Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 337 (2025GS)

Sponsor

Rep. Teuscher, Jordan D.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• grants the Real Estate Commission (commission) authority to make administrative rules relating to property managers;
• requires an individual to hold a license as a property manager before engaging in property management;
• exempts certain individuals from licensure under this act;
• requires that the commission and Division of Real Estate determine the qualifications and requirements for an applicant for a property manager license;
• allows an individual with an active broker, associate broker, or sales agent license to obtain a property manager license without meeting certain examination and education requirements;
• requires that an applicant for a property manager license pay a licensing fee;
• repeals provisions authorizing certain individuals to act as a property manager;
• authorizes a property manager to fill out any form or document related to property management;
• provides parameters for what a property manager may do when engaging in property management;
• requires that a property manager associate with a real estate trust account;
• exempts a property manager with a security bond that protects at least 30% of estimated client funds from the requirement to associate with a real estate trust account; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

22
61-2f-102
61-2f-103
61-2f-201
61-2f-202
61-2f-202.5
61-2f-203
61-2f-204
61-2f-206
61-2f-307
61-2f-411
61-2f-102
61-2f-103
61-2f-201
61-2f-202
61-2f-202.5
61-2f-203
61-2f-204
61-2f-206
61-2f-307
61-2f-411
4
Property Manager Requirements
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jordan D. Teuscher
Senate Sponsor: Calvin R. Musselman
LONG TITLE
General Description:
This bill modifies the Utah Real Estate Licensing and Practices Act.
Highlighted Provisions:
This bill:
defines terms;
grants the Real Estate Commission (commission) authority to make administrative rules 
relating to property managers;
requires an individual to hold a license as a property manager before engaging in property 
management;
exempts certain individuals from licensure under this act;
requires that the commission and Division of Real Estate determine the qualifications and 
requirements for an applicant for a property manager license;
allows an individual with an active broker, associate broker, or sales agent license to 
obtain a property manager license without meeting certain examination and education 
requirements;
requires that an applicant for a property manager license pay a licensing fee;
repeals provisions authorizing certain individuals to act as a property manager;
authorizes a property manager to fill out any form or document related to property 
management;
provides parameters for what a property manager may do when engaging in property 
management; 
requires that a property manager associate with a real estate trust account;
exempts a property manager with a security bond that protects at least 30% of estimated 
client funds from the requirement to associate with a real estate trust account; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
61-2f-102
, as last amended by Laws of Utah 2024, Chapter 227
61-2f-103
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-201
, as renumbered and amended by Laws of Utah 2010, Chapter 379
61-2f-202
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-203
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-204
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-206
, as last amended by Laws of Utah 2022, Chapter 204
ENACTS:
61-2f-202.5
, Utah Code Annotated 1953
61-2f-307
, Utah Code Annotated 1953
61-2f-411
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
61-2f-102
 is amended to read:
61-2f-102
. Definitions.
As used in this chapter:
(1)
"Associate broker" means an individual who is:
(a)
employed or engaged as an independent contractor by or on behalf of a principal 
broker to perform an act described in Subsection 
(20) 
(19) 
for valuable 
consideration; and
(b)
licensed 
or is required to be licensed 
under this chapter as an associate broker.
(2)
"Branch broker" means an associate broker who manages a principal broker's branch 
office under the supervision of the principal broker.
(3)
"Branch office" means a principal broker's real estate brokerage office that is not the 
principal broker's main office.
(4)
"Business day" means a day other than:
(a)
a Saturday;
(b)
a Sunday; or
(c)
a federal or state holiday.
(5)
"Business opportunity" means the sale, lease, or exchange of any business that includes 
an interest in real estate.
(6)
"Commission" means the Real Estate Commission established under this chapter.
(7)
"Common interest association" means the same as that term is defined in Section 
57-1-46
.
(7)
(8)
"Concurrence" means the entities given a concurring role must jointly agree for 
action to be taken.
(8)
"Condominium homeowners' association" means the condominium unit owners acting 
as a group in accordance with declarations and bylaws.
(9)
(a)
"Condominium hotel" means one or more condominium units that are operated as 
a hotel.
(b)
"Condominium hotel" does not mean a hotel consisting of condominium units, all of 
which are owned by a single entity.
(10)
"Condominium unit" means the same as that term is defined in Section 
57-8-3
.
(11)
"Director" means the director of the Division of Real Estate.
(12)
"Division" means the Division of Real Estate.
(13)
"Dual broker" means a principal broker of a real estate sales brokerage who obtains 
from the division a dual broker license in order to function as the principal broker of a 
property management company that is a separate entity from the real estate sales 
brokerage.
(14)
(13)
"Entity" means:
(a)
a corporation;
(b)
a partnership;
(c)
a limited liability company;
(d)
a company;
(e)
an association;
(f)
a joint venture;
(g)
a business trust;
(h)
a trust; or
(i)
any organization similar to an entity described in Subsections 
(14)(a)
(13)(a)
through (h).
(15)
(14)
"Executive director" means the director of the Department of Commerce.
(16)
(15)
"Foreclosure rescue" means, for compensation or with the expectation of 
receiving valuable consideration
, to:
:
(a)
engage, or offer to engage, in 
(a)
an act that:
(i)
the person represents will assist a borrower in preventing a foreclosure; and
(ii)
relates to a transaction involving the transfer of title to residential real property; or
(b)
as an employee or agent of another person:
(i)
solicit, or offer
a solicitation or an offer
 that the other person will engage in an 
act described in Subsection 
(16)(a)
(15)(a)
; or
(ii)
negotiate
negotiation of the
 terms in relationship to an act described in 
Subsection 
(16)(a)
(15)(a)
.
