File No. 34988

This rule was published in the July 15, 2011, issue (Vol. 2011, No. 14) of the Utah State Bulletin.

Commerce, Real Estate

Section R162-2f-407

Administrative Proceedings

Notice of Proposed Rule


DAR File No.: 34988
Filed: 06/28/2011 05:29:52 PM


Purpose of the rule or reason for the change:

The purpose of this amendment is to correct an inconsistency with regard to certain deadlines in an administrative proceeding.

Summary of the rule or change:

An applicant or respondent will be given at least 30 days notice of a hearing, to coincide with the existing rule that allows 30 days from the date of notice for the person to file an answer.

State statutory or constitutional authorization for this rule:

  • Subsection 61-2f-103(1)

Anticipated cost or savings to:

the state budget:

This amendment does not create a new requirement or program for the Division to enforce or administer. No fiscal impact to the state budget is anticipated.

local governments:

Local government is not subject to the rules governing the real estate industry. Therefore, no fiscal impact to local government is anticipated.

small businesses:

Small real estate businesses are registered by the Division, but do not license. As such, no regulatory mechanism exists under which they could be required to appear for hearing. Therefore, the rules governing administrative proceedings do not apply to real estate businesses, and modifying those rules will have no fiscal impact for those businesses.

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

This amendment will require the Division to give an affected person 30 days notice of a hearing rather than 10 days. It does not impose any new requirements on affected persons. Therefore, no fiscal impact to affected persons is anticipated.

Compliance costs for affected persons:

This amendment will require the Division to give affected persons 30 days notice of a hearing rather than 10 days. No compliance is required of affected persons. Therefore, there are no compliance costs associated with this amendment.

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

This rule corrects an inconsistency in the rules regarding administrative proceedings. No fiscal impact to businesses is anticipated.

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:

Real 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

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:


This rule may become effective on:


Authorized by:

Deanna Sabey, Director


R162. Commerce, Real Estate.

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

R162-2f-407. Administrative Proceedings.

(1) Formal adjudicative proceedings. An adjudicative proceeding conducted subsequent to the issuance of a cease and desist order shall be conducted as a formal adjudicative proceeding.

(2) Informal adjudicative proceedings.

(a) An adjudicative proceeding as to any matter not specifically designated as requiring a formal adjudicative proceeding shall be conducted as an informal adjudicative proceeding.

(b) A hearing shall be held in an informal adjudicative proceeding only if required or permitted by the Utah Real Estate Licensing and Practices Act or by these rules.

(3) Hearings required. A hearing before the commission shall be held in a proceeding:

(a) commenced by the division for disciplinary action pursuant to Section 61-2f-401 and Subsection 63G-4-201(2); and

(b) to adjudicate an appeal from an automatic revocation under Subsection 61-2f-204(1)(e), if the appellant requests a hearing.

(4) Procedures for hearings in informal adjudicative proceedings.

(a) The division director shall be the presiding officer for any informal adjudicative proceeding unless the matter has been delegated to a member of the commission or an administrative law judge.

(b) All informal adjudicative proceedings shall adhere to procedures as outlined in:

(i) Utah Administrative Procedures Act Title 63G, Chapter 4;

(ii) Utah Administrative Code Rule R151-4; and

(iii) the rules promulgated by the division.

(c) Except as provided in this Subsection (5)(b), a party is not required to file a written answer to a notice of agency action from the division in an informal adjudicative proceeding.

(d) In any proceeding under this Subsection 407, the commission and the division may at their discretion delegate a hearing to an administrative law judge or request that an administrative law judge assist the commission and the division in conducting the hearing. Any delegation of a hearing to an administrative law judge shall be in writing.

(e) Upon the scheduling of a hearing by the division and at least [ten business]30 days prior to the hearing, the division shall, by first class postage-prepaid delivery, mail written notice of the date, time, and place scheduled for the hearing:

(i) to the respondent at the address last provided to the division pursuant to Section 61-2f-207; and

(ii) if the respondent is an actively licensed sales agent or associate broker, to the principal broker with whom the respondent is affiliated.

