Free Utah Property Practice Test — LicenseIQ

Question 1

A lender's title insurance policy protects:

Accepted Answer

A lender's (mortgagee's) policy protects the lender's interest up to the loan amount and declines as the loan is paid. An owner's (fee) policy protects the owner.

Question 2

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 3

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 4

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 5

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 6

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 7

A Utah sales agent may lawfully receive a commission check directly from a title insurance agent when:

Accepted Answer

61-2f-305 allows payment through a title insurance agent following the principal broker's written instructions. Otherwise agents accept compensation only from their principal broker, and client consent does not substitute.

Question 8

In property management, a Utah broker may pay a current tenant who helps secure a new tenant up to:

Accepted Answer

R162-2f-401b(1)(l)(ii) allows up to $250 per lease to an unlicensed employee or a current or previous tenant. One month's rent is a plausible-sounding but incorrect figure.

Question 9

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 10

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 11

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 12

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 13

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

Accepted Answer

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.

Question 14

Which deed provides the GREATEST protection to the grantee?

Accepted Answer

A general warranty deed contains the fullest covenants, warranting title against all defects, including those arising before the grantor owned it.

Question 15

A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

Accepted Answer

$200,000 / 100 = 2,000 units; 2,000 x $2.50 = $5,000.

Question 16

Which body adopts the administrative rules (R162-2f) that govern Utah real estate licensees, with the Division's concurrence?

Accepted Answer

Under 61-2f-103 the Commission makes rules with the Division's concurrence. The executive director of Commerce is tempting because the Division sits in Commerce, but rulemaking authority is given to the Commission.

Question 17

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 18

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 19

Which of the following is NOT exempt from Utah real estate licensing?

Accepted Answer

61-2f-202 expressly says land sale and timeshare employees are not exempt. Attorneys, court-appointed fiduciaries, and owners are among the listed exemptions.

Question 20

How much of the principal broker's own money may be kept in a Utah real estate (sales) trust account without a commingling violation?

Accepted Answer

R162-2f-403a(13) makes depositing more than $1,000 of the broker's funds a violation. $10,000 is the limit for property management trust accounts.

Question 21

Beginning on what date does Utah require a property manager license to engage in residential property management for compensation?

Accepted Answer

61-2f-201 provides that beginning January 1, 2027, a license is required to engage in property management for compensation, and property manager licenses cover residential rental units. Earlier dates are guesses not found in the statute.

Question 22

Under the Utah REPC, property taxes and HOA dues are prorated as of:

Accepted Answer

REPC Section 4.1 prorates as of the Settlement Deadline in Section 24(d). Possession date is a common but incorrect guess.

Question 23

Under the Utah REPC, who pays for the buyer's ALTA Homeowner's title insurance policy?

Accepted Answer

REPC Section 6.2 has the seller pay for the Homeowner's Policy. The lender's policy is a separate buyer loan cost.

Question 24

A cabin used only on weekends by its owner is worth $380,000, with a tax rate of 0.011. Its annual property tax is:

Accepted Answer

A non-primary residence gets no exemption, so $380,000 × 0.011 = $4,180. $2,299 wrongly applies the 55% factor.

Question 25

A Utah sales brokerage must maintain a separate property management trust account when it regularly manages:

Accepted Answer

R162-2f-403a(14) and 403b require a separate account at seven or more units. Six or fewer may use the real estate trust account.

Utah real estate property practice test

1. A lender's title insurance policy protects:

2. For a deed to be valid it must be:

3. Which action may a life tenant take WITHOUT the remainderman's consent?

4. Under the statute of frauds, a real estate sales contract must be:

5. When an owner dies with no will and no heirs, the property passes to the state through:

6. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

7. A Utah sales agent may lawfully receive a commission check directly from a title insurance agent when:

8. In property management, a Utah broker may pay a current tenant who helps secure a new tenant up to:

9. An owner of lakefront property holds:

10. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

11. Who may perform an appraisal of real property for a lender?

12. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

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

14. Which deed provides the GREATEST protection to the grantee?

15. A property is assessed at $200,000 and the tax rate is $2.50 per $100 of assessed value. What is the annual tax?

16. Which body adopts the administrative rules (R162-2f) that govern Utah real estate licensees, with the Division's concurrence?

17. Private restrictions placed in a deed by a developer are called:

18. A licensee may manage property for an owner for a fee only if there is:

19. Which of the following is NOT exempt from Utah real estate licensing?

20. How much of the principal broker's own money may be kept in a Utah real estate (sales) trust account without a commingling violation?

21. Beginning on what date does Utah require a property manager license to engage in residential property management for compensation?

22. Under the Utah REPC, property taxes and HOA dues are prorated as of:

23. Under the Utah REPC, who pays for the buyer's ALTA Homeowner's title insurance policy?

24. A cabin used only on weekends by its owner is worth $380,000, with a tax rate of 0.011. Its annual property tax is:

25. A Utah sales brokerage must maintain a separate property management trust account when it regularly manages:

Sources