Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 419 (2025GS)

Sponsor

Rep. Walter, R. Neil

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends provisions related to the Division of Real Estate's (division) authority to investigate licensees, including time periods for retention of certain documents, and the division's ability to request documents;
• provides guidance on the determination of disciplinary actions taken by the Real Estate Commission;
• defines terms related to advertising practices;
• provides that certain conduct by a principal broker does not created an agency relationship with a buyer;
• amends provisions related to the inclusion of the brokerage's name being included in an advertisement or through a link requiring only one click; and
• makes technical changes.

Every vote on this bill

Bill text

37
61-2-203
61-2f-102
61-2f-206
61-2f-308
61-2f-309
61-2f-401
61-2f-402
61-2f-404
61-2f-405
61-2-203
61-2f-102
61-2f-206
61-2f-308
61-2f-309
61-2f-401
61-2f-402
61-2f-404
61-2f-405
0
Real Estate Revisions
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor: Calvin R. Musselman
LONG TITLE
General Description:
This bill amends provisions related to the Division of Real Estate's investigation practices 
and procedures.
Highlighted Provisions:
This bill:
amends provisions related to the Division of Real Estate's (division) authority to 
investigate licensees, including time periods for retention of certain documents, and the 
division's ability to request documents;
provides guidance on the determination of disciplinary actions taken by the Real Estate 
Commission;
defines terms related to advertising practices;
provides that certain conduct by a principal broker does not create an agency relationship 
with a buyer;
amends provisions related to the inclusion of the brokerage's name being included in an 
advertisement or through a link requiring only one click; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
61-2-203
, as last amended by Laws of Utah 2023, Chapter 401
61-2f-102
, as last amended by Laws of Utah 2024, Chapter 227
61-2f-206
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-308
, as last amended by Laws of Utah 2014, Chapter 350
61-2f-401
, as last amended by Laws of Utah 2024, Chapter 227
61-2f-402
, as last amended by Laws of Utah 2022, Chapter 204
61-2f-404
, as last amended by Laws of Utah 2024, Chapter 227
61-2f-405
, as renumbered and amended by Laws of Utah 2010, Chapter 379
ENACTS:
61-2f-309
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
61-2-203
 is amended to read:
61-2-203
. Adjudicative proceedings -- Citation authority.
(1)
The division shall comply with 
Title 63G, Chapter 4, Administrative Procedures Act
, in 
an adjudicative proceeding under a chapter the division administers.
(2)
The division may initiate an adjudicative proceeding through:
(a)
a notice of agency action; or
(b)
a notice of formal or informal proceeding.
(3)
The provisions of 
Title 63G, Chapter 4, Administrative Procedures Act
, do not apply to 
the issuance of a citation under Subsection 
(4)
, unless a licensee or another person 
authorized by law to contest the validity or correctness of a citation commences an 
adjudicative proceeding contesting the citation.
(4)
In addition to any other statutory penalty for a violation related to an occupation or 
profession regulated under this title, the 
The 
division may issue a citation to a person 
who, upon inspection or investigation, the division concludes to have violated:
(a)
Subsection 
61-2c-201(1)
, which requires licensure;
(b)
Subsection 
61-2c-201(4)
, which requires licensure;
(c)
Subsection 
61-2c-205(3)
, which requires notification of a change in specified 
information regarding a licensee;
(d)
Subsection 
61-2c-205(4)
, which requires notification of a specified legal action;
(e)
Subsection 
61-2c-301(1)(g)
, which prohibits failing to respond to the division within 
the required time period;
(f)
Subsection 
61-2c-301(1)(h)
, which prohibits making a false representation to the 
division;
(g)
Subsection 
61-2c-301(1)(i)
, which prohibits taking a dual role in a transaction;
(h)
Subsection 
61-2c-301(1)(l)
, which prohibits engaging in false or misleading 
advertising;
(i)
Subsection 
61-2c-301(1)(t)
, which prohibits advertising the ability to do licensed 
work if unlicensed;
(j)
Subsection 
61-2c-302(5)
, which requires a mortgage entity to create and file a 
quarterly report of condition;
(k)
Subsection 
61-2e-201(1)
, which requires registration;
(l)
Subsection 
61-2e-203(4)
, which requires a notification of a change in ownership;
(m)
Subsection 
61-2e-307(1)(c)
, which prohibits use of an unregistered fictitious name;
(n)
Subsection 
61-2e-401(1)(c)
, which prohibits failure to respond to a division request;
(o)
Subsection 
61-2f-201(1)
, which requires licensure;
(p)
Subsection 
61-2f-206(1)
, which requires registration;
(q)
Subsection 
61-2f-301(1)
, which requires notification of a specified legal action;
(r)
Subsection 
61-2f-401(1)(a)
, which prohibits making a substantial misrepresentation;
(s)
Subsection 
61-2f-401(3)
, which prohibits undertaking real estate while not affiliated 
with a principal broker;
(t)
Subsection 
61-2f-401(9)
, which prohibits failing to keep specified records and 
prohibits failing to make the specified records available for division inspection;
(u)
Subsection 
61-2f-401(12)
, which prohibits false, misleading, or deceptive 
advertising;
(v)
Subsection 
61-2f-401(18)
, which prohibits failing to respond to a division request;
(w)
Subsection 
61-2g-301(1)
, which requires licensure;
(x)
Subsection 
61-2g-405(3)
, which requires making records required to be maintained 
available to the division;
(y)
Subsection 
61-2g-501(2)(c)
, which requires a person to respond to a division request 
in an investigation within 10 days after the day on which the request is served;
(z)
Subsection 
61-2g-502(2)(f)
, which prohibits using a nonregistered fictitious name;
(aa)
a rule made pursuant to any Subsection listed in this Subsection 
(4)
;
(bb)
an order of the division; or
(cc)
an order of the commission or board that oversees the person's profession.
