The Utah Association of REALTORS® Statement of Policy is intended to address issues that the UAR’s Legislative Committee deals with at the Utah Legislature and through its federal representatives and senators to the United States Congress. For further guidance on federal issues, please refer to the National Association of REALTORS® Statement of Policy.

The purpose of the UTAH ASSOCIATION OF REALTORS® is to serve its members representing all facets of the real estate industry by providing and promoting programs and services to enhance members’ freedom and ability to conduct their businesses successfully, with integrity and competency, and through collective action to promote the preservation and extension of the right to own, transfer and use real property. (Source: 1997 UAR Business Plan)

The UTAH ASSOCIATION OF REALTORS^® is dedicated to the protection and the preservation of the free enterprise system and the right of the individual to own real property as guaranteed by the Constitutions of the United States of America and the State of Utah. To that end, we offer the benefits our knowledge of real estate, our experience, and our technical resources bring to the public in general and the government that serves them. Because we are concerned with a number of issues facing our members and the State of Utah, the following statement of the principles underlying our policy recommendations is provided so that the public will better understand the specific positions on current issues in the remainder of this book.

We believe in the free enterprise system, and oppose undue intervention by the government in the affairs of American business. We oppose counterproductive taxation, governmental guidelines, regulations, rules and procedures which unnecessarily increase consumer costs and unnecessarily burden the business community.

We believe that the political stability and economic prosperity of the United States of America is dependent in large measure upon the right of the individual to own and freely transfer real property and to exercise and enjoy the benefits of ownership. Because we strongly support the full and free exercise of this right, we oppose actions by governments, groups, or individuals which diminish or deny it, and we will concern ourselves with legislation, regulations and litigation which impact on real estate and the REALTOR^® organization.

We will continue to be responsive to the increasing needs of our members for direct and indirect economic and professional benefits and services by striving to increase the professional image, standards and productivity of our members. The growing specialized and diversified needs of the members of the various disciplines in the real estate industry in domestic and international markets are also of major importance to our organization. Thus, we will work to ensure that our members in both non-residential and residential specialties provide the highest quality services to their clients, while addressing the continually changing nature of brokerage and business practices in real estate, including the professional and liability concerns of our members. To this end, we will inform our membership of domestic and international real estate business trends and practices, the effects of changing demographics, promote the benefits of additional real estate education and develop new ways of assisting real estate specialties. We will also work to build coalitions and work with other trade groups, professional associations, and firms in areas such as education programs, legislation, services, marketing and membership.

We believe that homeownership serves as a cornerstone of our democratic system of government and deserves a preferred place in our system of values as it contributes to community responsibility; civic, economic, business, and employment stability; family security; and well being. As real estate professionals we know that homeownership is a primary goal of American families. We also believe that every individual should have the opportunity to live in safe and decent housing. These objectives can best be served by a healthy housing market in an economic environment that fosters an ample supply of affordable and accessible financing provided by both domestic and international sources.

We firmly believe in equal opportunity in housing. No person of this country should have the right to rent or purchase shelter of choice abridged because of race, color, religion, sex, handicap, familial status or national origin. Furthermore, these rights should not be limited because of existing or desired ethnic, racial or religious proportions in any defined area.

We encourage persons of all racial and ethnic groups, both sexes, with and without disabilities, and individuals otherwise protected from discrimination by the Fair Housing Act, are encouraged to participate at all levels within the REALTOR^® Associations.

We believe in and support policies that promote the healthy growth of the American economy. Investment in structures, in equipment, and in the skills of people is necessary to increase the standard of living, jobs and household income. To accomplish these goals, we urge changes in tax policy that will encourage savings, investment and homeownership.

We believe that active involvement in political activity is a privilege and responsibility of every citizen. We urge qualified individuals to make themselves available for public service. We encourage continuing participation in local, state, and national political affairs and urge support of those candidates who pledge and by their actions preserve, and indeed strengthen, America's free enterprise system which is based upon the underlying principle of private property ownership.

