Legal Library

Rule Update on Referral Gifts

July 12, 2019

Author: Kreg Wagner (UAR)

I want to highlight today a recent rule change regarding referral gifts given to unlicensed individuals for unsolicited referrals. Previously, the maximum gift value was capped at $150. The new rule change has increased it to $250.

Let me illustrate how this works.

Buyer Bob uses Rhonda Realtor to help him purchase a home. Rhonda does a great job and Bob raves to everyone about her. Bob’s sister, Sally, also decides to use Rhonda based on Bob’s recommendation. May Rhonda Realtor give Bob a gift in appreciation for the referral of his sister, Sally?

Yes. Rhonda did not solicit the referral with the promise of a gift. Rhonda may properly give a gift to Bob valued up to $250.

Please note that asking for referrals from unlicensed individuals is perfectly fine to do. You can do so through Facebook, Twitter, Snapchat, emails, text messages, snail mail, phone calls, etc. Just make sure that your advertising doesn’t solicit referrals with the promise of a gift, or otherwise you’ll be in violation of this Utah Administrative Code provision.

If you have any questions about referrals and gifts, feel free to call the UAR’s Legal Hotline at 801-676-5211 on Monday, Wednesday, or Friday from 8:30 a.m. to 4:00 p.m.