Principles, Property, and Land Use Practice Question

Question

A buyer asks a licensee for an exam-focused explanation for the Utah Real Estate Sales Agent Exam involving restrictive covenants and sales agent brokerage affiliation. Which answer best reduces risk? (Item 28)

Answer choices

1. A. The issue can be ignored if the parties want to close quickly.
2. B. The rule applies only to commercial transactions and never to residential transactions.
3. C. Client funds may be mixed with business funds if the broker reconciles the account later.
4. D. Recognize private deed or association limits on property use in a way that fits Utah exam practice.

Correct Answer

D. Recognize private deed or association limits on property use in a way that fits Utah exam practice.

Explanation

The correct answer is D because restrictive covenants requires candidates to recognize private deed or association limits on property use. The Utah reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.

Question details

• Difficulty: hard
• Domain: Principles, Property, and Land Use
• Objective: restrictive covenants

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