August 16, 2018
As of late, I have had more and more inquiries about the use of transaction coordinators. There are a couple of implications I wish to address.
First, transaction coordinator responsibilities are going to be defined by each real estate brokerage that employs a transaction coordinator. There is not a defined position for transaction coordinators in the Utah Administrative Code nor the Real Estate Licensing Practices Act. As I shared last week, if someone is unlicensed, then that person is limited by rule as to what actions they can and cannot perform (See https://rules.utah.gov/publicat/code/r162/r162-02f.htm#T25). So if a transaction coordinator is going to do anything that requires a real estate license, then they obviously need to be a licensed real estate agent.
Second, I am often asked the following question. May a real estate agent affiliated with Brokerage A, be a transaction coordinator for Brokerage B? Practically speaking, I think this is difficult to do within the confines of the present real estate licensing rules and statutes. The rationale is that a real estate agent can only be affiliated with one brokerage at a time. In this scenario, a real estate agent affiliated with Brokerage A, may only perform licensed activities for clients that are subject to agency agreements with Brokerage A. If the real estate agent were to be the transaction coordinator for Brokerage B, then this brings up serious issues of proper principal broker supervision by both brokerages and questions of consent from Brokerage B’s clients to have an outside real estate agent of a different brokerage working on their behalf.
Lastly, if you have questions about transaction coordinators or agency, 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. Also, you may reach out to the Utah Division of Real Estate at https://realestate.utah.gov/index.html.