(17)
(16)
"Loan modification assistance" means, for compensation or with the expectation 
of receiving valuable consideration
, to
:
(a)
act,
an act,
 or 
an 
offer to act, on behalf of a person to:
(i)
obtain a loan term of a residential mortgage loan that is different from an existing 
loan term including:
(A)
an increase or decrease in an interest rate;
(B)
a change to the type of interest rate;
(C)
an increase or decrease in the principal amount of the residential mortgage 
loan;
(D)
a change in the number of required period payments;
(E)
an addition of collateral;
(F)
a change to, or addition of, a prepayment penalty;
(G)
an addition of a cosigner; or
(H)
a change in persons obligated under the existing residential mortgage loan; or
(ii)
a 
substitute
 of
 a new residential mortgage loan for an existing residential 
mortgage loan; or
(b)
as an employee or agent of another person:
(i)
solicit, or offer
a solicitation or an offer
 that the other person will engage in an 
act described in Subsection 
(17)(a)
(16)(a)
; or
(ii)
negotiate
negotiation of the
 terms in relationship to an act described in 
Subsection 
(17)(a)
(16)(a)
.
(18)
(17)
"Main office" means the address 
which
that
 a principal broker designates with 
the division as the principal broker's primary brokerage office.
(19)
(18)
"Person" means an individual or entity.
(20)
(19)
"Principal broker" means an individual who
:
(a)
is licensed or required to be licensed as a principal broker under this chapter
 who:
; 
and
(a)
(b)
(i)
sells or lists for sale real estate, including real estate being sold as part of a 
foreclosure rescue, or a business opportunity with the expectation of receiving 
valuable consideration;
(b)
(ii)
buys, exchanges, or auctions real estate, an option on real estate, a business 
opportunity, or an improvement on real estate with the expectation of receiving 
valuable consideration;
(c)
(iii)
advertises, offers, attempts, or otherwise holds the individual out to be 
engaged in the business described in Subsection 
(20)(a) 
(19)(a) 
or (b)
(ii)
;
(d)
(iv)
is employed by or on behalf of the owner of real estate or by a prospective 
purchaser of real estate and performs an act described in Subsection 
(20)(a), 
(19)(b)(i), 
whether the individual's compensation is at a stated salary, a 
commission basis, upon a salary and commission basis, or otherwise;
(e)
(v)
with the expectation of receiving valuable consideration, manages property 
owned by another person;
(f)
(vi)
advertises or otherwise holds the individual out to be engaged in property 
management;
(g)
(vii)
with the expectation of receiving valuable consideration, assists or directs in 
the procurement of prospects for or the negotiation of a transaction listed in 
Subsections 
(20)(a)
(19)(b)(i)
 and 
(e)
(v)
;
(h)
(viii)
except for a mortgage lender, title insurance producer, or an employee of a 
mortgage lender or title insurance producer, assists or directs in the closing of a 
real estate transaction with the expectation of receiving valuable consideration;
(i)
(ix)
engages in foreclosure rescue; or
(j)
(x)
advertises, offers, attempts, or otherwise holds the person out as being 
engaged in foreclosure rescue.
(21)
(20)
(a)
"Property management" means 
engaging in
the management of real estate 
owned by another person
, with the expectation of receiving valuable consideration,
the management of real estate owned by another person
 or advertising or otherwise 
claiming to be engaged in 
property management
the management of real estate 
owned by another person,
 by:
(i)
advertising for, arranging, negotiating, offering, or otherwise attempting or 
participating in a transaction calculated to secure the rental or leasing of real estate;
(ii)
collecting, agreeing, offering, or otherwise attempting to collect rent for the real 
estate
 and accounting for and disbursing the money collected
; or
(iii)
authorizing expenditures for repairs to the real estate
signing a lease agreement 
or an addendum with a tenant
.
(b)
"Property management" does not include:
(i)
hotel or motel management;
(ii)
rental of tourist accommodations, including hotels, motels, tourist homes, 
condominiums, condominium hotels, mobile home park accommodations, 
campgrounds, or similar public accommodations for a period of less than 30 
consecutive days, and the management activities associated with these rentals; or
(iii)
the leasing or management of surface or subsurface minerals or oil and gas 
interests, if the leasing or management is separate from a sale or lease of the 
surface estate.
(22)
"Property management sales agent" means a sales agent who:
(a)
is affiliated with a dual broker through the dual broker's property management 
company; and
(b)
is designated by the dual broker as a property management sales agent.
(21)
"Property manager" means an individual who:
(a)
is licensed or required to be licensed as a property manager under this chapter; and
(b)
(i)
engages in property management; or
(ii)
advertises or otherwise holds the individual out to be engaged in property 
management.
(23)
(22)
"Real estate" includes leaseholds and business opportunities involving real 
property.
(24)
(23)
(a)
"Regular salaried employee" means an individual
:
(i)
who performs a service for wages or other remuneration
,
; and
(ii)
whose employer withholds federal employment taxes under a contract of hire, 
written or oral, express or implied.
(b)
"Regular salaried employee" does not include an individual who performs services 
on a project-by-project basis or on a commission basis.
(25)
(24)
"Reinstatement" means 
restoring
the restoration of
 a license that has expired or 
has been suspended.
(26)
(25)
"Reissuance" means the process by which 
a licensee
an individual
 may obtain a 
license following revocation of the license.
(27)
(26)
"Renewal" means 
extending
the extension of
 a license for an additional 
licensing period on or before the date the license expires.
(28)
(27)
"Sales agent" means an individual who is:
(a)
affiliated with a principal broker, either as an independent contractor or an employee 
as provided in Section 
61-2f-303
, to perform for valuable consideration an act 
described in Subsection 
(20)
(19)
; and
(b)
licensed
, or required to be licensed,
 under this chapter as a sales agent.
(29)
(28)
"Vulnerable adult" means the same as that term is defined in Section 
26B-6-201
.
Section 2, Section 
61-2f-103
 is amended to read:
61-2f-103
. Real Estate Commission.
(1)
There is created within the division a Real Estate Commission.
