No. 32765 (Amendment): R162-4-4. Written Instructions for Commission Distribution by Title Insurance Agent

DAR File No.: 32765
Filed: 06/29/2009, 02:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Recent statutory and administrative rule changes have modified requirements for title insurance agents. This rule change makes requirements for real estate brokers consistent with those changes.

Summary of the rule or change:

If a principal real estate broker assigns any of the broker's compensation to the associate broker, the principal broker is required to provide specified written instructions to the title insurance agent.

State statutory or constitutional authorization for this rule:

Section 61-2-5.5

Anticipated cost or savings to:

the state budget:

The costs of reprinting the rule are minimal and should have no impact on the state budget.

local governments:

None--These requirements affect the relationship between the principal broker, associate broker, and title insurance agent. They should not affect the volume or regularity of real estate transactions.

small businesses and persons other than businesses:

None--These requirements require additional transparency on the terms of the relationship between the principal broker, associate broker, and title insurance agent. They do not mandate specific terms.

Compliance costs for affected persons:

None--These requirements require additional transparency on the terms of the relationship between the principal broker, associate broker, and title insurance agent. They do not mandate specific terms.

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

This rule filing implements recent statutory amendments relating to written instructions to title insurance agents when a principal broker assigns commissions to associate brokers or sales agents. No fiscal impact to businesses is anticipated beyond those addressed by the Legislature in passing the statutory amendments. 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:

Thad LeVar at the above address, by phone at 801-530-6929, by FAX at 801-530-6446, 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:

08/14/2009

This rule may become effective on:

08/21/2009

Authorized by:

Thad LeVar, Deputy Director

RULE TEXT

R162. Commerce, Real Estate.

R162-4. Office Procedures - Real Estate Principal Brokerage.

R162-4-4. Written Instructions for Commission Distribution by Title Insurance Agent.

(1) If a principal broker elects to assign a portion or all of the principal broker's compensation to an associate broker or sales agent in accordance with Utah Code Annotated Section 61-2-10, the principal broker shall provide written instructions to the title insurance agent that include the following:

(a) an identification of the property involved in the real estate transaction;

(b) an identification of the principal broker and sales agent or associate broker who will receive compensation in accordance with the written instructions;

(c) a designation of the amount of compensation that will be received by both the principal broker and the sales agent or associate broker; and

(d) a prohibition against alteration of the written instructions by anyone other than the principal broker.

(2) Items beyond those listed in Subsection (1) may be included in the written instructions at the discretion of the principal broker.

 

KEY: real estate business

Date of Enactment or Last Substantive Amendment: [October 16, 2002]2009

Notice of Continuation: April 18, 2007

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