Utah Real Estate Study

Front 1

When working for an owner, the broker takes on the role of a?

Back 1

Fiduciary

Front 2

What are real estate licensees required to do when selling their own property?

Back 2

Disclose to buyers and sellers that they have a real estate license.

Front 3

If a real estate sales agent owns and wants to sell a parcel of land, but neither lists nor advertises it, what must the sales agent do?

Back 3

Disclose owner/agent

Front 4

The sellers agent tells the buyer to offer less than the listed price. What relationship has the agent created?

Back 4

Agency by implication or undisclosed dual agency

Front 5

What must the agent disclose to the principal?

Back 5

All material information about the customer and the transaction

Front 6

What must the agent disclose to the customer?

Back 6

All material information about the property and the client's ability to perform in the transaction

Front 7

What duties does an agent owe a client?

Back 7

Fiduciary duties: Loyalty, Obedience, Confidentiality, Full disclosure, Accounting and Safe holding of property, and Reasonable care and diligence

Front 8

What duties does an agent owe a customer?

Back 8

Treat them Honestly, Ethically, and Competently

Front 9

A limited agent becomes neutral in what regard?

Back 9

Loyalty, Confidentiality and Full Disclosure

Front 10

What appraisal principle states that improvements must add their cost to the value of property?

Back 10

Contribution

Front 11

What are the steps of the neighborhood cycle?

Back 11

1.) Growth or integration

2.) Equilibrium

3.) Disintegration or Decay

Front 12

When computing NOI, what is never included?

Back 12

Debt Service

( Mortgage Payment)

Front 13

A property near a factory that emits smoke and odors, suffers from?

Back 13

Economic or External Obsolescence

Front 14

An appraiser using the market comparison approach finds a comparable with a fireplace valued at $3,000 but no patio. The subject property has no fireplace, but has a patio worth $2,000.

What will the adjustment be?

Back 14

Comparable minus $1,000

Front 15

An appraiser is using the market data approach on a single-family residence which has no swimming pool. The LEAST appropriate property to use a comparable?

Back 15

A foreclosure sale, which has no pool

Front 16

In appraisal, is depreciation a credit against an income tax liability or simply a loss of value?

Back 16

Loss of Value

Front 17

Would an appraiser use gross rent multiplier, inherent nature of land, highest and best use, or rate of capitalization?

Back 17

Highest and best use

Front 18

The purpose of capitalizing income, or income capitalization, is to?

Back 18

Determine property value

Front 19

What is the difference between reproduction cost and current cost?

Back 19

Depreciation

Front 20

What does TRID stand for?

Back 20

TILE/RESPA Integrated Disclosure

Front 21

What is RESPA?

Back 21

Real Estate and Settlement Procedures Act

Front 22

What is the document called that will replace the existing Good Faith Estimate (GFE) and Truth in Lending Disclosure (TIL)?

Back 22

Loan Estimate

Front 23

What is the document called that will replace the existing HUD-1 Settlement Statement?

Back 23

Closing Disclosure

Front 24

What government entity is responsible for the enforcement of RESPA?

Back 24

The Consumer Financial Protection Bureau

( CFPB )

Front 25

When does the Loan Estimate need to be to the consumer?

Back 25

No later than 3 days after loan application

Front 26

How many days prior to settlement does a buyer need to be given the Closing Disclosure?

Back 26

3 business days prior

Front 27

What is the purpose of the new disclosures?

Back 27

To provide greater consumer disclosure on the actual costs and details of their loan

Front 28

Does RESPA apply to cash transactions?

Back 28

No

Front 29

What would trigger the need to provide a new Closing Disclosure to the consumer and a new 3-day waiting period?

Back 29

Changes to the APR, the addition of a

Pre-Payment Penalty or change of Loan Product

Front 30

What kind of contract is an option?

Back 30

Unilateral

Front 31

What kind of contract is an "Exercised" option?

Back 31

Bilateral

Front 32

An employment contract between the broker and the agent, as an independent contractor is?

Back 32

Unilateral

Front 33

How is a unilateral contract usually spotted?

Back 33

The use of a condition:"if, then" language

Front 34

A person who signs or executes a document is known as a?