(2)
The commission shall:
(a)
subject to concurrence by the division and in accordance with 
Title 63G, Chapter 3, 
Utah Administrative Rulemaking Act
, make rules for the administration of this 
chapter that are not inconsistent with this chapter, including:
(i)
licensing of:
(A)
a principal broker;
(B)
an associate broker;
 and
(C)
a sales agent;
 and
(D)
a property manager;
(ii)
registration of:
(A)
an entity;
(B)
an assumed name under which a person conducts business;
(C)
a branch office; and
(D)
a property management company;
(iii)
prelicensing and postlicensing education curricula;
(iv)
examination procedures;
(v)
the certification and conduct of:
(A)
a real estate school;
(B)
a course provider; or
(C)
an instructor;
(vi)
proper handling of money received by a licensee under this chapter;
(vii)
brokerage office procedures and recordkeeping requirements;
(viii)
property management;
(ix)
standards of conduct for a licensee under this chapter;
(x)
if the commission, with the concurrence of the division, determines necessary, a 
rule as provided in Subsection 
61-2f-306(3)
 regarding a legal form;
(xi)
the qualification and designation of an acting principal broker in the event a 
principal broker dies, is incapacitated, or is unable to perform the duties of a 
principal broker, as described in Section 
61-2f-202
; and
(xii)
giving or paying an inducement gift or a closing gift to a buyer or seller in a real 
property transaction;
(b)
establish, with the concurrence of the division, a fee provided for in this chapter, 
except a fee imposed under 
Part 5, Real Estate Education, Research, and Recovery 
Fund Act
;
(c)
conduct an administrative hearing not delegated by the commission to an 
administrative law judge or the division relating to the:
(i)
licensing of an applicant;
(ii)
conduct of a licensee;
(iii)
the certification or conduct of a real estate school, course provider, or instructor 
regulated under this chapter; or
(iv)
violation of this chapter by any person;
(d)
with the concurrence of the director, impose a sanction as provided in Section 
61-2f-404
;
(e)
advise the director on the administration and enforcement of a matter affecting the 
division and the real estate sales and property management industries;
(f)
advise the director on matters affecting the division budget;
(g)
advise and assist the director in conducting real estate seminars; and
(h)
perform other duties as provided by this chapter.
(3)
(a)
Except as provided in Subsection 
(3)(b)
, a state entity may not, without the 
concurrence of the commission, make a rule that changes the rights, duties, or 
obligations of buyers, sellers, or persons licensed under this chapter in relation to a 
real estate transaction between private parties.
(b)
Subsection 
(3)(a)
 does not apply to a rule made:
(i)
under 
Title 31A, Insurance Code
, or 
Title 7, Financial Institutions Act
; or
(ii)
by the Department of Commerce or any division or other rulemaking body within 
the Department of Commerce.
(4)
(a)
The commission 
shall be comprised
consists
 of five members appointed by the 
governor and approved by the Senate in accordance with 
Title 63G, Chapter 24, Part 
2, Vacancies
.
(b)
Four of the commission members shall:
(i)
have at least five years' experience in the real estate business; and
(ii)
hold an active principal broker, associate broker, or sales agent license.
(c)
One commission member shall be a member of the general public.
(d)
The governor may not appoint a commission member described in Subsection 
(4)(b)
who, at the time of appointment, resides in the same county in the state as another 
commission member.
(e)
At least one commission member described in Subsection 
(4)(b)
 shall at the time of 
an appointment reside in a county that is not a county of the first or second class.
(5)
(a)
Except as required by Subsection 
(5)(b)
, as terms of current commission members 
expire, the governor shall appoint each new member or reappointed member to a 
four-year term ending June 30.
(b)
Notwithstanding the requirements of Subsection 
(5)(a)
, the
The
 governor shall, at 
the time of appointment or reappointment, adjust the length of terms to ensure that 
the terms of commission members are staggered so that approximately half of the 
commission is appointed every two years.
(c)
Upon the expiration of the term of a member of the commission, the member of the 
commission shall continue to hold office until a successor is appointed and qualified.
(d)
A commission member may not serve more than two consecutive terms.
(e)
Members of the commission shall annually select one member to serve as chair.
(6)
When a vacancy occurs in the membership for any reason, the governor, with the advice 
and consent of the Senate, shall appoint a replacement for the unexpired term.
(7)
A member may not receive compensation or benefits for the member's service, but may 
receive per diem and travel expenses in accordance with:
(a)
Section 
63A-3-106
;
(b)
Section 
63A-3-107
; and
(c)
rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and 
63A-3-107
.
(8)
(a)
The commission shall meet at least monthly.
(b)
The director may call additional meetings:
(i)
at the director's discretion;
(ii)
upon the request of the chair; or
(iii)
upon the written request of three or more commission members.
(9)
Three members of the commission constitute a quorum for the transaction of business.
(10)
A member of the commission shall comply with the conflict of interest provisions 
described in 
Title 63G, Chapter 24, Part 3, Conflicts of Interest
.
Section 3, Section 
61-2f-201
 is amended to read:
61-2f-201
. License required.
(1)
Unless a person is licensed under this chapter, it is unlawful for the person to do the 
following with respect to real estate located in this state:
(a)
engage in the business of a principal broker, associate broker, or sales agent;
(b)
act in the capacity of a principal broker, associate broker, or sales agent;
(c)
advertise or assume to act as a principal broker, associate broker, or a sales agent
.
; 
or
(d)
engage in property management.
(2)
Except as provided in Section 
61-2f-202
, an individual is required to be licensed as a 
principal broker, associate broker, or a sales agent if the individual performs, offers to 
perform, or attempts to perform one act for valuable consideration of:
(a)
buying, selling,
 leasing, managing,
 or exchanging real estate for another person; or
(b)
offering for another person to buy, sell, 
lease, manage, 
or exchange real estate.
(3)
Except as provided in Subsection 
61-2f-202(1)
, unless an individual is licensed as a 
property manager, an individual may not, for consideration:
(a)
engage in property management; or
(b)
offer to engage in property management on behalf of another person.
Section 4, Section 
61-2f-202
 is amended to read:
61-2f-202
. Exempt persons and transactions.
