Free Utah Real Estate Practice Exam

Q1.A draft agreement says, 'Owner receives reports periodically.' Why is that inadequate?

• A.Reports are never permitted
• B.It does not specify the type and frequency of status reports
• C.Only tenants may receive reports
• D.Every report must be daily

Q2.A broker's office policy manual requires all affiliated salespersons to present every written offer to the seller within 24 hours of receipt. A salesperson receives an offer from a buyer who is a member of a protected class and, without disclosing it to the broker, delays presenting it for three days while continuing to show the property to non-protected-class buyers. Which broker-level obligation is MOST directly implicated when the broker later learns of this delay?

• A.The broker has a supervisory duty to establish, communicate, and enforce written office policies that prevent Fair Housing Act violations, and may face vicarious liability for the salesperson's discriminatory conduct.
• B.The broker's only obligation is to report the salesperson to the state licensing authority; no vicarious liability attaches because the salesperson acted independently.
• C.The broker must immediately rescind the listing agreement to avoid further exposure, as RESPA prohibits delayed offer presentations.
• D.The broker is insulated from liability because the written 24-hour office policy was already in place and the salesperson violated it unilaterally.

Q3.A Utah-licensed broker acting as the principal broker of a large residential brokerage is ordered by a court to pay $85,000 in actual damages to a defrauded buyer. The buyer files a claim against the Utah Real Estate Education, Research and Recovery Fund. Under Utah Code § 61-2f-409, what is the maximum amount the Recovery Fund will pay to this single claimant arising from this single transaction, and what consequence does the broker face upon any payment from the Fund on the broker's behalf?

• A.The Fund will pay a maximum of $15,000, and the broker's license is automatically suspended until the full amount paid by the Fund, plus interest, is repaid to the Fund.
• B.The Fund will pay a maximum of $25,000, and the broker must complete 12 additional hours of continuing education before the license is reinstated.
• C.The Fund will pay up to the full $85,000 judgment because no per-transaction cap applies to broker licensees, but the broker's license is revoked permanently.
• D.The Fund will pay a maximum of $15,000, and the broker's license is revoked unless the Division determines reinstatement is in the public interest within 30 days.

Q4.A salesperson is working with a buyer who is interested in purchasing a home. The salesperson's broker has a listing agreement with the seller of that same property. In this situation, what agency relationship most likely exists?

• A.Dual agency, because the same brokerage represents both the buyer and the seller in the same transaction
• B.Single agency, because the salesperson only has a duty to the buyer
• C.Subagency, because the salesperson owes all fiduciary duties exclusively to the buyer
• D.No agency relationship exists until an offer is submitted

Q5.A designated broker cannot act for 20 days. Which action fits A.R.S. § 32-2127(D)?

• A.Make a written designation lasting no more than 30 days and retain it for one year.
• B.Use an oral designation for 60 days.
• C.Allow an unlicensed person to serve as broker.
• D.Make no record if the absence is temporary.

Q6.Under CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act), which term refers to a party who may be held liable for the cost of cleaning up a hazardous substance release, even if they did not cause the contamination?

• A.Innocent landowner
• B.Potentially Responsible Party (PRP)
• C.Bona fide prospective purchaser
• D.Environmental indemnitor

Q7.Aisha is a dual agent representing both buyer and seller with written consent from both. Which of the following is she still permitted to do?

• A.Negotiate aggressively on behalf of the buyer to get the lowest possible price
• B.Provide factual information about the property to both parties and facilitate the transaction
• C.Disclose the seller's minimum acceptable price to help the buyer make a strong offer
• D.Share the buyer's maximum price with the seller to help them counter effectively

Q8.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) is best described as which of the following?

• A.The true cost of borrowing expressed as a yearly rate, including interest and certain fees
• B.The interest rate charged on the outstanding loan balance each month
• C.The total dollar amount of interest paid over the life of the loan
• D.The rate set by the Federal Reserve for mortgage lending

Q9.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) differs from the loan's stated interest rate because the APR:

• A.Reflects only the principal and interest payment amounts over the life of the loan
• B.Is always lower than the note rate to attract more borrowers
• C.Includes certain fees and costs of credit in addition to the interest rate, expressing the true cost of borrowing
• D.Is set by the Federal Reserve and applied uniformly to all mortgage loans

Q10.A borrower takes out a mortgage with an interest rate that is fixed for the first five years, then adjusts annually based on a published index. This type of loan is best described as a:

• A.Balloon mortgage
• B.Graduated payment mortgage
• C.5/1 adjustable-rate mortgage
• D.Reverse mortgage

Q11.A property was the site of a methamphetamine laboratory that was properly remediated according to state standards. The current seller was never involved in the drug activity and purchased the property after remediation was completed. What is the seller's disclosure obligation regarding this information?

• A.No disclosure required since the property was properly remediated
• B.Must disclose as it may affect the property's value or desirability
• C.Must disclose only if specifically asked by the buyer
• D.Disclosure prohibited as it would constitute housing discrimination

Q12.Under agency law principles, when must a real estate agent disclose their agency relationship to parties in a transaction?

• A.Only when specifically asked by the unrepresented party
• B.At the time of first substantive contact about specific property
• C.Only at the time of presenting an offer or counteroffer
• D.When the transaction reaches the contract signing stage

Q13.A real estate agent tells a prospective buyer that a particular neighborhood is 'changing' and encourages the buyer to sell quickly before property values decline due to an influx of minority residents. This illegal practice is known as:

• A.Redlining
• B.Steering
• C.Blockbusting
• D.Panic peddling avoidance

Q14.Which type of deed provides the LEAST protection to the grantee?

• A.General warranty deed
• B.Special warranty deed
• C.Bargain and sale deed
• D.Quitclaim deed

Q15.What is the PRIMARY purpose of the Real Estate Education, Research and Recovery Fund established under Utah Code Title 61?

• A.To compensate members of the public who have suffered financial losses caused by the improper conduct of a licensed Utah real estate agent
• B.To fund the annual salaries of Utah Division of Real Estate employees
• C.To provide grants to Utah universities conducting real estate research
• D.To reimburse real estate licensees for errors and omissions insurance premiums