61-2-10. Restriction on commissions -- Affiliation with more than one broker --
Specialized licenses -- Designation of agents or brokers.
(1) (a) Except as provided in Subsection (1)(b), an associate broker or sales agent may
not accept valuable consideration for the performance of an act specified in this chapter from a
person except the principal broker with whom the associate broker or sales agent is affiliated and
licensed.
(b) An associate broker or sales agent may receive valuable consideration for the
performance of an act specified in this chapter from a person other than the principal broker with
whom the associate broker or sales agent is affiliated if:
(i) the valuable consideration is paid with a payment instrument prepared by a title
insurance agent;
(ii) the title insurance agent provides the payment instrument to the principal broker;
(iii) the title insurance agent complies with the written instructions of the principal
broker:
(A) in preparing the payment instrument; and
(B) delivering the payment instrument to the principal broker; and
(iv) the principal broker directly delivers the payment instrument to the associate broker
or sales agent.
(c) The commission, with the concurrence of the division, shall make rules in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(i) defining what constitutes a "payment instrument" for purposes of this Subsection (1);
or
(ii) the form and contents of the written instructions required by Subsection (1)(b),
including providing that the contents of the written instructions indicate that the payment
instrument process is an assignment to the associate broker or sales agent by the principal broker
of a portion of the consideration the title insurance agent is obligated to pay the principal broker.
(2) An inactive associate broker or sales agent may not conduct a real estate transaction
until the inactive associate broker or sales agent becomes affiliated with a licensed principal
broker and submits the required documentation to the division. An inactive principal broker may
not conduct a real estate transaction until the principal broker's license is activated with the
division.
(3) A sales agent or associate broker may not affiliate with more than one principal
broker at the same time.
(4) (a) Except as provided by rule, a principal broker may not be responsible for more
than one real estate brokerage at the same time.
(b) (i) In addition to issuing principal broker, associate broker, and sales agent licenses
authorizing the performance of all of the acts set forth in Subsection 61-2-2(12), the division may
issue specialized sales licenses and specialized property management licenses with the scope of
practice limited to the specialty.
(ii) An individual may hold a specialized license in addition to a license to act as a
principal broker, an associate broker, or a sales agent.
(iii) The commission may adopt rules pursuant to Title 63G, Chapter 3, Utah
Administrative Procedures Act, for the administration of this Subsection (4), including:
(A) prelicensing and postlicensing education requirements;
(B) examination requirements;
(C) affiliation with real estate brokerages or property management companies; and
(D) other licensing procedures.
(c) An individual may not be a principal broker of a brokerage and a sales agent or
associate broker for a different brokerage at the same time.
(5) An owner, purchaser, lessor, or lessee who engages the services of a principal broker
may designate which sales agents or associate brokers affiliated with that principal broker will
also represent that owner, purchaser, lessor, or lessee in the purchase, sale, lease, or exchange of
real estate, or in exercising an option relating to real estate.
Amended by Chapter 352, 2009 General Session
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Last revised: Thursday, May 28, 2009