61-2-11. Grounds for disciplinary action.
The following acts are unlawful for a person required to be licensed under this chapter:
(1) making a substantial misrepresentation;
(2) making a false promise of a character likely to influence, persuade, or induce;
(3) pursuing a continued and flagrant course of misrepresentation, or of making false
promises through agents, sales agents, advertising, or otherwise;
(4) acting for more than one party in a transaction without the informed consent of all
parties;
(5) (a) acting as an associate broker or sales agent while not licensed with a licensed
principal broker;
(b) representing or attempting to represent a broker other than the principal broker with
whom the person is affiliated; or
(c) representing as sales agent or having a contractual relationship similar to that of sales
agent with other than a licensed principal broker;
(6) (a) failing, within a reasonable time, to account for or to remit monies coming into
the person's possession that belong to others;
(b) commingling the monies described in Subsection (6)(a) with the person's own
monies; or
(c) diverting the monies described in Subsection (6)(a) from the purpose for which they
were received;
(7) paying or offering to pay valuable consideration, as defined by the commission, to a
person not licensed under this chapter, except that valuable consideration may be shared:
(a) with a licensed principal broker of another jurisdiction; or
(b) as provided under:
(i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
(ii) Title 16, Chapter 11, Professional Corporation Act; or
(iii) Title 48, Chapter 2c, Utah Revised Limited Liability Company Act;
(8) being unworthy or incompetent to act as a principal broker, associate broker, or sales
agent in such manner as to safeguard the interests of the public;
(9) failing to voluntarily furnish a copy of a document to all parties executing the
document;
(10) failing to keep and make available for inspection by the division a record of each
transaction, including:
(a) the names of buyers and sellers or lessees and lessors;
(b) the identification of the property;
(c) the sale or rental price;
(d) monies received in trust;
(e) agreements or instructions from buyers and sellers or lessees and lessors; and
(f) any other information required by rule;
(11) failing to disclose, in writing, in the purchase, sale, or rental of property, whether the
purchase, sale, or rental is made for that person or for an undisclosed principal;
(12) regardless of whether the crime is related to real estate, being convicted of a
criminal offense involving moral turpitude within five years of the most recent application,
including:
(a) a conviction based upon a plea of nolo contendere; or
(b) a plea held in abeyance to a criminal offense involving moral turpitude;
(13) advertising the availability of real estate or the services of a licensee in a false,
misleading, or deceptive manner;
(14) in the case of a principal broker or a licensee who is a branch manager, failing to
exercise reasonable supervision over the activities of the principal broker's or branch manager's
licensee or unlicensed staff;
(15) violating or disregarding:
(a) this chapter;
(b) an order of the commission; or
(c) the rules adopted by the commission and the division;
(16) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
estate transaction;
(17) any other conduct which constitutes dishonest dealing;
(18) unprofessional conduct as defined by statute or rule;
(19) on the basis of misconduct in a professional capacity that relates to character,
honesty, integrity, or truthfulness, having one of the following suspended, revoked, surrendered,
or cancelled:
(a) a real estate license issued by another jurisdiction; or
(b) another professional license issued by this or another jurisdiction;
(20) failing to respond to a request by the division in an investigation authorized under
this chapter, including:
(a) failing to respond to a subpoena;
(b) withholding evidence; or
(c) failing to produce documents or records;
(21) in the case of a dual licensed title licensee as defined in Section 31A-2-402:
(a) providing a title insurance product or service without the approval required by
Section 31A-2-405; or
(b) knowingly providing false or misleading information in the statement required by
Subsection 31A-2-405(2); or
(22) violating an independent contractor agreement between a principal broker and a
sales agent as evidenced by a final judgment of a court.
Amended by Chapter 352, 2009 General Session
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Last revised: Thursday, May 28, 2009