*To further the goal of making this affordable form of homeownership more available there is a need for the government agencies involved with condominium and cooperative financing to continue to streamline and update their policies.

*We oppose all unreasonably restrictive requirements regarding the conversion of rental housing units into condominium and cooperative forms of homeownership.

*We propose as a guide for state legislation the use of the Uniform Condominium Act and similar acts for cooperatives and the NATIONAL ASSOCIATION OF REALTOR^® Condominium Legislation Recommended Criteria, utilizing each as best applicable for the individual state.

*We believe that the Uniform Common Interest Ownership Act should not be adopted by the Utah Legislature because there is no need to extend such a broad regulating process to every type of planned community.

*In order to avoid large special assessments of unit owners for unanticipated expenses and to protect condominium and homeowner associations' board of directors liability for a possible breach of their fiduciary responsibility to the association, we call on all condominium and homeowner associations to establish and sustain an adequate reserve account policy for capital and contingency items. We recommend the following actions be taken in implementing such a policy.

*To establish an adequate reserves policy each association should prepare, and disclose to each unit owner, a pro forma operating budget, projecting the estimated revenues, expenses, reserves for replacement of capital assets and contingency reserves, and identifying the estimated life and replacement costs of all capital assets.

*The pro forma budget, including reserves, should be prepared or reviewed by an independent professional third party.

*In establishing the initial budget by the developer, special caution should be taken to accurately estimate potential operating costs and long-term assets.

We subscribe to the policy of fair housing; we believe that equal opportunity in housing can best be achieved through continued leadership, observance of law, education and mutual cooperation of the real estate industry and the public through a free and open housing market. The Federal Fair Housing Law and the Utah Fair Housing Act provide for the right of all people to freely choose where they will live without regard to race, color, religion, sex, disability, familial status, national origin or source of income.

We believe the Congress should act promptly to make it clear that national policy as set forth in the Federal Fair Housing Law mandates free housing choice. The NATIONAL ASSOCIATION OF REALTORS^®‘ Code of Equal Opportunity is the REALTORS^®‘ affirmative pledge to offer equal service to all persons without regard to race, color, religion, sex, handicap, familial status or national origin.

We urge Congress to define the purpose of the Federal Fair Housing Law promptly so as to make it clear that the law mandates free choice in housing as opposed to systems of quotas or allocations.

We oppose all restrictive laws or ordinances that inhibit the free and open market for real property, such as "For Sale" sign bans, and anti-solicitation laws.

We fully accept our responsibility to make all people aware of the obligations and advantages of a strict compliance with the spirit as well as the letter of the Federal Fair Housing Laws.

Housing for Low- and Moderate-Income Occupants

We encourage continued examination of the level and types of efforts within the public and private sector that are currently being utilized or contemplated to respond to the needs of the low- and moderate-income housing occupants.

We encourage the use of existing housing inventory in providing low- to moderate-income housing.

We believe that housing for low- and moderate-income rental occupants is best managed by the private sector.

While supporting the use of incentives to encourage property owners wishing to prepay their federally-assisted loans to retain their units as low- and moderate-income housing, we oppose the enactment of state legislation that imposes disincentives to the prepayment of federally-assisted loans issued under the Section 221(d)(3) and 236 programs of the National Housing Act which exceed the controls implemented by federal legislation on those programs.

We acknowledge actions taken by all levels of government to reduce impediments to handicapped and elderly persons in the acquisition of housing and urge REALTORS^® to continue providing guidance for needed, cost-effective solutions to their housing needs.

We support legislation to declare that all psychological impacts or stigmas which are associated with past owners or occupants of real property are not material facts and need not be disclosed to a potential purchaser or lessee.

We recognize the need in this nation to produce new affordable rental housing and preserve the current rental housing stock through recycling and renovation. We call on all levels of government to meet this demand by removing disincentives to the financing, production and improvement of rental housing for citizens of all income levels.

