Utah Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A Utah violator knew the property owner was 70. What enhanced per-violation dollar alternative does the Utah civil-penalty provision use?

   • AOnly $500 per violation
   • BOnly $1,000 per transaction
   • CThe ordinary dollar alternative can never change with owner vulnerability
   • D$10,000 per violationcorrect

   Why: The enhanced provision uses $10,000 per violation when the person knew or should have known the owner was at least 65 or a vulnerable adult. The question asks that dollar alternative, not every possible penalty calculation.

   Practice of real estate

2. 2. A Utah commissioner has served 2 consecutive terms and seeks another consecutive term. What statutory restriction applies?

   • AThere is no consecutive-term limit
   • BA third consecutive term is always required
   • CThe only limit is 10 consecutive terms
   • DA member may not serve more than 2 consecutive termscorrect

   Why: The Commission statute limits service to 2 consecutive terms. Continued eligibility for a license does not override that separate limit on Commission service.

   Practice of real estate

3. 3. A Utah licensee markets residential square footage obtained from a county record. Which disclosure obligation addresses the information's source?

   • ADisclose the source in the seller agreement and give the buyer written disclosure by the contractual seller-disclosure deadlinecorrect
   • BDisclose the source only if the buyer orders an appraisal
   • CNever disclose the source when it is a public record
   • DReplace source disclosure with an unsupported guarantee of exact area

   Why: The rule requires source disclosure in the seller agreement and written buyer disclosure by the contractual deadline. Public availability does not remove those specific disclosure steps.

   Property disclosures

4. 4. A Utah licensee relinquishes the license after committing misconduct while licensed. Does that end disciplinary authority?

   • AYes, unless the former licensee still owns Utah property
   • BNo, authority over that licensed-period misconduct continuescorrect
   • CYes, surrender erases the violation
   • DOnly the local trade association may then act

   Why: Utah Code 61-2f-404 preserves disciplinary authority for misconduct committed while licensed. Ending licensure is not a way to erase that conduct.

   Practice of real estate

5. 5. Which type of judgment can qualify within Utah's recovery-fund judgment categories, subject to the other statutory conditions?

   • AAny unpaid advertising invoice
   • BA criminal restitution judgment for fraud, misrepresentation or deceitcorrect
   • CEvery unfavorable appraisal report
   • DAn oral demand without any judgment

   Why: The statute recognizes qualifying final civil judgments and criminal restitution judgments for fraud, misrepresentation or deceit. The fund is not a general payment source for every unpaid business obligation.

   Practice of real estate

6. 6. A Utah licensee says a marketing team is exempt from advertising restrictions that apply to individual licensees. What does the rule provide?

   • ATeams, groups and marketing entities are subject to the same restrictionscorrect
   • BA team logo substitutes for every advertising requirement
   • COnly individual licensees must follow advertising restrictions
   • DTeams become exempt once they have 3 members

   Why: The advertising rule expressly extends the same restrictions to teams, groups and marketing entities. Organizing as a team does not create a separate exemption.

   Practice of real estate

7. 7. Before Utah limited agency proceeds, what must each principal acknowledge in writing?

   • AWaiver of undivided loyalty, absolute confidentiality and full disclosurecorrect
   • BA waiver of every duty of honesty
   • CA guarantee of the other party’s performance
   • DA promise never to obtain legal advice

   Why: The limited-agency rule requires specific written acknowledgments of these limitations. It does not waive every obligation the licensee owes.

   Agency

8. 8. A Utah claimant has a final judgment only against a brokerage entity and seeks recovery-fund reimbursement under Utah law. What limitation applies?

   • AAn entity judgment creates unlimited fund liability
   • BEvery entity judgment is reimbursed automatically
   • COnly entity judgments qualify for the fund
   • DThe fund does not reimburse a final judgment against an entitycorrect

   Why: The statute bars recovery-fund reimbursement for a final judgment against an entity. The existence of a judgment does not by itself establish fund eligibility.

   Practice of real estate

9. 9. A Utah limited agent promises to advocate exclusively against the other principal. Which acknowledgment contradicts that promise?

   • AThe agent guarantees the highest price for the seller
   • BThe limited agent acts neutrally to advance both parties’ interestscorrect
   • CThe agent becomes the attorney for both parties
   • DThe agent can conceal every material fact

   Why: Each principal acknowledges that the limited agent acts neutrally to advance both interests. Exclusive advocacy against the other principal is inconsistent with that role.

   Agency

10. 10. A Utah seller demands a fixed net while the agent keeps any excess sale price. May the agent take that listing?

    • AYes, if the agent promises a quick sale
    • BYes, if the property is commercial
    • CNo, net listings are prohibitedcorrect
    • DYes, if the seller first suggests it

    Why: R162-2f-401b prohibits taking a net listing. A seller’s suggestion does not remove the restriction.

    Contracts