Utah Real Estate Broker Exam — All Questions

Rule R162-2f-207 lets a change form be handled by email when a party is unavailable. A termination of affiliation sent that way is effective:

• a.On the date the other party answers the email in writing
• b.30 days after the date on which the email was sent
• c.10 days after the date on which the email was sent✓
• d.On the date the email is sent to the individual concerned

Rule R162-2f-207(5) provides that "the termination of affiliation by sending an email is effective 10 days after the date that the email was sent." The email route is available under Subsection (4)(b) where an individual is unavailable to sign or electronically affirm the change form; Subsection (4)(a) offers the alternative of certified mail to the last known address, with the reference number or receipt supplied to the division. The delay matters because the licensee's authority to act ends at the effective date under Section 61-2f-304(2), so a broker who assumes the termination is immediate misstates when the licensee stopped being covered. Rule R162-2f-207(7)(a) separately requires an ordinary change in affiliation to be reported before the change is made.

The Utah division serves a notice of agency action and petition on a licensee. Under Rule R162-2f-407, any answer must be filed with the division within:

• a.20 days after the mailing date of the notice
• b.30 days after the mailing date of the notice✓
• c.10 days after the mailing date of the notice
• d.60 days after the mailing date of the notice

Rule R162-2f-407(5)(b)(iii) provides that "any answer shall be filed with the division within 30 days after the mailing date of the notice of agency action and petition." Subsection (5)(b)(i) lets the presiding officer require an answer on a finding of good cause, and (5)(b)(ii) lets a respondent file one even when not ordered to. The same 30-day period governs the respondent's witness and exhibit lists under Subsection (5)(c)(ii). Subsection (4)(c) is the reason the deadline is easy to misread: in an informal proceeding a party is generally not required to answer at all, so the 30 days is the outer limit for an answer that is ordered or volunteered rather than a universal filing duty.

In an informal Utah disciplinary hearing under Rule R162-2f-407, which statement is correct?

• a.A party may not be represented by an attorney at the hearing
• b.The hearing is closed to the parties unless the officer opens it
• c.Formal discovery is prohibited and intervention is prohibited✓
• d.Each party may take depositions once a hearing is scheduled

Rule R162-2f-407(4)(f) states that "formal discovery is prohibited," and Subsection (4)(k) that "intervention is prohibited." Together they rule out depositions. Subsection (4)(g) still lets the division issue subpoenas to compel necessary and relevant evidence, including on behalf of a party who asks in writing, serves the subpoena, and pays the costs. Subsection (4)(l) makes hearings open to each party unless the presiding officer closes the hearing under the Administrative Procedures Act or the Open and Public Meetings Act, so the default is the opposite of closed. And Subsection (4)(m) allows an attorney to represent a party on filing a proper entry of appearance.

Utah Code Section 61-2f-306 tells a real estate licensee which legal forms may be filled out. As a general rule the licensee may complete only forms:

• a.Approved by the division director for the current license period
• b.Drafted by the brokerage and reviewed by its own counsel
• c.Published by a national trade association for the use of its members
• d.Approved by the commission and the attorney general, or set by statute✓

Section 61-2f-306(1) provides that except as Subsection (2) allows, "a real estate licensee may fill out only those legal forms approved by the commission and the attorney general, and those forms provided by statute." It takes both bodies, not the division director alone, and a national association's forms carry no Utah approval. Subsection (2)(b) lets a licensee fill out real estate forms prepared by legal counsel of the buyer, seller, lessor, or lessee. Subsection (2)(c) opens a further route only where the commission and attorney general have not approved a specific form for the transaction: then any legal counsel's form may be used, including counsel retained by the brokerage. Rule R162-2f-401f(1) lists the approved standard forms.

Utah Code Section 61-2f-306 says documents associated with the closing of a real estate transaction may be filled out by:

• a.Any affiliated sales agent who represents a party to the deal
• b.The principal broker, or a designated branch or associate broker✓
• c.The title insurance producer alone, once funds have cleared
• d.Any licensee, provided a Utah attorney later reviews the file

Section 61-2f-306(2)(a)(i) provides that "a principal broker may fill out any documents associated with the closing of a real estate transaction," and Subsection (2)(a)(ii) extends the same authority to a branch broker or associate broker "if designated to fill out the documents by the principal broker with whom the branch broker or associate broker is affiliated." A sales agent is not on that list and gains nothing from representing a party. The section does not hand the power to a title producer, and no provision cures an unauthorized completion by after-the-fact attorney review. Rule R162-2f-401c(1)(c)(i) separately requires the final settlement statements to be reviewed for content and accuracy at or before closing regardless of who closes the transaction.

A Utah seller wants to change two terms of a buyer's offer. Rule R162-2f-401b tells the licensee that the counteroffer may not be made by:

• a.Striking out or writing over the language of the contract✓
• b.Attaching a page of new terms that both parties then sign
• c.Preparing a separate addendum that the parties then initial
• d.Rejecting the offer outright and issuing a fresh written offer

Rule R162-2f-401b(1)(p) forbids a licensee to "make a counteroffer by striking out, whiting out, substituting new language, or otherwise altering: (i) the boilerplate provisions of the Real Estate Purchase Contract; or (ii) language that has been inserted to complete the blanks of the Real Estate Purchase Contract." Rule R162-2f-401a(18) gives the required method: "use an approved addendum form to make a counteroffer or any other modification to a contract." The point is that a marked-up contract leaves no clean record of what each party actually agreed to, while an addendum is a separate signed document. Rule R162-2f-401f(1)(d) identifies the approved Addendum to Real Estate Purchase Contract among the standard forms.