(5)
(a)
In accordance with Subsection 
(10)
, the division may assess a fine against a 
person for a violation of a provision listed in Subsection 
(4)
, as evidenced by:
(i)
an uncontested citation;
(ii)
a stipulated settlement; or
(iii)
a finding of a violation in an adjudicative proceeding.
(b)
The division may, in addition to or in lieu of a fine under Subsection 
(5)(a)
, order the 
person to cease and desist from an activity that violates a provision listed in 
Subsection 
(4)
.
(6)
Except as provided in Subsection 
(8)(d)
, the division may not use a citation to effect a 
license:
(a)
denial;
(b)
probation;
(c)
suspension; or
(d)
revocation.
(7)
(a)
A citation issued by the division shall:
(i)
be in writing;
(ii)
describe with particularity the nature of the violation, including a reference to the 
provision of the statute, rule, or order alleged to have been violated;
(iii)
clearly state that the recipient must notify the division in writing within 20 
calendar days after the day on which the citation is served if the recipient wishes 
to contest the citation at a hearing conducted under 
Title 63G, Chapter 4, 
Administrative Procedures Act
; and
(iv)
clearly explain the consequences of failure to timely contest the citation or to 
make payment of a fine assessed by the citation within the time period specified in 
the citation.
(b)
The division may issue a notice in lieu of a citation.
(8)
(a)
A citation becomes final:
(i)
if within 20 calendar days after the day on which the citation is served, the person 
to whom the citation was issued fails to request a hearing to contest the citation; or
(ii)
if the director or the director's designee conducts a hearing pursuant to a timely 
request for a hearing and issues an order finding that a violation has occurred.
(b)
The division may extend, for cause, the 20-day period to contest a citation.
(c)
A citation that becomes the final order of the division due to a person's failure to 
timely request a hearing is not subject to further agency review.
(d)
(i)
The division may refuse to issue, refuse to renew, suspend, revoke, or place on 
probation the license of a licensee who fails to comply with a citation after the 
citation becomes final.
(ii)
The failure of a license applicant to comply with a citation after the citation 
becomes final is a ground for denial of the license application.
(9)
(a)
The division may not issue a citation under this section after the expiration of one 
year after the day on which the violation occurs.
(b)
The division may issue a notice to address a violation that is outside of the one-year 
citation period.
(10)
The director or the director's designee shall assess a fine with a citation in an amount 
that is no more than:
(a)
for a first offense, $1,000;
(b)
for a second offense, $2,000; and
(c)
for each offense subsequent to a second offense, $2,000 for each day of continued 
offense.
(11)
(a)
An action for a first or second offense for which the division has not issued a 
final order does not preclude the division from initiating a subsequent action for a 
second or subsequent offense while the preceding action is pending.
(b)
The final order on a subsequent action is considered a second or subsequent offense, 
respectively, provided the preceding action resulted in a first or second offense, 
respectively.
(12)
(a)
If a person does not pay a penalty, the director may collect the unpaid penalty by:
(i)
referring the matter to a collection agency; or
(ii)
bringing an action in a court with jurisdiction under 
Title 78A, Judiciary and 
Judicial Administration
.
(b)
A county attorney or the attorney general of the state shall provide legal services to 
the director in an action to collect the penalty.
(c)
A court may award reasonable attorney fees and costs to the division in an action the 
division brings to enforce the provisions of this section.
Section 2, Section 
61-2f-102
 is amended to read:
61-2f-102
. Definitions.
As used in this chapter:
(1)
"Admonition" means a public discipline that declares the conduct of a person as 
improper and does not identify the person.