(1)
(a)
Except as provided in Subsection 
(1)(b)
, a license under this chapter is not 
required for:
(i)
a person who as owner or lessor performs an act described in Subsection 
61-2f-102(20)
61-2f-102(19)
 with reference to real estate owned or leased by that 
person;
(ii)
a regular salaried employee of the owner or lessor of real estate who, with 
reference to nonresidential real estate owned or leased by the employer, performs 
an act described in Subsection 
61-2f-102(20)(b)
61-2f-102(19)(b)
 or 
(c)
;
(iii)
a regular salaried employee of the owner of real estate who performs property 
management services with reference to real estate owned by the employer, except 
that the employee may only manage real estate for one employer;
(iv)
an individual who performs property management services for the apartments at 
which that individual resides in exchange for free or reduced rent on that 
individual's apartment;
(v)
a regular salaried employee of a 
condominium homeowners'
common interest
association who manages real estate subject to the declaration 
of condominium
covenants, conditions, and restrictions
 that established the 
condominium 
homeowners' 
common interest 
association
, except that the employee may only 
manage real estate for one condominium homeowners' association
;
(vi)
a regular salaried employee of a licensed property management company or real 
estate brokerage who performs support services, as prescribed by rule, for the 
property management company or real estate brokerage; or
(vii)
in the event a principal broker dies, is incapacitated, or is unable to perform the 
duties of a principal broker, an individual qualified and designated as the 
commission determines by rule made in accordance with 
Title 63G, Chapter 3, 
Utah Administrative Rulemaking Act
, with the concurrence of the division, as an 
acting principal broker:
(A)
in relation to each transaction pending on the day on which the principal 
broker dies, becomes incapacitated, or becomes unable to perform the duties of 
a principal broker, including the distribution of compensation for each 
transaction; and
(B)
until the day on which each transaction described in Subsection 
(1)(a)(vii)(A)
is completed.
(b)
Subsection 
(1)(a)
 does not exempt from licensing:
(i)
an employee engaged in the sale of real estate regulated under:
(A)
Title 57, Chapter 11, Utah Uniform Land Sales Practices Act
; or
(B)
Title 57, Chapter 19, Timeshare and Camp Resort Act
;
(ii)
an employee engaged in the sale of cooperative interests regulated under 
Title 57, 
Chapter 23, Real Estate Cooperative Marketing Act
; or
(iii)
an individual whose interest as an owner or lessor is obtained by that individual 
or transferred to that individual for the purpose of evading the application of this 
chapter, and not for another legitimate business reason.
(2)
A license under this chapter is not required for:
(a)
an isolated transaction or service by an individual holding an unsolicited, duly 
executed power of attorney from a property owner;
(b)
subject to Subsection 
61-2f-401(5)
, services rendered by an attorney admitted to 
practice law in this state in performing the attorney's duties as an attorney;
(c)
a receiver, trustee in bankruptcy, administrator, executor, or an individual acting 
under order of a court;
(d)
a trustee or employee of a trustee under a deed of trust or a will;
(e)
a public utility, officer of a public utility, or regular salaried employee of a public 
utility, unless performance of an act described in Subsection 
61-2f-102(20)
61-2f-102(19)
 is in connection with the sale, purchase, lease, or other disposition of 
real estate or investment in real estate unrelated to the principal business activity of 
that public utility;
(f)
a regular salaried employee or authorized agent working under the oversight of the 
Department of Transportation when performing an act on behalf of the Department of 
Transportation in connection with one or more of the following:
(i)
the acquisition of real estate pursuant to Section 
72-5-103
;
(ii)
the disposal of real estate pursuant to Section 
72-5-111
;
(iii)
services that constitute property management; or
(iv)
the leasing of real estate; and
(g)
a regular salaried employee of a county, city, or town when performing an act on 
behalf of the county, city, or town:
(i)
in accordance with:
(A)
if a regular salaried employee of a city or town:
(I)
Title 10, Utah Municipal Code
; or
(II)
Title 11, Cities, Counties, and Local Taxing Units
; and
(B)
if a regular salaried employee of a county:
(I)
Title 11, Cities, Counties, and Local Taxing Units
; and
(II)
Title 17, Counties
; and
(ii)
in connection with one or more of the following:
(A)
the acquisition of real estate, including by eminent domain;
(B)
the disposal of real estate;
(C)
services that constitute property management; or
(D)
the leasing of real estate.
(3)
A license under this chapter is not required for an individual registered to act as a 
broker-dealer, agent, or investment adviser under the Utah and federal securities laws in 
the sale or the offer for sale of real estate if:
(a)
(i)
the real estate is a necessary element of a "security" as that term is defined by 
the Securities Act of 1933 and the Securities Exchange Act of 1934; and
(ii)
the security is registered for sale in accordance with:
(A)
the Securities Act of 1933; or
(B)
Title 61, Chapter 1, Utah Uniform Securities Act
; or
(b)
(i)
it is a transaction in a security for which a Form D, described in 17 C.F.R. Sec. 
239.500, has been filed with the Securities and Exchange Commission pursuant to 
Regulation D, Rule 506, 17 C.F.R. Sec. 230.506; and
(ii)
the selling agent and the purchaser are not residents of this state.
(4)
Except as otherwise provided by statute or rule, the following individuals may engage in 
the practice of an occupation or profession regulated by this chapter, subject to the stated 
circumstances and limitations, without being licensed under this chapter:
(a)
an individual licensed under the laws of this state, other than under this chapter, to 
practice or engage in an occupation or profession, while engaged in the lawful, 
professional, and competent practice of that occupation or profession;
(b)
an individual serving in the armed forces of the United States, the United States 
Public Health Service, the United States Department of Veterans Affairs, or any other 
federal agency while engaged in activities regulated under this title as a part of 
employment with that federal agency if the individual holds a valid license to practice 
the regulated occupation or profession issued by any other state or jurisdiction 
recognized by the department; and
(c)
the spouse of an individual serving in the armed forces of the United States while the 
individual is stationed within this state, if:
(i)
the spouse holds a valid license to practice the regulated occupation or profession 
issued by any other state or jurisdiction recognized by the department; and
(ii)
the license is current and the spouse is in good standing in the state or jurisdiction 
of licensure.
