Division Of Real Estate Newsletter – First Quarter 2019
January 1, 2019
Pages 1 & 2 Provide a general legislative update.
Continuing Education/Licensing: Page 3 outlines a new, mandatory continuing education course which is required for all new and renewing licensees beginning January 2020. This course will not add extra CE time, it will simply count as a core class toward what is already required. It will be split up into Residential, Commercial, and Property Management sections so that agents may attend whatever section best fits their specialty.
RAP Back (Licensing, Ethics): Pages 4 & 6 provide an outline of the RAP Back requirement for agents to be fingerprinted. It talks about how after January 2020, all new and renewed licenses will require the agent to submit to being fingerprinted so that the background check process will be quicker and more efficient, and so that consumers may have more protection.
Ethics/Disclosures/Advertising (When a licensee owns a property)? Pages 5 & 6: A couple of things that should be considered in any transaction where a licensee is also a principal would be disclosures and experience points toward obtaining a broker’s license. First, (referencing rule R162-2f-401a), you want to make sure the other parties in a transaction like this have been made aware of the fact that you are a licensee and that you are also a principal in the transaction. The best way to do so is a notice including these disclosures that is in writing and signed by all parties. Other things to take into consideration are requirements to properly advertise the property (R162-2f-401h Requirements and Restrictions in Advertising) when you also are an owner. Finally, another consideration is the fact that if you are selling your own property, you do not have to run the transaction through your brokerage. However, if you do not do so, make sure you are following the law, and are aware of the fact that you cannot gain experience points toward a broker’s license if the transaction does not go through your brokerage.
Page 11: Rule updates in first quarter 2019: On January 23, 2019, a Real Estate rule amendment became effective. The rule amendment: 1) expands the definition of principal to include the manager of an entity; 2) clarifies that certain disclosure obligations of a real estate licensee must be made prior to the execution of a purchase or lease agreement; 3) clarifies that competing real estate schools are prohibited from making misrepresentations about other schools, their personnel, courses of instruction, or business practices; 4) allows for a student to obtain credit for completing an online course even if the course is not completed within one year of the date the student registered for the course; and 5) corrects the approval date of certain state approved forms. The Division has approved the filing of a proposal to amend the Real Estate administrative rules by adding a mandatory three-hour CE course. The proposal would not add additional hours of continuing education for renewal, but the required course would satisfy three hours of core CE. Please look to page 3 for more information.
Kagie’s Korner – What are agents required to disclose to the division?
Pages 12 & 13: Real Estate Licensees: The Division would like to remind real estate licensees that they are required by Utah Code 61-2f 207(1) to report to the Division within 10 business days any change of: (a) principal broker; (b) principal business location; (c) mailing address; (d) home street address; (e) an individual’s name; or (f) business name. Real estate licensees also must report a change in e-mail address (Utah Administrative Code R162-2f-207).
How should you report these changes? Real estate and appraiser licensees may make these changes and report them to the Division within the Real Estate Licensing Management System (RELMS). Please be aware if you have multiple licenses with the Division you will have to make separate change notifications to the Division for each specific license type. The Division recommends that all licensees check their license changes after making a change in order to ensure that the change occurred and was accurately recorded.
Criminal Conviction Reporting: All real estate, mortgage, and appraisal licensees, are also required to notify the Division by sending the Division a signed statement within 10 business days of: A conviction of, or the entry of a plea in abeyance to: 1) a felony; or 2) a misdemeanor involving financial services or a financial services-related business, fraud, a false statement or omission, theft, or wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion; b) the potential resolution of a felony or of a misdemeanor described in (a)(2) above by: 1) a diversion agreement; or 2) another agreement under which a criminal charge is held in suspense for a period of time; c) the suspension, revocation, surrender, cancellation, or denial of a license, certification, or registration of the licensee that is necessary to engage in an occupation or profession, regardless of whether the license or registration is issued by this state or another jurisdiction; or d) the entry of a cease and desist order or a temporary or permanent injunction: 1) against the licensee by a court or licensing agency; and 2) on the basis of: A) conduct or a practice involving the business of real estate (for real estate licensees), the business of residential mortgage loans (for mortgage licensees), or appraisal of real property) for appraisers; or B) conduct involving fraud, misrepresentation, or deceit.
Bankruptcy Reporting: Real Estate principal brokers are required to notify the Division in writing of a personal or brokerage bankruptcy. The Division would like to inform all licensees that once the Rap Back system has been fully implemented, two years from January 2020, the Division plans to propose to the Legislature to remove criminal disclosure requirements from statute. However, until all licensees have been enrolled in the Rap Back System, criminal disclosures will continue to be required. (See Rap Back article on page 4 of this newsletter for additional information). Reporting of Non- criminal disclosure matters will continue to be required by all licensees as outlined in this article.