No approved standard form covers an unusual Utah transaction. Under Utah Code Section 61-2f-306 the licensee may fill out a form:

• a.Downloaded from another state's real estate commission site
• b.Prepared by the licensee, if the principal broker signs it
• c.Prepared by the licensee, if both parties waive the objection
• d.Prepared by any legal counsel, including the brokerage's own✓

Section 61-2f-306(2)(c) provides that "if the commission and the attorney general have not approved a specific form for the transaction, a principal broker, associate broker, or sales agent may fill out real estate forms prepared by any legal counsel, including legal counsel retained by the brokerage to develop these forms." The gap is filled by a lawyer, not by the licensee. Drafting the instrument oneself moves toward the unauthorized practice of law that Section 61-2f-306 is built to keep licensees clear of, and a broker's signature or a client's waiver does not change that. Another state's approved form has no standing in Utah, where approval under Subsection (1) requires the Utah commission and the Utah attorney general.

A Utah brokerage opens a second office. Utah Code Section 61-2f-206 requires that the branch office be:

• a.Registered with the county where the office is located
• b.Registered by the principal broker with the division✓
• c.Registered as a separate entity with its own principal broker
• d.Registered by the branch broker who will work from it

Section 61-2f-206(2)(a) provides that "a principal broker shall register with the division each of the principal broker's branch offices," and Subsection (2)(b) requires an application in the division's form plus a registration fee. The duty sits on the principal broker, not on the branch broker. Subsection (6)(a) then lets the principal broker designate a branch broker to supervise the branch, and Subsection (6)(b) requires that branch broker to exercise active and reasonable supervision of it, while Subsection (5)(a) keeps the principal broker responsible for the main office. Rule R162-2f-205(4)(b) adds that a branch office shall operate under the same business name as the principal brokerage, so it is not a separate firm, and registration is with the division rather than with a county.

Rule R162-2f-401c says active and reasonable supervision by a Utah broker includes establishing:

• a.Written policies and systems to review transactions and funds✓
• b.A yearly written examination for each affiliated licensee
• c.A shared trust account each affiliated licensee may draw on
• d.A minimum monthly production quota for each affiliated licensee

Rule R162-2f-401c(3)(a) defines active and reasonable supervision as including the establishment of written policies, rules, and procedures, and of systems that let the broker review, oversee, inspect, and manage real estate transactions, documents affecting the rights of parties, the filing and storage of those documents, the handling of trust funds, and advertising. Subsection (3)(b) adds being reasonably available to the public to resolve complaints, (3)(c) and (3)(d) require guidance and instruction that is documented, and (3)(e) requires a system for monitoring compliance. Production quotas and annual examinations appear nowhere in the rule, and letting affiliated licensees draw on the trust account runs against Rule R162-2f-401c(1)(i)(ii), which makes the principal broker personally responsible for deposits held in that account.

Rule R162-2f-401c shields a Utah broker from a failure-to-supervise finding only if every listed condition holds, including that the broker:

• a.Terminated the licensee within 10 business days of the violation
• b.Repaid the injured party before any hearing was scheduled
• c.Did not participate in, ratify, or avoid learning of the violation✓
• d.Reported the violation to the division before the client complained

Rule R162-2f-401c(6) makes a principal broker and a branch broker responsible for violations by the licensees and unlicensed staff they supervise, then excuses the broker from a failure-to-supervise finding only where all six conditions are met: specific written policies or instructions were in place when the violation occurred; reasonable procedures were established and followed; the broker attempted to prevent or mitigate the damage on learning of it; the broker did not participate in the violation; did not ratify it; and did not attempt to avoid learning of it. Termination, self-reporting, and restitution are not among the six. Restitution can matter later, since Section 61-2f-404(1)(b)(iii)(C) lists efforts to mitigate harm among the factors weighed in choosing a sanction.

Utah Code Section 61-2f-406 says a violation by a sales agent engaged by a principal broker is cause for action against the principal broker, including a fine of up to:

• a.$25,000 per violation
• b.$1,000 per violation
• c.$5,000 per violation✓
• d.$2,500 per violation

Section 61-2f-406(1) provides that an unlawful act or violation by a person listed in Subsection (2) is cause for "the revocation, suspension, or probation of a principal broker's license; or the imposition of a fine against the principal broker in an amount not to exceed $5,000 per violation." Subsection (2) lists a sales agent or associate broker employed by the principal broker, one engaged as an independent contractor by or on behalf of the principal broker, and an employee, officer, or member of the principal broker. The same $5,000 figure is the ordinary civil penalty ceiling in Section 61-2f-404(1)(a)(ii)(A), which rises to $10,000 where the person knew or should have known the property owner was 65 or older or a vulnerable adult.

Rule R162-2f-401c requires a Utah principal broker who receives a client's money in a real estate transaction to deposit it into a trust account within:

• a.5 business days of receiving the money
• b.10 business days of receiving the money
• c.3 business days of receiving the money✓
• d.1 business day of receiving the money

Rule R162-2f-401c(1)(h)(i) requires the principal broker, "within three business days of receiving a client's money in a real estate transaction," to deposit it into a trust account the broker maintains or, if the parties agree in writing, into an account held by a title company under Section 31A-23a-406 or another authorized escrow entity. Subsection (1)(h)(ii) applies the same three business days to money received from a client or tenant in a property management transaction. Subsection (1)(h)(iii) supplies the exceptions: a written agreement that the money be held for a stated period or deposited on acceptance by the seller, or a purchase contract allowing a promissory note naming the seller as payee to be held in the file until closing. Rule R162-2f-401a(24) requires the agent receiving the money to deliver it to the principal broker immediately.

Rule R162-2f-403a says a Utah real estate trust account shall be non-interest-bearing unless the parties agree in writing and the interest is paid to:

• a.A charity that funds affordable housing programs in Utah✓
• b.The principal broker, as a fee for administering the account
• c.The buyer and the seller in equal shares at settlement
• d.The Real Estate Education, Research, and Recovery Fund

Rule R162-2f-403a(2) makes the real estate trust account non-interest-bearing unless the parties agree in writing to an interest-bearing account, designate in writing the person to whom the interest will be paid, and that person qualifies at the time of payment as a Section 501(c)(3) non-profit organization that "operates exclusively to provide grants to affordable housing programs in Utah," with the recipient program also qualifying under Section 501(c)(3). Rule R162-2f-403b(2) sets the identical condition for a property management trust account. Paying the interest to the broker would be taking a benefit from client money, and neither splitting it between the parties nor routing it to the recovery fund is among the conditions the rule allows.