Back 34

Signatory - the executor settles the win

Front 35

If the seller isn't sure he wants to sell during the next five years, what should he give a lessee who is interested in buying?

Back 35

First right of refusal

Front 36

What clause would allow a tenant to match any offer to purchase the property?

Back 36

Right of first refusal

Front 37

What gives tenants the most flexibility if they are considering buying the property they are currently renting?

Back 37

Option

Front 38

Under the Statute of Frauds,what doesn't have to be in writing?

Back 38

A lease for less than a year

Front 39

If a party to an agency agreement stops performing their contractual obligations, what has the party violated?

Back 39

The implied covenant of good faith

Front 40

If a party to an agreement attempts to sabotage the other party in performing their duties, what has the sabotaging party violated?

Back 40

The implied covenant of fair dealing

Front 41

After an agreement has been entered into and one party dies, what is the status of the contract?

Back 41

Unless it is an agency or some other personal service contract, the deceased party's estate will continue the contractual obligations of the deceased - a seller financing contract would continue post death.

Front 42

Do all contracts need to be in writing?

Back 42

Only contracts governed by the Statute of Frauds need to be in writing

Front 43

The best way to correct errors on a deed, or clear clouds from the title would be to record a?

Back 43

Quit Claim Deed

Front 44

If a grantor delivers a deed to escrow, then dies before delivery is made to the grantee, what is the condition of the deed?

Back 44

It is legal if all conditions have been met - third party delivery

Front 45

If a seller conveys a deed to one buyer who doesn't record, and then later conveys the same deed to another buyer who doesn't record, who owns the property?

Back 45

The buyer who records their deed first - it's a race to the recorder's office

Front 46

Is a grantee's signature required on the deed?

Back 46

No, only the grantors

Front 47

What kind of loan is guaranteed?

Back 47

VA Loan

Front 48

What kind of loan is it when the mortgage(lender) makes the payments?

Back 48

Reverse Annuity

Front 49

What must a veteran first get to obtain a VA loan?

Back 49

Certificate of Eligibility

Front 50

Who are the vendor and vendee?

Back 50

Seller and buyer

Front 51

When a developer obtains a construction loan on a subdivision, and then sells individual parcels, the loan should contain what clause?

Back 51

Partial release clause

Front 52

What kind of mortgage would a business use if both real and personal property are collateral?

Back 52

Package

Front 53

Who makes government insured loans?

Back 53

Approved lenders, not FHA, VA, FNMA, etc

Front 54

What clause in a mortgage allows the lender to adjust the interest rate?

Back 54

Escalation Clause

Front 55

Mortgage where payments increase the first years, then level off?

Back 55

Graduated

Front 56

What is it called when the seller is the lender?

Back 56

Seller finance, also called "Carryback"

Front 57

When a buyer uses very little of his/her own money to purchase a home it's called?

Back 57

Leverage

Front 58

A couple are buying and selling a home. However, they are going to close on the new home before closing on the sale of the old home. In this situation they might get what kind of loan?

Back 58

Swing, Gap, or Bridge loan

Front 59

A person buys a property utilizing a wraparound mortgage. Which of the following conditions would benefit the buyer?

Back 59

Make payments to Escrow, which in turn pays the underlying mortgage payments and the seller

Front 60

What is FNMA?

Back 60

A source of supplementary monies for the primary money market

Front 61

How is a certificate if estoppel used?

Back 61

To obtain the loan balance of the mortgage

Front 62

What market condition would most likely increase the demand for rental property?

Back 62

Increase in Interest Rates

Front 63

What clause protects a lender's investment?

Back 63

Alienation clause, also called a due on sale clause

Front 64

What type of mortgage is the loan secured by the property being purchased with the loan money?

Back 64

Purchase money mortgage

Front 65

What is blockbusting?

Back 65

Creating rumors of integration in a neighborhood to drive down prices

Front 66

Who is exempt from fair housing laws?

Back 66

Owner of 3 or fewer properties not using a brokerage and not discriminating in their own advertising

Front 67

On fair housing issues involving the handicapped, what's the difference between the issues of "accessible" and "adapted"?

Back 67

Accessible means you can get to and in; adapted is environmental controls lowered,doorways wider

Front 68

What law requires a lender to reveal APR to the borrower?

