R162-2f-205. Registration of Entity

  (1) A principal broker may not conduct business through an entity, including a branch office, dba, or separate property management company, without first registering the entity with the division.

  (2) Exemptions. The following locations may be used to conduct real estate business without being registered as branch offices:

  (a) a model home;

  (b) a project sales office; and

  (c) a facility established for twelve months or less as a temporary site for marketing activity, such as an exhibit booth.

  (3) To register an entity with the division, a principal broker shall:

  (a) evidence that the name of the entity is registered with the Division of Corporations;

  (b) certify that the entity is affiliated with a principal broker who:

  (i) is authorized to use the entity name; and

  (ii) will actively supervise the activities of all sales agents, associate brokers, branch brokers, and unlicensed staff;

  (c) if registering a branch office, identify the branch broker who will actively supervise all licensees and unlicensed staff working from the branch office;

  (d) submit an application that includes:

  (i) the physical address of the entity;

  (ii) if the entity is a branch office, the name and license number of the branch broker;

  (iii) the names of associate brokers and sales agents assigned to the entity; and

  (iv) the location and account number of any real estate and property management trust account(s) in which funds received at the registered location will be deposited;

  (e) inform the division of:

  (i) the location and account number of any operating account(s) used by the registered entity; and

  (ii) the location where brokerage records will be kept; and

  (f) pay a nonrefundable application fee.

  (4) Restrictions.

  (a)(i) The division shall not register an entity proposing to use a business name that:

  (A) is likely to mislead the public into thinking that the entity is not a real estate brokerage or property management company;

  (B) closely resembles the name of another registered entity; or

  (C) the division determines might otherwise be confusing or misleading to the public.

  (ii) Approval by the division of an entity's business name does not ensure or grant to the entity a legal right to use or operate under that name.

  (b) A branch office shall operate under the same business name as the principal brokerage.

  (c) An entity may not designate a post office box as its business address, but may designate a post office box as a mailing address.

  (d) All trust accounts and operating accounts used by a registered entity shall be maintained in a bank or credit union located in the state of Utah.

  (5) Registration not transferable.

  (a) A registered entity shall not transfer the registration to any other person.

  (b) A registered entity shall not allow an unlicensed person to use the entity's registration to perform work for which licensure is required.

  (c) If a change in corporate structure of a registered entity creates a separate and unique legal entity, that entity shall obtain a unique registration, and shall not operate under an existing registration.

  (d) The dissolution of a corporation, partnership, limited liability company, association, or other entity registered with the division terminates the registration.