HB 377 — Real Estate Amendments

- 6 - HB0377 compared with HB0377S03 [(27)] (28) "Mobile home" means the same as that term is defined in Section 15A-1-302.

and (b)(b)(i) (i) sells or lists for sale real estate, including real estate being sold as part of a foreclosure rescue, a business opportunity, or, unless licensed with the Division of Professional Licensing as a dealer under Title 58, Chapter 56, Building Inspector and Factory Built Housing Licensing Act, factory built housing, with the expectation of receiving valuable consideration;

(iii)- advertises,6 offers,- attempts,Enrolled orCopy otherwiseH.B. holds the individual out to be engaged in the business described in Subsection [(29)(a)] {(30)(a)} (30)(b)(i) or (b)(ii);

(iv)377 is(iii) employedadvertises, byoffers, attempts, or onotherwise behalfholds of the ownerindividual ofout realto estatebe orengaged byin athe prospectivebusiness purchaser of real estate and performs an act described in Subsection [(29)(a)] {(30)(a)}(30)(b)(i) (30)(b)(i), whether the individual's compensation is at a stated salary, a commission basis, upon a salary and commission basis, or otherwise;(b)(ii);

(iv) is employed by or on behalf of the owner of real estate or by a prospective purchaser of real estate and performs an act described in Subsection [(29)(a)] (30)(b)(i), whether the individual's compensation is at a stated salary, a commission basis, upon a salary and commission basis, or otherwise;

(vii) with the expectation of receiving valuable consideration, assists or directs in the procurement of prospects for or the negotiation of a transaction listed in Subsections [(29)(a)] {(30)(a)} (30)(b)(i) and [(v)] (b)(v);

- 7 - HB0377 compared with HB0377S03 (31) "Principal property manager" means an individual who:

[(30)] (31){(32)}(32)(a) (a) "Property management" means the management of real estate owned by another person, with the expectation of receiving valuable consideration, or advertising or otherwise claiming to be engaged in the management of real estate owned by another person, by:

(i)- hotel7 or- motelH.B. management;

377 Enrolled Copy (i) hotel or motel management;

[(31)] (32){(34)}(34) "Property manager" means an individual who:

and (b)(b)(i) - 8 - HB0377 compared with HB0377S03 (i) engages in property management;

[(32)] (33){(35)}(35) "Real estate" includes leaseholds and business opportunities involving real property.

[(33)] (34){(36)}(36)(a) (a) "Regular salaried employee" means an individual:

(b) "Regular salaried employee" does not include an individual who performs services on a project-by-project-by-project project basis or on a commission basis.

[(34)] (35){(37)}(37) "Reinstatement" means the restoration of a license that has expired or has been suspended.

[(35)] (36){(38)}(38) "Reissuance" means the process by which an individual may obtain a license following revocation of the license.

[(36)] (37){(39)}(39) "Renewal" means the extension of a license for an additional licensing period on or before the [date] day on which the license expires.

[(37)]- (38){(40)}8 "Reprimand"- meansEnrolled aCopy publicH.B. discipline that declares the conduct of a person as improper and includes the name of the person.

377 [(37)] (40) "Reprimand" means a public discipline that declares the conduct of a person as improper and includes the name of the person.

[(38)] (39){(42)}(42) "Sales agent" means an individual who is:

[(39)] (40){(43)}(43) "Transaction" means, whether complete or incomplete:

- 9 - HB0377 compared with HB0377S03 (g) an option on real estate;

[(40)] (41){(44)}(44) "Vulnerable adult" means the same as that term is defined in Section 26B-6-201.

61-2f-103.61-2f-103 .

(C)- a9 branch- office;H.B.

377 Enrolled Copy (C) a branch office;

- 10 - HB0377 compared with HB0377S03 (x) if the commission, with the concurrence of the division, determines necessary, a rule as provided in Subsection 61-2f-306(3) regarding a legal form;

(f)- advise10 the- directorEnrolled onCopy mattersH.B. affecting the division budget;

377 (f) advise the director on matters affecting the division budget;

(3)(3)(a) (a) Except as provided in Subsection (3)(b), a state entity may not, without the concurrence of the commission, make a rule that changes the rights, duties, or obligations of buyers, sellers, or persons licensed under this chapter in relation to a real estate transaction between private parties.

(4)(4)(a) - 11 - HB0377 compared with HB0377S03 (a) The commission consists of five members [appointed by] that the governor appoints and [approved by ]the Senate approves in accordance with Title 63G, Chapter 24, Part 2, Vacancies.

(5)(5)(a) (a) Except as required by Subsection (5)(b), as terms of current commission members expire, the governor shall appoint each new member or reappointed member to a four-year term ending June 30.

(6) When a vacancy occurs in the membership for any reason, the governor, with the advice and- consent11 of- theH.B. Senate, shall appoint a replacement for the unexpired term.

