Utah Real Estate Broker Exam — All Questions

Utah Code Section 61-2f-201 makes it unlawful for an unlicensed person to do which of these with respect to Utah real estate?

• a.Serve as a court-appointed executor selling estate land
• b.Advertise or assume to act as a broker or sales agent✓
• c.Buy a home to live in and later sell it at a profit
• d.Post a for-sale sign in the yard of the person's own house

Section 61-2f-201(1) makes it unlawful for an unlicensed person to engage in the business of a principal broker, associate broker, or sales agent, to act in that capacity, or to "advertise or assume to act" as one. Holding out is enough; no transaction has to close. The other three sit inside the exemptions. Section 61-2f-202(2)(a)(i) exempts a person who as owner performs the listed acts as to real estate that person owns, which covers both buying a home to live in and putting a sign in one's own yard. Section 61-2f-202(3)(c) exempts "a receiver, trustee in bankruptcy, administrator, executor, or an individual acting under order of a court."

For the owner exemption in Utah Code Section 61-2f-202, the statute says "owner" does not include:

• a.A person who owns the land jointly with a second person
• b.A person who owns the land but lives in another state
• c.A corporation whose officer signs the listing agreement
• d.A beneficiary or a trustee under a deed of trust✓

Section 61-2f-202(1) provides that "owner" does not include a person that holds an option to purchase real property, a mortgagee, a beneficiary under a deed of trust, a trustee under a deed of trust, or a person that owns or holds a claim that encumbers real property. All of these hold security or contract interests rather than ownership, so they cannot sell another person's land under the owner exemption. Rule R162-2f-200(1)(a) confirms the other side of the line by defining an exempt owner to include a person holding an interest as a joint tenant or a tenant in common. Rule R162-2f-200(2)(a)(i) lets an officer or director act for a corporation that owns the property, and nothing in the section turns on where the owner lives.

A salaried employee manages apartment buildings that the employer owns, without a license. Utah Code Section 61-2f-202 allows this only if the employee:

• a.Manages no more than seven individual units at one time
• b.Holds a written power of attorney from the building owner
• c.Files an exemption statement with the division each year
• d.Manages real estate for that one employer and no other✓

Section 61-2f-202(2)(a)(iii) exempts "a regular salaried employee of the owner of real estate who performs property management services with reference to real estate owned by the employer, except that the employee may only manage real estate for one employer." The one-employer limit is written into the exemption itself. Subsection (36) defines a regular salaried employee as someone paid wages with federal employment taxes withheld, and excludes project-by-project or commission work. The power-of-attorney exemption in Section 61-2f-202(3)(a) is a separate route and is limited to an isolated transaction under an unsolicited instrument. The seven-unit figure comes from Rule R162-2f-403b(1)(a)(i), which decides when a broker needs a separate property management trust account, not who is exempt. And the section requires no annual filing.

Utah Code Section 61-2f-202 states that the exemptions in Subsection (2)(a) do not reach an employee who is engaged in the sale of:

• a.Farm ground the employer has held for over ten years
• b.Interests governed by the Timeshare and Camp Resort Act✓
• c.Warehouse space the employer leases to a single large tenant
• d.Vacant lots the employer bought at a county tax sale

Section 61-2f-202(2)(b)(i) states that Subsection (2)(a) "does not exempt from licensing an employee engaged in the sale of real estate regulated under: (A) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act; or (B) Title 57, Chapter 19, Timeshare and Camp Resort Act," and Subsection (2)(b)(ii) adds cooperative interests under Title 57, Chapter 23. The carve-out is written by statute rather than by property type, so how long the employer has held farm ground, whether a warehouse has one tenant, and how vacant lots were acquired all leave the ordinary owner-employee exemption intact. Section 57-19-14 separately requires a person marketing a timeshare or camp resort development to register with the division as a salesperson.

Rule R162-2f-202b requires a Utah broker applicant to complete 120 hours of prelicensing education made up of:

• a.60 hours of broker principles and 60 hours of Utah law
• b.90 hours of broker practices and 30 hours of broker principles
• c.45 hours of principles, 45 of practices, 30 of Utah law✓
• d.40 hours each of principles, practices, and Utah law

Rule R162-2f-202b(1)(c)(i) requires the applicant to "successfully complete 120 hours of approved prelicensing education, including: (A) 45 hours of broker principles; (B) 45 hours of broker practices; and (C) 30 hours of Utah law and testing." The Pearson VUE candidate handbook prints the same three lines on its education certifying document. Section 61-2f-203(1)(d)(ii)(A) sets the 120-hour floor by statute and leaves the split to rule, and Subsection (1)(d)(v) adds that an hour means 50 minutes of instruction in each 60 minutes, with a maximum of eight program hours per day.