(5)
As used in this section, "owner" does not include:
(a)
a person who holds an option to purchase real property;
(b)
a mortgagee;
(c)
a beneficiary under a deed of trust;
(d)
a trustee under a deed of trust; or
(e)
a person who owns or holds a claim that encumbers any real property or an 
improvement to the real property.
(6)
The commission, with the concurrence of the division, may provide, by rule made in 
accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the 
circumstances under which a person or transaction qualifies for an exemption that is 
described in this section.
Section 5, Section 
61-2f-202.5
 is enacted to read:
61-2f-202.5
. Exempt individuals and transactions involving property 
management.
A license under this chapter is not required for:
(1)
an individual who, as an owner or lessor, performs an act described in Subsection 
61-2f-102(20)
 in connection to real estate owned or leased by that individual;
(2)
an individual who is part of a property owner's immediate family, if the individual 
performs an act described in Subsection 
61-2f-102(20)
 in connection to real estate 
owned by the property owner;
(3)
an unlicensed or remote assistant of a property manager;
(4)
an individual who exclusively performs the following tasks:
(a)
maintenance and repairs on real property; or
(b)
bookkeeping and accounting; or
(5)
a regional manager or a corporate official of a rental agency who does not engage in an 
act described in Subsection 
61-2f-102(20)
.
Section 6, Section 
61-2f-203
 is amended to read:
61-2f-203
. Licensing requirements.
(1)
(a)
(i)
The division shall determine whether an applicant with a criminal history 
qualifies for licensure.
(ii)
If the division, acting under Subsection 
(1)(a)(i)
, denies or restricts a license or 
places a license on probation, the applicant may petition the commission for de 
novo review of the application.
(b)
Except as provided in Subsection 
(6)
, the commission shall determine all other 
qualifications and requirements of an applicant for:
(i)
a principal broker license;
(ii)
an associate broker license;
 or
(iii)
a sales agent license
.
; or
(iv)
a property manager license.
(c)
The division, with the concurrence of the commission, shall require and pass upon 
proof necessary to determine the honesty, integrity, truthfulness, reputation, and 
competency of each applicant for an initial license or for renewal of an existing 
license.
(d)
(i)
(A)
Except as provided in Subsection 
(1)(d)(i)(B)
, the division, with the 
concurrence of the commission, shall require an applicant for a sales agent 
license to complete a division-approved educational program consisting of not 
less than 120 hours, as designated by rule the commission makes in accordance 
with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, with the 
concurrence of the division.
(B)
If on the day on which an applicant for a sales agent license applies for the 
license the applicant is licensed as a real estate sales agent in another state, the 
division may require the applicant to complete a division-approved, 
state-specific educational program consisting of the number of hours 
designated by rule the commission makes in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
, with the concurrence of the 
division.
(ii)
(A)
Except as provided in Subsection 
(1)(d)(ii)(B)
, the division, with the 
concurrence of the commission, shall require an applicant for an associate 
broker or a principal broker license to complete a division-approved 
educational program consisting of not less than 120 hours, as designated by 
rule the commission makes in accordance with 
Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act
, with the concurrence of the division.
(B)
If on the day on which an applicant for an associate broker or a principal 
broker license applies for the license the applicant is licensed as a real estate 
broker in another state, the division may require the applicant to complete a 
division-approved, state-specific educational program consisting of the number 
of hours designated by rule the commission makes in accordance with 
Title 
63G, Chapter 3, Utah Administrative Rulemaking Act
, with the concurrence of 
the division.
(iii)
(A)
Except as provided in Subsection (1)(d)(iii)(B), the division shall require 
that an applicant for a property manager license complete the educational 
program described in Subsection 
(1)(d)(iv)
.
(B)
If, on the day on which an applicant for a property manager license applies for 
the license, the applicant is licensed as a property manager in another state, the 
division may require the applicant to complete a division-approved, 
state-specific educational program consisting of the number of hours 
designated by rule the commission makes in accordance with Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the 
division.
(iv)
The division shall create an educational program for a property manager license 
that:
(A)
requires at least 24 hours of training;
(B)
covers subjects the division determines necessary for the program; and
(C)
establishes the proportion of hours allocated for each subject in the program.
(iii)
(v)
An hour required by this section means 50 minutes of instruction in each 60 
minutes.
(iv)
(vi)
The maximum number of program hours available to an individual is eight 
hours per day.
(e)
(i)
Except as provided in Subsection 
(1)(e)(ii)
, the division, with the concurrence 
of the commission, shall require an applicant to pass an examination approved by 
the commission covering:
(A)
the fundamentals of the English language;
(B)
the fundamentals of arithmetic;
(C)
the fundamentals of bookkeeping;
(D)
the fundamentals of real estate principles and practices;
(E)
this chapter;
(F)
the rules established by the commission with the concurrence of the division; 
and
(G)
any other aspect of Utah real estate license law considered appropriate.
(ii)
If on the day on which an applicant applies for a license the applicant is licensed 
as a real estate broker or a sales agent in another state, the division may, with the 
concurrence of the commission, require the applicant to pass a division-approved, 
state-specific examination rather than the examination required under Subsection 
(1)(e)(i)
.
(iii)
Subject to Subsection 
(1)(e)(iv)
, the division, with the concurrence of the 
commission, may modify the length and material of an examination for a property 
manager license under this chapter if:
(A)
an applicant is licensed as a property manager in another state;
(B)
the division determines an applicant's prior experience warrants a modification 
of the examination; or
(C)
the division determines the applicant has good cause for the modification of 
the examination.
(iv)
An examination for a property manager license shall:
(A)
cover the topics that appear in the educational program described in 
Subsection (1)(d)(iv); and
(B)
match the proportion of questions for each topic to the proportion of hours 
designated by the division in accordance with Subsection 
(1)(d)
(iv)(C).