Back 68

Truth in Lending

Front 69

An agent represents the seller of a business which has a significant inventory. What law should the agent suggest that the buyer be concerned with?

Back 69

Bulk Transfer Under UCC

Front 70

What is the government classification for an environmentally hazardous site?

Back 70

Brownfield

Front 71

What is a sure sign of ground contamination?

Back 71

Discolored soil

Front 72

What is the proper way to remove asbestos?

Back 72

Encapsulation in sealed bags

Front 73

Which law requires a housing provider to not discriminate against the handicapped?

Back 73

Fair Housing. The ADA covers employers and public service

Front 74

The difference between the 1968 Fair Housing Act and the 1988 Amendment is?

Back 74

The "88 Amendment added Familial Status and Handicap as protected classes"

Front 75

Is drug addiction a handicap under the Fair Housing Act?

Back 75

Drug addiction is a protected class when the person has completed a rehab program

Front 76

Inappropriate discussions about commissions within the real estate industry could violate which law?

Back 76

Anti-trust laws

Front 77

What method of property description uses points and degrees?

Back 77

Metes and bounds

Front 78

What method of property description would be most accurate to determine boundary lines?

Back 78

Metes and bounds

Front 79

What is it called when a tenant holds over wrongly or illegally?

Back 79

Tenancy at Sufferance, or holdover tenant

Front 80

Who is protected by a non-disturbance clause in a loan?

Back 80

Lessee

Front 81

What happens to a lease when the property is sold?

Back 81

Nothing, the lease stays in force

Front 82

What type of commercial lease requires a flat amount of monthly rent plus a percentage of gross sales?

Back 82

Percentage

Front 83

What would protect a tenant from a lessor's desire to terminate the lease?

Back 83

Tenancy for Years

Front 84

A holdover tenant is one who?

Back 84

Remains in possession of a leasehold beyond the expiration of the lease

Front 85

A lease that requires increases of rent at regular intervals is called a?

Back 85

Graduated Lease

Front 86

A tenant is released from the obligation to pay rent if ?

Back 86

The tenant is constructively evicted

Front 87

If RST Inc. defaults on it's unexpired lease and abandons the property, the property manager should?

Back 87

Notify RST that it is responsible for the remaining lease payments

Front 88

If you were buying an investment property, what number would be most useful in order to make a wise decision?

Back 88

NOI

Front 89

A lessee is released from the obligation to pay rent if?

Back 89

The property is condemned for health reasons

Front 90

What is a Tenancy for years?

Back 90

A lease that has a definite beginning and expiration date despite the length of the term

Front 91

For a tenant to successfully constructively evict. he/she must?

Back 91

Vacate the premises

Front 92

What is the difference between exclusive agency and exclusive right to sell?

Back 92

Exclusive agency allows the seller to sell without paying a commission

Front 93

How could a listing agreement be terminated?

Back 93

Mutual consent of both parties, Death of the agent, anticipatory repudiation

Front 94

P,Q and R are joint tenants. R dies, then Q sells to S. Who holds the title and how?

Back 94

P, S as tenants in common....no unity of time

Front 95

A seller who gives a purchase money mortgage as part of the financing is considered the?

Back 95

Beneficiary or Mortgagee

Front 96

Other names for the Uniform Real Estate Contract are?

Back 96

Land Contract, Contract for Deed, Installment Sales Contract

Front 97

Which of the following can force a sheriff's sale as part of the foreclosure process due to default on a mortgage or trust deed?

Back 97

Mortgagee--Remember, a trust deed is non-judicial and therefore would never lead to a sheriff's sale.

In a mortgage foreclosure, the court will order the sale, but the mortgagee, or lender, holds the lien and forces the sale

Front 98

When an apartment building is converted to a condominium, what do they call the modification process?

Back 98

Condo-Conversion

Front 99

K buys G's life estate, believing it to be Fee Simple. G dies. Forty years later K discovers the life estate. No remainderman can be located. K can sue for quiet title based on?

Back 99

Adverse Possession

Front 100

How does an owner take ownership of a timeshare?

Back 100

With interval ownership or title

Front 101

X has an easement on Y's property. Y would be considered?

Back 101

The servient tenant

Front 102

The property of an owner who dies testate and names the person who is to administer the will, is transferred by which of the following deeds?

