Utah Admin. Code R162-2f-401b - Prohibited Conduct As Applicable to Licensed Individuals

(1) An individual licensee may not:
(a) engage in any of the practices described in Section 61-2f-401 and the following sections, whether acting as agent or on the licensee's own account, in a manner that:
(i) fails to conform with accepted standards of the real estate sales, leasing, or management industries;
(ii) could jeopardize the public health, safety, or welfare; or
(iii) violates any provision of Title 61, Chapter 2f or the rules of this chapter;
(b) require parties to acknowledge receipt of a final copy of any document prepared by the licensee before each party has signed a contract evidencing agreement to the contract terms;
(c) make a misrepresentation to the division:
(i) in an application for license renewal; or
(ii) in an investigation.
(i) propose, prepare, or cause to be prepared a document, agreement, settlement statement, or other device that the licensee knows or should know does not reflect the true terms of the transaction; or
(ii) knowingly participate in a transaction in which such a false device is used;
(e) participate in a transaction in which a buyer enters into an agreement that:
(i) is not disclosed to the lender; and
(ii) if disclosed, might have a material effect on the terms or the granting of the loan;
(f) use or propose the use of a double contract;
(g) place a sign on real property without the written consent of the property owner;
(h) take a net listing;
(j) sell listed properties other than through the listing broker;
(j) subject a principal to paying a double commission without the principal's informed consent;
(k) enter or attempt to enter into a concurrent agency representation when the licensee knows or should know that the principal has an existing agency representation agreement with another licensee;
(l) pay a finder's fee or give any valuable consideration to an unlicensed person or entity for referring a prospect, except that:
(i) a licensee may give a gift valued at $250 or less to an individual in appreciation for an unsolicited referral of a prospect that results in a real estate transaction; and
(ii) as to a property management transaction, a licensee may compensate an unlicensed employee or previous or current tenant up to $250 per lease for assistance in retaining an existing tenant or securing a new tenant;
(m) accept a referral fee from:
(i) a lender; or
(ii) a mortgage broker;
(n) act as a real estate agent or broker in the same transaction in which the licensee also acts as a:
(i) mortgage loan originator, associate lending manager, or principal lending manager;
(ii) appraiser or appraiser trainee;
(iii) escrow agent; or
(iv) provider of title services;
(o) act or attempt to act as a limited agent in any transaction in which:
(i) the licensee is a principal in the transaction; or
(ii) any entity in which the licensee is an officer, director, partner, member, manager, employee, or stockholder is a principal in the transaction;
(p) make a counteroffer by striking out, whiting out, substituting new language, or otherwise altering:
(i) the boilerplate provisions of the Real Estate Purchase Contract; or
(ii) language that has been inserted to complete the blanks of the Real Estate Purchase Contract;
(q) advertise or offer to sell or lease property without the written consent of:
(i) the owners of the property; and
(ii) if the property is currently listed, the listing broker;
(r) advertise or offer to sell or lease property at a lower price than that listed without the written consent of the seller or lessor;
(s) represent on any form or contract that the individual is holding client funds without actually receiving funds and securing them pursuant to Subsection R162-2f-401a(24);
(t) when acting as a limited agent, disclose any information given to the agent by either principal that would likely weaken that party's bargaining position if it were known, unless the licensee has permission from the principal to disclose the information;
(u) disclose, or make any use of, a short sale demand letter outside of the purchase transaction for which it is issued;
(v) in a short sale, have the seller sign a document allowing the licensee to lien the property; or
(w) charge any fee that represents the difference between:
(i) the total concessions authorized by a seller and the actual amount of the buyer's closing costs; or
(ii) in a short sale, the sale price approved by the lender and the total amount required to clear encumbrances on title and close the transaction.
(2) The division may not bring an action for enforcement of either Subsection (1)(g) or Subsection (1)(q) after the expiration of four years following the occurrence of the violation.


Utah Admin. Code R162-2f-401b
Amended by Utah State Bulletin Number 2018-2, effective 1/1/2018 Amended by Utah State Bulletin Number 2019-4, effective 1/23/2019 Amended by Utah State Bulletin Number 2019-14, effective 6/19/2019 Amended by Utah State Bulletin Number 2020-21, effective 10/21/2020 Amended by Utah State Bulletin Number 2022-11, effective 5/25/2022

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