(f)
(i)
Three years' full-time experience as a sales agent or 
its
the
 equivalent is 
required before an applicant may apply for, and secure a principal broker or 
associate broker license in this state.
(ii)
The commission shall establish by rule made in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
, subject to concurrence by the 
division, the criteria by which the commission will accept experience or special 
education in similar fields of business in lieu of the three years' experience.
(2)
(a)
The division, with the concurrence of the commission, may require an applicant to 
furnish a sworn statement setting forth evidence satisfactory to the division of the 
applicant's reputation and competency as set forth by rule.
(b)
The division shall require an applicant to provide the applicant's social security 
number, which is a private record under Subsection 
63G-2-302(1)(i)
.
(3)
(a)
An individual who is not a resident of this state may be licensed in this state if the 
person
individual
 complies with this chapter.
(b)
An individual who is not a resident of this state may be licensed as an associate 
broker or sales agent in this state by:
(i)
complying with this chapter; and
(ii)
being employed or engaged as an independent contractor by or on behalf of a 
principal broker who is licensed in this state, regardless of whether the principal 
broker is a resident of this state.
(4)
The division, with the concurrence of the commission, may enter into a reciprocal 
licensing agreement with another jurisdiction for the licensure of a principal broker, an 
associate broker, or a sales agent, if the jurisdiction's requirements and standards for the 
license are substantially similar to those of this state.
(5)
(a)
The division and commission shall treat an application to be relicensed of an 
applicant whose real estate license is revoked as an original application.
(b)
In the case of an applicant for a new license as a principal broker or associate broker, 
the applicant is not entitled to credit for experience gained before the revocation of a 
real estate license.
(6)
(a)
Notwithstanding Subsection 
(1)(b)
, the commission may delegate to the division 
the authority to:
(i)
review a class or category of applications for initial or renewed licenses;
(ii)
determine whether an applicant meets the licensing criteria in Subsection 
(1)
; and
(iii)
approve or deny a license application without concurrence by the commission.
(b)
(i)
If the commission delegates to the division the authority to approve or deny an 
application without concurrence by the commission and the division denies an 
application for licensure, the applicant who is denied licensure may petition the 
commission for de novo review of the application.
(ii)
An applicant who is denied licensure pursuant to this Subsection 
(6)
 may seek 
agency review by the executive director only after the commission has reviewed 
the division's denial of the applicant's application.
(7)
An individual with an active broker, associate broker, or sales agent license may obtain 
a property manager license without:
(a)
meeting the education requirement described in Subsection 
(1)(d)
(iii); or
(b)
passing an exam required for a property manager license under Subsection 
(1)(e)
.
Section 7, Section 
61-2f-204
 is amended to read:
61-2f-204
. Licensing fees and procedures -- Renewal fees and procedures.
(1)
(a)
Upon filing an application for an examination for a license under this chapter, the 
applicant shall pay a nonrefundable fee established in accordance with Section 
63J-1-504
 for admission to the examination.
(b)
An applicant for a principal broker, associate broker, 
or 
sales agent
, or property 
manager
 license shall pay a nonrefundable fee as determined by the commission with 
the concurrence of the division under Section 
63J-1-504
 for issuance of an initial 
license or license renewal.
(c)
A license issued under this Subsection 
(1)
 shall be issued
The division shall issue a 
license under this Subsection (1)
 for a period of not less than two years as the 
division determines with the concurrence of the commission.
(d)
(i)
Each of the following applicants shall comply with this Subsection 
(1)(d)
:
(A)
a new sales agent applicant;
(B)
a principal broker applicant;
 and
(C)
an associate broker applicant
.
; and
(D)
a property manager applicant.
(ii)
An applicant described in this Subsection 
(1)(d)
 shall at the time the 
licensee
applicant
 files an application:
(A)
submit to the division fingerprint cards in a form acceptable to the Department 
of Public Safety;
(B)
submit to the division a signed waiver in accordance with Subsection 
53-10-108(4)
, acknowledging the registration of the applicant's fingerprints in 
the Federal Bureau of Investigation Next Generation Identification System's 
Rap Back Service
 beginning January 1, 2020
;
(C)
consent to a criminal background check by the Utah Bureau of Criminal 
Identification and the Federal Bureau of Investigation; and
(D)
pay the fee the division establishes in accordance with Subsection 
(1)(d)(vi)
(1)(d)(iv)
.
(iii)
The Bureau of Criminal Identification shall:
(A)
check the fingerprints an applicant submits under Subsection 
(1)(d)(ii)
 against 
the applicable state, regional, and national criminal records databases, including
, beginning January 1, 2020,
 the Federal Bureau of Investigation Next 
Generation Identification System;
(B)
report the results of the background check to the division;
(C)
maintain a separate file of fingerprints that applicants submit under Subsection 
(1)(d)
 for search by future submissions to the local and regional criminal 
records databases, including latent prints;
(D)
request that
 beginning January 1, 2020,
 the fingerprints be retained in the 
Federal Bureau of Investigation Next Generation Identification System's Rap 
Back Service for search by future submissions to national criminal records 
databases, including the Next Generation Identification System and latent 
prints; and
(E)
ensure that the division only receives notifications for an individual with 
whom the division maintains permission to receive notifications.
(iv)
(A)
The division shall assess an applicant who submits fingerprints under 
this 
Subsection 
(1)(d)
 or 
(2)(f)
 a fee in an amount that the division sets in 
accordance with Section 
63J-1-504
 for services that the division and the 
Bureau of Criminal Identification or another authorized agency provide under 
this 
Subsection 
(1)(d)
 or 
(2)(f)
.
(B)
The Bureau of Criminal Identification may collect from the division money 
for services provided under this section.
(v)
Money paid to the division by an applicant for the cost of the criminal 
background check is nonlapsing.
(vi)
In accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, 
and with the concurrence of the division, the commission may make rules for the 
administration of this Subsection 
(1)(d)
 and Subsection 
(2)(f)
 regarding criminal 
background checks with ongoing monitoring.