377 Enrolled Copy and consent of the Senate, shall appoint a replacement for the unexpired term.

(8)(8)(a) (a) The commission shall meet at least monthly.

- 12 - HB0377 compared with HB0377S03 (b) The director may call additional meetings:

61-2f-201.61-2f-201 .

(a)- may12 do- theEnrolled followingCopy forH.B. {residential real estate} one or more residential rental units:

377 (a) may do the following for one or more residential rental units:

and - 13 - HB0377 compared with HB0377S03 (b) may not engage in an activity listed in Subsection (4)(a) in relation to real estate other than {residential real estate} a residential rental unit.

61-2f-202.61-2f-202 .

[(1)] (2)(2)(a) (a) Except as provided in Subsection [(1)(b)] (2)(b), a license under this chapter is not required for:

(i) a person who as owner or lessor performs an act described in Subsection [61-2f-102(29)][ 61-2f-102(29)] 61-2f-102(30) with reference to real estate owned or leased by that person;

(vi) a regular salaried employee of a licensed property management company or real estate- brokerage13 who- performsH.B. support services, as prescribed by rule, for the property management company or real estate brokerage;

or377 (vii)Enrolled inCopy theestate eventbrokerage awho principalperforms brokersupport dies,services, is incapacitated, or is unable to perform the duties of a principal broker, an individual qualified and designated as theprescribed commission determines by rulerule, -for 14 - HB0377 compared with HB0377S03 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrenceproperty ofmanagement thecompany division,or asreal anestate actingbrokerage; principal broker:

or (vii) in the event a principal broker dies, is incapacitated, or is unable to perform the duties of a principal broker, an individual qualified and designated as the commission determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the division, as an acting principal broker:

(e) a public utility, officer of a public utility, or regular salaried employee of a public utility, unless performance of an act described in Subsection [61-2f-102(29)] 61-2f-102(30) is in connection with the sale, purchase, lease, or other disposition of real estate or investment in real estate unrelated to the principal business activity of that- public14 utility;- Enrolled Copy H.B.

377 that public utility;

- 15 - HB0377 compared with HB0377S03 (i) the acquisition of real estate [pursuant to] in accordance with Section 72-5-103;

[(3)] (4) A license under this chapter is not required for an individual registered to act as a broker-broker-dealer, dealer, agent, or investment adviser under the Utah and federal securities laws in the sale or the offer for sale of real estate if:

(a)(a)(i) (i) the real estate is a necessary element of a "security" as that term is defined by the Securities Act of 1933 and the Securities Exchange Act of 1934;

or (b)(b)(i) (i) [it ] the sale or offer for sale of real estate is a transaction in a security for which a Form D, described in 17 C.F.R.

and - 1615 - HB0377H.B. compared with HB0377S03 (ii) the selling agent and the purchaser are not residents of this state.

377 Enrolled Copy (ii) the selling agent and the purchaser are not residents of this state.

61-2f-202.5.61-2f-202.5 .

A- license16 under- thisEnrolled chapterCopy isH.B. not required for:

-377 17A -license HB0377under comparedthis withchapter HB0377S03is (1)not anrequired individualfor: who, as an owner or lessor, performs an act described in Subsection [61-2f-102(20)] 61-2f-102(31)(a) in connection to real estate owned or leased by that individual;

(1) an individual who, as an owner or lessor, performs an act described in Subsection [ 61-2f-102(20)] 61-2f-102(31)(a) in connection to real estate owned or leased by that individual;

61-2f-203.61-2f-203 .

(1)(1)(a)(i) (a) (i) The division shall determine whether an applicant with a criminal history qualifies for licensure.

(d)(d)(i)(A) (i) (A) Except as provided in Subsection (1)(d)(i)(B), the division, with the concurrence of the commission, shall require an applicant for a sales agent license to complete a division-approved - 18 - HB0377 compared with HB0377S03 educational program consisting of not less than 120 hours, as designated by rule the commission makes in accordance with- Title17 63G,- ChapterH.B. 3, Utah Administrative Rulemaking Act, with the concurrence of the division.

377 Enrolled Copy with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the division.

(ii)(ii)(A) (A) Except as provided in Subsection (1)(d)(ii)(B), the division, with the concurrence of the commission, shall require an applicant for an associate broker or a principal broker license to complete a division-approved educational program consisting of not less than 120 hours, as designated by rule the commission makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, with the concurrence of the division.

(iii)(iii)(A) (A) On or after [July 1, 2026] January 1, 2027, except as provided in Subsection (1)(d)(iii)(B), the division shall require that an applicant for a property manager license complete the educational program described in Subsection (1)(d)(iv).

(iv) The division shall create an educational program for a property manager license that:- 18 - Enrolled Copy H.B.