* Local moratoria on converting rental property to condominiums or cooperatives, costly and administratively burdensome regulations and restrictions are all examples of disincentives to initial investment in rental projects.

We encourage and support legislation as well as legal measures to prevent landlord-tenant ordinances injurious to the basic rights of private property ownership.

We believe that REALTORS^® have the right to advertise properties on the open market through the use of solicitation generally and real estate "For Sale" signs specifically. We encourage REALTORS^® to work with local government to assist them in determining a sign ordinance program that will allow REALTORS^® to market their clients' properties.

The State of Utah, rather than the Federal government, should regulate time sharing, which the State of Utah has done through the Timeshare and Camp Resort Act, which provides legal recognition of time sharing as a legitimate property interest and authorizes regulation through the Division of Real Estate in the best interests of both consumers and the industry.

*The major element of time sharing regulation should be disclosure requirements concerning such matters as status of title, association budgets and assessments, management, exchange programs, and sales inducements.

* Although many time sharing transactions are conducted interstate, the controlling legislation should be that of the state where the property is located.

* Recognizing that a degree of uniformity among applicable state laws is desirable, we recommend the Model Real Estate Time Share Act as a guide to the extent the State of Utah finds it feasible.

* Time sharing, as an interest in real property, should be supervised by the appropriate real estate regulatory body.

* Those engaged in selling time shares should hold state real estate licenses.

STATE AND LOCAL REAL ESTATE TAXATION

We support laws providing for tax assessment of all real property and all forms of shelter on an equitable basis based on fair market value.

Fees for services should not hamper or deter development in our communities and should not be used to correct existing deficiencies. We urge that governments limit any use of such fees to providing public capital improvements necessitated by new developments.

We support the principle and concept of maintaining a balanced budget in all political jurisdictions. Balanced state, local, county and national budgets should be maintained by reducing unnecessary expenditures, sunsetting, capping and/or reducing the growth of programs and services that are not essential.

All tax exempt institutions, including but not limited to municipal, legitimate religious, charitable and educational organizations should be required to pay for local public services received, but should maintain their real property exemption due to their positive contributions to the communities in which they reside.

In those instances where tax exempt institutions occupy only a portion of larger land holdings, those sections of the properties not directly used by the institutions should be fully taxed. Many religious, cultural, educational, civic, fraternal institutions and the like maintain real estate holdings that do not have any direct relationship to the purpose for which the institution is established. Indeed, many such holdings are made for purely investment purposes, yet enjoy tax benefits at a cost to those who pay taxes. Such holdings should be fully taxed.

Property taxes may place an undue burden on the acquisition and ownership of real property. We support tax restructuring to reduce unreasonable reliance upon property taxes.

The ability to purchase real property contributes directly to Utah’s economy. Transfer taxes place a major burden of taxation on the buyers and sellers at the time of settlement and places an unreasonable burden on real property ownership and economic development. The UAR opposes the use of transfer taxes at all levels of government.

To promote professionalism and better serve the buying and selling public, we support programs to reduce the legal liability of REALTOR^® and REALTOR-ASSOCIATE^®s. These programs include comprehensive legal education, alternatives to civil litigation to resolve disputes, and reasonably priced errors and omissions insurance for brokers and salespersons. We further encourage our individual members and local boards to create risk reduction committees to promote these objectives.

BUSINESS PRACTICES

The UTAH Association of Realtors^® recognizes seller agency, buyer agency, and limited agency with informed consent, as appropriate forms of consumer representation in real estate transactions. The Association represents the need for all REALTORS^® to be able to make individual business decisions about their companies' agency practices. Furthermore, the UAR endorses freedom of choice and informed consent for consumers of real estate services when creating agency relationships with real estate licensees.

We have adopted the following positions on appraisal standards:

*To support licensing and certification of appraisers.

* To support the minimum appraisal work product standards promulgated from time to time by the Standards Board of the Appraisal Foundation, and promote industry and government acceptance of such standards.