Under Rule R162-2f-403a, a Utah principal broker violates the trust money rules by depositing into the real estate trust account the broker's own funds exceeding:

• a.$5,000
• b.$1,000✓
• c.$500
• d.$10,000

Rule R162-2f-403a(13)(a)(i) provides that a principal broker violates Subsection 61-2f-401(4)(b) if the broker "deposits more than $1000 of the principal broker's own funds into a real estate trust account." A modest cushion is tolerated to keep the account open and cover bank charges; beyond it the deposit is commingling. The parallel figure for the other account is different and is a favorite point of confusion: Rule R162-2f-403b(13)(b)(i) sets the property management trust account limit at $10,000. Rule R162-2f-403a(13)(a)(ii) adds that failing to move funds due to the broker or an affiliated licensee into the operating account within 60 days of closing or termination is also a violation.

Both parties send a Utah principal broker written claims to the same earnest money and no signed agreement settles it. Rule R162-2f-403a lets the broker:

• a.Interplead the funds, or refer the parties to mediation✓
• b.Release the money to whichever party made the earlier claim
• c.Apply the money to the commission the brokerage has earned
• d.Hold the money and divide it evenly if 30 days pass

Rule R162-2f-403a(8) gives the broker two routes when both parties claim trust money in writing and no signed agreement shows whose claim is valid. The broker may interplead the funds into court and then disburse on the written authorization of the losing party or on a court order; or, "within 15 days of receiving written notice that both parties claim the funds," refer the parties to mediation, but only where no party has filed a civil suit and the parties have contractually agreed to mediate disputes under their contract. Neither route lets the broker decide the dispute, which is why paying the first claimant or splitting the money after a waiting period is not open. Taking the money as commission would be the diversion of trust money made grounds for discipline by Section 61-2f-401(4)(c). Rule R162-2f-401c(1)(e) also requires written consent from both buyer and seller before the broker retains any part of an earnest money deposit.

Rule R162-2f-205 sets restrictions on a registered Utah brokerage. Which statement matches the rule?

• a.A registration may be transferred to a successor brokerage firm
• b.A post office box may be given as the business address
• c.Trust and operating accounts must be at a Utah institution✓
• d.A branch office may trade under a name of its own choosing

Rule R162-2f-205(4)(d) requires that "each trust account and operating account used by a registrant shall be maintained in a bank or credit union located in the state." Subsection (4)(c) is the trap on addresses: a registrant "may not designate a post office box as its business address, but may designate a post office box as a mailing address," which mirrors Section 61-2f-207(2). Subsection (5)(a) states that a registrant may not transfer the registration to any other person, and Subsection (5)(c) requires a unique registration where a change of structure creates a separate legal entity. Subsection (4)(b) requires a branch office to operate under the same business name as the principal brokerage.

Utah Code Section 61-2f-309 requires brokerage records, including monthly trust account reconciliations, to be kept for at least:

• a.One calendar year after the year the transaction closes or fails
• b.Three calendar years after the year the transaction closes or fails✓
• c.Seven full calendar years after the year the transaction closes or fails
• d.Two calendar years after the year the transaction closes or fails

Section 61-2f-309(2)(b) requires the listed records to be kept "for at least three calendar years after the year in which: (i) an offer is rejected; (ii) a transaction either closes or fails; (iii) in a lease transaction, a lease agreement commences; or (iv) the term of a property management agreement ends." Rule R162-2f-401k(2)(b) states the same period. The records themselves are listed in Subsection (1) and include trust account records with the monthly reconciliation, documents submitted to a lender or underwriter, and documents executed by supervised licensees. The period has teeth beyond recordkeeping: Section 61-2f-402(3)(b) bars the division from demanding records after the retention period runs, and Section 61-2f-402(5)(a)(ii) ties the deadline for starting an adjudicative proceeding to the same date.

Rule R162-2f-205 lets a Utah brokerage use certain locations without registering them as branch offices. Which location is on that list?

• a.A second full office opened in a neighboring Utah county
• b.An exhibit booth set up as a temporary marketing site✓
• c.A leased storefront staffed by two agents four days a week
• d.A home office from which one associate broker works daily

Rule R162-2f-205(2) allows three locations to be used to conduct real estate business without branch registration: "(a) a model home; (b) a project sales office; and (c) a facility established for 12 months or less as a temporary site for marketing activity, such as an exhibit booth." The list turns on the temporary or project-specific character of the site, which is why a staffed storefront, a home office worked from daily, and a second full office in another county are all ordinary branch offices. Section 61-2f-206(2)(a) then requires the principal broker to register each of them, and Rule R162-2f-205(3)(c) sets out what the branch application must identify, including the branch broker and each trust account into which funds received there will be deposited.

Before acting as a limited agent in Utah, Rule R162-2f-401a requires a written acknowledgment from each party that the party waives the right to:

• a.Undivided loyalty, absolute confidentiality, and full disclosure✓
• b.Obedience to lawful instructions and to written agreements
• c.Any claim for damages arising out of the same transaction
• d.Reasonable care, diligence, and the safe holding of deposits

Rule R162-2f-401a(3)(b) requires the licensee to obtain "a written acknowledgment from each party affirming that the party waives the right to: (i) undivided loyalty; (ii) absolute confidentiality; and (iii) full disclosure from the licensee." Subsection (3)(a) requires a clear written explanation beforehand that each party may be separately represented, what will be held confidential, what will be disclosed, and when withholding would be a material misrepresentation. Subsection (3)(c) requires a further acknowledgment that the licensee will act neutrally. The three duties that survive are the opposite of a waiver: Subsection (4)(b) keeps obedience, reasonable care and diligence, and holding money or property safe. No rule asks a client to waive a damages claim, and Rule R162-2f-102(22) defines informed consent as written authorization from both principals.

