File No. 34201
This rule was published in the November 15, 2010, issue (Vol. 2010, No. 22) of the Utah State Bulletin.
Commerce, Real Estate
Rule R162-8
Prelicensing Education
Notice of Proposed Rule
(Repeal)
DAR File No.: 34201
Filed: 11/01/2010 03:53:19 PM
RULE ANALYSIS
Purpose of the rule or reason for the change:
The substantive elements of this rule have been incorporated into the proposed new Rule R162-2f. Therefore, this rule is no longer needed. (DAR NOTE: The proposed new Rule R162-2f is under DAR No. 34191 in this issue, November 15, 2010, of the Bulletin.)
Summary of the rule or change:
The rule is repealed in its entirety.
State statutory or constitutional authorization for this rule:
- Subsection 61-2f-103(1)(a)
Anticipated cost or savings to:
the state budget:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to the state budget is anticipated from this filing.
local governments:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to local governments is anticipated from this filing.
small businesses:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to small businesses is anticipated from this filing.
persons other than small businesses, businesses, or local governmental entities:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to affected persons is anticipated from this filing.
Compliance costs for affected persons:
In repealing this rule, the division and commission relieve affected persons of any obligation to comply with it. There are no compliance 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 repeal as the substance of these provisions is contained in the new Rule R162-2f proposed by the Division.
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:
CommerceReal Estate
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 jjonsson@utah.gov
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:
12/15/2010
This rule may become effective on:
12/22/2010
Authorized by:
Deanna Sabey, Director
RULE TEXT
R162. Commerce, Real Estate.
[
R162-8. Prelicensing Education.
R162-8-1. School Application for Certification.
8.1 Prelicense education credit shall be given to
students only for courses provided by schools that are certified
by the Division at the time the courses are taught. Applicants
shall apply for school certification by submitting all forms and
fees required by the Division not less than 90 days prior to a
course being taught. Applications shall include at minimum the
following information which will be used in determining
approval:
8.1.1 Name, phone number and address of the school, the
school director, and all owners of the school;
8.1.1.1 The school director shall obtain approval of the
school name from the Division prior to registering that name with
the Division of Corporations and Commercial Code in the
Department of Commerce as a real estate education
provider.
8.1.2 A description of the type of school and a
description of the school's physical facilities;
8.1.2.1 Except for distance education courses, all
courses must be taught in an appropriate classroom facility and
not in any private residence.
8.1.3 A comprehensive course outline including a
description of the course, the length of time to be spent on each
subject area broken into class periods, and a minimum of three to
five learning objectives for every three hours of class
time;
8.1.3.1 All courses of study shall meet the minimum
standards set forth in the State of Utah Standard Course Outline
provided for each approved course. The school may alter the
sequence of presentation of the required topics.
8.1.3.2 The school director shall certify that all
courses of study will meet the minimum hourly requirement of that
course.
8.1.3.3 The school director shall certify that the school
will not give a student credit for more than eight credit hours
per day.
8.1.4 The name and certification number of each certified
instructor and/or the name and resume documenting the knowledge
and expertise of each guest lecturer who will teach the
course;
8.1.4.1 A college or university may use any faculty
member to teach an approved course provided the instructor
demonstrates to the satisfaction of the Division academic
training or experience qualifying him to teach the
course.
8.1.5 An identification of whether the method of
instruction will be traditional education or distance
education;
8.1.6. A school seeking certification of distance
education prelicensing courses shall:
8.1.6.1 submit to the Division a complete description of
all course delivery methods and all media to be used;
8.1.6.2 provide course access to the Division using the
same delivery methods and media that will be provided to the
students;
8.1.6.3 describe specific and regularly scheduled
interactive events included in the course and appropriate to the
delivery method that will contribute to the students'
achievement of the stated learning objectives;
8.1.6.4 describe how the students' achievement of the
stated learning objectives will be measured at regular
intervals;
8.1.6.5 describe how and when prelicense instructors will
be available to answer student questions;
8.1.6.6 provide an attestation from the school director
of the availability and adequacy of the equipment, software, and
other technologies needed to achieve the course's
instructional claims.
8.1.7 A copy of at least two final examinations of the
course and the answer keys which are used to determine if the
student has passed the exam, accompanied by an explanation of
procedure if the student fails the final examination and thereby
fails the course.
8.1.7.1 A maximum of 10% of the required class time may
be spent in testing, including practice tests and the final
examination. A student cannot challenge a course or any part of a
course of study in lieu of attendance or active
participation.
8.1.8 A list of the titles, authors and publishers of all
required textbooks;
8.1.8.1 All texts, workbooks, supplements, and any other
materials must be appropriate and current in their application to
the required course outline.