* To take a position that real estate work product standards will be established by The Appraisal Standards Board of the Appraisal Foundation.

* That the Federal government take no action regarding the regulation or certification of appraisers that would deprive a state or territory of the exclusive prerogative as to licensing, registering or certifying appraisers.

* To endorse the system of state licensing and certification of real estate appraisers, recognizing Utah's right to fashion the legislation as it deems appropriate.

The expansion, relocation and/or continuation of business activity should remain a decision of business management based on economic considerations and not be restricted by government for political reasons.

We oppose legislation and/or policies that would mandate that business and manufacturing concerns report in advance to government agencies and labor unions any future plans to relocate or close their facilities. Such a requirement holds the potential for intimidating management with threats of costly delays and retribution to affected employees and communities, would create competitive disadvantages, adversely affect productivity and increase consumer costs.

We urge REALTORS^® and all other participants in real estate transactions to maintain and improve upon their efforts to serve and protect the consuming public.

* We support efforts to stop government intervention which can increase the cost of consumer borrowing, place restrictions on services provided by industry and cause unwarranted delay of transactions such as the Real Estate Settlement Procedures Act (RESPA) and the Truth-in-Lending Act (TIL) without harming the overall goal of adequate and responsible consumer protection.

We are concerned about attempts to shift into the hands of the State of Utah and local governments a greater portion of the essentially commercial function of providing facilities and space for government activities. We are opposed to proposals which would require the State of Utah and local governments to increase the amount of government owned space by embarking upon a major public building construction or acquisition program. An increase in the number of government owned, tax exempt facilities would reduce the tax base of local governments, raise the real cost of providing government space to the taxpayers, unnecessarily disrupt a major traditional function performed by the private sector, and would impede efforts to restrain the growth of government spending.

We support broad regulatory reform such as that pursued by Congress in recent years and the concept of greater accountability of agency rule makers to elected officials. Further, we endorse the need to shift the burden of proof in justifying agency regulations toward the agency.

Group investment in real estate enhances the strength of Utah’s economy. Such investment contributes to Utah’s goals, provides funds for commercial, single family, multifamily and industrial facilities, and encourages the productive use of capital. In recognition of these contributions to Utah’s economy the State of Utah, and its regulatory and taxation agencies, should not reduce but encourage the efficient incentives for real estate group investments and should not impede the formation of these investment opportunities to people who otherwise could not participate in such investments.

We support the principle of full and understandable disclosures for real estate group investments to enable potential investors to make informed investment decisions.

Regulatory trends requiring an ever increasing amount of information in the registration process have merely confused and intimidated the investor with a large volume of complex information. In light of capital formation needs and the increasing expense of registration, we urge the Congress and the Securities and Exchange Commission (SEC) and the State of Utah to provide the small REALTOR^® organizers of small investment groups with realistic alternatives such as expanded private offering exemptions.

We encourage continued cooperation and coordination between the various regulatory agencies and the Utah Legislature leading to the development and adoption at the federal and state levels of model legislation to bring about uniform and consistent regulation of real estate group investments.

We strongly encourage property condition disclosure by sellers of real property to potential purchasers.

We are concerned that the rights of innocent real property owners be upheld in all cases of the forfeiture of real property for illegal activity. Innocent real property owners are those who had no knowledge of the use of their property for illegal activity or who, if they had such knowledge, made reasonable efforts to alleviate the use of their property for illegal activity. Any legislation addressing the forfeiture of real property because of illegal activity needs to contain language which protects the rights of innocent owners.

ALTERNATIVE MORTGAGE INSTRUMENTS

We strongly support the continued availability of the fixed-rate mortgage (FRM) which has been the hallmark of residential mortgage finance for the last 40 years. We further support the use of alternative mortgage instruments as options to the fixed rate loan. However, given the complexity of adjustable rate mortgages (ARMs), it is important that potential homebuyers fully understand all the features of an adjustable rate mortgage. Therefore, we strongly support and will continue to work with mortgage lenders, Congress and the appropriate regulatory bodies for the strengthening and enforcement of disclosure requirements.