A Utah licensee acting under a limited agency agreement learns something from the buyer that would weaken the buyer's bargaining position. Rule R162-2f-401b says the licensee:

• a.Must place it in the file and disclose it only at closing
• b.May not disclose it without permission from that buyer✓
• c.May disclose it once the seller signs a confidentiality waiver
• d.Must pass it to the seller as a matter of full disclosure

Rule R162-2f-401b(1)(t) forbids a licensee, "when acting as a limited agent, [to] disclose any information given to the agent by either principal that would likely weaken that party's bargaining position if it were known, unless the licensee has permission from the principal to disclose the information." Permission has to come from the party whose position the disclosure would weaken, so a waiver signed by the other side is beside the point, and there is no rule that converts the information into a closing disclosure. Full disclosure is precisely the duty each party waived in writing under Rule R162-2f-401a(3)(b)(iii) when consenting to limited agency, which is why Subsection (4)(a) has the limited agent act as a neutral third party.

Rule R162-2f-401b bars a Utah licensee from acting as a limited agent in a transaction in which:

• a.The licensee, or an entity the licensee runs, is a principal✓
• b.The two parties are represented by the same brokerage firm
• c.The licensee has closed an earlier deal with one of the parties
• d.The licensee will be paid by both the buyer and the seller

Rule R162-2f-401b(1)(o) forbids a licensee to act or attempt to act as a limited agent in a transaction in which "(i) the licensee is a principal in the transaction; or (ii) any entity in which the licensee is an officer, director, partner, member, manager, employee, or stockholder is a principal in the transaction." A neutral cannot be one of the sides. Representing both parties through one brokerage is the ordinary limited agency the rule regulates rather than forbids, provided the informed consent in Rule R162-2f-401a(3) is obtained; a past transaction with a party is no bar; and compensation from both sides is governed by the disclosure duty in Rule R162-2f-401a(16), which requires written disclosure of additional compensation to each party and payment through the principal broker.

Utah Code Section 61-2f-308 defines an exclusive brokerage agreement and then requires the principal broker subject to one to:

• a.Obtain at least three written offers before the term expires
• b.Refuse to show the property to a buyer the broker also represents
• c.Advertise the property in a multiple listing service weekly
• d.Accept and present offers and counteroffers to the client✓

Section 61-2f-308(1)(d) defines an exclusive brokerage agreement as one giving the principal broker the sole right to act as the client's agent or representative for the purchase, sale, lease, or exchange of real estate. Subsection (2)(a) then requires that broker to "accept delivery of and present to the client offers and counteroffers to buy, lease, or exchange the client's real estate," to assist the client in developing, communicating, and presenting offers, counteroffers, and notices, and to answer the client's questions about an offer, a counteroffer, a notice, and a contingency. Subsection (2)(b) releases the broker once the transaction is signed, its contingencies satisfied or waived, and it closes, or once the agreement expires or terminates. Nothing in the section mandates a listing service, a number of offers, or a refusal to show.

Utah Code Section 61-2f-401 lists grounds for discipline involving money that belongs to another and comes into a licensee's possession. Those grounds cover:

• a.Depositing it in a trust account within three business days
• b.Holding it in a Utah bank rather than a Utah credit union
• c.Delivering it to the principal broker on the day it arrives
• d.Failing to account for it, commingling it, or diverting it✓

Section 61-2f-401(4) makes it grounds for discipline to fail, within a reasonable time, "to account for or to remit money that belongs to another and comes into the person's possession," to commingle that money with the person's own, or to divert it "from the purpose for which the money is received." Section 61-2f-403(1) lets the division audit trust accounts and, on evidence of gross mismanagement, commingling, or misuse, order a full audit by a certified public accountant at the licensee's cost under Subsection (2). The other three describe compliance rather than misconduct: Rule R162-2f-403a(1)(a)(i) accepts a bank or a credit union located in Utah, Rule R162-2f-401c(1)(h)(i) sets the three-business-day deposit deadline, and Rule R162-2f-401a(24) requires the agent to deliver money to the principal broker immediately.

A Utah licensee is convicted of a felony that has nothing to do with real estate. Under Utah Code Section 61-2f-401 the conviction is:

• a.Grounds for discipline only after the sentence is completed
• b.Reportable to the division but not itself a ground for action
• c.Grounds for discipline regardless of the link to real estate✓
• d.Outside the section, since it did not involve a transaction

Section 61-2f-401(11) opens with the words "regardless of whether the crime is related to the business of real estate" and then makes it grounds for discipline to be convicted of a felony, or of a class A or class B misdemeanor involving fraud, misrepresentation, theft, or dishonesty. Subsection (11)(b) and (11)(c) add a guilty or nolo contendere plea and a plea in abeyance agreement for the same offenses, so a case that never reaches a conviction can still count. The ground exists on entry rather than on completion of a sentence, and while Section 61-2f-207 and Section 61-2f-301 impose separate reporting duties, Subsection (11) is itself an independent ground. Rule R162-2f-204(2)(a)(ii)(A) separately bars renewal for an applicant with a felony conviction since the last date of licensure.

The Utah division serves a licensee with a request for documents in an authorized investigation. Under Utah Code Section 61-2f-401, failing to respond is a ground for discipline after:

• a.5 business days after the day on which the request is served
• b.10 business days after the day the request is served✓
• c.30 business days after the day the request is served
• d.20 business days after the day the request is served

Section 61-2f-401(18) makes it grounds for discipline to fail to respond to a request by the division in an authorized investigation "within 10 business days after the day on which the request is served," and lists failing to respond to a subpoena, withholding evidence, and failing to produce documents or records as examples. Rule R162-2f-401a(25) states the licensee's side of the same obligation and adds that the division may not bring an enforcement action on it more than four years after the violation. Section 61-2f-102(9) defines a business day as a day other than a Saturday, a Sunday, or a federal or state holiday, so the count is not in calendar days. The same 10-business-day period governs instructor responses under Rule R162-2f-401e(1)(b).