(2)
(a)
"Advertisement" means a notice or announcement meant to:
(i)
promote the availability of real estate, an option on real estate, or a business 
opportunity for sale, exchange, auction, or lease;
(ii)
offer specific types of brokerage services; or
(iii)
specifically solicit the public to contact that licensee for more information.
(b)
"Advertisement" does not include a social media post that generally identifies the 
person as being engaged in the profession of real estate if the social media post does 
not:
(i)
promote the availability of real estate, an option on real estate, or a business 
opportunity for sale, exchange, auction, or lease;
(ii)
offer specific types of brokerage services; or
(iii)
specifically solicit the public to contact that licensee for more information.
(3)
"Advertising" or "advertise" means placing or directing the placement of an 
advertisement.
(1)
(4)
"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)
(29)
 for valuable 
consideration; and
(b)
licensed under this chapter as an associate broker.
(2)
(5)
"Branch broker" means an associate broker who manages a principal broker's 
branch office under the supervision of the principal broker.
(3)
(6)
"Branch office" means a principal broker's real estate brokerage office that is not 
the principal broker's main office.
(7)
"Brokerage" means an entity registered or required to be registered with the division 
pursuant to Section 
61-2f-206
.
(8)
"Brokerage name" means:
(a)
 the name of the brokerage as shown on division records;
(b)
the name of a branch office of the brokerage; or
(c)
a DBA of the brokerage.
(4)
(9)
"Business day" means a day other than:
(a)
a Saturday;
(b)
a Sunday; or
(c)
a federal or state holiday.
(5)
(10)
"Business opportunity" means the sale, lease, or exchange of any business that 
includes an interest in real estate.
(6)
(11)
"Commission" means the Real Estate Commission established under this chapter.
(7)
(12)
"Concurrence" means the entities given a concurring role must jointly agree for 
action to be taken.
(8)
(13)
"Condominium homeowners' association" means the condominium unit owners 
acting as a group in accordance with declarations and bylaws.
(9)
(14)
(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)
(15)
"Condominium unit" means the same as that term is defined in Section 
57-8-3
.
(11)
(16)
"Director" means the director of the Division of Real Estate.
(12)
(17)
"Division" means the Division of Real Estate.
(18)
"Doing business as" or "DBA" means a name that is registered with the Division of 
Corporations and Commercial Code that allows a business to operate under a name 
different from the business's legal name.
(13)
(19)
"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)
(20)
"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)
(20)(a)
through (h).
(15)
(21)
"Executive director" means the director of the Department of Commerce.
(22)
"Factory built housing" means a manufactured home or mobile home.
(16)
(23)
"Foreclosure rescue" means, for compensation or with the expectation of 
receiving valuable consideration, to:
(a)
engage, or offer to engage, in 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 that the other person will engage in an act described in Subsection 
(16)(a)
(23)(a)
; or
(ii)
negotiate terms in relationship to an act described in Subsection 
(16)(a)
(23)(a)
.
(17)
(24)
"Loan modification assistance" means, for compensation or with the expectation 
of receiving valuable consideration, to:
(a)
act, or 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)
substitute 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 that the other person will engage in an act described in Subsection 
(17)(a)
(24)(a)
; or
(ii)
negotiate terms in relationship to an act described in Subsection 
(17)(a)
(24)(a)
.
(18)
(25)
"Main office" means the address which a principal broker designates with the 
division as the principal broker's primary brokerage office.
(26)
"Manufactured home" means the same as that term is defined in Section 
15A-1-302
.
(27)
"Mobile home" means the same as that term is defined in Section 
15A-1-302
.
(19)
(28)
"Person" means an individual or entity.
(20)
(29)
"Principal broker" means an individual who is licensed or required to be licensed 
as a principal broker under this chapter who:
(a)
sells or lists for sale real estate, including real estate being sold as part of a 
foreclosure rescue, 
or 
a business opportunity
, or, unless licensed with the Division 
of Professional Licensing as a dealer under Title 58, Chapter 56, Building Inspector 
and Factory Built Housing Licensing Act, factory built housing,
 with the expectation 
of receiving valuable consideration;
(b)
buys, exchanges, or auctions real estate, an option on real estate, a business 
opportunity
, or an improvement on real estate
, or, unless licensed with the Division 
of Professional Licensing as a dealer under Title 58, Chapter 56, Building Inspector 
and Factory Built Housing Licensing Act, factory built housing,
 with the expectation 
of receiving valuable consideration;
(c)
advertises, offers, attempts, or otherwise holds the individual out to be engaged in the 
business described in Subsection 
(20)(a)
(29)(a)
 or (b);
(d)
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)
(29)(a)
, whether 
the individual's compensation is at a stated salary, a commission basis, upon a salary 
and commission basis, or otherwise;
(e)
with the expectation of receiving valuable consideration, manages property owned by 
another person;
(f)
advertises or otherwise holds the individual out to be engaged in property 
management;
(g)
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)
(29)(a)
 and (e);
(h)
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)
engages in foreclosure rescue; or
(j)
advertises, offers, attempts, or otherwise holds the person out as being engaged in 
foreclosure rescue.