Further, we advocate and will continue to work for the adoption of a single, uniform disclosure format to be utilized by all lenders.

Home ownership is the foundation of stable neighborhoods, good citizenship and secure communities. Innovations in the mortgage credit delivery system is central to increasing home ownership opportunities and assuring the consistent, cost effective availability of mortgage credit.

Automated underwriting, accompanied by credit and mortgage scoring, are significant innovations in the mortgage credit delivery system. These innovations are largely the result of risk management reengineering at the residential secondary mortgage corporations, Fannie Mae and Freddie Mac. These government-sponsored enterprises are currently indispensable to residential mortgage lending and their advocacy of risk management tools such as credit and mortgage scoring will profoundly affect nearly every residential mortgage lender. This influence even extends to the Federal Housing Administration.

The UTAH ASSOCIATION OF REALTORS® strongly supports the usage of technology to speed the mortgage finance transaction and expand opportunities for home ownership. We support the efficiencies, growth and innovations of the residential secondary mortgage markets. We strongly support the complementary role that the Federal Housing Administration plays in the mortgage finance system.

Ideally, automated underwriting and credit and mortgage scoring benefit all participants in the home mortgage transaction. However, when lenders misuse these tools, the consumer is the one to suffer. The UTAH ASSOCIATION OF REALTORS® recognizes the heavy reliance lenders place on credit scoring to assess a customer's potential credit risk, and believes lenders' confidence in credit scores is misguided. The basis for Fair, Issac credit bureau (FICO) scores, as related to mortgage finance, is flawed because the integrity of the data contained in the score is highly questionable; the components of the score do not include some elements that are fundamental to the mortgage lending process, e.g., capacity to repay the loan and collateral; and the time required to correct errors in credit scores is much too long. Additionally, a credit score does not reflect accurately the behavior of potential home ownership groups who could be good mortgage lending risks.

The UTAH ASSOCIATION OF REALTORS® strongly opposes the use of FICO scores as the sole determinant of mortgage finance eligibility. Instead we strongly advocate using mortgage scoring in association with automated underwriting. Further, in accordance with the guidelines provided by Fannie Mae and Freddie Mac, lenders should use credit scores as a tool together with other underwriting criteria, and make a practice of having experienced underwriters process the more problematic loan applications in order to ensure that consumers receive fair, fast, and cost-effective mortgage finance decisions.

Fannie Mae and Freddie Mac should act affirmatively to prevent pre-screening of mortgage loan applicants by FICO scores alone, rather that using a mortgage score.

The UTAH ASSOCIATION OF REALTORS® should take a highly visible role to alert and protect consumers' credit scores. Public statements, counseling and other consumer and lender educational efforts should be employed to assure that consumers are aware of credit and mortgage scoring, the need for good individual credit management as a significant attribute for future home ownership and securing mortgage credit.

We strongly oppose the authority of all financial entities which benefit from federal deposit insurance, favorable tax treatment, and special access to credit (including their subsidiaries and divisions) to participate in the business of real estate brokerage, fee appraising, leasing, real estate development, real estate syndication, property management and other real estate services and/or activities not directly related to their primary function. Such activities may conflict with the interests of their customers, threaten the safety and financial stability of the institution, increase the risk of taxpayer liability and pose a threat to the competitive structure of the real estate industry. We are also opposed to long term holding of foreclosed property by financial entities.

We further urge the appropriate regulators to use their authority to restrain the expansion of real estate activity by the State of Utah’s financial entities and its federal counterparts. Where third party real estate brokerage is allowed, those federally-insured financial institutions should be subject to the following standards and safeguards:

* Require real estate brokerage subsidiaries to comply with the real estate licensing laws and regulations of the appropriate real estate commission.

