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Utah real estate agency practice test

25 questions with answers and explanations · 2026

1. The best way to create an agency relationship is a(n):

Answer & explanation

Answer: C. A written express agreement clearly defines parties, duties and compensation and is enforceable.

2. A Utah sales agent's seller client refuses to pay the commission. Who may sue the seller to collect?

Answer & explanation

Answer: A. 61-2f-409 lets only the principal broker or affiliated entity sue. An agent may sue only the principal broker the agent is or was affiliated with.

3. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Answer & explanation

Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

4. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Answer & explanation

Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

5. An unlicensed assistant to a Utah agent may:

Answer & explanation

Answer: A. R162-2f-401g permits scheduling only when the prospect initiates contact. Telephone solicitation and negotiating are prohibited.

6. To counter a buyer's REPC, a Utah agent should:

Answer & explanation

Answer: A. R162-2f-401a(18) requires an approved addendum for counteroffers, and 401b(1)(p) prohibits altering the boilerplate or filled-in blanks. Striking and initialing is the common but prohibited practice.

7. An agent authorized to perform a single specific act for a principal is a:

Answer & explanation

Answer: D. A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

8. A Utah licensee is prohibited from acting as a limited agent when:

Answer & explanation

Answer: A. R162-2f-401b(1)(o) bars limited agency where the licensee, or an entity in which the licensee is an officer, member, partner, or similar, is a principal. Same-brokerage representation is the ordinary situation in which limited agency with consent is allowed.

9. A buyer client tells her agent she has just been laid off and may not qualify for the loan. The agent's duty regarding this fact is best described as:

Answer & explanation

Answer: A. Utah's rule excepts the client's ability to perform from confidentiality, so the agent may not conceal or misrepresent it. Treating it as protected confidential information is the trap.

10. A material defect that a seller/agent must disclose is one that:

Answer & explanation

Answer: C. Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

11. Before showing another brokerage's listing as a subagent of the seller, a Utah licensee must:

Answer & explanation

Answer: A. R162-2f-401a(12) requires notifying the listing brokerage and a written subagency agreement. Limited agency consent is unrelated to subagency.

12. Which of the following is a fiduciary duty an agent owes the principal?

Answer & explanation

Answer: A. Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

13. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Answer & explanation

Answer: B. Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

14. To sign a REPC on behalf of a seller client, a Utah sales agent needs:

Answer & explanation

Answer: B. R162-2f-401a(19) requires a prior written power of attorney, a copy in the file attached to each document, and the 'Attorney-in-Fact' signature format. Verbal permission is not enough.

15. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Answer & explanation

Answer: C. Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

16. In a Utah sale, where is the prior agency disclosure confirmed?

Answer & explanation

Answer: D. R162-2f-401a(10) requires confirmation in the approved REPC or a substantially similar separate provision, and REPC Section 5 contains it. The MLS sheet is not a binding agreement.

17. Which statement about dual agency is correct?

Answer & explanation

Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

18. An unlicensed friend sends an agent an unsolicited referral that closes. The agent may give the friend:

Answer & explanation

Answer: C. R162-2f-401b(1)(l) allows a gift of $250 or less for an unsolicited referral that results in a transaction. Sharing commission with an unlicensed person is prohibited.

19. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Answer & explanation

Answer: B. Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

20. The client a broker represents is the:

Answer & explanation

Answer: A. The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

21. When a Utah principal broker's license is suspended or revoked, the licenses of the agents affiliated with that broker:

Answer & explanation

Answer: B. 61-2f-410 and R162-2f-203 make affiliated licenses inactive pending a change of affiliation. Revocation is a disciplinary act against the broker and does not revoke the agents' licenses.

22. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Answer & explanation

Answer: D. Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

23. Which fiduciary duty continues even after the agency relationship has ended?

Answer & explanation

Answer: D. Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

24. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Answer & explanation

Answer: D. A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

25. An agency relationship can be terminated by all of the following EXCEPT:

Answer & explanation

Answer: A. Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

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