(21)
(30)
(a)
"Property management" means engaging in, 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 
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.
(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)
(31)
"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.
(23)
(32)
"Real estate" includes leaseholds and business opportunities involving real 
property.
(24)
(33)
(a)
"Regular salaried employee" means an individual who performs a service 
for wages or other remuneration, 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)
(34)
"Reinstatement" means restoring a license that has expired or has been 
suspended.
(26)
(35)
"Reissuance" means the process by which a licensee may obtain a license 
following revocation of the license.
(27)
(36)
"Renewal" means extending a license for an additional licensing period on or 
before the date the license expires.
(37)
"Reprimand" means a public discipline that declares the conduct of a person as 
improper and includes the name of the person.
(28)
(38)
"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)
(29)
; and
(b)
licensed under this chapter as a sales agent.
(39)
"Transaction" means, whether complete or incomplete:
(a)
a purchase of real estate;
(b)
a sale of real estate;
(c)
an exchange of real estate;
(d)
a lease of real estate;
(e)
an auction of real estate;
(f)
management of real estate;
(g)
an option on real estate; or
(h)
a business opportunity.
(29)
(40)
"Vulnerable adult" means the same as that term is defined in Section 
26B-6-201
.
Section 3, 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
:
(i)
the person is registered with the division
.
; or
(ii)
an exemption to registration applies.
(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 4, Section 
61-2f-308
 is amended to read:
61-2f-308
. Brokerage agreements.
(1)
As used in this section:
(a)
"Brokerage agreement" means a written agreement between a client and a principal 
broker:
(i)
(A)
to list for sale, lease, or exchange, real estate, an option on real estate, or an 
improvement on real estate; or
(B)
for representation in the purchase, lease, or exchange of real estate, an option 
on real estate, or an improvement on real estate; and
(ii)
that gives the principal broker the expectation of receiving valuable consideration 
in exchange for the principal broker's services.
(b)
"Client" means a person who makes an exclusive brokerage agreement with a 
principal broker under Subsection 
(1)(d)
.
(c)
"Closed" means that:
(i)
the documents required to be executed under the contract are executed;
(ii)
the money required to be paid by either party under the contract is paid in the 
form of collected or cleared funds;
(iii)
the proceeds of any new loan are delivered by the lender to the seller; and
(iv)
the applicable documents are recorded in the office of the county recorder for the 
county in which the real estate is located.
(d)
"Exclusive brokerage agreement" means a brokerage agreement that gives the 
principal broker the sole right to act as the agent or representative of the client for the 
purchase, sale, lease, or exchange of real estate, an option on real estate, or an 
improvement on real estate.
(2)
(a)
Except as provided in Subsection 
(2)(b)
, a principal broker subject to an exclusive 
brokerage agreement shall:
(i)
accept delivery of and present to the client offers and counteroffers to buy, lease, 
or exchange the client's real estate;
(ii)
assist the client in developing, communicating, and presenting offers, 
counteroffers, and notices; and
(iii)
answer any question the client has concerning:
(A)
an offer;
(B)
a counteroffer;
(C)
a notice; and
(D)
a contingency.
(b)
A principal broker subject to an exclusive brokerage agreement need not comply 
with Subsection 
(2)(a)
 after:
(i)
(A)
an agreement for the sale, lease, or exchange of the real estate, option on 
real estate, or improvement on real estate is signed;
(B)
the contingencies related to the sale, lease, or exchange are satisfied or 
waived; and
(C)
the sale, lease, or exchange is closed; or
(ii)
the exclusive brokerage agreement expires or terminates.
(3)
A principal broker who violates this section is subject to Sections 
61-2f-404
 and 
61-2f-405
.
(4)
(3)
(a)
Subject to Subsection 
(4)(b)
, a principal broker who represents a buyer may 
directly contact a seller who is subject to a brokerage agreement or an exclusive 
brokerage agreement if:
(i)
the seller's principal broker gives the buyer's principal broker written 
authorization; or
(ii)
subject to Subsection 
(4)(c)
, the seller gives the buyer's principal broker written 
authorization.
(b)
If a buyer's principal broker obtains a written authorization described in Subsection 
(4)(a)
, the buyer's principal broker may contact the seller directly to:
(i)
discuss items related to a real estate transaction between the buyer and the seller;
(ii)
provide the seller with blank 
state-approved 
forms; and
(iii)
negotiate the terms of a real estate transaction between the buyer and the seller.