As recently approved statutory and regulatory changes to the nation's financial services industry in the early 1990s are implemented, we anticipate an increasingly important need for structural reform. Historical laws governing the activities of insured depository institutions (i.e. Banking Holding Company Act, National Bank Act, Glass-Steagall act, Savings and Loan Holding Company Act) may be replaced by a more streamlined statutory organizational structure in which regulation of banking and non-banking activities will be based upon function.

Major factors driving reform in the marketplace include the need to: (1) restore competitiveness (lost through legal restrictions and technological advances) to our financial system; (2) enhance the flow of capital into investment and economic growth; and (3) avoid taxpayer exposure to further losses from the federal deposit insurance system.

We recognize that these changes have created new forms of business relationships or affiliations between insured depository institutions and real estate firms and that the business needs of REALTORS^® whose firms are or may choose to be, affiliated with insured depository institutions under the ownership of a common parent may be adversely affected in the absence of structural change.

We accept a structural reform which creates new entities, provided that such structure prohibits insured depository institutions from engaging (directly or indirectly) in real estate activities. To that end, we support the establishment of two new structural entities--the Diversified Holding Company (DHC) and the Financial Services Holding Company (FSHC), as previously approved by the Board of Directors at the 1991 Mid-Year Legislative Meetings. DHCs would be permitted to own both: (1) uninsured and separately capitalized "non-banking" subsidiaries which are permitted to engage in diversified financial services, including real estate, insurance, securities and mortgage banking; and (2) a Financial Services Holding Company subsidiary which itself could own an insured depository institution subsidiary.

Any new structure must insulate (through the establishment of "firewalls") the activities of the FSHC and its insured depository institution subsidiary from the DHC and any of its non-banking affiliates. These would include, but not be limited to, the following:

* Financial Separation. An insured depository institution subsidiary of the FSHC shall be financially separate from the real estate affiliate. Each shall be adequately and separately funded with no commingling of assets. Additionally, an insured depository institution subsidiary is restricted to the percentage limits established in Section 23A of the Federal Reserve Act for purposes of loans or extensions of credit to its affiliates (including real estate affiliates) and the transfer of assets between it and its affiliates (including real estate affiliates).

Thrift institutions have long been a primary source of residential mortgage loans. However, past deregulatory measures adopted by Congress have had the effect of diminishing the role of the thrift industry as providers of mortgage credit. We support policies that allow thrifts to maintain mortgage lending as their primary business activity. As revisions to the thrift charter are adopted, nothing should mandate that savings and loan institutions should be forced to abandon housing finance as a principal line of business. At the same time, we recognize the need to develop new sources of mortgage finance to meet future housing needs. To that end, we support the following:

The secondary mortgage market has become increasingly important to the development of mortgage capital in the marketplace. We continue to strongly oppose any attempts to fully privatize or weaken the authority and efficiency of the existing secondary mortgage market institutions, Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC).

One of the nation's most challenging opportunities in housing lies in the recovery and rehabilitation of declining neighborhoods. To that end, we support efforts by the State of Utah, and local governments therein, to implement enterprise zone programs as viable frameworks to foster community revitalization and economic growth. REALTORS^® hold the greatest potential for initiating and coordinating the resources and methods for restoration of neighborhood housing and commerce.

The UAR urges its local boards and individual members to actively participate in and promote community revitalization efforts that are designed to maintain and improve the quality of life in the neighborhoods of our cities, towns and communities. We applaud the action of communities that have implemented community revitalization programs without government assistance and continue to encourage the involvement of the private sector to take advantage of the present investment possibilities.

In order to promote meaningful public service programs to upgrade the quality of life in their communities, we support REALTOR^® Community Service programs to involve local boards of REALTORS^® and the UAR.

To that end, the UAR has formed the Utah Association of REALTORS® Housing Opportunities Fund (UARHOF)—which is funded with the interest generated from broker trust accounts and charitable contributions—to enhance the ability of Utah citizens to secure housing.