377 that:

- 19 - HB0377 compared with HB0377S03 (B) covers subjects the division determines necessary for the program;

(e)(e)(i) (i) Except as provided in Subsection (1)(e)(ii), the division, with the concurrence of the commission, shall require an applicant to pass an examination approved by the commission covering:

(A)- cover19 the- topicsH.B. that appear in the educational program described in Subsection (1)(d)(iv);

377 Enrolled Copy (A) cover the topics that appear in the educational program described in Subsection (1)(d)(iv);

(f)(f)(i) (i) Three years' full-time experience as a sales agent or the equivalent is required before an applicant may apply for, and secure a principal broker or associate broker license in this state.

- 20 - HB0377 compared with HB0377S03 (ii) The commission shall establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, subject to concurrence by the division, the criteria by which the commission will accept experience or special education in similar fields of business in lieu of the three years' experience.

(2)(2)(a) (a) The division, with the concurrence of the commission, may require an applicant to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's reputation and competency as set forth by rule.

(3)(3)(a) (a) An individual who is not a resident of this state may be licensed in this state if the individual complies with this chapter.

(5)(5)(a) (a) The division and commission shall treat an application to be relicensed of an applicant whose real estate license is revoked as an original application.

(6)(6)(a) (a) Notwithstanding Subsection (1)(b), the commission may delegate to the division the- authority20 to:- Enrolled Copy H.B.

377 the authority to:

and - 21 - HB0377 compared with HB0377S03 (iii) approve or deny a license application without concurrence by the commission.

(b)(b)(i) (i) If the commission delegates to the division the authority to approve or deny an application without concurrence by the commission and the division denies an application for licensure, the applicant who is denied licensure may petition the commission for de novo review of the application.

61-2f-204.61-2f-204 .

(1)(1)(a) (a) Upon filing an application for an examination for a license under this chapter, the applicant shall pay a nonrefundable fee established in accordance with Section 63J-1-504 for admission to the examination.

(d)(d)(i) (i) Each of the following applicants shall comply with this Subsection (1)(d):

(A) submit to the division fingerprint cards in a form acceptable to the Department of- Public21 Safety;- H.B.

-377 22Enrolled -Copy HB0377 compared with HB0377S03 (B) submit to the division a signed waiver in accordance with Subsection 53-10-108(4), acknowledging the registration of thePublic applicant'sSafety; fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service;

(B) submit to the division a signed waiver in accordance with Subsection 53-10-108(4), acknowledging the registration of the applicant's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service;

(iv)(iv)(A) (A) The division shall assess an applicant who submits fingerprints under this Subsection (1)(d) or (2)(2)(f) (f) a fee in an amount that the division sets in accordance with Section 63J-1-504 for services that the division and the Bureau of Criminal Identification or another authorized agency provide under this Subsection (1)(d) or (2)(f).

(vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and with the concurrence of the division, the commission may make rules for the administration- of22 this- SubsectionEnrolled (1)(d)Copy andH.B. Subsection (2)(f) regarding criminal background checks with ongoing monitoring.

-377 23administration -of HB0377this compared with HB0377S03 (e) (i) A license issued under Subsection (1)(d) isand conditional,Subsection pending(2)(f) completionregarding of the criminal background check.checks with ongoing monitoring.

(e)(i) A license issued under Subsection (1)(d) is conditional, pending completion of the criminal background check.

(iii)(iii)(A) (A) An individual whose conditional license is conditioned, restricted, or revoked under Subsection (1)(1)(e)(ii) (e)(ii) may have a hearing after the action is taken to challenge the action.

(2)(2)(a)(i) (a) (i) A license expires if the license is not renewed on or before the expiration date of the license.

- 24 - HB0377 compared with HB0377S03 (iii) In making a rule described in Subsection (2)(c)(ii), the division and commission shall consider:

(A)- evaluating23 continuing- educationH.B. based on competency, rather than course time;

377 Enrolled Copy (A) evaluating continuing education based on competency, rather than course time;

or - 2524 - HB0377Enrolled comparedCopy withH.B. HB0377S03 (B) demonstrated competence as required under Subsection (2)(a).

377 (B) demonstrated competence as required under Subsection (2)(a).

(i)(i)(A) (A) the individual complies with the requirements of this section to renew the license;

(3)(3)(a) (a) As a condition for the activation of an inactive license that was in an inactive status at the time of the licensee's most recent renewal, the licensee shall supply the division with proof of:

and- (ii)25 how- longH.B. before reactivation the continuing education must be completed.

-377 26Enrolled -Copy HB0377and compared(ii) withhow HB0377S03long Sectionbefore 9.reactivation the continuing education must be completed.

Section 9.

61-2f-302.61-2f-302 .

(2)(2)(a) (a) 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 principal broker and submits the required documentation to the division.