(c)
A buyer's principal broker may not solicit from a seller a written authorization 
described in Subsection 
(4)(a)(ii)
.
(5)
(4)
A principal broker who, in accordance with Subsection 
(4)
, engages in the conduct 
described in Subsection 
(4)(b)
 is not, by that conduct, representing that the principal 
broker is acting on behalf of both the buyer and the seller.
(5)
The following conduct by a principal broker who represents a seller does not create an 
agency relationship with a buyer unrepresented by a principal broker:
(a)
contacting the buyer directly to discuss items related to a real estate transaction 
between the seller and buyer;
(b)
providing the buyer with blank forms; or
(c)
negotiating the terms of a real estate transaction between the seller and the buyer.
Section 5, Section 
61-2f-309
 is enacted to read:
61-2f-309
. Record requirements.
(1)
A brokerage shall make or possess any applicable record required for the brokerage to 
maintain by rule made by the commission pursuant to Section 
61-2f-103
 for the time 
period specified in Subsection (2).
(2)
A brokerage shall maintain and safeguard in the brokerage's possession a record 
described in Subsection (1) for three years following:
(a)
the day the transaction either closes or fails;
(b)
in a lease transaction, the day of the commencement of the lease;
(c)
the day an offer is rejected; or
(d)
the end of the term of a property management agreement.
Section 6, Section 
61-2f-401
 is amended to read:
61-2f-401
. Grounds for disciplinary action.
The following acts are unlawful and grounds for disciplinary action for a person licensed 
or required to be licensed under this chapter:
(1)
(a)
making a substantial misrepresentation, including in a licensure statement;
(b)
making an intentional misrepresentation;
(c)
pursuing a continued and flagrant course of misrepresentation;
(d)
making a false representation or promise through an agent, sales agent, advertising, 
or otherwise; or
(e)
making a false representation or promise of a character likely to influence, persuade, 
or induce;
(2)
acting for more than one party in a transaction without the informed written consent of 
the parties;
(3)
(a)
acting as an associate broker or sales agent while not affiliated with a principal 
broker;
(b)
representing or attempting to represent a principal broker other than the principal 
broker with whom the person is affiliated; or
(c)
representing as sales agent or having a contractual relationship similar to that of sales 
agent with a person other than a principal broker;
(4)
(a)
failing, within a reasonable time, to account for or to remit money that belongs to 
another and comes into the person's possession;
(b)
commingling money described in Subsection (4)(a) with the person's own money; or
(c)
diverting money described in Subsection (4)(a) from the purpose for which the 
money is received;
(5)
paying or offering to pay valuable consideration to a person not licensed under this 
chapter, except that valuable consideration may be shared:
(a)
with a principal broker of another jurisdiction; or
(b)
as provided under:
(i)
Title 16, Chapter 10a, Utah Revised Business Corporation Act;
(ii)
Title 16, Chapter 11, Professional Corporation Act; or
(iii)
Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act, as 
appropriate pursuant to Section 
48-3a-1405
;
(6)
for a principal broker, paying or offering to pay a sales agent or associate broker who is 
not affiliated with the principal broker at the time the sales agent or associate broker 
earned the compensation;
(7)
being incompetent to act as a principal broker, associate broker, or sales agent in such 
manner as to safeguard the interests of the public;
(8)
failing to voluntarily furnish a copy of a document to the parties before and after the 
execution of a document;
(9)
a brokerage 
failing to keep and make available for inspection by the division a record of 
each transaction, including:
(a)
the names of buyers and sellers or lessees and lessors;
(b)
the identification of real estate;
(c)
the sale or rental price;
(d)
money received in trust;
(e)
agreements or instructions from buyers and sellers or lessees and lessors; and
(f)
any other information required by rule;
(10)
failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether the 
purchase, sale, or rental is made for that person or for an undisclosed principal;
(11)
regardless of whether the crime is related to the business of real estate:
(a)
be convicted of:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(b)
plead guilty or nolo contendere to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(c)
enter into a plea in abeyance agreement in relation to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(12)
at the time of placing an advertisement:
(a)
advertising the availability of real estate or the services of a licensee in a false, 
misleading, or deceptive manner;
 or
(b)
failing to include within the advertisement the brokerage name with which a person 
who is licensed is affiliated or, if the advertisement is placed online or in a digital 
format, a link to a website or media platform that identifies the brokerage name 
within one click;
(13)
in the case of a principal broker or a branch broker, failing to exercise active and 
reasonable supervision, as the commission may define by rule made in accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, over the activities of the 