8.1.9 Days, times and locations of classes;
8.1.9.1 A college or a university may schedule its
courses within the criteria of its regular schedule, for example,
quarter, semester, or other. A college quarter hour credit is the
equivalent of 10 classroom hours, and a college semester hour
credit is the equivalent of 15 classroom hours.
8.1.10 A copy of the statement which shall be provided
for each student outlining the days, times and locations of
classes; the number of quizzes and examinations; the grading
system, including methods of testing and standards of grading;
the requirements for attendance; the school's evidence of
notification to candidates of the qualifying questionnaire; and
the school's refund policy;
8.1.11 A copy of the statement which shall be provided to
each student in capital letters no smaller than 1/4 inch
containing the following language: "A student attending the
(school name) is under no obligation to affiliate with any of the
real estate brokerages that may be soliciting for agents at this
school;" and
8.1.12 Any other information as the Division may
require.
R162-8-2. Determining Fitness for School Certification.
8.2 The Division, with the concurrence of the Commission,
shall certify schools based on the honesty, integrity,
truthfulness, reputation and competency of the school director
and school owners.
R162-8-3. School Certification and Renewal.
8.3 The term of a school certification is twenty-four
months. A certification may be renewed by submitting all forms
and fees required by the Division prior to the expiration date of
the current certification. School certifications not properly
renewed shall expire on the expiration date.
8.3.1 A certification may be reinstated for a period of
thirty days after expiration by complying with all requirements
for a timely renewal and paying a non-refundable late
fee.
8.3.2 A certification may be reinstated after thirty days
and within six months after expiration by complying with all
requirements for a timely renewal and payment of a non-refundable
reinstatement fee.
8.3.3 A certification that has been expired for more than
six months may not be reinstated and an applicant must apply for
a new certification following the same procedure as an original
certification.
R162-8-4. School Conduct and Standards of Practice.
8.4.1 In order to maintain good standing and renew a
certification, a course sponsor shall:
8.4.1.1 teach the approved course of study as outlined in
the State Approved Course Outline;
8.4.1.2 require each student to attend the required
number of hours and pass a final examination;
8.4.1.3 maintain a record of each student's
attendance for a minimum of three years after
enrollment;
8.4.1.4 not accept a student for a reduced number of
hours without first having a written statement from the Division
which defines the exact number of hours the student
needs;
8.4.1.5 not make any misrepresentation in its advertising
about any course of instruction, and shall be able to provide
substantiation of any claims made. All advertising and public
notices shall be free of statements or implications which do not
enhance the dignity and integrity of the real estate profession.
A school shall not make disparaging remarks about a
competitor's services or methods of operation;
8.4.1.6 limit approved guest lecturers who are experts in
related fields to a total of 20% of the instructional hours per
approved course. A guest lecturer shall provide evidence of
professional qualifications to the Division prior to being used
as a guest lecturer;
8.4.1.7 within 15 calendar days after the occurrence of
any material change in the school which would affect its
approval, the school shall give the Division written notice of
that change;
8.4.1.8 not attempt by any means to obtain or use the
questions on the prelicensing examinations unless the questions
have been dropped from the current exam bank;
8.4.1.9 not give any valuable consideration to a real
estate brokerage for having referred students to the school. A
school shall not accept valuable consideration from a brokerage
for having referred students to the brokerage;
8.4.1.9.1 If the school agrees, real estate brokerages
may be allowed to solicit for agents at the school. No
solicitation may be made during the class time nor during the
student break time. Solicitation may be made only after the
regularly scheduled class so that no student will be obligated to
stay for the solicitation;
8.4.1.10 use only certified instructors or guest
lecturers who have been registered with the Division;
8.4.1.11 provide the instructor with the approved content
outline for each course and shall assure the content has been
taught;
8.4.1.12 provide a course completion certificate in the
form approved by the Division to each student upon the
student's completion of the prelicensing course;
8.4.1.13 furnish to the Division a current roster of the
school's approved instructors and guest lecturers. A school
shall provide an updated roster to the Division each time there
is a change in school instructors or guest lecturers;
8.4.1.14 give no more than eight credit hours per day to
any student;
8.4.1.15 Prior to accepting payment from a prospective
student for a pre-licensing education course, a certified school
shall provide a written disclosure to the prospective student
stating: a) applicants for licensure must disclose any criminal
history by answering a questionnaire as part of the pre-license
exam; b) applicants for licensure must submit fingerprint cards
to the Division and consent to a criminal background check; c)
licenses issued by the Division are conditional pending the
completion of the background check and that failure to accurately
disclose a criminal history will result in an immediate and
automatic license revocation; d) applicants with a criminal
history described in subsection R162-2-2(2.2.9) do not qualify
for a license; and e) applicants with a criminal history other
than as described in subsection R162-2-2(2.2.9) will be
considered on a case-by-case basis and may be required to appear
at an administrative hearing to determine qualifications for
licensure.
