Utah Real Estate Broker Exam — All Questions

Rule R162-2f-401a lists a licensee's duty of confidentiality but carves out an exception. The licensee must still disclose a known material fact about:

• a.The length of time the property has sat on the open market
• b.A defect in the property or the client's ability to perform✓
• c.The reason the seller has decided to move out of the area
• d.The lowest price the seller has privately said would be taken

Rule R162-2f-401a(1)(d) defines confidentiality as prohibiting the agent "from disclosing, without permission, any information given to the agent by the principal that would likely weaken the principal's bargaining position if it were known, but excepting any known material fact concerning: (i) a defect in the property; or (ii) the client's ability to perform on the contract." The two exceptions are the things a buyer or lender cannot protect themselves against. A seller's bottom price and reason for moving are the classic bargaining-position facts the duty exists to protect. Days on market is generally public through the listing service rather than confidential information given by the principal.

Before offering a Utah residential property for sale, Rule R162-2f-401a requires the licensee to disclose in writing:

• a.The date the seller acquired the property and the price paid
• b.The commission the listing brokerage expects to be paid
• c.The source relied on for the square footage used in marketing✓
• d.The name of every other brokerage that valued the property

Rule R162-2f-401a(8) requires the licensee, before offering a residential property for sale, to "disclose the source on which the licensee relies for any square footage data that will be used in the marketing of the property," both in the written agreement executed with the seller and in a written disclosure given to the buyer at or before the seller's disclosure deadline in the contract. Square footage is the number most often taken from a county record or an old listing and repeated without checking, which is why Subsection (7) also requires reasonable efforts to verify the accuracy and content of marketing information. Commission terms live in the brokerage agreement, and neither competing valuations nor the seller's purchase history is a required prelisting written disclosure.

A Utah licensee makes an offer to buy a rental house for her own account. Rule R162-2f-401a requires her to disclose that she holds a license:

• a.At closing, in the settlement statement the parties sign
• b.Only if the other party asks whether she is licensed
• c.In the initial contact with the other party to the transaction✓
• d.Only if her license is on active rather than inactive status

Rule R162-2f-401a(5) requires that "when making an offer or solicitation to buy, sell, lease or rent real property as a principal, either directly or indirectly, or as an agent for a client, a licensee shall disclose in the initial contact with the other party the fact that the licensee holds a license with the division, whether the license status is active or inactive." The disclosure is owed at first contact and is not triggered by a question, and the rule states expressly that inactive status does not excuse it. Subsection (6) then requires the licensee, before the execution of a binding purchase or lease agreement, to put the principal position and the license status in writing, which is well before the settlement statement is produced.

Rule R162-2f-102 defines a net listing as one where the commission is the difference between the actual selling price and a minimum price set by the seller. Under Rule R162-2f-401b a Utah licensee may:

• a.Take one if the principal broker approves it in advance
• b.Take one if the seller signs a separate written waiver
• c.Take one on commercial property but not on residential
• d.Not take one, because the rule prohibits the arrangement✓

Rule R162-2f-401b(1)(h) states flatly that an individual licensee may not "take a net listing," and Rule R162-2f-102(24) supplies the definition the prohibition uses: "a listing agreement under which the real estate commission is the difference between the actual selling price of the property and a minimum selling price as set by the seller." No exception is written for a seller's waiver, for a property type, or for approval by the principal broker, and Rule R162-2f-401b(1)(a)(iii) makes violating any provision of the rules its own ground for discipline. The problem the ban addresses is that the arrangement pays the agent more the less the seller is told the property is worth, which sets the agent's interest against the duty of loyalty in Subsection R162-2f-401a(1)(a).

An unlicensed friend passes a Utah licensee an unsolicited referral that becomes a closed sale. Rule R162-2f-401b permits the licensee to give the friend a gift valued at no more than:

• a.$100
• b.$500
• c.$250✓
• d.$1,000

Rule R162-2f-401b(1)(l) bars a licensee from paying a finder's fee or giving valuable consideration to an unlicensed person for referring a prospect, then makes two narrow exceptions. Under (l)(i) "a licensee may give a gift valued at $250 or less to an individual in appreciation for an unsolicited referral of a prospect that results in a real estate transaction." Under (l)(ii) a licensee in a property management transaction may compensate an unlicensed employee or a previous or current tenant up to $250 per lease for helping retain or secure a tenant. Both the ceiling and the word unsolicited matter: soliciting the referral takes the payment outside the exception, and Section 61-2f-401(5) makes paying valuable consideration to an unlicensed person grounds for discipline.

Rule R162-2f-401h governs Utah advertising. A licensee who advertises a listed property must identify the brokerage:

• a.By the trade name the licensee's team uses in the market
• b.By the brokerage license number rather than by its name
• c.Only where the advertisement appears in a printed medium
• d.By the name of the brokerage as shown on division records✓

Rule R162-2f-401h(1) requires a licensee to identify the brokerage clearly and conspicuously in any medium, and Subsection (4) fixes which version of the name counts: "the name of the brokerage identified by a licensee in an advertisement shall be the name of the brokerage as shown on division records." Subsection (5) then applies the same requirements to a team, group, or other marketing entity, so a team name does not displace the brokerage name. Subsection (2) handles electronic advertising by requiring a direct link to a display carrying the brokerage name, which is why the duty is not limited to print. Section 61-2f-401(12)(b) makes the omission grounds for discipline, and Subsection (3) supplies the one exception, for an owner-agent or owner-broker advertising a property not listed with the affiliated brokerage.

Rule R162-2f-401g limits what an unlicensed personal assistant may do. Which task is on the permitted list?

