R162-2f-202b. Broker Licensing Fees and Procedures

  (1) To obtain a Utah license to practice as a broker, an individual shall:

  (a) evidence honesty, integrity, truthfulness, and reputation pursuant to Subsection R162-2f-201(1);

  (b) evidence competency to transact the business of real estate pursuant to Subsection R162-2f-201(2);

  (c)(i) successfully complete 120 hours of approved prelicensing education, including:

  (A) 45 hours of broker principles;

  (B) 45 hours of broker practices; and

  (C) 30 hours of Utah law and testing; or

  (ii) apply to the division for waiver of all or part of the education requirement by virtue of:

  (A) completing equivalent education as part of a college undergraduate or postgraduate degree program, regardless of the date of the degree; or

  (B) completing other equivalent real estate education within the 12-month period prior to the date of application;

  (d)(i) apply with a testing service designated by the division to sit for the licensing examination; and

  (ii) pay a nonrefundable examination fee to the testing center;

  (e) pursuant to this Subsection (3)(a), take and pass both the state and national components of the licensing examination;

  (f)(i) unless Subsection (2)(a) applies, evidence the individual's having, within the five-year period preceding the date of application either:

  (A) three years full-time, licensed, active real estate experience; or

  (B) two years full-time, licensed, active, real estate experience and one year full-time professional real estate experience from the optional experience table in Appendix 3; and

  (ii) evidence having accumulated, within the five-year period preceding the date of application, a total of at least 60 documented experience points complying with R162-2f-401a, as follows:

  (A) 45 to 60 points pursuant to the experience points tables found in Appendices 1 and 2, of which a maximum of 25 points may have been accumulated from the "All other property management" subsections of Appendix 2; and

  (B) 0 to 15 points pursuant to the experience point table found in Appendix 3;

  (iii) a minimum of one-half of the experience points from Tables 1 and 2 must derive from transactions of properties located in the state of Utah;

  (iv) evidence of qualifying experience which the individual shall submit to the division by:

  (A) selecting from the individual's total qualifying experience documented experience points for which the experience complies with the requirements in section R162-2f-401a; and

  (B) submitting for review and approval by the division documentation of at least 60 documented experience points and no more than 80 documented experience points of the individual's qualifying experience; and

  (v) if an individual submits evidence of experience points for transactions involving a team or group, experience points are limited to those transactions for which the individual is named in any written agency agreements and purchase and lease contracts and the applicable experience points will be divided proportionally among the licensees identified in the agency agreements and lease contracts;

  (g) pursuant to this Subsection (3)(b), submit to the division an application for licensure including:

  (i) documentation indicating successful completion of the approved broker prelicensing education;

  (ii) a report of the examination showing a passing score for each component of the examination; and

  (iii) the applicant's business, home, and e-mail addresses;

  (h) provide from any state where licensed as a real estate agent or broker:

  (i) a written record of the applicant's license history; and

  (ii) complete documentation of any disciplinary action taken against the applicant's license;

  (i) if applying for an active license, affiliate with a registered company;

  (j) pay the nonrefundable fees required for licensure, including the nonrefundable fee required under Section 61-2f-505 for the Real Estate Education, Research, and Recovery Fund; and

  (k) if applying for licensure as a principal broker, establish real estate and property management trust accounts, as applicable pursuant to Section R162-2f-403, that:

  (i) contain the term "real estate trust account" or "property management trust account", as applicable, in the account name; and

  (ii) are separate from any operating account(s) of the registered entity for which the individual will serve as a broker; and

  (iii) identify the location(s) where brokerage records will be kept.

  (2)(a) If an individual applies under this Subsection R162-2f-202b within two years of allowing a broker license to expire, the experience required under Subsection (1)(f) shall be accumulated within the seven-year period preceding the date of application.

  (b) Pursuant to Section R162-2f-407, an individual whose application is denied by the division for failure to meet experience requirements under this Subsection (1)(f) may bring the application before the commission.

  (3) Deadlines.

  (a) If an individual passes one test component but fails the other, the individual shall retake and pass the failed component:

  (i) within six months of the date on which the individual achieves a passing score on the passed component; and

  (ii) within 12 months of the date on which the individual completes the prelicensing education.

  (b) An application for licensure shall be submitted:

  (i) within 90 days of the date on which the individual achieves passing scores on both examination components; and

  (ii) within 12 months of the date on which the individual completes the prelicensing education.

  (c) If any deadline in this Section R162-2f-202b falls on a day when the division is closed for business, the deadline shall be extended to the next business day.

  (4) Restriction. A broker license may not be granted to an applicant whose sales agent license is on suspension or probation at the time of application.

  (5) Dual broker licenses.

  (a)(i) A person who holds or obtains a dual broker license under this Subsection may function as the principal broker of a property management company that is a separate entity from the person's real estate brokerage.

  (ii) A dual broker may not conduct real estate sales activities from the separate property management company.

  (iii) A principal broker may conduct property management activities from the person's real estate brokerage:

  (A) without holding a dual broker license; and

  (B) in accordance with Subsections R162-2f-401j and R162-2f-403a-403c;

  (b) A dual broker who wishes to consolidate real estate and property management operations into a single brokerage may:

  (i) at the broker's request, convert the dual broker license to a principal broker license; and

  (ii)(A) convert the property management company to a branch office of the real estate brokerage, including the assignment of a branch broker and using the same name as the real estate brokerage; or

  (B) close the separate property management company.

  (c) As of May 8, 2013:

  (i) the Division shall:

  (A) cease issuing property management principal broker (PMPB) licenses;

  (B) cease issuing property management company (MN) registrations except as to a second company registered under a dual broker license;

  (C) convert any property management principal broker (PMPB) license to a real estate principal broker (PB) license; and

  (D) as to any property management company (MN) registration that is not a second company under a dual broker license, convert the registration to a real estate brokerage (CN) registration; and

  (ii) it shall be permissible to conduct real estate sales activities under any company registration that is converted pursuant to this Subsection (5)(c)(i)(C).