Back 102

Executor's; if an executor was not named, the answer would be Administrator's Deed

Front 103

A passive investor who has invested in a syndication would be considered a?

Back 103

Limited Partner

Front 104

May a married joint tenant sell their 50% interest in the property without the knowledge or consent of their spouse?

Back 104

Yes, Knowledge and consent to sell interest in joint tenancy is not needed; it is needed for tenancy by the entirety and if the spouse insists on selling the entire property

Front 105

If a joint tenant insists on selling the entire property, but the other joint tenants refuse, what would be needed to sell the property?

Back 105

A partition action

Front 106

A property manager's contract usually contains?

Back 106

The manger's fiscal responsibilities

Front 107

Property manager's are normally paid on the basis of?

Back 107

Percentage of Gross Income, or Gross Rents

Front 108

A property manager works for the best interest of?

Back 108

The Owner

Front 109

How would a property manager violate ECOA

Back 109

Decline credit based on age

Front 110

Tenant moved out of a warehouse and left his attached shelves, which were classified as trade fixtures.

What is the responsibility of the landlord?

Back 110

Recognize the shelves belong to the tenant, and the tenant has 30 days to return and remove them

Front 111

An agent manages three 6-plexes for the owner. Two have positive cash flows, but the other needs repairs and has vacancies.

What money can the agent use to make repairs?

Back 111

Income from the income-producing units, with the owner's permission

Front 112

In times of inflation, a property manager would likely avoid what type of lease?

Back 112

Fixed Rent

Front 113

A property manager has a 500 unit apartment complex with 7 vacancies.

What is the vacancy factor?

Back 113

1.4%. To get this 7 divide by 500

Front 114

A city wants to put a park in an area where no land has been set aside for the park. After paying just compensation for the value of the land, they may acquire it by

Back 114

Suit for Condemnation

Front 115

Flood plain controls are an example of?

Back 115

Police Power

Front 116

Wetlands are regulated by the?

Back 116

Corps of Engineers

Front 117

What is an open and notorious use that does not pass title?

Back 117

Prescriptive Easment

Front 118

Who is responsible for zoning in unincorporated areas?

Back 118

Board of County Commissioners

Front 119

When personal property is included in the sale, what document transfers ownership?

Back 119

Bill of Sale

Front 120

Pledging real estate as collateral without giving up possession is?

Back 120

Hypothecation

Front 121

Is forgery in a warranty deed covered under title insurance?

Back 121

YES

Front 122

A property was purchased for $200,000, after obtaining a loan for $150,000. How much title insurance coverage did the buyer have to pay for?

Back 122

$150,000; The sellers policy would be for $200,000

Front 123

Which of these does a standard policy cover: encroachments, survey, forgery, unrecorded mechanics liens?

Back 123

Forgeries

Front 124

Where should a broker keep sales agents' licenses?

Back 124

Broker's Files

Front 125

What happens to sales agents' licenses when the broker dies or the broker's license is revoked?

Back 125

Their licenses are inactivated

Front 126

How does a broker get back in the business if his/her license is revoked?

Back 126

Must start over with a sales agent license

Front 127

What is the main purpose of continuing education?

Back 127

Protect the public

Front 128

What is a double contract[as contrasted with double commission or dual agency]

Back 128

When a second contract or REPC is created to deceive a lender

Front 129

What is the purpose of the first $100,000 in the Recovery Fund

Back 129

To protect the public from dishonest licensees

Front 130

How much equity could be protected for the head of household, spouse and three dependants?

Back 130

$60,000

Front 131

What is the main purpose of the Marketable Record Title Act

Back 131

Simplify and stabilize title searches

Front 132

Who can have the 120 hours education requirement waived?

Back 132

A member of the Utah Bar

Front 133

Who does the governor appoint?

Back 133

Commissioners

Front 134

What does the Real Estate Commission not get involved with?

Back 134

Disputes involving commissions

Front 135

What does it take to have earnest money earn interest?

Back 135

Separate account, written approval of both parties as to who gets the interest

Front 136

Know what a net listing is

Back 136

illegal in Utah

Front 137

After foreclosure there's not enough money to cover all who filed mechanics liens.

What is the priority of payoff?

