No. 29738 (Amendment): R162-1-2. Definitions

DAR File No.: 29738
Filed: 03/27/2007, 08:22
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to alphabetize the definitions in the rule, move existing definitions from another rule to this one, and add definitions related to terms used in connection with prelicensing and continuing education. A definition of "real estate sales agent" that is unnecessary because it is defined in statute is deleted.

Summary of the rule or change:

The definitions of "credit hour", "distance education", "provider", and "traditional education" are added. The definition of "school" is moved from Rule R162-8. The definition of "real estate sales agent" is deleted. The definition of "DBA" is moved to be in the correct alphabetical position. (DAR NOTE: The proposed amendment to Rule R162-8 is under DAR No. 29719 in this issue, April 15, 2007, of the Bulletin.)

State statutory or constitutional authorization for this rule:

Subsection 61-2-5.5(1)(a)

Anticipated cost or savings to:

the state budget:

None--Defining terms used in the administrative rules has no impact on the State budget.

local governments:

None--Defining terms used in the state administrative rules relating to real estate agent licensing and conduct has no effect on local governments.

other persons:

None--Defining terms used in the administrative rules does not cost or save other persons money.

Compliance costs for affected persons:

The only persons required to comply with these administrative rules are real estate licensees and real estate education providers. Defining terms that are used in those rules does not cost these persons any money.

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

There appears to be no fiscal impact to businesses as a result of this rule filing, which amends and clarifies applicable definitions. 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:

Shelley Wismer at the above address, by phone at 801-366-0145, by FAX at 801-366-0315, or by Internet E-mail at [e-mail]

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:

05/15/2007

This rule may become effective on:

05/23/2007

Authorized by:

Derek Miller, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-1. Authority and Definitions.

R162-1-2. Definitions.

1.2. Terms used in these rules are defined as follows:

1.2.1. Active Licensee: One who: (a) has paid all applicable license fees; and (b) is affiliated with a principal brokerage.

1.2.2. Branch Manager: An associate broker who manages a branch office under the supervision of the principal broker.

1.2.3. Branch Office: A real estate office affiliated with and operating under the same name as a Principal Brokerage but located at an address different from the main office.

1.2.4. Business Opportunity: The sale, lease, or exchange of any business which includes an interest in real estate.

1.2.5. Brokerage: A real estate sales brokerage or a property management company.

1.2.6. Certification: The authorization issued by the Division to: (a) establish and operate a real estate school which provides courses approved for licensing requirements, (b) provide courses approved for renewal requirements, or (c) function as a real estate instructor.

1.2.7. Company Registration: A Registration issued to a corporation, partnership, Limited Liability Company, association or other legal entity of a real estate brokerage. A Company Registration is also issued to an individual or an individual's professional corporation.

1.2.8. Continuing Education: Professional education required as a condition of renewal in accordance with Subsection 61-2-9(2)(a).

1.2.9. Credit hour: 50 minutes of instruction within a 60 minute period.

1.2.10 DBA (doing business as): The authority issued by the Division of Corporations and Commercial Code to transact business under an assumed name.

1.2.11. Distance Education: education in which the instruction does not take place in a traditional classroom setting, but through other interactive instructional methods where teacher and student are separated by distance and sometimes by time, including computer conferencing, video conferencing, interactive audio, interactive computer software, Internet-based instruction, and other interactive online courses.

1.2.[9]12. Expired License: A license will be deemed "expired" when the licensee fails to pay the fees due by the close of business on the expiration date. If the expiration date falls on a Saturday, Sunday or holiday the effective date of expiration shall be the next business day.

1.2.[10]13. Inactivation: The placing of a license on an inactive status, either voluntarily or involuntarily.

1.2.[10]13.1. Voluntary inactivation means the process initiated by an active licensee terminating affiliation with a principal brokerage.

1.2.[10]13.2. Involuntary inactivation means the process of (a) inactivation of a sales agent or associate broker license resulting from the suspension, revocation, or non-renewal of the license of the licensee's principal broker, or death of the licensee's principal broker, or (b) inactivation of a sales agent or associate broker license by a principal broker when the licensee is unavailable to execute the transfer forms.

1.2.[11]14. Inactive Licensee: One who: (a) has paid all applicable license fees; and (b) is not affiliated with a principal brokerage.

1.2.[12]15. Net listing means a listing wherein the amount of real estate commission is the difference between the selling price of the property and a minimum price set by the seller.

1.2.[13]16. Non-resident Licensee: A person who holds a Utah real estate principal broker, associate broker, or sales agent license whose primary residence is in a jurisdiction other than Utah.

1.2.[14]17. Principal Brokerage: The main real estate or property management office of a principal broker.

1.2.[15]18. Property Management: The business of providing services relating to the rental or leasing of real property, including: advertising, procuring prospective tenants or lessees, negotiating lease or rental terms, executing lease or rental agreements, supervising repairs and maintenance, collecting and disbursing rents.

1.2.19 Provider: any person, professional organization, or other entity that is approved by the Division of Real Estate to teach Division-approved continuing education courses.

1.2.[16]20. Regular Salaried Employees: For purposes of this Chapter, "regular salaried employee" shall mean an individual employed other than on a contract basis, who has withholding taxes taken out by the employer.

1.2.[17]21. Reinstatement: To restore to active or inactive status, a license which has expired or been suspended.

1.2.[18]22. Reissuance: The process by which a licensee may obtain a license following revocation.

1.2.[19]23. Renewal: To extend an active or inactive license for an additional licensing period.

[1.2.20. DBA (doing business as): The authority issued by the Division of Corporations and Commercial Code to transact business under an assumed name.

1.2.21. Real Estate Sales Agent or Sales Agent: Any person employed or engaged as an independent contractor by or on behalf of a licensed Principal Broker to provide the acts set out in Subsections 61-2-2(12) or 61-2-2(13).]1.2.24 School: For the purposes of Rules R162-8 and R162-9, "school" includes:

(a) Any college or university accredited by a regional accrediting agency which is recognized by the United States Department of Education;

(b) Any community college, vocational-technical school, state or federal agency or commission;

(c) Any nationally recognized real estate organization, any Utah real estate organization, or any local real estate organization which has been approved by the Real Estate Commission; and

(d) Any proprietary real estate school.

1.2.25 Traditional Education: education in which instruction takes place between an instructor and students where all are physically present in the same classroom.

 

KEY: real estate business, licensing

Date of Enactment or Last Substantive Amendment: [April 23, 1998]2007

Notice of Continuation: June 3, 2002

Authorizing, and Implemented or Interpreted Law: 61-2-5.5