Article 2 of the Code of Ethics requires REALTORS® to avoid “exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.” 

Article 12 of the Code of Ethics requires REALTORS® to be “honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations.” 

Additionally, under Utah Statute, it is unlawful for a real estate agent to advertise “the availability of real 

estate or the services of a licensee in a false, misleading, or deceptive manner.” 

With these warnings as a backdrop, I want to offer a word of caution to REALTORS® regarding the marketing materials they use. I understand that first impressions are important to buyers. I understand that listing agents and sellers alike want to make a strong first impression. However, this desire cannot come at the expense of being misleading or untruthful in the marketing materials.

Artificial Intelligence (“AI”) offers many ways to streamline the real estate industry. However, using AI to create false picture of the seller’s property may violate both a REALTOR®’s ethical obligations and licensing obligations. Using AI to eliminate unsightly cracks in the walls, or powerline poles, or to show bedrooms with fresh coats of paint and color are all potential examples. Using AI to draft description language that misrepresents the actual property is another potential example. 

If you are going to use AI as a tool in your marketing, PLEASE make sure that the photos and descriptions are accurate and truthful. AI does not replace your responsibility for your marketing materials. For more information from NAR about the use of AI, please visit https://www.nar.realtor/artificial-intelligence-real-estate 

Also, feel free to reach out to the UAR’s legal hotline at 801-676-5211 with any questions.

– Kreg Wagner, UAR legal counsel

Talk to your title company ASAP about your current under-contract transactions

Attention all UAR members,

The Financial Crimes Enforcement Network, or FinCen, has established anti-money laundering regulations applicable to specific real estate transfers. Although previously delayed, implementation is currently set for March 1, 2026.

Affected real estate sales transactions will require the title company to submit a real estate report to FinCen. The most common scenario includes the following three components:

1. Residential property (existing 1-4 family property or land that is intended to become a 1-4 family property)
2. Non-financed transaction (non-traditional lending including hard money lending, cash or seller-financed transaction)
3. Buyer is an entity or trust

Buyer Requirements

For applicable transactions, the buyer will need to give the title company the following information:

• The entity name and its beneficial owners (those with 25% or more of the ownership interest)
• If a trust, the trustee and the grantors
• The name of anyone signing for the buyer
• Names, addresses, Social Security numbers (SSN), employer identification number (EIN), and taxpayer identification number (TIN) for each beneficial owner owning 25% or more of the entity

Seller Requirements

The seller will need to provide the title company with their name, address and SSN, EIN or TIN.

Split Closing

In a split closing, the buyer’s title company will be the reporting entity, and sellers will need to provide their information to both title companies.

Additional Information to Provide to Title Company

The title company will also need:

• The total compensation amounts for the transaction
• Any private loan details, if applicable
• All details about the transfer/transaction

****IMPORTANT: REALTORS® must communicate early in the transaction with the title company. If the title company doesn’t get all the required information from both the buyer and the seller, the transaction closing date may be delayed.

REPC Implications

Section 3.1 of the REPC describes that the buyer and seller “have delivered to each other or to the escrow/closing office all documents required by the REPC, by the lender, by the title insurance and escrow closing offices”.

For these non-financed transfers/transactions in which the buyer is an entity or trust, this information is required by the title insurance and escrow closing offices.

FinCen Fees

Buyers in FinCen-reportable transactions should expect to see fees of $300-$400 for the additional reporting and retention requirements imposed on the reporting person.

Next Steps

If you have a property under contract today, please check with your title company to see if your transaction will require that the title company submit a real estate report to FinCen.

For additional information, visit FinCen’s website.