principal broker's or branch broker's licensed or unlicensed staff;
(14)
violating or disregarding:
(a)
this chapter;
(b)
an order of the commission; or
(c)
the rules adopted by the commission and the division;
(15)
breaching a fiduciary duty owed by a licensee to the licensee's principal in a real estate 
transaction;
(16)
any other conduct which constitutes dishonest dealing;
(17)
having one of the following suspended, revoked, surrendered, or cancelled on the basis 
of misconduct in a professional capacity that relates to character, honesty, integrity, or 
truthfulness:
(a)
a real estate license, registration, or certificate issued by another jurisdiction; or
(b)
another license, registration, or certificate to engage in an occupation or profession 
issued by this state or another jurisdiction;
(18)
failing to respond to a request by the division in an investigation authorized under this 
chapter within 10 
business 
days after the day on which the request is served, including:
(a)
failing to respond to a subpoena;
(b)
withholding evidence; or
(c)
failing to produce documents or records;
(19)
in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(a)
providing a title insurance product or service without the approval required by 
Section 
31A-2-405
; or
(b)
knowingly providing false or misleading information in the statement required by 
Subsection 
31A-2-405
(2);
(20)
violating an independent contractor agreement between a principal broker and a sales 
agent or associate broker as evidenced by a final judgment of a court;
(21)
violating Title 57, Chapter 30, Residential Property Service Agreements;
(22)
(a)
engaging in an act of loan modification assistance that requires licensure as a 
mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and 
Licensing Act, without being licensed under that chapter;
(b)
engaging in an act of foreclosure rescue without entering into a written agreement 
specifying what one or more acts of foreclosure rescue will be completed;
(c)
inducing a person who is at risk of foreclosure to hire the licensee to engage in an act 
of foreclosure rescue by:
(i)
suggesting to the person that the licensee has a special relationship with the 
person's lender or loan servicer; or
(ii)
falsely representing or advertising that the licensee is acting on behalf of:
(A)
a government agency;
(B)
the person's lender or loan servicer; or
(C)
a nonprofit or charitable institution; or
(d)
recommending or participating in a foreclosure rescue that requires a person to:
(i)
transfer title to real estate to the licensee or to a third-party with whom the 
licensee has a business relationship or financial interest;
(ii)
make a mortgage payment to a person other than the person's loan servicer; or
(iii)
refrain from contacting the person's:
(A)
lender;
(B)
loan servicer;
(C)
attorney;
(D)
credit counselor; or
(E)
housing counselor;
(23)
taking or removing from the premises of a main office or a branch office, or otherwise 
limiting a real estate brokerage's access to or control over, a record that:
(a)
(i)
the real estate brokerage's licensed staff, unlicensed staff, or affiliated 
independent contractor prepared; and
(ii)
is related to the business of:
(A)
the real estate brokerage; or
(B)
an associate broker, a branch broker, or a sales agent of the real estate 
brokerage; or
(b)
is related to the business administration of the real estate brokerage;
(24)
as a principal broker, placing a lien on real property, unless authorized by law;
(25)
as a sales agent or associate broker, placing a lien on real property for an unpaid 
commission or other compensation related to real estate brokerage services; or
(26)
failing to timely disclose to a buyer or seller an affiliated business arrangement, as 
defined in Section 
31A-23a-1001
, in accordance with the federal Real Estate Settlement 
Procedures Act, 12 U.S.C. Sec. 2601 et seq. and any rules made thereunder.
Section 7, Section 
61-2f-402
 is amended to read:
61-2f-402
. Investigations -- Disciplinary actions.
(1)
The division may conduct a public or private investigation within or outside of this state 
as the division considers necessary to determine whether a person has violated, is 
violating, or is about to violate this chapter or any rule or order under this chapter.
(2)
To aid in the enforcement of this chapter or in the prescribing of rules and forms under 
this chapter, the division may require or permit a person to file a statement in writing, 
under oath or otherwise as to the facts and circumstances concerning the matter to be 
investigated.
(3)
(a)
For the purpose of the investigation described in Subsection 
(1)
, the division or an 
employee designated by the division may:
(a)
(i)
administer an oath or affirmation;
(b)
(ii)
issue a subpoena that requires:
(i)
(A)
the attendance and testimony of a witness; or
(ii)
(B)
the production of evidence;
(c)
(iii)
take evidence;
(d)
(iv)
require the production of a book, paper, contract, record, other document, or 
information relevant to the investigation; and
(e)
(v)
serve a subpoena by certified mail.
(b)
The division may not require the production of evidence, book, paper, contract, 
record, other document, or information required to be kept by a brokerage, or 
licensee pursuant to Section 
61-2f-309
 after the expiration of the time in which the 
brokerage is required to maintain and safeguard the record as described in Section 
61-2f-309
.
