R162-2f-102. Definitions

  (1) "Active license" means a license granted to an applicant who:

  (a) qualifies for licensure under Section 61-2f-203 and these rules;

  (b) pays all applicable nonrefundable license fees; and

  (c) affiliates with a principal brokerage.

  (2) "Advertising" means a commercial message through:

  (a) newspaper;

  (b) magazine;

  (c) Internet;

  (d) e-mail;

  (e) radio;

  (f) television;

  (g) direct mail promotions;

  (h) business cards;

  (i) door hangers;

  (j) signs;

  (k) other electronic communication; or

  (l) any other medium.

  (3) "Affiliate":

  (a) when used in reference to licensure, means to form, for the purpose of providing a real estate service, an employment or non-employment association with another individual or entity licensed or registered under Title 61, Chapter 2f et seq. and these rules; and

  (b) when used in reference to an undivided fractionalize long-term estate, means an individual or entity that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, a specified individual or entity.

  (4) "Branch broker" means an associate broker who manages a branch office under the supervision of the principal broker.

  (5) "Branch office" means a principal broker's real estate brokerage office other than the principal broker's main office.

  (6) "Brokerage" means a real estate sales or a property management company.

  (7) "Brokerage record" means any record related to the business of a principal broker, including:

  (a) record of an offer to purchase real estate;

  (b) record of a real estate transaction, regardless of whether the transaction closed;

  (c) licensing records;

  (d) banking and other financial records;

  (e) independent contractor agreements;

  (f) trust account records, including:

  (i) deposit records in the form of a duplicate deposit slip, deposit advice, or equivalent document; and

  (ii) conveyance records in the form of a check image, wire transfer verification, or equivalent document; and

  (g) records of the brokerage's contractual obligations.

  (8) "Business day" is defined in Subsection 61-2f-102(3).

  (9) "Certification" means authorization from the division to:

  (a) establish and operate a school that provides courses approved for prelicensing education or continuing education; or

  (b) function as an instructor for courses approved for prelicensing education or continuing education.

  (10) "Closing gift" means any gift given by a principal broker, or a licensee affiliated with the principal broker, to a buyer or seller, lessor or lessee, in appreciation for having used the services of a real estate brokerage.

  (11) "Commission" means the Utah Real Estate Commission.

  (12) "Continuing education" means professional education required as a condition of renewal in accordance with Section R162-2f-204 and may be either:

  (a) core: topics identified in Subsection R162-2f-206c(5)(c); or

  (b) elective: topics identified in Subsection R162-2f-206c(5)(e).

  (13) "Correspondence course" means a self-paced real estate course that:

  (a) is not distance or traditional education; and

  (b) fails to meet real estate educational course certification standards because:

  (i) it is primarily student initiated; and

  (ii) the interaction between the instructor and student lacks substance and/or is irregular.

  (14) "Day" means calendar day unless specified as "business day."

  (15)(a) "Distance education" means education in which the instruction does not take place in a traditional classroom setting, but occurs through other interactive instructional methods where teacher and student are separated by distance and sometimes by time, including the following:

  (i) computer conferencing;

  (ii) satellite teleconferencing;

  (iii) interactive audio;

  (iv) interactive computer software;

  (v) Internet-based instruction; and

  (vi) other interactive online courses.

  (b) "Distance education" does not include home study and correspondence courses.

  (16) "Division" means the Utah Division of Real Estate.

  (17) "Double contract" means executing two or more purchase agreements, one of which is not made known to the prospective lender or loan funding entity.

  (18) "Expired license" means a license that is not renewed pursuant to Section 61-2f-204 and Section R162-2f-204 by:

  (a) the close of business on the expiration date, if the expiration date falls on a day when the division is open for business; or

  (b) the next business day following the expiration date, if the expiration date falls on a day when the division is closed.

  (19) "Guaranteed sales plan" means:

  (a) a plan in which a seller's real estate is guaranteed to be sold; or

  (b) a plan whereby a licensee or anyone affiliated with a licensee agrees to purchase a seller's real estate if it is not purchased by a third party:

  (i) in the specified period of a listing; or

  (ii) within some other specified period of time.