We support the concept of legislative proposals to establish programs that encourage community service, provided that such programs includes provisions which limit its cost and allow participants to use any financial incentives offered under such a program for down payments, closing costs, or other costs associated with purchasing a home.

Education and Research

We recognize the vital necessity of professional competency to meet the challenges of real estate practice in an increasingly sophisticated and complex society.

Professionalism in real estate through education and training is one of the primary objectives of the UTAH ASSOCIATION OF REALTORS^®. We recognize our responsibility to the members of the Association to assist:

*REALTORS^® and REALTOR^® ASSOCIATES^® in identifying and obtaining opportunities for real estate education and training;

Affiliates of the UTAH ASSOCIATION OF REALTOR^® in their educational activities, each within its specialization and in mutually beneficial co-operative ventures;

* Local boards in their offering of educational, training and research programs and in the formation of centers for real estate research;

* Universities and colleges in the offering of their curricula of real estate courses and research in the general field of real estate;

*The State of Utah in adopting and implementing specific requirements for continuing education.

We endorse reciprocal education and license renewal credits among:

* State REALTOR^® Institutes;

* The Societies, Institutes and Councils of the NATIONAL ASSOCIATION OF REALTORS^®; and,

* State licensing authorities.

We recognize our need to share our knowledge with the general public and our responsibility to our members through the development and dissemination of timely real estate programs which relate member services to the needs of clients and customers.

As an Association, we reaffirm the national goal of "a decent home and a suitable living environment for every family." This commitment, which also needs to be raised to the highest level of national priorities, encompasses the entire housing ladder from the homeless to the first-time homebuyer. We, the UTAH ASSOCIATION OF REALTORS®, recognize the housing needs that are present among low-income households and renters and we also recognize that these are the very families who will eventually become homeowners. We strongly endorse the reliance on local and state initiatives and public private partnerships that are such a crucial part of the Report of the National Housing Task Force.

We support independent contractor requirements with respect to worker's compensation and unemployment insurance that do not conflict with federal and state law.

The market for real property and real estate finance has been and is increasingly international. Recognition of the fundamental benefits of private property ownership continues to expand worldwide. As a consequence, the effects of international events upon continued growth and stability in our industry and country are critical.

We believe that the same basic principles that we espouse nationally, which are support for private ownership and the free enterprise system, have worldwide application. We should vigorously press private property philosophies in the international community and take a highly visible leadership role in the development of a collective private sector position on international housing and development issues.

We support the right of foreign investors to acquire U.S. real property and the right of U.S. investors to acquire property abroad. We oppose laws and regulations that in any way hinder those rights. We also support the free flow of international finance for real estate and oppose any laws and regulations that impede that flow.

We believe that foreign investors in U.S. real estate should be subject to the same rates of taxation as U.S. investors. As far as is practically possible, systems for taxing foreign investors should be no more onerous than those applied to U.S. investors. In addition, any unique reporting and disclosure requirements on foreign investors and/or their agents should be kept to a minimum.

To promote increased competency in the industry, we urge that:

* Specific educational requirements be a pre-requisite for licensing and specific continuing education requirements be a condition for license renewal.

* The Division of Real Estate be empowered with adequate statutes to provide the opportunity for redress to the public.

* Reciprocity of licensing between states be encouraged where it is mutually advantageous.

*The UAR and its member local boards strive to improve the State of Utah’s license laws and, when appropriate, recommend the use of the NATIONAL ASSOCIATION OF REALTOR^® Suggested Pattern Real Estate License Law.

* License laws should address developments in the industry such as the management of condominium, co-operative, and homeowner's associations and that questions regarding these new developments should be added to the testing process. As these are real estate activities, they should require a license and supervision under Utah's existing real estate licensing laws.

* The UAR supports laws or regulations requiring auctioneers, who auction real property, to be licensed with the Division of Real Estate under Title 61 of the Utah Code or perform real estate auction sales in conjunction.