(4)
(a)
A court of competent jurisdiction shall enforce, according to the practice and 
procedure of the court, a subpoena issued by the division.
(b)
The division shall pay any witness fee, travel expense, mileage, or any other fee 
required by the service statutes of the state where the witness or evidence is located.
(5)
(a)
Except as provided in Subsections 
(5)
(b) and (c), the division shall commence 
a 
disciplinary action 
an adjudicative proceeding 
under this chapter no later than the 
earlier of the following:
(i)
four years 
two years 
after the day on which the violation is reported to the 
division; or
(ii)
the date the brokerage is no longer required to keep and maintain the records as 
provided in Section 
61-2f-309
.
(ii)
10 years after the day on which the violation occurred.
(b)
Except as provided in Subsection 
(5)
(c), the division shall commence a disciplinary 
action within four years after the day on which a violation occurred, if the violation 
was of:
(i)
Section 
61-2f-206
;
(ii)
Subsection 
61-2f-401(8)
, which prohibits failure to voluntarily furnish a copy of 
a document to the parties before and after the execution of a document; or
(iii)
Subsection 
61-2f-401(18)
, which prohibits failure to respond to a division 
request in an investigation within 10 days after the day on which the request is 
served.
(c)
(b)
The division may commence 
a disciplinary action
an adjudicative proceeding
under this chapter after the time period described in Subsection 
(5)
(a)
 or (b)
 expires 
if:
(i)
(A)
the 
disciplinary action
adjudicative proceeding
 is in response to a civil or 
criminal judgment or settlement; and
(B)
the division 
initiates the disciplinary action
commences an adjudicative 
proceeding
 no later than one year after the day on which the judgment is issued 
or the settlement is final; or
(ii)
the division and the person subject to 
a disciplinary action
an adjudicative 
proceeding
 enter into a written stipulation to extend the time period described in 
Subsection 
(5)
(a)
 or (b)
.
(c)
The time period described in Subsection (5)(a) is tolled during the division's 
enforcement of a subpoena under Subsection (4), including any resulting appeals.
(6)
(a)
The division may publish notices of admonition, reprimand, suspension, 
revocation, and surrender with discipline pending in the division newsletter.
(b)
Nothing in this Subsection 
(6)
 shall be construed to restrict the division's publication 
of information, including orders, irrespective of their style or format, on the division's 
website.
(c)
Nothing in this Subsection (6) shall be construed to restrict the division's publication 
of information as required by Title 52, Chapter 4, Open and Public Meetings Act.
Section 8, Section 
61-2f-404
 is amended to read:
61-2f-404
. Disciplinary action -- Judicial review.
(1)
(a)
On the basis of a violation of this chapter, the commission with the concurrence of 
the director, may issue an order:
(i)
imposing an educational requirement;
(ii)
imposing a civil penalty not to exceed the greater of:
(A)
except as provided in Subsection (1)(a)(ii)(B), $5,000 for each violation; 
(B)
$10,000 for each violation, if the person knew or should have known that the 
property owner was an individual 65 years old or older, or a vulnerable adult; or
(C)
the amount of any gain or economic benefit derived from each violation;
(iii)
taking any of the following actions related to a license, registration, or certificate:
(A)
revoking;
(B)
suspending;
(C)
placing on probation;
(D)
denying the renewal, reinstatement, or application for an original license, 
registration, or certificate; or
(E)
in the case of denial or revocation of a license, registration, or certificate, 
setting a waiting period for an applicant to apply for a license, registration, or 
certificate under this title;
(iv)
issuing a cease and desist order;
(v)
authorizing an admonition;
(vi)
authorizing a reprimand;
(vii)
authorizing surrender with discipline pending;
(v)
(viii)
modifying an action described in Subsections (1)(a)(i) through 
(iv)
(vii)
 if 
the commission finds that the person complies with court ordered restitution; or
(vi)
(ix)
doing any combination of Subsections (1)(a)(i) through 
(v)
(viii)
.
(b)
In determining appropriate action under Subsection (1)(a), the commission shall 
consider the following factors:
(i)
the seriousness, nature, circumstances, extent, and persistence of the conduct 
constituting the violation;
(ii)
the harm to other persons resulting either directly or indirectly from the violation;
(iii)
(A)
the cooperation by the person in any inquiry conducted by the division 
concerning the violation;
(B)
efforts by the person to prevent future occurrences of the violation; and
(C)
efforts by the person to mitigate the harm caused by the violation, including 
any disgorgement or restitution made to the other persons harmed by the acts 
of the person;
(iv)
the history of previous violations by the person;
(v)
the need to deter the person or other persons from committing the violation in the 
future;
(vi)
whether the person knew or should have known that the property owner was an 
individual 65 years old or older, or a vulnerable adult;
(vii)
any direct or indirect compensation or economic benefit the person committing 
the violation received; and
(viii)
other matters as justice may require.