(e)
(i)
A license issued under Subsection 
(1)(d)
 is conditional, pending completion of 
the criminal background check.
(ii)
If a criminal background check discloses that an applicant fails to accurately 
disclose a criminal history, the division:
(A)
shall review the application; and
(B)
in accordance with rules made by the division pursuant to 
Title 63G, Chapter 
3, Utah Administrative Rulemaking Act
, may:
(I)
place a condition on a license;
(II)
place a restriction on a license;
(III)
revoke a license; or
(IV)
refer the application to the commission for a decision.
(iii)
(A)
A person
An individual
 whose conditional license is conditioned, 
restricted, or revoked under Subsection 
(1)(e)(ii)
 may have a hearing after the 
action is taken to challenge the action.
(B)
The division shall conduct a hearing described in Subsection 
(1)(e)(iii)(A)
 in 
accordance with 
Title 63G, Chapter 4, Administrative Procedures Act
.
(iv)
The director shall designate one of the following to act as the presiding officer in 
a hearing described in Subsection 
(1)(e)(iii)(A)
:
(A)
the division; or
(B)
the division with the concurrence of the commission.
(v)
The presiding officer shall decide whether
 to grant
 relief from an action under this 
Subsection 
(1)(e)
 is granted
.
(vi)
If a license is revoked or a revocation under this Subsection 
(1)(e)
 is upheld after 
a hearing, the individual may not apply for a new license until at least 12 months 
after the day on which the license is revoked.
(2)
(a)
(i)
A license expires if 
it
the license
 is not renewed on or before the expiration 
date of the license.
(ii)
As a condition of renewal, an active licensee shall demonstrate competence by 
completing 18 hours of continuing education within a two-year renewal period 
subject to rules made by the commission, with the concurrence of the division.
(iii)
In making a rule described in Subsection 
(2)(c)(ii)
, the division and commission 
shall consider:
(A)
evaluating continuing education 
on the basis of
based on
 competency, rather 
than course time;
(B)
allowing completion of courses in a significant variety of topic areas that the 
division and commission determine are valuable in assisting an individual 
licensed under this chapter to increase the individual's competency; and
(C)
allowing completion of courses that will increase a licensee's professional 
competency in the area of practice of the licensee.
(iv)
The division may award credit to a licensee for a continuing education 
requirement of this Subsection 
(2)(a)
 for a reasonable 
period of time
time period
upon a finding of reasonable cause, including:
(A)
military service; or
(B)
if an individual is elected or appointed to government service, the individual's 
government service during which the individual spends a substantial time 
addressing real estate issues subject to conditions established by rule made in 
accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(b)
For a period of 30 days after the day on which a license expires, 
the license may be 
reinstated
the division may reinstate the license
:
(i)
if the applicant's license was inactive on the day on which the applicant's license 
expired, upon payment of a renewal fee and a late fee determined by the 
commission with the concurrence of the division under Section 
63J-1-504
; or
(ii)
if the applicant's license was active on the day on which the applicant's license 
expired, upon payment of a renewal fee and a late fee determined by the 
commission with the concurrence of the division under Section 
63J-1-504
, and 
providing proof acceptable to the division and the commission of the licensee 
having:
(A)
completed the hours of education required by Subsection 
(2)(a)
; or
(B)
demonstrated competence as required under Subsection 
(2)(a)
.
(c)
After the 30-day period described in Subsection 
(2)(b)
, and until one year after the 
day on which an active or inactive license expires, 
the division may reinstate 
the 
license 
may be reinstated by
if the applicant
:
(i)
paying
pays
 a renewal fee and a late fee determined by the commission with the 
concurrence of the division under Section 
63J-1-504
; and
(ii)
providing
provides
 proof acceptable to the division and the commission of the 
licensee having:
(A)
completed the hours of education required by Subsection 
(2)(a)
; or
(B)
demonstrated competence as required under Subsection 
(2)(a)
.
(d)
The division shall relicense 
a person
an individual
 who does not renew that 
person's
individual's
 license within one year as prescribed for an original application.
(e)
Notwithstanding Subsection 
(2)(a)
, the division may extend the term of a license that 
would expire under Subsection 
(2)(a)
 except for the extension if:
(i)
(A)
the 
person
individual
 complies with the requirements of this section to 
renew the license; and
(B)
the renewal application remains pending at the time of the extension; or
(ii)
at the time of the extension, there is pending a disciplinary action under this 
chapter.
(f)
Beginning January 1, 2020, each
Each
 applicant for renewal or reinstatement of a 
license to practice as a sales agent, principal broker, 
or 
associate broker
, or a 
property manager,
 who is not already subject to ongoing monitoring of the 
individual's criminal history shall, at the time the application for renewal or 
reinstatement is filed:
(i)
submit fingerprint cards in a form acceptable to the Department of Public Safety;
(ii)
submit to the division a signed waiver in accordance with Subsection 
53-10-108(4)
, acknowledging the registration of the applicant's fingerprints in the 
Federal Bureau of Investigation Next Generation Identification System's Rap 
Back Service;
(iii)
consent to a fingerprint background check by the Utah Bureau of Criminal 
Identification and the Federal Bureau of Investigation; and
(iv)
pay the fee the division establishes in accordance with Subsection 
(1)(d)(iv)
.
(3)
(a)
As a condition for the activation of an inactive license that was in an inactive 
status at the time of the licensee's most recent renewal, the licensee shall supply the 
division with proof of:
(i)
successful completion of the respective sales agent or principal broker licensing 
examination within six months before the day on which the licensee applies to 
activate the license; or
(ii)
the successful completion of the hours of continuing education that the licensee 
would have been required to complete under Subsection 
(2)(a)
 if the license had 
been on active status at the time of the licensee's most recent renewal.
(b)
The commission may, in accordance with 
Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act
, subject to concurrence by the division, establish by rule:
(i)
the nature or type of continuing education required for reactivation of a license; 
and
(ii)
how long before reactivation the continuing education must be completed.
