited on the 29th.
Which line indicates settlement fees? correct answers Section C line 05
What is the difference in educational requirements for a principal broker and associate broker?
correct answers There is no difference!
When can an agent advertise? correct answers You must have the permission of the owner in
writing before advertising
What should be done with the records of a company when a principal broker dies, and it is a
SOLE PROPRIETORSHIP? correct answers The division should be notified where the records
will be stored
How long must a broker retain rejected offers? correct answers Three years following the year of
the transaction
Who can sell timeshare interests? correct answers Someone who registers with the R.E.division.
A real estate license needs to register with the R.E.division but their fee is waived.
Division rules correct answers Licensees must inform the principal brokers about transactions, a
principal broker cannot keep part of the earnest money unless both parties agree, and net listings
shall not be taken by a licensee
Not:
When requested by the client, the agent must give them copies of the documents from both sides
of the transaction(confidentiality as an agent to one of the parties)
Where can you find information about water rights? correct answers Two possible answers
1. division of water rights or
2. state engineers office
If two brokers are involved, this could create: correct answers Double commission
Where do you look to see if the seller assisted the buyer in costs of the transaction? correct
answers Page 2 to see if the seller contributed to the buyers loan costs or title costs.
Typically, inspections and home warranties do not constitute a buyers cost for the closing.
What are the purposes of the real estate recovery fund? correct answers 1. Provide revenue for
research
2. Education of licensees
, 3. Reimburse the public for damages
Not:
Pay the per diem expense of commissioners
What are the consequences of a person living in a condominium project that doesn't pay their
homeowners fee? correct answers A lien would be placed against the property
What is required for an unlicensed auctioneer to conduct an auction of real property? correct
answers The earnest money is deposited in the brokers trust account, the real estate purchase
agreement is used and filled out by a licensee, the principal broker is present at the auction.
Not:
The principal broker has reviewed and initialed all documents prior to the auction(what do
nothing before the auction took place)
The "deposit to lender " correct answers A credit to the buyer
It is in the buyers credit section of the statement(line L. 01)
Why is a real estate license not sufficient one selling investment opportunities in a large real
estate project that will involve multi-use properties? correct answers It is a security and needs a
securities license
Investment opportunities need a securities license. Selling a parcel or a partial parcel of real
estate needs real estate license.
What line indicates items paid in advance by the buyer? correct answers Section L represents the
items buyer has already paid for or is being credited for
When must a principal broker establish an office when using a model home? correct answers 12
months
Under the Utah exemption, what is the maximum amount a person can receive? correct answers
$30,000
A person practicing or selling real estate without a license is subject to discipline by: correct
answers The courts
What is a requirement for a licensed person to become a commissioner? correct answers Active
for five years
Interest can be deducted for : correct answers One or two personal residences
An ordinary tax payer would get the greatest tax break from: correct answers Tax credits (not tax
deductions)
State approved forms: correct answers 1. Purchasing property
2. Seller financing
NOT
Agency agreements or lease agreements
Responsibilities of an associate broker correct answers Negotiate leases, take listings, and
prepare closing documents.
Not: Pay commissions
Who owns the supporting structure in condos? correct answers All tenants own it as tenants in
common.
The owner owns the airspace of his or her own unit, and an undivided interest in the common
area(including structure).
What are the duties of real estate commissioners correct answers They make and enforce rules
and regulations, advising director, and regulate Property Management
Not
Passing laws(only legislature can)
Utah recovery fund correct answers A fund to protect and compensate the public in the case of
licensee mistreatment.
Limits
$15,000 per transaction
$50,000 per licensee
How can the divisions representative take action against gross mismanagement? correct answers
They can issue a cease and assist, conduct an audit by an independent CPA at the expense of the
broker, or appoint a receiver
Not: freeze the trust account(neither can a court freezer an account)
What activities require a person to have a real estate license for Property Management activities?
correct answers If you assist in a real estate transaction and receive compensation.
How long do you need to keep continuing education proof? correct answers Three years from the
date of the class.
When is earnest money supposed to be deposited? correct answers Utah law says within three
days, unless the contract says otherwise. The REPC says within four days after acceptance.
,Section 21 of the REPC dictates that the clock begins on the day after acceptance. Therefore, a
four day timeframe.
Ex. If received on the 25th, it would need to be deposited on the 29th.
Which line indicates settlement fees? correct answers Section C line 05
What is the difference in educational requirements for a principal broker and associate broker?
correct answers There is no difference!
When can an agent advertise? correct answers You must have the permission of the owner in
writing before advertising
What should be done with the records of a company when a principal broker dies, and it is a
SOLE PROPRIETORSHIP? correct answers The division should be notified where the records
will be stored
How long must a broker retain rejected offers? correct answers Three years following the year of
the transaction
Who can sell timeshare interests? correct answers Someone who registers with the R.E.division.
A real estate license needs to register with the R.E.division but their fee is waived.
Division rules correct answers Licensees must inform the principal brokers about transactions, a
principal broker cannot keep part of the earnest money unless both parties agree, and net listings
shall not be taken by a licensee
Not:
When requested by the client, the agent must give them copies of the documents from both sides
of the transaction(confidentiality as an agent to one of the parties)
Where can you find information about water rights? correct answers Two possible answers
1. division of water rights or
2. state engineers office
If two brokers are involved, this could create: correct answers Double commission
Where do you look to see if the seller assisted the buyer in costs of the transaction? correct
answers Page 2 to see if the seller contributed to the buyers loan costs or title costs.
Typically, inspections and home warranties do not constitute a buyers cost for the closing.
What are the purposes of the real estate recovery fund? correct answers 1. Provide revenue for
research
2. Education of licensees
, 3. Reimburse the public for damages
Not:
Pay the per diem expense of commissioners
What are the consequences of a person living in a condominium project that doesn't pay their
homeowners fee? correct answers A lien would be placed against the property
What is required for an unlicensed auctioneer to conduct an auction of real property? correct
answers The earnest money is deposited in the brokers trust account, the real estate purchase
agreement is used and filled out by a licensee, the principal broker is present at the auction.
Not:
The principal broker has reviewed and initialed all documents prior to the auction(what do
nothing before the auction took place)
The "deposit to lender " correct answers A credit to the buyer
It is in the buyers credit section of the statement(line L. 01)
Why is a real estate license not sufficient one selling investment opportunities in a large real
estate project that will involve multi-use properties? correct answers It is a security and needs a
securities license
Investment opportunities need a securities license. Selling a parcel or a partial parcel of real
estate needs real estate license.
What line indicates items paid in advance by the buyer? correct answers Section L represents the
items buyer has already paid for or is being credited for
When must a principal broker establish an office when using a model home? correct answers 12
months
Under the Utah exemption, what is the maximum amount a person can receive? correct answers
$30,000
A person practicing or selling real estate without a license is subject to discipline by: correct
answers The courts
What is a requirement for a licensed person to become a commissioner? correct answers Active
for five years
Interest can be deducted for : correct answers One or two personal residences
An ordinary tax payer would get the greatest tax break from: correct answers Tax credits (not tax
deductions)