A Utah sales agent is not paid a commission she believes she earned. Utah Code Section 61-2f-401 tells her that recording a lien on the property would be:

• a.Permitted, if she records it after the transaction closes
• b.Permitted, if the listing agreement expressly allows it
• c.Grounds for disciplinary action against her license✓
• d.Permitted, if the principal broker consents in writing

Section 61-2f-401(25) makes it grounds for disciplinary action for "a sales agent or associate broker, placing a lien on real property for an unpaid commission or other compensation related to real estate brokerage services." Subsection (24) covers the other tier: a principal broker may not place a lien on real property "unless authorized by law." Neither ground bends for the timing of the recording, for the broker's consent, or for a clause in the listing agreement. The dispute has its own channel: Section 61-2f-409(2) provides that a sales agent or associate broker may not sue in that individual's own name for a commission unless the action is against the affiliated principal broker.

Utah Code Section 61-2f-402 sets when the division must begin an adjudicative proceeding. As a general rule it must commence no later than the earlier of:

• a.Two years after the violation is reported, or the end of records retention✓
• b.One year after the violation is reported, or the closing of the deal
• c.Six years after the violation occurs, or the day the licensee retires
• d.Four years after the violation occurs, or the day the license is renewed

Section 61-2f-402(5)(a) requires the division to commence an adjudicative proceeding "no later than the earlier of the following: (i) two years after the day on which the violation is reported to the division; or (ii) the day on which the brokerage is no longer required to keep and maintain the records as provided in Section 61-2f-309," which is three calendar years after the year the transaction closes or fails. Subsection (5)(b) allows two extensions: a proceeding responding to a civil or criminal judgment or settlement, brought within one year of it, and a written stipulation between the division and the person. Subsection (5)(c) tolls the period while the division enforces a subpoena. Neither the expiration of a license nor a licensee's retirement ends exposure, because Section 61-2f-404(1)(e) keeps a formerly licensed person answerable for acts committed while licensed.

The Utah division director serves a cease and desist order. Under Utah Code Section 61-2f-407 the person served may request a hearing within 10 days, and pending that hearing the order:

• a.Remains in effect while the request is pending✓
• b.Is stayed until the commission rules on the request
• c.Applies only to conduct in the county where it was served
• d.Expires unless a court confirms it within 30 days

Section 61-2f-407(1)(b) gives the person 10 days after service to request a hearing, and Subsection (1)(c) settles the effect: "pending a hearing requested under Subsection (1)(b), a cease and desist order shall remain in effect." A request does not stay it, no court confirmation is needed, and the order is not limited by county. Subsection (2)(a) provides that after the hearing, if the commission and the director agree that the conduct violates the chapter, the director shall make the order permanent and may impose another sanction under Section 61-2f-404. Rule R162-2f-407(1) adds that an adjudicative proceeding conducted after a cease and desist order is issued shall be a formal adjudicative proceeding.

Utah Code Section 61-2f-404 raises the civil penalty ceiling for each violation where the person knew or should have known that the property owner was:

• a.A person whose primary language is not English
• b.65 years old or older, or a vulnerable adult✓
• c.A member of the armed forces on active duty
• d.A first-time buyer purchasing a primary residence

Section 61-2f-404(1)(a)(ii) lets the commission, with the director's concurrence, impose a civil penalty not to exceed the greater of $5,000 for each violation; "$10,000 for each violation, if the person knew or should have known that the property owner was an individual 65 years old or older, or a vulnerable adult"; or the amount of any gain or economic benefit derived from the violation. The same circumstance reappears in Subsection (1)(b)(vi) as a factor the commission must weigh in choosing a sanction. Section 61-2f-102(44) defines vulnerable adult by reference to Section 26B-6-201. The three other characteristics may matter under fair housing law, but they do not lift the ceiling under this section.

Utah Code Section 61-2f-404 says an order, ruling, or decision of the division takes effect and becomes operative, unless the order provides otherwise:

• a.30 days after the service of the order, ruling, or decision✓
• b.10 days after the division serves the order, ruling, or decision
• c.Immediately upon the vote of the Real Estate Commission
• d.On the first day of the month following the decision

Section 61-2f-404(2)(c)(i) provides that "an order, ruling, or decision of the division shall take effect and become operative 30 days after the service of the order, ruling, or decision unless otherwise provided in the order." Subsection (2)(c)(ii) lets the division stay enforcement under Section 63G-4-405 if a licensee, registrant, or certificate holder appeals, and Subsection (2)(c)(iii) puts appeals under the Utah Rules of Appellate Procedure. Subsection (2)(a) gives an applicant, certificate holder, licensee, registrant, or person aggrieved, including the complainant, the right to agency review by the executive director and to judicial review. Subsection (2)(b) lets a court award reasonable litigation expenses where the state acted without substantial justification.

Utah Code Section 61-2f-409 restricts actions to recover a commission. An action for a fee earned by a sales agent may be brought only by:

• a.The seller, on behalf of the sales agent who found the buyer
• b.The brokerage entity, whether or not it has a principal broker
• c.The sales agent, in the county where the property sits
• d.The principal broker with whom the sales agent is affiliated✓

Section 61-2f-409(2)(b) provides that "an action for the recovery of a fee, commission, or other compensation may only be instituted and brought by the principal broker with whom a sales agent or associate broker is affiliated," and Subsection (2)(a) bars the sales agent or associate broker from suing in that individual's own name unless the defendant is the affiliated principal broker. Subsection (1)(b) lists who may bring such an action at all: a principal broker, an individual who was licensed as a principal broker when the service was performed, or an entity that division records show is affiliated with a principal broker, which is why an entity without one does not qualify. Subsection (1)(a) closes the door entirely where the act or service was prohibited under the chapter.

