Utah Real Estate Broker Exam — All Questions

A Utah principal broker who receives a buyer's earnest-money deposit must:

• a.Deposit it into the brokerage operating account
• b.Place it in a separate trust account and not commingle it with the broker's personal or business funds✓
• c.Hold it in cash until closing
• d.Give it to the listing agent as a bonus

A Utah broker must keep client money such as earnest money in a separate trust account and must not commingle it with the broker's personal or business funds or convert it. Funds must be deposited within the time the rules require and disbursed only as the transaction and the parties' agreement allow. Commingling or conversion is a serious violation.

When a Utah brokerage manages rental property, tenant deposits and rents must be:

• a.Kept in the property manager's personal account
• b.Paid directly to the brokerage as profit
• c.Handled through appropriate trust accounts and accounted for to owners and tenants✓
• d.Ignored until the lease ends

In property management, tenant deposits, rents, and owner funds must be handled through appropriate trust accounts and accounted for to the owners and tenants. The principal broker is responsible for these funds and for records showing each owner's and tenant's money is intact. Property management adds trust-handling obligations tested in depth on the broker exam.

If the buyer and seller dispute an earnest-money deposit held by a Utah broker, the broker should:

• a.Keep the deposit in trust until the parties agree in writing or a court resolves the dispute✓
• b.Release it to whichever party asks first
• c.Keep it as a commission
• d.Split it in half without consent

A Utah broker holding a disputed deposit acts as a neutral stakeholder and must not release the funds unilaterally. The deposit stays in the trust account until the parties agree in writing or a court resolves the matter. Releasing disputed money on one party's demand exposes the broker to liability.