No. 28128 (Amendment): R162-2-2. Licensing Procedure

DAR File No.: 28128
Filed: 08/04/2005, 08:54
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the rule change is to clarify what type of equivalent education the Division of Real Estate will accept toward the real estate licensing requirements.

 

Summary of the rule or change:

The Division of Real Estate will be able to waive all or part of a candidate's educational requirement for a real estate license by virtue of college level courses that are equivalent to the required prelicensing education.

 

State statutory or constitutional authorization for this rule:

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

 

Anticipated cost or savings to:

the state budget:

None--The courses that are required for a real estate agent's or broker's prelicensing education requirement do not affect the state budget.

 

local governments:

None--The courses that are required for a real estate agent's or broker's prelicensing education do not affect local government.

 

other persons:

The only persons who will be affected by this rule change will be candidates for a real estate agent's or broker's license, and the providers of those education courses. To the extent that some or all of the required prelicensing education will be waived, the rule change will save applicants money and result in a small loss of revenue for education providers.

 

Compliance costs for affected persons:

There will be no compliance costs for candidates for a real estate agent's or broker's license. The rule change will save some candidates the cost of taking courses that are the equivalent of courses they have already taken in college.

 

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

This rule filing clarifies the type of education that might be deemed equivalent for purposes of waiving any of the education courses required for licensure. No fiscal impact to businesses is anticipated as a result of this clarification. Jason P. Perry, Acting 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 801-530-6761, by FAX at 801-530-6749, 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:

10/03/2005

 

This rule may become effective on:

10/04/2005

 

Authorized by:

Dexter Bell, Director

 

 

RULE TEXT

R162. Commerce, Real Estate.

R162-2. Exam and License Application Requirements.

R162-2-2. Licensing Procedure.

2.2. Within 90 days after successful completion of the exam, the applicant shall return to the Division each of the following:

2.2.1. A report of the examination indicating that both portions of the exam have been passed within a six-month period of time.

2.2.2. The license application form required by the Division. The application form shall include the licensee's business and home address. A post office box without a street address is unacceptable as a business or home address. The licensee may designate any address to be used as a mailing address.

2.2.3. The non-refundable fees which will include the appropriate license fee as authorized by Section 61-2-9(5) and the Recovery Fund fee as authorized by Section 61-2a-4.

2.2.4. Documentation indicating successful completion of the required education taken within the year prior to licensing. If the applicant has been previously licensed in another state which has substantially equivalent licensing requirements, he may apply to the Division for a waiver of all or part of the educational requirement.

2.2.4.1. Candidates for the license of sales agent will successfully complete 90 classroom hours of approved study in principles and practices of real estate. Experience will not satisfy the education requirement. Membership in the Utah State Bar will waive this requirement. The Division may waive all or part of the educational requirement by virtue of equivalent education taken while completing a college undergraduate or postgraduate degree program, regardless of the date of the degree, or by virtue of other equivalent real estate education if the other real estate education was taken within 12 months prior to application.

2.2.4.2. Candidates for the license of associate broker or principal broker will successfully complete 120 classroom hours of approved study consisting of at least 24 classroom hours in brokerage management, 24 classroom hours in advanced appraisal, 24 classroom hours in advanced finance, 24 hours in advanced property management and 24 classroom hours in advanced real estate law. Experience will not satisfy the education requirement. The Division may waive all or part of the educational requirement by virtue of equivalent education taken while completing a college undergraduate or postgraduate degree program, regardless of the date of the degree, or by virtue of other equivalent real estate education if the other real estate education was taken within 12 months prior to application.

2.2.5. The principal broker and associate broker applicant will submit the forms required by the Division documenting a minimum of three years licensed real estate experience and a total of at least 60 points accumulated within the five years prior to licensing. A minimum of two years (24 months) and at least 45 points will be accumulated from Tables I and/or II. The remaining 15 points may be accumulated from Tables I, II or III.

 

TABLE I - REAL ESTATE TRANSACTIONS

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



COMMERCIAL

(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

 

 

TABLE II - PROPERTY MANAGEMENT

RESIDENTIAL

(a) Each unit managed                         .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

 

2.2.6. The Principal Broker may accumulate additional experience points by having participated in real estate related activities such as the following:

TABLE III - OPTIONAL

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

 

2.2.7. If the review of an application has been performed by the Division and the Division has denied the application based on insufficient experience, and if the applicant believes that the Experience Points Tables do not adequately reflect the amount of the applicant's experience, the applicant may petition the Real Estate Commission for reevaluation by making a written request within 30 days after the denial stating specific grounds upon which relief is requested. The Commission shall thereafter consider the request and issue a written decision.

2.2.8. An applicant previously licensed in another state will provide a written record of his license history from that state and documentation of disciplinary action, if any, against his license.

2.2.9. Determining fitness for licensure. The Commission and the Division will consider information necessary to determine whether an applicant meets the requirements of honesty, integrity, truthfulness, reputation and competency, which shall include the following:

2.2.9.1. Whether an applicant has been denied a license to practice real estate, property management, or any regulated profession, business, or vocation, or whether any license has been suspended or revoked or subjected to any other disciplinary sanction by this or another jurisdiction;

2.2.9.2. Whether an applicant has been guilty of conduct or practices which would have been grounds for revocation or suspension of license under Utah law had the applicant then been licensed;

2.2.9.3. Whether a civil judgment has been entered against the applicant based on a real estate transaction, and whether the judgment has been fully satisfied;

2.2.9.4. Whether a civil judgment has been entered against the applicant based on fraud, misrepresentation or deceit, and whether the judgment has been fully satisfied.

2.2.9.5. Whether restitution ordered by a court in a criminal conviction has been fully satisfied;

2.2.9.6. Whether the probation in a criminal conviction or a licensing action has been completed and fully served; and

2.2.9.7. Whether there has been subsequent good conduct on the part of the applicant. If, because of lapse of time and subsequent good conduct and reputation or other reason deemed sufficient, it shall appear to the Commission and the Division that the interest of the public will not likely be in danger by the granting of a license, the Commission and the Division may approve the applicant relating to honesty, integrity, truthfulness, reputation and competency.

 

KEY: real estate business

[June 3, 1999]2005

Notice of Continuation June 12, 2002

61-2-5.5