Under Utah's Statute of Frauds, an agreement employing a broker to buy or sell real estate for compensation is:

• a.Void unless written and signed by the party to be charged✓
• b.Void unless recorded with the county recorder before closing
• c.Enforceable if a notary attests the parties' signatures
• d.Enforceable if the broker performs, whether written or oral

Utah Code Section 25-5-4(1)(e) lists among the agreements that "are void unless the agreement, or some note or memorandum of the agreement, is in writing, signed by the party to be charged with the agreement" every agreement "authorizing or employing an agent or broker to purchase or sell real estate for compensation." Section 25-5-3 does the same for a contract for the sale of land or a lease longer than a year, and Section 25-5-1 requires a writing subscribed by the party for any estate or interest in real property other than a lease not exceeding one year. Utah's word is void, not merely unenforceable, so performance does not cure the missing writing. Notarization goes to proof of a signature, and recording gives public notice under Title 57, Chapter 3; neither substitutes for the signed writing itself.

The Real Estate Education, Research, and Recovery Fund created by Utah Code Section 61-2f-503 exists chiefly to:

• a.Offer low-interest mortgages to first-time Utah homebuyers
• b.Underwrite the division's outreach, advertising, and staffing
• c.Reimburse the public for damages caused by a licensee✓
• d.Cover a licensee's continuing education and renewal costs

Section 61-2f-503(3) directs the division to administer the fund to "reimburse the public for damages caused in a real estate transaction by an individual licensed under this chapter," and then, under Section 61-2f-504, to investigate violations involving fraud, misrepresentation, or deceit and to advance education and research. Section 61-2f-503(4) limits it to damages caused by an individual licensee, with no reimbursement for a final judgment against an entity, and Subsection (5) makes $100,000 available at the start of each fiscal year to satisfy final judgments. Section 61-2f-504(1) sends only the money accumulated above $100,000 to investigation and education, so the consumer remedy comes first. It is not a lending program, and a licensee's own renewal costs are not what the fund pays.

Utah Code Section 61-2f-506 caps what the Real Estate Education, Research, and Recovery Fund may pay. The limits are:

• a.$20,000 for a single transaction and $40,000 for one licensee
• b.$25,000 for a single transaction and $75,000 for one licensee
• c.$15,000 for a single transaction and $50,000 for one licensee✓
• d.$10,000 for a single transaction and $30,000 for one licensee

Section 61-2f-506(3)(c) provides that "regardless of the number of claimants or parcels of real estate involved in a real estate transaction, the liability of the fund may not exceed: (i) $15,000 for a single transaction; and (ii) $50,000 for one licensee." Multiple victims of the same deal share the transaction cap rather than each drawing it. Subsection (3)(b) narrows recovery further by excluding punitive damages, attorney fees, interest, and court costs, so only uncollected actual damages are payable. Section 61-2f-509 adds that where the fund lacks money to satisfy an order, unpaid claims are paid in the order originally filed, with accumulated interest at 8% per annum.

The Utah fund pays a claim arising from a final judgment against a licensee. Under Utah Code Section 61-2f-510 that licensee's license is:

• a.Suspended for two years, after which it renews as usual
• b.Automatically revoked, with repayment required before reapplying✓
• c.Placed on probation, with quarterly reports to the division
• d.Unaffected, because the fund and discipline are separate tracks

Section 61-2f-510(2)(a) provides that "the license of a real estate licensee for whom payment from the fund is made under this chapter shall be automatically revoked," and Subsection (2)(b) bars the person from applying for a new license until paying in full the amount the fund paid plus interest at a rate the division sets with the commission's concurrence. Subsection (1)(a) also subrogates the division to the claimant's rights for the amounts paid out. Revocation is the sanction, not suspension or probation, and Section 61-2f-203(5) treats an application to be relicensed after revocation as an original application with no credit for experience gained before it. Section 61-2f-511 confirms the tracks are not separate: paying the fund back does not nullify or modify any other disciplinary proceeding.

A Utah licensee markets an undivided fractionalized long-term estate. Rule R162-2f-307 requires the licensee to give each prospective purchaser:

• a.A signed opinion of counsel that the offering is exempt
• b.A copy of the sponsor's most recent federal tax return
• c.An appraisal of the property by a Utah certified appraiser
• d.Written disclosures obtained from the sponsor, including title✓

Rule R162-2f-307 requires a licensee who markets an undivided fractionalized long-term estate to "obtain from the sponsor or seller and provide to each prospective purchaser the required information," in written or documented form and before purchase. The listed items include the sponsor's professional qualifications and experience, material information about a current lease or sublease, the tenant in common agreement defining the interest, a description of improvements, defects known to the sponsor that may materially affect value, known environmental issues, and "a preliminary title report on the real property." An appraisal, a legal opinion, and the sponsor's tax return are not among them. Utah Code Section 57-29-102(8) defines the interest as a tenancy in common or fee estate held by two or more persons, and expressly excludes a joint tenancy.

Under Utah's Timeshare and Camp Resort Act, a purchaser may cancel the agreement by delivering or postmarking written notice no later than midnight of the:

• a.Third calendar day after the day the agreement is signed
• b.Fifth business day after the day the agreement is signed✓
• c.Seventh business day after the day the agreement is signed
• d.Tenth calendar day after the day the agreement is signed

Utah Code Section 57-19-12(1)(a)(ii) requires the written notice of cancellation to be "delivered or postmarked not later than midnight of the fifth business day after the day on which the agreement is signed," delivered by hand or by certified mail, return receipt requested, or a delivery service that provides proof of delivery. Subsection (1)(b) excludes the signing day from the count, and Section 57-19-2(5) defines a business day as a day other than a Saturday, Sunday, or state or federal holiday. Subsection (1)(c) then requires the developer to refund any money or other consideration within 30 days of receiving a timely notice, and Subsection (2) requires the cancellation language in at least 10-point bold upper-case type immediately before the purchaser's signature line.

