Free Utah Real Estate Practice Exam

Q1.During the eviction process for non-payment of rent, which federal constitutional principle requires that tenants be given proper notice and an opportunity to be heard before being removed from the property?

• A.Due Process Clause
• B.Equal Protection Clause
• C.Commerce Clause
• D.Supremacy Clause

Q2.A Utah buyer's agent receives an earnest money deposit from the buyer on a Monday. According to the Utah Division of Real Estate rules, by when must that earnest money be deposited into the principal broker's trust account?

• A.Immediately upon receipt, before leaving the buyer's presence
• B.Within one banking day of receipt by the licensee
• C.No later than the next business day after all parties have signed the purchase contract
• D.Within three calendar days of receipt by the licensee

Q3.A managing broker is audited by the state real estate commission and is found to have commingled earnest money deposits in the firm's operating account for an average of four days before transferring them to the trust account. The broker argues that no client suffered a financial loss and that the transfers were always completed within one week. Which principle BEST characterizes the commission's likely finding?

• A.Commingling is a per se violation of broker trust account obligations regardless of whether any client suffers actual financial harm, because the prohibition is prophylactic in nature and the absence of loss is not a defense to the disciplinary charge.
• B.Because no client suffered a financial loss, the commission must dismiss the complaint; harm to a consumer is a required element of a commingling violation.
• C.The four-day delay is within the federally mandated three-business-day safe harbor for deposit of escrow funds under RESPA, so no violation occurred.
• D.The broker's conduct constitutes conversion rather than commingling, and conversion requires proof of intent to permanently deprive clients of funds before discipline can be imposed.

Q4.At a Utah closing, the seller's existing mortgage balance of $180,000 is paid off from sale proceeds. How is this payoff reflected on the seller's side of the settlement statement?

• A.As a credit to the seller, reducing the amount owed at closing
• B.As a debit to the seller, reducing the net proceeds disbursed to the seller
• C.It is listed on the buyer's side only, as an assumed liability
• D.It does not appear on the settlement statement because it is handled separately by the lender

Q5.A licensed broker supervises three salespersons who are also licensed mortgage loan originators (MLOs). One salesperson refers a buyer client exclusively to a title company in which the broker holds an undisclosed 15% ownership interest, and the buyer pays a settlement service fee. Under RESPA Section 8, which statement BEST describes the broker's liability exposure?

• A.The broker faces potential RESPA Section 8 liability because the undisclosed ownership interest in the title company constitutes an unearned fee or kickback arrangement, and as the supervising broker the broker bears responsibility for the salesperson's referral conduct.
• B.The broker has no RESPA exposure because Section 8 only applies to lenders and title companies, not to real estate licensees who merely refer clients.
• C.The broker is shielded from liability because the salesperson, not the broker, made the referral, and vicarious liability does not apply under federal real estate settlement law.
• D.The broker avoids liability as long as the affiliated business arrangement (AfBA) disclosure was provided within three business days of application, regardless of whether the broker's ownership was disclosed.

Q6.A property sold for $240,000. The listing agent received a 3% commission and the selling agent received a 2.5% commission. What was the total commission paid?

• A.$7,200
• B.$6,000
• C.$13,200
• D.$12,000

Q7.A buyer's broker represents a purchaser making an offer on a property listed by a different brokerage. During negotiations, the listing broker offers the buyer's broker a $500 'cooperation bonus' if the transaction closes by the end of the month, payable directly from the listing broker to the buyer's broker. Under RESPA Section 8, what is the MOST accurate analysis of this arrangement?

• A.The bonus is permissible under RESPA only if it represents payment for actual, distinct settlement services performed by the buyer's broker beyond normal transaction facilitation, and is properly disclosed.
• B.The bonus is an unqualified kickback prohibited by RESPA Section 8(a) regardless of disclosure, because it is paid between two brokers rather than involving a settlement service provider.
• C.RESPA Section 8 does not apply to compensation arrangements between cooperating real estate brokers because they are not 'settlement service providers' as defined by the Act.
• D.The bonus is always permissible because real estate brokerage commissions and bonuses are explicitly exempt from RESPA Section 8 scrutiny.

Q8.A Utah licensee is representing a buyer and discovers that the seller's agent made a false statement about the property's square footage in the MLS listing. Under Utah Code Title 61, the buyer's agent's duty is BEST described as:

• A.Take no action because the false statement was made by the seller's agent, not the buyer's agent
• B.Disclose the discrepancy to the buyer and advise the buyer to independently verify the square footage
• C.Report the seller's agent to the Division of Real Estate before disclosing anything to the buyer
• D.Immediately terminate the transaction on the buyer's behalf to protect the buyer

Q9.A buyer includes a financing contingency in a purchase contract that requires loan approval within 30 days. On day 25, the buyer's lender denies the loan application. What should the buyer do to properly exercise this contingency?

• A.Automatically receive their earnest money back
• B.Provide written notice to the seller before the contingency deadline
• C.Wait until day 30 to notify the seller
• D.Request an extension from the lender

Q10.Under the Truth-in-Lending Act (TILA), which disclosure must lenders provide to borrowers within three business days of receiving a loan application?

• A.Closing Disclosure
• B.Good Faith Estimate
• C.Loan Estimate
• D.HUD-1 Settlement Statement

Q11.Under the FHA, an assistance animal is:

• A.Only a service dog trained under the ADA
• B.A pet, subject to all pet rules and pet fees
• C.A service animal OR an emotional support animal that does work or provides emotional support related to a disability — not a pet under the FHA
• D.Only an animal certified by a federal registry

Q12.During a Division of Real Estate investigation, a sales agent is formally charged with a violation. Under the Utah Revised Real Estate Licensing and Practices Act, which body conducts the administrative hearing to adjudicate the matter?

• A.The Utah District Court in the county where the alleged violation occurred
• B.The Utah Real Estate Commission
• C.The Utah Office of Administrative Hearings in coordination with the Division
• D.The National Association of REALTORS® arbitration panel

Q13.A Utah seller's agent also agrees to represent the buyer in the same transaction. Which Utah-specific requirement must BOTH parties satisfy before this arrangement may proceed?

• A.The principal broker must personally conduct all negotiations on behalf of both parties
• B.Each party must sign a written Limited Agency Consent Agreement
• C.The agent must reduce the commission by at least half to offset the dual representation
• D.The Utah Division of Real Estate must approve the limited agency arrangement before closing

Q14.A Utah sales agent places an advertisement for a listed property on social media and includes her name and the property address but does not include her broker's name. Under Utah Administrative Code R162, this advertisement is:

• A.Permissible because social media is not considered formal advertising
• B.Permissible if the broker's name appears elsewhere on her social media profile
• C.A violation because all advertising must clearly identify the principal broker or brokerage
• D.A violation only if the advertisement generates a lead that results in a transaction

Q15.Under the Fair Housing Act, which of the following is NOT considered a protected class in housing discrimination cases?

• A.Sexual orientation
• B.National origin
• C.Familial status
• D.Religion