• a.Explaining the financing terms of an offer to a buyer
• b.Cold calling homeowners to ask whether they would sell
• c.Negotiating a repair credit with the listing brokerage
• d.Placing brokerage signs on properties the firm has listed✓

Rule R162-2f-401g(2) lists the duties an unlicensed assistant may perform, among them "placing brokerage signs on listed properties," having keys made, acting as a courier without discussing or completing forms, distributing preprinted literature at an open house where a licensee is present, and securing public records. Subsection (2)(a) allows clerical work including making appointments, but only where the prospect initiated the contact, which is why cold calling is out; Subsection (4) separately bars the assistant from telephone solicitation calculated to secure prospects. Explaining offer terms and negotiating a credit are the negotiating and advising work Subsection (2) reserves to licensees. Subsection (3) also requires the assistant to be paid at a predetermined rate not contingent on transactions.

Rule R162-2f-102 defines a double contract as executing two or more purchase agreements, one of which is not made known to the:

• a.County recorder where the deed is filed
• b.Prospective lender or loan funding entity✓
• c.Title company closing the transaction
• d.The buyer's agent who is handling the transaction

Rule R162-2f-102(17) defines "double contract" as "executing two or more purchase agreements, one of which is not made known to the prospective lender or loan funding entity," and Rule R162-2f-401b(1)(f) forbids a licensee to use or propose the use of one. The lender is the party named because the point of the second agreement is to show the lender a price or terms that are not the real ones. Rule R162-2f-401b(1)(e) covers the same ground from another angle by barring participation in a transaction where a buyer enters an agreement not disclosed to the lender that might have affected the loan. Subsection (1)(d) adds the broader prohibition on preparing any document or settlement statement the licensee knows does not reflect the true terms of the transaction.

Utah Code Section 61-2f-305 restricts who may pay a sales agent or associate broker for licensed work. As a general rule the payment must come from:

• a.Whichever brokerage in the deal holds the earnest money
• b.The seller directly, out of the proceeds shown at closing
• c.The title insurance agent conducting the settlement
• d.The principal broker with whom the licensee is affiliated✓

Section 61-2f-305(1) provides that except as Subsection (2) allows, "an associate broker or sales agent may not accept valuable consideration for the performance of an act specified in this chapter from a person except the principal broker with whom the associate broker or sales agent is affiliated." Subsection (2) is the one exception and it is narrow: payment may come by an instrument prepared by a title insurance agent, and only where that agent complies with the principal broker's written instructions in preparing and delivering it. Rule R162-2f-401c(1)(d) sets out what those instructions must contain. So a title agent is not a free-standing source of compensation, and Section 61-2f-401(6) separately bars a principal broker from paying a licensee who was not affiliated when the compensation was earned.

Utah Code Section 61-2f-302 governs affiliation. Which arrangement does it permit?

• a.A client naming which affiliated agents will also represent them✓
• b.Serving as principal broker of one entity and sales agent of another
• c.An inactive associate broker closing one pending transaction
• d.A sales agent affiliating with two principal brokers at once

Section 61-2f-302(5) permits exactly this: "an owner, purchaser, lessor, or lessee who engages the services of a principal broker may designate which sales agents or associate brokers affiliated with that principal broker will also represent that owner, purchaser, lessor, or lessee." The other three are each barred. Subsection (3) provides that a sales agent or associate broker "may not affiliate with more than one principal broker at the same time," and Subsection (4) that an individual may not be a principal broker of one entity and a sales agent or associate broker for a different entity at the same time. Subsection (2)(a) bars an inactive associate broker or sales agent from conducting a real estate transaction until affiliated and documented with the division, with no carve-out for a deal already in progress.

A Utah principal broker dies. Under Rule R162-2f-202e an acting principal broker who is designated for the brokerage may not:

• a.Sign on or supervise the escrow accounts the firm already holds
• b.Agree to represent new clients or run the firm past four months✓
• c.Notify the affiliated licensees of the individual's designation
• d.Close out the listings and contracts pending on the day of death

Rule R162-2f-202e(7) provides that an acting principal broker may not "(a) agree to represent new clients; or (b) continue the business activities of the brokerage for more than four months after the occurrence of the death or incapacity of the principal broker." The other three are duties or powers the same rule grants. Subsection (6) lets the acting principal broker close out transactions, listings, purchase contracts, and property management agreements that were active or pending when the incident occurred. Subsection (8)(a) requires maintaining or supervising each escrow or trust account until the money is transferred or disbursed as agreed, and Subsection (8)(c) requires written notice of the designation to each affiliated licensee and to each client and party to a pending contract. Subsection (1) gives the brokerage 14 days to replace the principal broker before the division may inactivate its registration.

A Utah principal broker terminates a sales agent and the termination notice takes effect. Under Utah Code Section 61-2f-304 the sales agent may:

• a.Perform no act under the chapter until affiliating anew✓
• b.Finish any transaction that was already under contract
• c.Keep working for 30 days while seeking a new brokerage
• d.Act on the agent's own account but not on behalf of other people

Section 61-2f-304(2) provides that "an associate broker or sales agent may not perform any act under this chapter, directly or indirectly, from and after the effective date of the termination notice until the day on which the associate broker or sales agent is affiliated with a principal broker." The bar is immediate and complete, so there is no grace period and no exception for transactions already under contract. Nor is acting on one's own account a way around it: Rule R162-2f-401b(1)(a) applies the prohibited-conduct rules "whether acting as agent or on the licensee's own account." Subsection (1) requires the principal broker to notify both the division and the licensee in the manner set by rule, and Section 61-2f-302(1) reinforces that an individual who is not a principal broker may not act at all without being affiliated.

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.