QUESTIONS AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS - 70 Questions and Answers Already
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Subject Area UTAH PROPERTY LAWS and CONTRACTS EXAM - QUESTIONS AND
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS
Description Comprehensive examination on UTAH PROPERTY LAWS and CONTRACTS
EXAM - QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS.
Expected Grade A+
Total Questions 70
Duration 3 hours
Learning Outcomes 1. Demonstrate mastery of core concepts
Accreditation Aligned with US university standards.
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,1. A buyer and seller enter a contract for the sale of land. The contract contains a
provision that the buyer may terminate if financing is not obtained within 30 days.
The buyer fails to apply for financing and instead seeks to terminate based on a
different contingency. Under Utah law, which doctrine most likely prevents the
buyer from terminating?
A. Doctrine of equitable conversion
B. Doctrine of part performance
C. Doctrine of merger
D. Doctrine of good faith and fair dealing
Answer: D. Doctrine of good faith and fair dealing
The implied covenant of good faith and fair dealing requires parties to act in good faith
to fulfill contract conditions. The buyer's failure to apply for financing is a breach of
this covenant, preventing termination on other grounds. Equitable conversion relates to
risk of loss, part performance to oral contracts, and merger to deed acceptance.
2. A developer records a plat that includes a dedication of streets to the public. Years
later, the county fails to maintain a dedicated street. A property owner whose only
access is that street sues to compel maintenance. Under Utah law, what is the most
likely outcome?
A. The dedication is void because the county never accepted it.
B. The owner has no standing because the street is public property.
C. The county must maintain the street because the dedication was accepted by public use.
D. The developer remains responsible for maintenance as the dedicator.
Answer: C. The county must maintain the street because the dedication was
accepted by public use.
Under Utah law, a dedication of land for public use can be accepted by public use, even
without formal government action. Once accepted, the government has a duty to
maintain the street. The owner, as an abutter, has standing to enforce this duty. Options
A, B, and D misstate acceptance and maintenance obligations.
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,3. Which of the following describes the effect of recording a lis pendens under Utah
Code § 78B-6-1301?
A. It creates a lien on the property in favor of the plaintiff.
B. It gives constructive notice of pending litigation affecting title to the property.
C. It automatically stays all transfers of the property until the lawsuit ends.
D. It prevents the property owner from obtaining financing.
Answer: B. It gives constructive notice of pending litigation affecting title to the
property.
A lis pendens provides constructive notice of pending litigation that may affect title to
real property. It does not create a lien, automatically stay transfers, or prevent
financing; however, it may deter buyers or lenders due to the notice. Utah Code §
78B-6-1301 governs its filing and effect.
4. A seller agrees to finance the buyer's purchase of a home. The buyer defaults, and
the seller initiates a nonjudicial foreclosure under a power of sale clause. The buyer
claims the deed of trust is invalid because the notary's seal is missing. Under Utah
law, what is the effect?
A. The deed of trust is void, and the seller must foreclose judicially.
B. The deed of trust is voidable, but only if the buyer can show prejudice.
C. The deed of trust is valid because Utah does not require notarization for deeds of trust.
D. The deed of trust is valid, and the missing seal does not affect its enforceability.
Answer: D. The deed of trust is valid, and the missing seal does not affect its
enforceability.
Utah law does not require a notary seal for a deed of trust to be valid; acknowledgment
is sufficient. The missing seal is a technical defect that does not render the instrument
void or voidable. Thus, the nonjudicial foreclosure may proceed. Options A, B, and C
misstate Utah's notarization requirements.
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, 5. A tenant signs a 5-year commercial lease that contains a clause prohibiting
assignment without the landlord's consent. The tenant later assigns the lease without
consent. The assignee defaults on rent. Under Utah law, which parties are liable to
the landlord?
A. Only the original tenant is liable.
B. Only the assignee is liable.
C. Both the original tenant and the assignee are liable.
D. Neither is liable because the assignment was void.
Answer: C. Both the original tenant and the assignee are liable.
Under Utah law, an assignment in violation of a lease clause is not void but voidable at
the landlord's option. If the landlord accepts rent from the assignee, the assignment is
ratified. The original tenant remains liable as a surety unless released, and the assignee
is liable as a tenant in possession. Thus, both are liable for rent.
6. A property owner grants an easement to a utility company for underground power
lines. The easement is recorded. Later, the owner sells the property to a buyer who
had no actual knowledge of the easement. The buyer discovers the easement after
closing. Under Utah law, what is the buyer's recourse?
A. The buyer may rescind the sale because the easement was not disclosed.
B. The buyer is bound by the easement because it was recorded.
C. The buyer may sue the seller for breach of the implied covenant of marketable title.
D. The buyer may compel the utility to relocate the lines at the utility's expense.
Answer: B. The buyer is bound by the easement because it was recorded.
Recording an easement gives constructive notice to all subsequent purchasers. The
buyer is bound regardless of actual knowledge. Utah's recording statute (Utah Code §
57-3-2) provides that recorded documents are notice to all persons. The seller may have
a duty to disclose, but the buyer's primary remedy would be against the seller, not
rescission or relocation.
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