Section 8, Section 
61-2f-206
 is amended to read:
61-2f-206
. Registration of person or branch office -- Certification of education 
providers and courses -- Specialized licenses.
(1)
(a)
A person may not engage in an activity described in Section 
61-2f-201
, unless the 
person is registered with the division.
(b)
To register with the division under this Subsection 
(1)
, a person shall submit to the 
division:
(i)
an application in a form required by the division;
(ii)
evidence of an affiliation with a principal broker;
(iii)
evidence that the person is registered and in good standing with the Division of 
Corporations and Commercial Code; and
(iv)
a registration fee established by the commission with the concurrence of the 
division under Section 
63J-1-504
.
(c)
The division may terminate a person's registration if:
(i)
the person's registration with the Division of Corporations and Commercial Code 
has been expired for at least three years; and
(ii)
the person's license with the division has been inactive for at least three years.
(2)
(a)
A principal broker shall register with the division each of the principal broker's 
branch offices.
(b)
To register a branch office with the division under this Subsection 
(2)
, a principal 
broker shall submit to the division:
(i)
an application in a form required by the division; and
(ii)
a registration fee established by the commission with the concurrence of the 
division under Section 
63J-1-504
.
(3)
(a)
In accordance with rules made by the commission with the concurrence of the 
division and in accordance with 
Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act
, the division shall certify:
(i)
a real estate school;
(ii)
a course provider; or
(iii)
an instructor.
(b)
In accordance with rules made by the commission in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
, subject to concurrence by the 
division, the division shall certify a continuing education course that is required 
under this chapter.
(4)
Except as provided under this chapter or by rule the commission makes in accordance 
with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, a principal broker may 
not be responsible for more than one registered entity at the same time.
(5)
A principal broker:
(a)
shall exercise active and reasonable supervision of the principal broker's main office 
in accordance with this chapter and rules the commission makes in accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
; and
(b)
may supervise a branch office affiliated with the principal broker at the same time 
the principal broker exercises the supervision required under Subsection 
(5)(a)
.
(6)
(a)
A principal broker may designate a branch broker to supervise a branch office 
affiliated with the principal broker.
(b)
A branch broker shall exercise active and reasonable supervision, in accordance with 
this chapter and rules the commission makes in accordance with 
Title 63G, Chapter 
3, Utah Administrative Rulemaking Act
, of each branch office the principal broker 
designates the branch broker to supervise.
(7)
(a)
In addition to issuing a principal broker license, associate broker license, or sales 
agent license authorizing the performance of an act set forth in Section 
61-2f-201
, the 
division may issue a specialized sales license or specialized property management 
license with the scope of practice limited to the specialty.
(b)
An individual may hold a specialized license in addition to a license as a principal 
broker, associate broker, or a sales agent.
(c)
A sales agent who is affiliated with a dual broker may act as a property management 
sales agent if:
(i)
the dual broker designates the sales agent as a property management sales agent; 
and
(ii)
the sales agent pays to the division a property management sales agent 
designation fee in an amount determined by the division in accordance with 
Section 
63J-1-504
.
(d)
A property management sales agent may simultaneously provide both property 
management services and real estate sales services under the supervision of a dual 
broker as provided by the commission with the concurrence of the division by rule 
made in accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
.
(8)
The commission may determine, by rule made in accordance with 
Title 63G, Chapter 
3, Utah Administrative Rulemaking Act
, subject to concurrence by the division, 
licensing requirements related to this section for a principal broker, associate broker, 
sales agent, dual broker, property management sales agent, or for a specialized license 
described in Subsection 
(7)
, including:
(a)
prelicensing and postlicensing education requirements;
(b)
examination requirements;
(c)
affiliation with real estate brokerages or property management companies;
(d)
property management sales agent:
(i)
designation procedures;
(ii)
allowable scope of practice; and
(iii)
division fees;
(e)
what constitutes active and reasonable supervision for:
(i)
a principal broker when supervising a branch broker or sales agent; and
(ii)
a branch broker when supervising a sales agent; and
(f)
other licensing procedures.
Section 9, Section 
61-2f-307
 is enacted to read:
61-2f-307
. Rights and privileges of a property manager to fill out a form or 
document.
A property manager may fill out any form, contract, or lease agreement associated with 
the renting and management of real property.
Section 10, Section 
61-2f-411
 is enacted to read:
61-2f-411
. Enforcement related to a property manager.
(1)
Nothing in this section applies to an individual:
(a)
buying, selling, or exchanging real estate for another person; or
(b)
offering to buy, sell, or exchange real estate for another person.
(2)
When engaging in property management, a property manager may:
(a)
solicit referrals for clients, owners, customers, and renters;
(b)
pay a finder's fee or exchange valuable consideration to an unlicensed person for 
referring a prospective client;
(c)
accept a referral fee from an individual, whether licensed or unlicensed;
(d)
contract for services, pay bills, and act on behalf of an owner as provided in a 
management agreement; and
(e)
advertise properties for rent or lease.
(3)
Except as provided in Subsection 
(4)
, a property manager shall associate with at least 
one real estate trust account in a bank or credit union:
(a)
located within the state;
(b)
that, unless otherwise modified by a contract for property management, one or more 
property managers use for the purpose of securing:
(i)
tenant security deposits;
(ii)
rent;
(iii)
money tendered by a property owner as a reserve fund or for payment of an 
unexpected expense; and
(iv)
any other purpose designated by the commission; and
(c)
that is non-interest bearing, unless the parties to a property management contract:
(i)
agree in writing to deposit the funds in an interest-bearing account;
(ii)
designate in writing the individuals to whom the parties will pay the interest on 
completion or failure of the property management contract; and
(iii)
ensure that the parties and trust account comply with any other rules established 
by the commission or division.
(4)
A property manager who obtains and holds a security bond that protects at least 30% of 
the estimated client funds the property manager holds in the property manager's bank 
accounts is not required to be associated with a trust account.
Section 11. 
Effective Date.
This bill takes effect on 
January 1, 2026
.
3-7-25 5:19 PM