(b)
(c)
(i)
If the commission with the concurrence of the director issues an order that 
orders a fine or educational requirements as part of a disciplinary action against a 
person, including a stipulation and order, the commission shall state in the order 
the deadline by which the person shall comply with the fine or educational 
requirements.
(ii)
If a person fails to comply by the stated deadline:
(A)
the person's license, registration, or certificate is automatically suspended:
(I)
beginning the day specified in the order as the deadline for compliance; and
(II)
ending the day on which the person complies in full with the order; and
(B)
if the person fails to pay a fine required by an order, the division may begin a 
collection process:
(I)
established by the division, with the concurrence of the commission, by rule 
made in accordance with Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act; and
(II)
subject to Title 63A, Chapter 3, Part 5, Office of State Debt Collection.
(c)
(d)
In a manner determined by the division, the division shall inform a principal 
broker:
(i)
with whom a licensee is affiliated of:
(A)
a complaint made to the division against the licensee that requires a written 
response from the licensee;
(B)
a violation alleged against the licensee by the division;
(C)
the time and place of any disciplinary hearing
regarding the licensee; and
(D)
the resolution of a violation alleged described in Subsection 
(1)(c)(i)(B)
(1)(d)(i)(B)
; and
(ii)
upon inquiry from a principal broker regarding an affiliated licensee:
(A)
disciplinary actions made by the division against the licensee for the past five 
years; and
(B)
the resolution of the disciplinary actions described in Subsection 
(1)(c)(ii)(A)
(1)(d)(ii)(A)
.
(d)
(e)
A person previously licensed under this chapter remains responsible for, and is 
subject to disciplinary action for, an act the person committed while the person was 
licensed in violation of this chapter or an administrative rule in effect at the time the 
person committed the act, regardless of whether the person is currently licensed.
(2)
(a)
An applicant, certificate holder, licensee, registrant, or person aggrieved, 
including the complainant, may obtain agency review by the executive director and 
judicial review of any adverse ruling, order, or decision of the division.
(b)
If an applicant, certificate holder, registrant, or licensee prevails in the appeal and the 
court finds that the state action was undertaken without substantial justification, the 
court may award reasonable litigation expenses to the applicant, certificate holder, 
registrant, or licensee as provided under Title 78B, Chapter 8, Part 5, Small Business 
Equal Access to Justice Act.
(c)
(i)
An order, ruling, or decision of the division shall take effect and become 
operative 30 days after the service of the order, ruling, or decision unless 
otherwise provided in the order.
(ii)
If an appeal is taken by a licensee, registrant, or certificate holder, the division 
may stay enforcement of an order, ruling, or decision in accordance with Section 
63G-4-405
.
(iii)
An appeal is governed by the Utah Rules of Appellate Procedure.
(3)
The commission and the director shall comply with the procedures and requirements of 
Title 63G, Chapter 4, Administrative Procedures Act, in an adjudicative proceeding.
Section 9, Section 
61-2f-405
 is amended to read:
61-2f-405
. Other penalties for violation of chapter.
(1)
(a)
An individual required to be licensed under this chapter who violates this 
chapter, in addition to being subject to a license sanction or a fine ordered by the 
commission, is, upon conviction of a first violation, guilty of a class A misdemeanor.
(b)
For a conviction under this Subsection 
(1)
, imprisonment shall be for a term not to 
exceed six months.
(2)
(a)
Upon conviction of a second or subsequent violation, an individual is guilty of a 
third degree felony.
(b)
Imprisonment for a conviction under this Subsection 
(2)(a)
 shall be for a term not to 
exceed two years.
(3)
(1)
An officer or agent of a corporation, a member or agent of a partnership or 
association, or an individual in a similar position of another type of entity who 
personally participates in or is an accessory to any violation of this chapter by the entity 
is subject to the penalties prescribed for an individual.
(4)
(2)
If a person receives money or its equivalent, as commission, compensation, or 
profit by or in consequence of a violation of this chapter, that person is liable for an 
additional penalty of not less than the amount of the money received and not more than 
three times the amount of money received, as may be determined by the court. This 
penalty may be sued for in any court of competent jurisdiction, and recovered by any 
person aggrieved for the person's own use and benefit.
(5)
(3)
A fine imposed by the commission and the director under this chapter shall, 
notwithstanding Section 
13-1-2
, be deposited into the Real Estate Education, Research, 
and Recovery Fund to be used in a manner consistent with the requirements of 
Part 5, 
Real Estate Education, Research, and Recovery Fund Act
.
Section 10. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-14-25 1:34 PM