Commerce, Real Estate

Section R162-2f-202b

Principal Broker Licensing Fees and Procedures

Notice of Proposed Rule

(Amendment)

DAR File No.: 35278
Filed: 09/21/2011 04:13:43 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

To broaden, in one instance, the time frame in which an individual may acquire experience in order to qualify for a principal broker license.

Summary of the rule or change:

An individual who applies for licensure within two years after allowing a principal broker license to expire must demonstrate having amassed three years of full-time professional real estate experience within the seven-year period preceding the date of application.

State statutory or constitutional authorization for this rule:

• Subsection 61-2f-103(1)

Anticipated cost or savings to:

the state budget:

This amendment applies only to a principal broker who reapplies for a license within two years of allowing a license to expire. In that case, this amendment changes the look-back period for experience from five years to seven years. As such, it changes the way Division staff will analyze an application, but does not create any new requirements or standards that the state will have to oversee or enforce. Therefore, no fiscal impact to the state budget is anticipated.

local governments:

Local governments are not subject to the real estate licensing rules and requirements. Therefore no fiscal impact to local governments is anticipated from this amendment.

small businesses:

This amendment would affect a principal broker and, therefore, might affect a small business that employs or is owned by an affected individual. However, it does not impose any standards or requirements that involve paying costs or fees (such as additional education). Therefore, no costs to small businesses are anticipated.

persons other than small businesses, businesses, or local governmental entities:

This amendment makes it easier for a principal broker to satisfy the experience requirement when reapplying for licensure after allowing a license to expire for up to two years. It does not impose any additional requirements or costs beyond those already in place for obtaining a new license. Therefore, no new costs to affected persons are anticipated.

Compliance costs for affected persons:

To comply, an affected person must demonstrate three years of full-time professional real estate experience amassed during the seven-year period prior to the date of application. There are no associated costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated from this rule filing that extends the time frame in which experience may be acquired for relicensure.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2011

This rule may become effective on:

11/21/2011

Authorized by:

Jonathan Stewart, Director

R162. Commerce, Real Estate.

R162-2f. Real Estate Licensing and Practices Rules.

R162-2f-202b. Principal Broker Licensing Fees and Procedures.

(1) To obtain a Utah license to practice as a principal broker, an individual shall:

(a) evidence honesty, integrity, truthfulness, and reputation pursuant to Subsection R162-2f-201(1);

(b) evidence competency to transact the business of real estate pursuant to Subsection R162-2f-201(2);

(c)(i) successfully complete 120 hours of approved prelicensing education, including:

(A) 45 hours of broker principles;

(B) 45 hours of broker practices; and

(C) 30 hours of Utah law and testing; or

(ii) apply to the division for waiver of all or part of the education requirement by virtue of:

(A) completing equivalent education as part of a college undergraduate or postgraduate degree program, regardless of the date of the degree; or

(B) completing other equivalent real estate education within the 12-month period prior to the date of application;

(d)(i) apply with a testing service designated by the division to sit for the licensing examination; and

(ii) pay a nonrefundable examination fee to the testing center;

(e) pursuant to this Subsection (3)(a), take and pass both the state and national components of the licensing examination;

(f)(i) unless Subsection (2)(a) applies, evidence the individual's having, within the five-year period preceding the date of application, a minimum of three years [full-time] experience [as a]related to real estate[ licensee], including the following:

(A) at least two years full-time licensed, active experience selling, listing, or managing the property types identified in Appendix 1; and[following types of properties:

(A) one- to four-unit residential dwellings;

(B) apartments, 5 units or over;

(C) improved lots;

(D) vacant lands/subdivisions;

(E) hotels or motels;

(F) industrial or warehouse property;

(G) office buildings;

(H) retail buildings; or

(I) leases of commercial space; and]

(B) up to one year full-time professional experience related to real estate, as outlined in Appendix 3; and

(ii) evidence having accumulated, within the five-year period preceding the date of application, a total of at least 60 experience points as follows:

(A) 45 to 60 points pursuant to the experience points tables found in Appendices 1 and 2; and

(B) 0 to 15 points pursuant to the experience point table found in Appendix 3;

(g) pursuant to this Subsection (3)(b), submit to the division an application for licensure including:

(i) documentation indicating successful completion of the approved broker prelicensing education;

(ii) a report of the examination showing a passing score for each component of the examination; and

(iii) the applicant's business, home, and e-mail addresses;

(h) provide from any state where licensed as a real estate agent or broker:

(i) a written record of the applicant's license history; and

(ii) complete documentation of any disciplinary action taken against the applicant's license;

(i) if applying for an active license, affiliate with a registered company;

(j) pay the nonrefundable fees required for licensure, including the nonrefundable fee required under Section 61-2f-505 for the Real Estate Education, Research, and Recovery Fund; and

(k) establish a trust account pursuant to Section R162-2f-403.

(2) (a) If an individual applies under this Subsection R162-2f-202b within two years of allowing a principal broker license to expire, the experience required under Subsection (1)(f) shall be accumulated within the seven-year period preceding the date of application.

(b) Pursuant to Section R162-2f-407, an individual whose application is denied by the division for failure to meet experience requirements under this Subsection (1)(f) may bring the application before the commission.

(3) Deadlines.

(a) If an individual passes one test component but fails the other, the individual shall retake and pass the failed component:

(i) within six months of the date on which the individual achieves a passing score on the passed component; and

(ii) within 12 months of the date on which the individual completes the prelicensing education.

(b) An application for licensure shall be submitted:

(i) within 90 days of the date on which the individual achieves passing scores on both examination components; and

(ii) within 12 months of the date on which the individual completes the prelicensing education.

(c) If any deadline in this Section R162-2f-202b falls on a day when the division is closed for business, the deadline shall be extended to the next business day.

 

KEY: real estate business, licensing, enforcement

Date of Enactment or Last Substantive Amendment: [August 22, 2011]2011

Authorizing, and Implemented or Interpreted Law: 61-2f-103(1)