(f) Formal discovery is prohibited.

(g) The division may issue subpoenas or other orders to compel production of necessary and relevant evidence:

(i) on its own behalf; or

(ii) on behalf of a party where the party:

(A) makes a written request;

(B) assumes responsibility for effecting service of the subpoena; and

(C) bears the costs of the service, any witness fee, and any mileage to be paid to a witness.

(h) Upon ordering a licensee to appear for a hearing, the division shall provide to the licensee the information that the division will introduce at the hearing.

(i) The division shall adhere to Title 63G, Chapter 2, Government Records Access and Management Act in addressing a request for information obtained by the division through an investigation.

(j) The division may decline to provide a party with information that it has previously provided to that party.

(k) Intervention is prohibited.

(l) Hearings shall be open to all parties unless the presiding officer closes the hearing pursuant to:

(i) Title 63G, Chapter 4, the Utah Administrative Procedures Act; or

(ii) Title 52, Chapter 4, the Open and Public Meetings Act.

(m) Upon filing a proper entry of appearance with the division pursuant to Utah Administrative Code Section R151-4-110(1)(a), an attorney may represent a party.

(5) Additional procedures for disciplinary proceedings.

(a) The division shall commence a disciplinary proceeding by filing and serving on the respondent:

(i) a notice of agency action;

(ii) a petition setting forth the allegations made by the division;

(iii) a witness list, if applicable; and

(iv) an exhibit list, if applicable.

(b) Answer.

(i) At the time the petition is filed, the presiding officer, upon a determination of good cause, may require the respondent to file an answer to the petition by so ordering in the notice of agency action.

(ii) The respondent may file an answer, even if not ordered to do so in the notice of agency action.

(iii) Any answer shall be filed with the division within thirty days after the mailing date of the notice of agency action and petition.

(c) Witness and exhibit lists.

(i) Where applicable, the division shall provide its witness and exhibit lists to the respondent at the time it mails its notice of hearing.

(ii) The respondent shall provide its witness and exhibit lists to the division no later than thirty days after the mailing date of the division's notice of agency action and petition.

(iii) Any witness list shall contain:

(A) the name, address, and telephone number of each witness; and

(B) a summary of the testimony expected from the witness.

(iv) Any exhibit list:

(A) shall contain an identification of each document or other exhibit that the party intends to use at the hearing; and

(B) shall be accompanied by copies of the exhibits.

(d) Pre-hearing motions.

(i) Any pre-hearing motion permitted under the Administrative Procedures Act or the rules promulgated by the Department of Commerce shall be made in accordance with those rules.

(ii) The division director shall receive and rule upon any pre-hearing motions.



RESIDENTIAL - points can be accumulated from either the selling
or the listing side of a real estate closing:
  (a)  One unit dwelling                           2.5 points
  (b)  Two- to four-unit dwellings                   5 points
  (c)  Apartments, 5 units or over                  10 points
  (d)  Improved lot                                  2 points
  (e)  Vacant land/subdivision                      10 points

  (f)  Hotel or motel                               10 points
  (g)  Industrial or warehouse                      10 points
  (h)  Office building                              10 points
  (i)  Retail building                              10 points
  (j)  Leasing of commercial space                   5 points




  (a)  Each unit managed                         0.25 pt/month

COMMERCIAL - hotel/motel, industrial/warehouse, office, or
retail building
  (b)  Each contract OR each separate
property address or location for
which licensee has direct responsibility         1 pt/month




Real Estate Attorney                            1 pt/month
CPA-Certified Public Accountant                 1 pt/month
Mortgage Loan Officer                           1 pt/month
Licensed Escrow Officer                         1 pt/month
Licensed Title Agent                            1 pt/month
Designated Appraiser                            1 pt/month
Licensed General Contractor                     1 pt/month
Bank Officer in Real Estate Loans               1 pt/month
Certified Real Estate Prelicensing Instructor  .5 pt/month


KEY: real estate business, licensing, enforcement

Date of Enactment or Last Substantive Amendment: [December 22, 2010]2011

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


Additional Information

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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