A Utah farm is sold and the seller's water comes from shares in a mutual water company. Under Utah Code Section 73-1-11 those shares:

• a.Pass with the land whenever the land is irrigated ground
• b.Pass with the land once the buyer records the warranty deed
• c.Are not appurtenant to the land and transfer separately✓
• d.Pass with the land unless the deed reserves them expressly

Section 73-1-11(4)(a) provides that "the right to the use of water evidenced by shares of stock in a corporation is not a water right appurtenant to land," and Subsection (4)(b) directs that such shares transfer only as provided in Section 73-1-10(2), which applies the securities rules of Title 70A, Chapter 8. So the shares do not ride along with the deed and recording it changes nothing. The contrast is Subsection (1)(a): a water right that is appurtenant to land does pass to the grantee unless the grantor reserves it, conveys part of it in the land conveyance document, or conveys it separately beforehand. Section 73-1-10(1)(a) requires an appurtenant water right to be transferred by deed in substantially the same manner as real estate, recorded in the county of the point of diversion and the county of use.

A Utah subcontractor wants to preserve the right to claim a construction lien. Under Utah Code Section 38-1a-501 a preliminary notice must be filed with the State Construction Registry no later than:

• a.90 days after the person commences providing construction work
• b.20 days after the person commences providing construction work✓
• c.180 days after the person commences providing construction work
• d.60 days after the person commences providing construction work

Section 38-1a-501(1)(a) requires a person who wants to claim a construction lien to file a preliminary notice with the registry "no later than 20 days after the day on which the person commences providing construction work on the real property," and Subsection (1)(e) provides that a person who fails to file may not claim a lien. A late filing is possible under Subsection (1)(c) but reaches only work provided from five days after it is filed. The 20 days also fixes priority: Section 38-1a-503(1) relates a construction lien back to the time of the first preliminary notice filing. The longer periods belong elsewhere: Section 38-1a-502(1)(a)(i) allows 180 days after final completion to record the notice of construction lien, and Section 38-1a-701(2)(a) allows 180 days after that filing to bring the action to enforce it.

Utah's Residence Lien Recovery Fund under Utah Code Title 38, Chapter 11 is designed to protect:

• a.A broker who is not paid an earned sales commission
• b.A lender whose construction loan has gone into default
• c.An owner-occupant who paid in full but faces a lien✓
• d.A tenant who is charged for repairs after moving out

Section 38-11-107(1)(a) bars a person entitled to lien an owner-occupied residence, who provided qualified services under an agreement other than directly with the owner, from maintaining that lien or recovering a judgment against the owner where the owner meets the conditions in Section 38-11-204(4)(a) and (b): a written contract with a licensed or exempt original contractor, and payment of that contractor in full. The unpaid subcontractor's remedy shifts to the fund created by Section 38-11-201. Note the administering agency, because Utah runs two funds through two departments: Section 38-11-103 puts this one under the Division of Professional Licensing, while the Division of Real Estate administers the Real Estate Education, Research, and Recovery Fund under Title 61. A broker's unpaid commission, a defaulted construction loan, and a tenant's repair charge raise no residential construction lien at all.

Utah Code Section 59-2-103 allows a residential exemption against the fair market value of residential property. The exemption is:

• a.A 35% reduction, limited to five acres per residential unit
• b.A 55% reduction, limited to three acres per residential unit
• c.A 20% reduction, limited to two acres per residential unit
• d.A 45% reduction, limited to one acre per residential unit✓

Section 59-2-103(3) allows residential property in Utah "a residential exemption equal to a 45% reduction in the value of the property," which leaves 55% of fair market value subject to tax and is the source of the common mix-up between the two figures. Subsection (5) provides that "no more than one acre of land per residential unit may qualify," and Subsection (6)(a) limits the exemption to one primary residence per household, with Subsection (6)(b) allowing it for each residential property that is a tenant's primary residence. Subsection (2) sets the valuation date: all tangible taxable property is assessed at fair market value "as valued on January 1." Section 59-2-1331(1)(a) then makes property taxes due on November 30 of each year following the date of levy.

A Utah trust deed goes into default. Under Utah Code Section 57-1-24 the trustee may not exercise the power of sale until a notice of default is recorded and:

• a.Not less than 30 days have elapsed since the recording
• b.Not less than three months have elapsed since the recording✓
• c.Not less than 12 months have elapsed since the recording
• d.The beneficiary obtains a judgment against the trustor

Section 57-1-24 lets the trustee exercise the power of sale only after recording a notice of default in each county where the trust property sits, and then only when "(2) not less than three months has elapsed from the time the trustee filed for record under Subsection (1); and (3) after the lapse of at least three months the trustee shall give notice of sale as provided in Sections 57-1-25 and 57-1-26." Section 57-1-25(1)(a) sets the publication schedule for that notice of sale, three times, once a week for three consecutive weeks, with the last publication at least 10 but not more than 30 days before the sale, and Subsection (1)(b) requires posting at least 20 days before. No judgment is needed, because the whole point of a trust deed under Section 57-1-23 is a nonjudicial sale.

Utah Code Section 53-29-102, which creates the state's offender registry, states that the chapter:

• a.Imposes no duty on any individual to request registry information✓
• b.Requires a buyer's agent to give the registry link at first contact
• c.Bars any person from using registry data in a real estate deal
• d.Requires a seller's agent to search the registry before listing

Section 53-29-102(2) provides that "this chapter does not create or impose any duty on any individual to request or obtain information regarding any offender from the department." Subsection (1) requires the Department of Public Safety to operate the registry and to make the information listed in Section 53-29-404(3) available to the public, and Section 53-29-404(1) requires a public internet site indexed by surname and by postal code. Because the information is public and searchable, the statute leaves it to the buyer to look, and imposes no search or notification duty on a licensee. Note the citation has moved: this is the Sex, Kidnap, and Child Abuse Offender Registry in Title 53, Chapter 29, not the Title 77 chapter older Utah study material still cites.