8.4.1.15.1 The school shall be required to obtain the
student's signature on the written disclosure required by
Section 8.4.1.15 acknowledging receipt of the disclosure. The
disclosure form and acknowledgement shall be retained in the
school's records and made available for inspection by the
Division for a minimum of three years following the date upon
which the student completed the prelicensing course; and
8.4.2 A school's owners and directors shall be
responsible for the quality of instruction in the school and for
adherence to the state statutes and administrative rules
regarding school and instructor certification.
R162-8-5. Instructor Application for Certification.
8.5 An instructor shall not teach a prelicensing course
without having been certified by the Division prior to
teaching.
Applicants shall apply for instructor certification by
submitting all forms and fees required by the Division not less
than 30 days prior to the course being taught. Applications shall
include at minimum the following information which will be used
in determining approval:
8.5.1 Name and certification number of the certified
prelicense school for which the applicant will work;
8.5.2 Evidence of a minimum educational level of
graduation from high school or its equivalent;
8.5.3 Evidence of any combination of at least five years
of full time experience and/or college-level education related to
the course subject;
8.5.4 Evidence of a minimum of twelve months of fulltime
teaching experience or an equivalent number of months of part
time teaching experience, or attendance at Division Instructor
Development Workshops totaling at least two days in length;
and
8.5.5 Evidence of having passed an examination designed
to test the knowledge of the subject matter proposed to be
taught;
8.5.6 To teach the sales agent prelicensing course,
evidence of being a licensed sales agent or broker;
8.5.7 To teach the broker prelicensing course, evidence
of being a licensed associate broker, branch broker, or principal
broker;
8.5.7.1 An applicant may qualify to teach a subcourse of
the broker prelicensing course by meeting the following
criteria:
(a) Brokerage Management. The instructor applicant must
be a licensed real estate broker and have managed a real estate
office, or hold a CRB or equivalent professional designation in
real estate brokerage management. The instructor applicant must
have at least two years practical experience as an active real
estate principal broker.
(b) Advanced Real Estate Law. The instructor applicant
must be a licensed real estate broker or be a current member of
the Utah State Bar or have graduated from an American Bar
Association accredited law school and have at least two years
real estate law experience.
(c) Advanced Appraisal. The instructor applicant must be
a licensed real estate broker, or be a state-licensed or
state-certified appraiser.
(d) Advanced Finance. The instructor applicant must be a
licensed real estate broker or have been associated with a
lending institution as a loan officer or have a degree in
finance. The instructor applicant must have at least two years
practical experience in real estate finance.
(e) Advanced Property Management. The instructor
applicant must be a real estate licensee. The instructor
applicant must have at least two years property management
experience or hold a CPM or equivalent professional designation.
The instructor applicant must have at least two years full-time
experience as a property manager.
8.5.8 A signed statement agreeing to allow the
instructor's courses to be randomly audited on an unannounced
basis by the Division or its representative;
8.5.9 A signed statement agreeing not to market personal
sales product; and
8.5.10 Any other information as the Division may
require.
R162-8-6. Determining Fitness for Instructor
Certification.
8.6 The Division, with the concurrence of the Commission,
shall certify instructors based on the applicant's honesty,
integrity, truthfulness, reputation, and competency.
R162-8-7. Instructor Certification Renewal.
8.7 The term of a prelicensing education instructor
certification is twenty-four months. A certification may be
renewed by submitting all forms and fees required by the Division
prior to the certification's expiration date.
8.7.1 Certifications not properly renewed shall expire on
the expiration date.
8.7.1.1 A certification may be reinstated for a period of
thirty days after expiration by complying with all requirements
for a timely renewal and paying a non-refundable late
fee.
8.7.1.2 A certification may be reinstated after thirty
days and within six months after expiration by complying with all
requirements for a timely renewal and payment of a non-refundable
reinstatement fee.
8.7.1.3 A certification that has been expired for more
than six months may not be reinstated and an applicant must apply
for a new certification following the same procedure as an
original certification.
8.7.2 To renew an instructor certification an instructor
shall, during the two years prior to renewal:
8.7.2.1 teach at least 20 hours of in-class instruction
in a certified real estate course; and
8.7.2.2 attend an instructor development workshop
sponsored by the Division.
KEY: real estate business
Date of Enactment or Last Substantive Amendment: April 7,
2008
Notice of Continuation: April 18, 2007
Authorizing, and Implemented or Interpreted Law:
61-2-5.5 ]
Additional Information
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2010/b20101115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@utah.gov.