Back 137

Laborers 1st, suppliers and subs 2nd and general contractors last

Front 138

If there is a $5,000 earnest money deposit and the sale fails, how can the broker receive $2,500?

Back 138

Only with written approval of both buyer and seller

Front 139

What does a real estate license NOT authorize you to do?

Back 139

Sell securities, or interest in REIT's or limited partnerships

Front 140

Where do you apply for or check on water rights?

Back 140

State Division of Water Rights

Front 141

How must a complaint against a real estate agent be made?

Back 141

In Writing

Front 142

When a contractor files a mechanic's lien for an amount greater than what is owed, he/she is guilty of?

Back 142

A Misdemeanor

Front 143

According to the Real Estate Purchase Contract, if the seller breeches the contract and the buyer accepts liquidated damages, the seller will?

Back 143

Pay an amount equal to the earnest money deposit

Front 144

When does the Real Estate Division get involved in commission disputes?

Back 144

When there is a violation of rules and regulations or dishonesty

Front 145

When K holds an open listing, and at the same time M holds an exclusive right-to-sell listing, they may have caused what situation?

Back 145

Double Commission

Front 146

To market timeshares, you must do which of the following?

Back 146

Register with the Real Estate Division

Front 147

How much continuing education must licensees take to renew their license?

Back 147

18 total hours needed every 2 years, at least 9 hours of which must be core

Front 148

If a licensee is found guilty, what is the maximum amount the Real Estate Recovery Fund will pay for each transaction?

Back 148

$15,000 - the total amount allowable for one transaction

Front 149

A licensee is sued by several clients for improper conduct. The clients prevail and receive a judgment. What is the maximum that will be paid from the Real Estate Recovery Fund for that licensee?

Back 149

$50,000 - the total amount permissible for one individual licensee

Front 150

What are real estate licensees required to do when selling their own property?

Back 150

Disclose that they have a real estate license

Front 151

When a brokerage closes, how many days do they have to notify the division where the records are going to be kept?

Back 151

10 Days

Front 152

If a broker sold his own listing and no agent represented the buyer, how many points did the broker earn?

Back 152

Double

Front 153

Is a securities license needed to sell interests in a corporation?

Back 153

YES

Front 154

In Utah what is considered a stigmatized property?

Back 154

Death on the property, the previous owner having HIV, or the property being contaminated with methamphetamine and subsequently being decontaminated in accordance with the State Department of Health's regulations

Front 155

How many property management accounts before a separate property management trust account must be opened?

Back 155

Six, Seven or more requires a new, separate trust account

Front 156

While an agent may sell their own property(owner/agent), the agent may not represent the buyer in that transaction

Back 156

Limited agency is not permitted when an agent is a principal in the transaction

Front 157

If a Complaint is filed with the division against a licensee, the licensee has how many days to respond with an answer?

Back 157

30 days and it is not required unless the Division mandates it

Front 158

If a person is practicing real estate without a license, which entity would address the situation?

Back 158

There are a couple of different answers (1) a complaint could be made with the Division of Real Estate, which could levy a fine. The Division could also refer the matter over to the District or County Attorney to bring criminal charges

(2)An injured party could press charges immediately, in which case the District or County Attorney would immediately bring criminal charges and prosecute

Front 159

How many points must a licensee earn to apply for a broker's license?

Back 159

60 total; at least 45 of which come from sales transactions; 15 points may come from experience using another professional license or occupation

Front 160

An unlicensed assistant is paid how

Back 160

Through wage or salary. The assistant may not receive any monies from commissions, even in terms of a bonus

Front 161

What is an undivided fractionalized long term estate?

Back 161

Property owned by two or more persons that is tenancy in common, a fee estate, life estate, or other long term estate that is not joint tenancy

Front 162

Must auctioneers have a real estate license?

Back 162

No, but they must be supervised by a licensed broker and the transaction must use a state approved form

Front 163

May an agent advertise or offer a client a rebate,kickback, or part of his/her commission if the client uses them in the transaction?

Back 163

No. as long as the gift/inducement is in compliance with the underwriting guidelines applying to the loan in the transaction, the gift is permissible

Front 164

May an agent give a referral fee to another agent for a referral?

Back 164

Yes, as long as the referral was unsolicited and the referral fee does not exceed $150