A Utah house was the site of a felony some years ago. Under Utah Code Section 57-1-37 the failure of the owner to disclose that the property is stigmatized is:

• a.A material fact, so the owner's agent shares the liability
• b.Not a material fact that must be disclosed in the transaction✓
• c.A material fact only where the buyer asks a direct question
• d.Not a material fact, but the agent remains liable for silence

Section 57-1-37(1) provides that "the failure of an owner of real property to disclose that the property being offered for sale is stigmatized is not a material fact that must be disclosed in the transaction of real property," and Subsection (2) adds that "neither an owner nor the owner's agent is liable for failing to disclose that the property is stigmatized." The protection reaches the agent as well as the owner, which is what defeats the choice that leaves the agent liable for silence. Section 57-1-1(8) defines stigmatized as the site or suspected site of a homicide, other felony, or suicide; the dwelling place of an individual infected or suspected of being infected with HIV or a comparable disease that cannot be transferred by occupancy; or property found contaminated and since decontaminated under Title 19, Chapter 6, Part 9. A known physical defect is a different matter and stays disclosable under Rule R162-2f-401a(1)(c).

Rule R162-2f-403b says a Utah property management trust account is used to secure tenant security deposits, rents, and:

• a.The management fees the brokerage has already earned
• b.The brokerage's reserve for advertising vacant units
• c.Money an owner tenders as a reserve or for unexpected costs✓
• d.Deposits taken on nightly rentals of a resort condominium

Rule R162-2f-403b(12) states the account's purpose: securing tenant security deposits, rents, "money tendered by a property owner as a reserve fund or for payment of unexpected expenses," and, where the broker has no separate real estate trust account, client funds from a real estate transaction. Earned management fees go the other way: Subsection (16) forbids paying a commission or the broker's management fee directly from the account and requires the funds to pass through the operating account first, and Subsection (13)(b)(ii) requires earnings to be moved out within 60 days. A brokerage advertising reserve is the broker's own money. And Subsection (3) bars depositing funds from the rental of tourist accommodations for periods of less than 30 consecutive days, which Section 61-2f-102(32)(b)(ii) excludes from property management altogether.

Rule R162-2f-403b requires a Utah principal broker to keep a property management trust account separate from the real estate trust account once the broker regularly manages:

• a.Three or more individual units
• b.Seven or more individual units✓
• c.Ten or more individual units
• d.Twenty or more individual units

Rule R162-2f-403b(1)(a)(i) requires a principal broker "regularly engaged in property management on behalf of seven or more individual units" to establish at least one property management trust account separate from the real estate trust account, maintained in a bank or credit union located in Utah. Subsection (1)(a)(ii) covers the smaller operator: a broker regularly managing six or fewer units may run the money through a real estate trust account kept under Rule R162-2f-403a. Rule R162-2f-403a(14) states the same threshold from the sales side, requiring a real estate company that regularly manages seven or more units to open the separate account. The unit count, not the number of owners or of management agreements, is what trips the requirement.

Rule R162-2f-403b sets a ceiling on the broker's own money in a Utah property management trust account. The limit is:

• a.$25,000
• b.$1,000
• c.$500
• d.$10,000✓

Rule R162-2f-403b(13)(b)(i) provides that a principal broker violates Subsection 61-2f-401(4)(b) by depositing "more than $10,000 of the principal broker's own funds into the property management trust account." Subsection (13)(a) adds that even a permitted deposit of the broker's money is a violation unless records clearly identify the total belonging to the broker and a monthly line-item reconciliation of those deposits and withdrawals is performed. The number differs from the sales side and the pair is worth memorizing together: Rule R162-2f-403a(13)(a)(i) caps the broker's own funds in a real estate trust account at $1,000. The higher ceiling reflects a property management operation's need to float owner expenses between rent cycles.

Rule R162-2f-401j lists what an unlicensed employee of a Utah property management company may do. Which task is permitted?

• a.Quoting rent and lease terms the principal broker has set✓
• b.Negotiating the rent and term of a lease with a new tenant
• c.Deciding which applicants the brokerage will approve
• d.Signing a property management agreement for the brokerage

Rule R162-2f-401j(3) lets an unlicensed individual employed by a real estate or property management company, under the principal broker's supervision, provide a prospective tenant with access to a rental unit, provide secretarial, bookkeeping, maintenance, or rent collection services, "quote rent and lease terms as established or approved by the principal broker," complete pre-printed lease or rental agreements except as to terms determined through negotiation, serve or receive legal notices, address tenant or neighbor complaints, and inspect units. Repeating terms the broker set is permitted; negotiating them is the express exception in Subsection (3)(d). Signing the management agreement and deciding applications are judgment calls reserved to licensees, and Subsection (2) requires the broker to train each affiliated licensee and unlicensed employee to work within these boundaries.

A Utah property owner terminates the management contract. Rule R162-2f-401j requires the principal broker to deliver the trust money to the owner or designee within:

• a.15 days of the termination of the contract
• b.30 days of the termination of the contract✓
• c.10 days of the termination of the contract
• d.60 days of the termination of the contract

Rule R162-2f-401j(4) provides that "within 30 days of the termination of a contract with a property owner for property management services, the principal broker shall deliver any trust money to the property owner, the property owner's designated agent, or other party as designated under the contract with the property owner." The same subsection adds a four-year limit on division enforcement where the broker delivered the money but missed the deadline. Subsection (1) requires property management by a real estate brokerage to be done under the brokerage name as registered with the division, unless the principal broker holds a dual broker license and has obtained a separate registration under Rule R162-2f-205 for the other business name.

On a closing statement, an item entered as a credit to the seller is one that:

• a.Increases the money the seller takes away from the closing✓
• b.Belongs on the buyer's side of the statement as a charge
• c.Cancels out against an equal debit on the buyer's side
• d.Reduces the money the seller takes away from the closing

A credit to a party increases what that party receives or reduces what that party must bring; a debit does the reverse. The seller's largest credit is the sale price itself, and a cost the seller prepaid that covers time after closing, such as prepaid taxes or an assessment, is also credited to the seller. Anything the seller owes at settlement, such as the payoff of a loan, unpaid taxes, or the brokerage fee, is a debit that reduces the seller's proceeds. A charge belonging to the buyer's financing sits on the buyer's side. And credits do not simply offset debits between the parties: many items appear on only one side of the statement, so the two columns are balanced within each party's own statement rather than against each other.