State Codes and Statutes
Statutes > Utah > Title-61 > Chapter-02f > 61-2f-40161-2f-401. Grounds for disciplinary action.
The following acts are unlawful for a person required to be licensed under this chapter:
(1) (a) making a substantial misrepresentation;
(b) making an intentional misrepresentation;
(c) pursuing a continued and flagrant course of misrepresentation;
(d) making a false representation or promise through an agent, sales agent, advertising, orotherwise; or
(e) making a false representation or promise of a character likely to influence, persuade,or induce;
(2) acting for more than one party in a transaction without the informed consent of allparties;
(3) (a) acting as an associate broker or sales agent while not affiliated with a principalbroker;
(b) representing or attempting to represent a principal broker other than the principalbroker with whom the person is affiliated; or
(c) representing as sales agent or having a contractual relationship similar to that of salesagent with a person other than a principal broker;
(4) (a) failing, within a reasonable time, to account for or to remit money that belongs toanother and comes into the person's possession;
(b) commingling money described in Subsection (4)(a) with the person's own money; or
(c) diverting money described in Subsection (4)(a) from the purpose for which the moneyis received;
(5) paying or offering to pay valuable consideration, as defined by the commission, to aperson not licensed under this chapter, except that valuable consideration may be shared:
(a) with a 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;
(6) being incompetent to act as a principal broker, associate broker, or sales agent in suchmanner as to safeguard the interests of the public;
(7) failing to voluntarily furnish a copy of a document to all parties before and after theexecution of a document;
(8) failing to keep and make available for inspection by the division a record of eachtransaction, including:
(a) the names of buyers and sellers or lessees and lessors;
(b) the identification of real estate;
(c) the sale or rental price;
(d) money received in trust;
(e) agreements or instructions from buyers and sellers or lessees and lessors; and
(f) any other information required by rule;
(9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whetherthe purchase, sale, or rental is made for that person or for an undisclosed principal;
(10) being convicted of a criminal offense involving moral turpitude within five years ofthe most recent application:
(a) regardless of whether the criminal offense is related to real estate; and
(b) including:
(i) a conviction based upon a plea of nolo contendere; or
(ii) a plea held in abeyance to a criminal offense involving moral turpitude;
(11) advertising the availability of real estate or the services of a licensee in a false,misleading, or deceptive manner;
(12) in the case of a principal broker or a licensee who is a branch manager, failing toexercise reasonable supervision over the activities of the principal broker's or branch manager'slicensed or unlicensed staff;
(13) violating or disregarding:
(a) this chapter;
(b) an order of the commission; or
(c) the rules adopted by the commission and the division;
(14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a realestate transaction;
(15) any other conduct which constitutes dishonest dealing;
(16) unprofessional conduct as defined by statute or rule;
(17) having one of the following suspended, revoked, surrendered, or cancelled on thebasis of misconduct in a professional capacity that relates to character, honesty, integrity, ortruthfulness:
(a) a real estate license, registration, or certificate issued by another jurisdiction; or
(b) another license, registration, or certificate to engage in an occupation or professionissued by this state or another jurisdiction;
(18) failing to respond to a request by the division in an investigation authorized underthis chapter, including:
(a) failing to respond to a subpoena;
(b) withholding evidence; or
(c) failing to produce documents or records;
(19) 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 bySection 31A-2-405; or
(b) knowingly providing false or misleading information in the statement required bySubsection 31A-2-405(2);
(20) violating an independent contractor agreement between a principal broker and asales agent or associate broker as evidenced by a final judgment of a court;
(21) (a) engaging in a foreclosure rescue if not licensed under this chapter;
(b) engaging in an act of loan modification assistance that requires licensure as amortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act,without being licensed under that chapter;
(c) requesting or requiring a person to pay a fee if:
(i) the person is required to pay the fee before entering into a written agreementspecifying what one or more acts of foreclosure rescue will be completed if the fee is paid; or
(ii) in a case when the financing that is the subject of the foreclosure rescue is foreclosedwithin one year from the day on which the person enters into a written agreement, the person isrequired to forfeit the fee for any reason;
(d) inducing a person who is at risk of foreclosure to hire the licensee to engage in an actof foreclosure rescue by:
(i) suggesting to the person that the licensee has a special relationship with the person'slender or loan servicer; or
(ii) falsely representing or advertising that the licensee is acting on behalf of:
(A) a government agency;
(B) the person's lender or loan servicer; or
(C) a nonprofit or charitable institution; or
(e) recommending or participating in a foreclosure rescue that requires a person to:
(i) transfer title to real property to the licensee or to a third party with whom the licenseehas a business relationship or financial interest;
(ii) make a mortgage payment to a person other than the person's loan servicer; or
(iii) refrain from contacting the person's:
(A) lender;
(B) loan servicer;
(C) attorney;
(D) credit counselor; or
(E) housing counselor; or
(22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,engaging in an act of foreclosure rescue without offering in writing to the person entering into theagreement for foreclosure rescue a right to cancel the agreement within three business days afterthe day on which the person enters the agreement.
Amended by Chapter 184, 2010 General Session
Renumbered and Amended by Chapter 379, 2010 General Session
