Utah Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Utah real estate exam, and it's also one of the most misunderstood. The Utah Division of Real Estate expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Utah law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for UT-specific rules are among the most common failures on the state portion.

Practice Questions

Utah Agency — Practice Questions & Answers

102 questions on Agency from the Utah real estate question bank. First 10 are free — sign up to unlock all 102.

Q1. Utah requires that an agency disclosure be provided to a buyer or seller:

A.Only at the time of closing
B.Before the licensee provides any real estate services
C.After the purchase contract is signed
D.Only if a buyer representation agreement is executed

Explanation

Utah law requires agency disclosure to be given before the licensee provides any real estate services to a consumer, so they understand the nature of the relationship being offered.

Q2. In Utah, a limited agent (dual agent) must:

A.Represent only the seller's interests exclusively
B.Obtain written consent from both buyer and seller before acting
C.Disclose all confidential information from each party to the other
D.Charge both parties an equal commission

Explanation

Utah calls dual agency 'limited agency.' Before acting as a limited agent, the licensee must obtain written consent from both the buyer and the seller, disclosing that they will represent both parties with limited duties to each.

Q3. A Utah seller's agent who is NOT also the buyer's agent owes which duty to the buyer?

A.Loyalty to the buyer's interests
B.Honest dealing and disclosure of material facts
C.Confidentiality of buyer financial information
D.Obedience to the buyer's instructions

Explanation

Even when representing the seller, a Utah licensee owes the buyer honest dealing and disclosure of all material facts affecting the property. Full fiduciary duties (loyalty, obedience, confidentiality) are owed only to the seller.

Q4. When a Utah principal broker designates one agent to represent a buyer and a different agent to represent the seller in the same transaction, this is:

A.Dual agency
B.Subagency
C.Designated agency
D.Limited agency

Explanation

Designated agency occurs when a principal broker appoints separate agents within the same brokerage to individually represent each party in a transaction, allowing each client to have their own agent with undivided loyalty.

Q5. The duty of accounting in a real estate agency relationship requires the agent to:

A.Provide a complete financial analysis for every property shown
B.Keep accurate records and account for all money and property received on behalf of the client
C.Submit transaction records to the Division of Real Estate
D.Prepare a HUD-1 settlement statement for every transaction

Explanation

The duty of accounting requires the agent to maintain accurate records of all money and property received or disbursed on the client's behalf and to provide an accounting when requested.

Q6. In Utah, the agency relationship between a broker and client is most effectively created by:

A.The first showing of a property
B.A written agency agreement (listing or buyer representation agreement)
C.The verbal promise of the agent to represent the client
D.Payment of earnest money

Explanation

While agency can be created by express or implied agreement, the most effective and protective way to establish an agency relationship in Utah is through a written agency agreement that clearly defines the duties and compensation.

Q7. In Utah, a buyer's agent owes which of the following duties to the seller?

A.Loyalty and confidentiality
B.Honest dealing and disclosure of material facts about the buyer's ability to perform
C.Obedience to all seller instructions
D.Full fiduciary duties equal to those owed to the buyer

Explanation

A buyer's agent in Utah owes the seller honest dealing and disclosure of material facts, including any known facts about the buyer's ability to complete the transaction. Full fiduciary duties are owed only to the buyer client.

Q8. The fiduciary duty of confidentiality in a Utah agency relationship means the agent must:

A.Never reveal any information about the client to anyone
B.Protect client information that could weaken the client's negotiating position
C.Keep all transaction details confidential even after closing
D.Refuse to answer questions from third parties about the property

Explanation

The duty of confidentiality requires agents to protect information that could harm the client's bargaining position—such as the client's motivation to sell quickly or maximum willingness to pay—but does not prohibit disclosing material facts to other parties.

Q9. When a Utah licensee provides real estate services without a written agency agreement, the agency relationship that may be implied is called:

A.Express agency
B.Implied agency
C.Apparent agency
D.Statutory agency

Explanation

Implied agency arises from the conduct and actions of the parties rather than a written agreement. In Utah, licensees must provide agency disclosure to avoid unintentionally creating an implied agency relationship.

Q10. A Utah seller's agent learns that the property has a cracked foundation that was not disclosed. The agent must:

A.Keep this information confidential to protect the seller client
B.Disclose this material fact to prospective buyers
C.Refuse to list the property until the crack is repaired
D.Only disclose if directly asked by a buyer

Explanation

Despite the duty of loyalty to the seller, a Utah licensee has an overriding duty to disclose all material facts affecting the property to all parties. A cracked foundation is a material defect that must be disclosed.

Q11. Subagency in Utah real estate means that:

A.A buyer's agent also represents the seller's interests
B.A cooperating agent from another brokerage acts as the agent of the listing broker's client
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