  (20) "Inactive license" means a license that has been issued pursuant to Sections R162-2f-202a through 202c or renewed pursuant to Section R162-2f-204, but that may not be used to conduct the business of real estate because the license holder is not affiliated with a principal broker. Pursuant to Section R162-2f-203, a license may be inactivated:

  (a) voluntarily, with the assent of the license holder; or

  (b) involuntarily, without the assent of the license holder.

  (21) "Inducement gift" means any gift given by a principal broker, or a licensee affiliated with the principal broker, to a buyer or seller, lessor or lessee, in a real estate transaction as an incentive to use the services of a real estate brokerage.

  (22) "Informed consent" means written authorization, obtained from both principals to a single transaction, to allow a licensee to act as a limited agent.

  (23) "Limited agency" means the representation of all principals in the same transaction to negotiate a mutually acceptable agreement:

  (a) subject to the terms of a limited agency agreement; and

  (b) with the informed consent of all principals to the transaction.

  (24) "Net listing" means a listing agreement under which the real estate commission is the difference between the actual selling price of the property and a minimum selling price as set by the seller.

  (25)(a) "Non-certified education" means a continuing education course offered outside of Utah, but for which a licensee may apply for credit pursuant to Subsection R162-2f-206c(1)(b).

  (b) "Non-certified education" does not include:

  (i) home study courses; or

  (ii) correspondence courses.

  (26) "Nonresident applicant" means a person:

  (a) whose primary residence is not in Utah; and

  (b) who qualifies under Title 61, Chapter 2f et seq. and these rules for licensure as a principal broker, associate broker, or sales agent.

  (27) "Principal brokerage" means the main real estate or property management office of a principal broker.

  (28) "Principal" in a transaction means an individual who is represented by a licensee and may be:

  (a) the buyer or lessee;

  (b) an individual having an ownership interest in the property;

  (c) an individual having an ownership interest in the entity that is the buyer, seller, lessor, or lessee; or

  (d) an individual who is an officer, director, partner, member, manager, or employee of the entity that is the buyer, seller, lessor, or lessee.

  (29) "Provider" means an individual or business that is approved by the division to offer continuing education.

  (30) "Property management" is defined in Subsection 61-2f-102(19).

  (31) "Registration" means authorization from the division to engage in the business of real estate as:

  (a) a corporation;

  (b) a partnership;

  (c) a limited liability company;

  (d) an association;

  (e) a dba;

  (f) a professional corporation;

  (g) a sole proprietorship; or

  (h) another legal entity of a real estate brokerage.

  (32) "Reinstatement" is defined in Subsection 61-2f-102(22).

  (33) "Reissuance" is defined in Subsection 61-2f-102(23).

  (34) The acronym RELMS means "real estate licensing and management system," which is the online database through which licensees shall submit licensing information to the division.

  (35) "Renewal" is defined in Subsection 61-2f-102(24).

  (36) "Residential property" means real property consisting of, or improved by, a single-family one- to four-unit dwelling.

  (37) "School" means:

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

  (b) any community college or vocational-technical school;

  (c) any local real estate organization that has been approved by the division as a school; or

  (d) any proprietary real estate school.

  (38) "Sponsor" means:

  (a) a person who is the original seller of an undivided fractionalized long-term estate.

  (b) sponsor includes, if the seller is an entity, any individual who exercises managerial responsibility in the sponsoring entity.

  (39) "Third party service provider" means an individual or entity that provides a service necessary to the closing of a specific transaction and includes:

  (a) mortgage brokers;

  (b) mortgage lenders;

  (c) loan originators;

  (d) title service providers;

  (e) attorneys;

  (f) appraisers;

  (g) providers of document preparation services;

  (h) providers of credit reports;

  (i) property condition inspectors;

  (j) settlement agents;

  (k) real estate brokers;

  (l) marketing agents;

  (m) insurance providers; and

  (n) providers of any other services for which a principal or investor will be charged.

  (40) "Traditional education" means education in which instruction takes place between an instructor and students where all are physically present in the same classroom.

  (41) "Undivided fractionalized long-term estate" is defined in Subsection 57-29-102(8).