(6) {(a)} {An } Subject to Subsection (8), an individual {who is } licensed as a property manager under this chapter and is {employed by a person that is required to affiliate with } engaged, whether as an employee or an independent contractor, to perform real estate-related services by or on behalf of a principal brokerbroker, {under this section} , associate broker, or sales agent, shall affiliate with {the } a principal broker before:

(i){(a)}(a) engaging in property management;

(ii){(b)}(b) offering to engage in property management on behalf of another person;

or (iii){(c)}(c) advertising or otherwise holding the individual out to be engaged in property management.

-(7) 27 - HB0377 compared with HB0377S03 (b){(7)} An individual {who is licensed as a } described in Subsection (6) shall affiliate the individual's property manager {under this chapter and is not employed by a person that is required to affiliate with a principal broker under this section, is not required to affiliate with a principal broker.} license with:

or (b) the person that the individual's employer or the person with whom the individual contracts- is26 affiliated.- Enrolled Copy H.B.

377 contracts is affiliated.

and (b)(b)(i) (i) not subject to the affiliation requirements described in Subsection (6);

61-2f-309.61-2f-309 .

(c) each document {a seller or buyer} the parties to a transaction jointly execute, {with whom } if the principal broker or an affiliated licensee is required to have an agency agreement{,agreement; signs} ;

-(a)(i) 28 - HB0377 compared with HB0377S03 (a) (i) physically:

(iii) in a lease transaction, a lease agreement {terminates} commences;

or (iv)- the27 term- ofH.B. a property management agreement ends;

377 Enrolled Copy (iv) the term of a property management agreement ends;

61-2f-402.61-2f-402 .

(1)(1)(a) (a) The division may conduct a public or private investigation within or outside of this state as the division considers necessary to determine whether a person has violated, is violating, or is about to violate this chapter or any rule or order under this chapter.

- 29 - HB0377 compared with HB0377S03 (b) If a person makes a report that the person suspects or knows that a person has violated, is violating, or will violate this chapter or a rule or order issued in accordance with this chapter, the person shall make a report only to the division in a form the division approves.

{(2)}(c) Except for an action initiated in a court with jurisdiction, the division has exclusive jurisdiction to investigate and enforce a violation or an alleged violation of this chapter.

(3)(3)(a) (a) For the purpose of the investigation described in Subsection (1), the division or an employee [designated by] that the division designates may:

(i)- administer28 an- oathEnrolled orCopy affirmation;H.B.

377 (i) administer an oath or affirmation;

(4)(4)(a) (a) A court [of competent] with jurisdiction shall enforce, according to the practice and procedure of the court, a subpoena [issued by] that the division issues.

(5)(5)(a) (a) Except as provided in Subsections (5)(b) and (c), the division shall commence an adjudicative proceeding under this chapter no later than the earlier of the following:

- 30 - HB0377 compared with HB0377S03 (i) two years after the day on which the violation is reported to the division;

(i)(i)(A) (A) the adjudicative proceeding is in response to a civil or criminal judgment or settlement;

(6)(6)(a) (a) The division may publish notices of admonition, reprimand, suspension, revocation, and surrender with discipline pending in the division newsletter.

(b)- Nothing29 in- thisH.B. Subsection (6) [shall be construed to restrict] restricts the division's publication of information, including orders, irrespective of [their] the information's style or format, on the division's website.

377 Enrolled Copy (b) Nothing in this Subsection (6) [shall be construed to restrict] restricts the division's publication of information, including orders, irrespective of [their] the information's style or format, on the division's website.

61-2f-411.61-2f-411 .

- 31 - HB0377 compared with HB0377S03 (d) contract for services, pay bills, and act on behalf of an owner as provided in a management agreement;

and (iii)- ensure30 that- theEnrolled partiesCopy andH.B. trust account comply with any other rules established by the commission or division.

(4)377 Except(iii) asensure provided in Subsection (5), [a property manager{[} who obtains and holds a security bond that protects at least 30% of the estimatedparties propertyand management client funds is not required to maintain the estimated property management client funds in a trust account.]account acomply propertywith managerany isother notrules requiredestablished toby maintain the propertycommission managementor clientdivision. funds in a trust account if:

(4) Except as provided in Subsection (5), [a property manager who obtains and holds a security bond that protects at least 30% of the estimated property management client funds is not required to maintain the estimated property management client funds in a trust account.] a property manager is not required to maintain the property management client funds in a trust account if:

and (b) {each individual who is responsible for paying rent under } a lease agreement {in a property that the property manager will manage agrees in the individual's lease agreement } states that the property manager is not required to hold property management client funds in a trust account.

and - 32 - HB0377 compared with HB0377S03 (b) requirements established by the principal broker.

This Bill Repeals:

Effective date.

3-4-26 7:39 PM - 3331 -