Utah Code Section 61-2f-203 sets the experience an applicant must have before securing a principal broker or associate broker license. It requires:

• a.Three years of full-time sales agent experience or the equivalent✓
• b.Two years of part-time licensed experience in any single state
• c.Five years of full-time sales agent experience without a break
• d.One year of licensed experience plus a real estate degree

Section 61-2f-203(1)(f)(i) provides that "three years' full-time experience as a sales agent or the equivalent is required before an applicant may apply for, and secure a principal broker or associate broker license in this state," and Subsection (1)(f)(ii) directs the commission to set by rule the criteria for accepting equivalent experience or special education. Rule R162-2f-202b(1)(f)(i) then supplies the equivalent: within the five-year period before the application, either three years of full-time licensed active experience, or two years of that experience plus one year of full-time professional real estate experience from the Appendix 3 table. Part-time work does not meet a full-time standard, five years is the lookback window rather than the requirement, and a degree by itself substitutes for education under Subsection (1)(c)(ii), not for experience.

Beyond the years of experience, Rule R162-2f-202b requires a Utah broker applicant to document experience points totaling at least:

• a.30 points, of which half must come from Utah property
• b.80 points, of which half must come from Utah property
• c.45 points, of which half must come from Utah property
• d.60 points, of which half must come from Utah property✓

Rule R162-2f-202b(1)(f)(ii) requires the applicant to evidence "a total of at least 60 documented experience points" accumulated within the five-year period before the application, and Subsection (1)(f)(iv)(B) has the applicant submit documentation of at least 60 and no more than 80 points for division review. Rule R162-2f-501(1) repeats both figures. So 80 is the ceiling on what may be submitted rather than the floor that must be earned. Rule R162-2f-202b(2) and R162-2f-501(2) set 45 as the minimum number of the 60 points that must comply fully with the agency requirements of Section R162-2f-401a, leaving up to 15 as partial points. Subsection (1)(f)(iii) adds that a minimum of one half of the points from Tables 1 and 2 must derive from transactions of properties located in Utah.

A Utah broker candidate passes the state component and fails the national one. Under Rule R162-2f-202b the failed component must be retaken and passed within:

• a.Six months of the passed component, and 12 of the education✓
• b.Three months of the passed component, and 6 of the education
• c.Nine months of the passed component, and 18 of the education
• d.Twelve months of the passed component, and 24 of the education

Rule R162-2f-202b(5)(a) provides that a candidate who passes one test component but fails the other "shall retake and pass the failed component: (i) within six months of the date on which the individual achieves a passing score on the passed component; and (ii) within 12 months of the date on which the individual completes the prelicensing education." Both clocks run at once, so the earlier of the two controls. Subsection (5)(b) then requires the license application to be filed within 90 days of achieving passing scores on both components and within 12 months of completing the education, and Subsection (5)(c) pushes any deadline that falls on a day the division is closed to the next business day.

Under Rule R162-2f-204, a Utah real estate license issued under the rule is valid for a period of:

• a.Three years from the date of licensure
• b.Two years from the date of licensure✓
• c.One year from the date of licensure
• d.Four years from the date of licensure

Rule R162-2f-204(1)(a) states that "a license issued under this rule is valid for a period of two years from the date of licensure." Section 61-2f-204(1)(c) backs this by directing the division to issue a license "for a period of not less than two years." The two-year term is what makes the continuing education cycle work: Section 61-2f-204(2)(a)(ii) has an active licensee demonstrate competence "by completing 18 hours of continuing education within a two-year renewal period." Rule R162-2f-204(1)(b) adds that to renew on time without a late fee the licensee must finish the required continuing education by the fifteenth day of the month of expiration, so that providers have time to bank the hours.

To renew after the first renewal cycle, Rule R162-2f-204 requires an actively licensed Utah individual to complete 18 hours including:

• a.Six hours of core, three of which are the Mandatory 3-Hour course
• b.Twelve hours of core, three of which are on trust accounts
• c.Nine hours of core, three of which are the Mandatory 3-Hour course✓
• d.Fifteen hours of core, three of which are on agency duties

Rule R162-2f-204(2)(b)(ii)(A) requires 18 non-duplicative hours of continuing education certified by the division, "including at least nine non-duplicative hours of core curriculum, three hours of which are for completion of the Mandatory 3-Hour CE Course," taken during the previous license period. Section 61-2f-204(2)(a)(ii) fixes the 18-hour total by statute. Subsection (2)(b)(iv) of the rule notes that the division has certified both the mandatory 3-hour course and the 12-hour new agent course as core hours. Neither trust accounts nor agency duties is singled out as a mandated subject, and no version of the rule sets the core share at six or fifteen hours.

