Chapter 1 of 197% of exam

Definitions

Pearson VUE's Utah broker outline gives this area 5 to 7 of the 90 state items and prints three subtopics: basic terms and definitions, the Division of Real Estate, and one act for compensation.

Basic Terms and Definitions

Utah Code Section 61-2f-102 carries the vocabulary the rest of the chapter runs on. A principal broker under Subsection (30) is the individual licensed at broker level who lists, sells, buys, exchanges, or manages real estate for others with the expectation of valuable consideration, or who holds out as doing so. An associate broker under Subsection (4) holds a broker-level license but is employed or engaged as an independent contractor by or on behalf of a principal broker. A sales agent under Subsection (42) is affiliated with a principal broker under Section 61-2f-303. A branch broker under Subsection (5) is an associate broker who manages a branch office under the principal broker's supervision, and a dual broker under Subsection (20) is a principal broker who also functions as the principal property manager of a separate property management company. Two discipline terms are frequently confused: an admonition under Subsection (1) declares conduct improper without naming the person, while a reprimand under Subsection (40) names the person.

The Division of Real Estate and the Commission

Section 61-2f-102(17) defines the division as the Division of Real Estate, which sits within the Department of Commerce and issues, renews, and disciplines licenses under Part 2 of the chapter and Rule R162-2f. Section 61-2f-103(1) creates the Real Estate Commission within the division. Subsection (4) sets the membership at five: four members who have at least five years' experience in the real estate business and hold an active principal broker, associate broker, or sales agent license, and one member of the general public. Terms run four years under Subsection (5)(a), no member may serve more than two consecutive terms under Subsection (5)(d), the commission meets at least monthly under Subsection (8)(a), and three members are a quorum under Subsection (9). Most of the commission's power is exercised with the concurrence of the division or the director, which is the pattern to watch for throughout the chapter.

One Act for Valuable Consideration

Section 61-2f-201(2) is the outline's third subtopic and the trigger for the whole licensing scheme: an individual is required to be licensed as a principal broker, associate broker, or sales agent if the individual performs, offers to perform, or attempts to perform one act for valuable consideration of buying, selling, or exchanging real estate for another person, or of offering for another person to buy, sell, or exchange real estate. A single act is enough, an offer or an attempt counts as much as a completed transaction, and the statute says valuable consideration rather than commission, so the label put on the payment is beside the point. The exemptions that answer this rule are in Sections 61-2f-202 and 61-2f-202.5.

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State-specific details

State exam facts

Exam vendor
Pearson VUE
Prelicensing education
120 hours (30-hour Utah Law + 45-hour Broker Principles + 45-hour Broker Practices)
Passing score
Scaled score of 75 on each portion (not a percentage)
Scored questions
170
Time limit
240 minutes
Who regulates real estate brokers in Utah?

The Utah Division of Real Estate, within the Department of Commerce, licenses brokers, associate brokers and sales agents under the Real Estate Licensing and Practices Act (Utah Code Title 61, Chapter 2f) and the R162-2f rules. The Division contracts with Pearson VUE to deliver the licensing exams.

What experience do I need before the Utah broker exam?

Utah Code § 61-2f-203(1)(f) requires three years' full-time experience as a sales agent or the equivalent. Rule R162-2f-202b(1)(f) defines the equivalent and adds a second test: within the five years before you apply, either three years of full-time licensed active experience, or two years of it plus one year of full-time professional real estate experience from the rule's Appendix 3 table, AND at least 60 documented experience points, submitted in a package of 60 to 80 points, with at least half of the Table 1 and Table 2 points from Utah properties. The education is 120 hours of approved broker prelicensing (45 Broker Principles, 45 Broker Practices, 30 Utah Law).

How is the Utah broker exam structured?

170 scored questions in two separately scored portions: an 80-question national/general portion and a 90-question Utah state portion, taken in one 4-hour session, plus 5 unidentified pretest items on the national portion and 5 to 10 on the state portion. The Utah broker state portion is nearly twice the 50-item salesperson state portion, so salesperson material does not cover it. You must pass both portions; if you pass one and fail the other, Rule R162-2f-202b(5) gives you six months from the passed component to retake and pass the failed one.

What score do I need to pass the Utah broker exam?

A scaled score of 75 on the general portion and 75 on the state portion. The Pearson VUE candidate handbook is explicit that this is a scaled score and that the number reported to you "is neither the number of questions you answered correctly nor the percentage of questions you answered correctly" — so 75 is not 75%. Salesperson candidates are held to 70 on each portion.

What does the Utah broker state portion actually test?

Pearson VUE's Utah broker outline (document #094502, state outline effective July 15, 2016) divides the 90 state items into eight areas, each published as a range: Definitions (5-7), Licensing (15-17), Licensee Practice (33-35), Disciplinary Action (9-11), Real Estate Recovery Fund (2-3), Additional Utah State Topics (8-10), Property Management (4-6) and Closing Statements (6-8). Licensee Practice alone is about a third of the state exam, and its heaviest subtopic is the role of the broker — supervision and trust accounts.

Sources: https://realestate.utah.gov, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/094502.pdf, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/094500.pdf, https://le.utah.gov/xcode/Title61/Chapter2F/61-2f.html, https://adminrules.utah.gov/public/rule/R162-2f/Current%20Rules

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