Utah Practice Test → Contracts

Utah Contracts
Practice Questions & Answers (2026)

Contract law questions on the Utah real estate exam test both general contract principles and Utah-specific transaction requirements. The Utah Division of Real Estate tests how Utah contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Utah law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong UT-specific timeframe or rule.

Full Practice Exam →Take Interactive Quiz

Utah Exam Study Resources

Everything you need to pass — in one place.

Practice TestMock ExamFlashcardsStudy ScheduleUtah BlogFull Access

Practice by Topic

Utah License Law →Agency →Contracts →Finance →Property Ownership →Property Valuation →+6 more topics
Practice Questions

Utah Contracts — Practice Questions & Answers

104 questions on Contracts from the Utah real estate question bank. First 10 are free — sign up to unlock all 104.

Q1. A Utah real estate purchase contract becomes binding when:

A.The buyer submits an offer
B.The seller signs the contract
C.An offer is made, accepted, and communicated back to the offeror
D.The earnest money is deposited

Explanation

A contract is formed when an offer is made and accepted, AND notice of that acceptance is communicated to the offeror. All three steps—offer, acceptance, and communication of acceptance—must occur for a binding contract.

Q2. In Utah, the Real Estate Purchase Contract (REPC) is the standard form used for residential transactions. The REPC is promulgated by:

A.The Utah Division of Real Estate
B.The Utah Association of REALTORS
C.The Utah State Bar Association
D.The Utah Department of Commerce

Explanation

The Real Estate Purchase Contract (REPC) used in Utah residential transactions is published by the Utah Association of REALTORS. It is the standard form used throughout the state for residential real estate transactions.

Q3. Under the Utah REPC, the due diligence period gives the buyer the right to:

A.Cancel the contract for any reason and receive a full refund of all payments
B.Investigate the property and cancel the contract for any reason within the specified period
C.Extend the closing date by the same number of days as the due diligence period
D.Renegotiate the price after inspection but before cancellation

Explanation

The due diligence period in the Utah REPC allows the buyer to conduct investigations and cancel the contract for any reason within the specified timeframe. Upon cancellation, earnest money is returned to the buyer.

Q4. A seller receives two offers simultaneously. The seller wants to let both buyers know there are multiple offers. The seller's agent should:

A.Disclose both offer prices to each buyer
B.Notify both buyers that multiple offers exist without disclosing the terms of the competing offer
C.Automatically accept the highest offer
D.Return both offers and ask for best and final offers only after obtaining seller approval

Explanation

The seller's agent may disclose the existence of multiple offers with the seller's permission, but cannot disclose the specific terms (price, conditions) of one buyer's offer to the other buyer without both parties' consent.

Q5. The doctrine of equitable conversion holds that:

A.Either party may cancel a real estate contract at any time before closing
B.Once a valid purchase contract is signed, the buyer acquires equitable title and the seller holds bare legal title
C.A contract is automatically converted to a deed at closing
D.A counteroffer converts the original offer into a binding contract

Explanation

Under equitable conversion, once a purchase contract is signed, the buyer holds equitable title (the right to obtain legal title upon performance), while the seller holds bare legal title as security for payment. The risk of loss may shift to the buyer at this point.

Q6. A 'contingency' in a Utah real estate purchase contract becomes 'satisfied' when:

A.The buyer decides they want to proceed with the purchase
B.The specific condition required by the contingency has been fulfilled
C.The closing date arrives
D.The seller agrees to remove the contingency

Explanation

A contingency is satisfied (removed from the contract) when the specified condition has been fulfilled—for example, when financing is approved, inspection is satisfactory, or the appraisal meets the required value.

Q7. Under Utah law, which of the following contracts is required to be in writing to be enforceable?

A.A month-to-month lease for less than $500 per month
B.A real estate purchase contract
C.A property management agreement for less than 1 year
D.An oral agreement to split a commission

Explanation

Under Utah's Statute of Frauds, contracts for the sale of real estate must be in writing and signed by the party to be charged to be enforceable. This applies to purchase contracts regardless of the price.

Q8. In the Utah REPC, an addendum is used to:

A.Replace the original purchase contract
B.Add, modify, or supplement the terms of the original contract
C.Cancel the contract without penalty
D.Extend the buyer's due diligence period automatically

Explanation

An addendum is a document that adds, modifies, or supplements the terms of the original contract. Both parties must sign the addendum for it to be binding. The original contract remains in effect except as modified by the addendum.

Q9. Under the Utah REPC, if a seller fails to close on time without a valid reason, the buyer may:

A.Only receive their earnest money back
B.Seek specific performance, actual damages, or cancellation with return of earnest money
C.Automatically receive a penalty equal to 10% of the purchase price
D.Only sue for lost time and inconvenience

Explanation

When a seller defaults, the Utah REPC gives the buyer multiple remedies including specific performance (forcing the sale), actual damages, or cancellation with full return of earnest money and any other deposits.

Q10. An option contract in real estate gives the optionee (buyer) the:

A.Obligation to purchase the property at the option price
B.Right but not the obligation to purchase the property within a specified time
C.Right to use the property before purchasing it
D.Obligation to purchase if the option is exercised by a third party

Explanation

An option contract gives the optionee the right—but not the obligation—to purchase the property at a fixed price within a specified period. The optionor (seller) is bound by the option but the optionee can choose not to exercise it.

Q11. In Utah, the Seller's Property Condition Disclosure form is typically completed by:

A.The listing agent based on a property inspection
B.The seller based on their personal knowledge of the property
🔒

94 more Contracts questions

Create a free account to unlock all 104 Utah Contracts questions with full explanations.

Sign Up Free — Unlock All QuestionsLog In

Free account · No credit card · Instant access to 25 questions

Other Utah Exam Topics

Utah License LawAgencyFinanceProperty OwnershipProperty ValuationFair HousingEscrow & TitleReal Estate MathEnvironmentalLand Use & ZoningProperty Management
← Back to Utah Full Practice Test

Ready to take the full exam? Start free.

25 free questions · No signup · Instant access to all Utah topics

Free Utah Practice Exam →Full Access — 1,500+ Questions