A Utah licensee whose license was inactive at the last renewal now wants to activate it. Rule R162-2f-203 accepts proof of:

• a.Payment of the reinstatement fee and a signed change form
• b.Nine hours of continuing education taken in the past year
• c.A written request from the incoming principal broker only
• d.18 hours of continuing education within the past two years✓

Rule R162-2f-203(2)(a)(ii)(B) lets the holder of an inactive license activate it on proof of "having completed, within the two-year period preceding the date on which the licensee requests activation, 18 hours of continuing education, including nine hours of core topics of which three hours shall include the Mandatory 3-Hour CE course." Subsection (2)(a)(ii)(C) offers the alternative of having passed the licensing examination within the previous six months, and Section 61-2f-204(3)(a) states the same pair of routes. Subsection (2)(b) adds that education used to activate may not be reused at the next renewal. A change form and a nonrefundable activation fee are also required by Subsections (2)(a)(i) and (iv), but on their own they do not answer the education test.

Utah Code Section 61-2f-204 allows the division to reinstate an expired license, on payment of a renewal fee and late fee plus proof of education, until:

• a.Two years after the day on which the license expired
• b.Six months after the day on which the license expired
• c.One year after the day on which the license expired✓
• d.Five years after the day on which the license expired

Section 61-2f-204(2)(b) gives a 30-day window after expiration in which the division may reinstate on payment of a renewal fee and a late fee, with proof of education required if the license was active when it expired. Subsection (2)(c) then extends reinstatement "after the 30-day period described in Subsection (2)(b), and until one year after the day on which an active or inactive license expires" on the same fees plus proof of the required hours. Subsection (2)(d) closes the door at that point: "the division shall relicense an individual who does not renew that individual's license within one year as prescribed for an original application." Past one year the applicant starts over, which for a broker means the education, the examination, and the experience again.

Rule R162-2f-203 provides that the license of a Utah sales agent or associate broker is involuntarily inactivated upon:

• a.Revocation or suspension of the principal broker's license✓
• b.The licensee taking a leave of absence longer than 90 days
• c.The licensee moving a home address to another Utah county
• d.The licensee failing to complete continuing education on time

Rule R162-2f-203(1)(c) inactivates a sales agent or associate broker license without the holder's assent upon termination of the affiliation with a principal broker, upon "expiration, suspension, revocation, inactivation, or termination of the license of the principal broker with whom the sales agent or associate broker is affiliated," or upon inactivation or termination of the registration of the affiliated entity. Section 61-2f-410(1)(a) states the same result and Subsection (1)(b) lets the individual affiliate with another principal broker. Section 61-2f-410(2) then requires the principal broker to give each affiliated licensee written notice before the suspension or revocation takes effect. A leave of absence is not a listed trigger, missed education bites at renewal instead, and a change of home address is simply reportable under Section 61-2f-207(1)(d).

Utah Code Section 61-2f-207 requires a licensee to notify the division of a change of principal broker, business location, or name within:

• a.10 business days of the change✓
• b.30 calendar days of the change
• c.20 business days of the change
• d.60 calendar days of the change

Section 61-2f-207(1) requires a signed statement notifying the division "within 10 business days of any change of: (a) principal broker; (b) principal business location; (c) mailing address; (d) home street address; (e) an individual's name; or (f) business name." Subsection (2)(a) adds that a business or home address must be a physical location, though Subsection (2)(b) allows a post office box as a mailing address. Subsection (3) makes failure to notify separate grounds for disciplinary action, and Subsection (4) treats the licensee as having received anything sent to the last address given. Rule R162-2f-207(7) sharpens the timing for one item: a change in affiliation must be reported before the change is made.

Under Utah Code Section 61-2f-301, a licensee must send the division a signed statement within 10 business days after:

• a.A client files a written complaint with the local board
• b.A listing expires without the property having been sold
• c.The brokerage changes the bank holding its operating account
• d.A cease and desist order is issued against the licensee✓

Section 61-2f-301(1) requires notice within 10 business days after the day on which a personal or brokerage bankruptcy is filed, if the licensee is a principal broker; a license or registration needed to engage in an occupation is suspended, revoked, surrendered, canceled, or denied in this or any other jurisdiction; or "a cease and desist order or a temporary or permanent injunction is issued" against the licensee by a court or administrative agency on the basis of conduct involving real estate or involving fraud, misrepresentation, or deceit. A complaint filed with a private board is not on the list, an expired listing is an ordinary business event, and it is a change in a trust account, not an operating account, that Rules R162-2f-403a(1)(b) and R162-2f-403b(1)(b) require the broker to report.

Utah Code Section 61-2f-205 says the license the division issues to a licensee must contain:

• a.The name and address of the licensee and the state seal✓
• b.A list of the licensee's education and experience credits
• c.The name of the principal broker and the license fee paid
• d.A photograph of the licensee and the expiration date

Section 61-2f-205 provides that "the division shall issue to a licensee a license that contains: (1) the name and address of the licensee; (2) the seal of the state; and (3) any other matter prescribed by the division." The list is short, and the third item is what lets the division add anything further by its own direction rather than by statute. A photograph is not required by the section, the principal broker's identity is tracked through affiliation records rather than printed as a statutory element, and education and experience are proved on application under Section 61-2f-203 rather than displayed on the license itself.