File No. 34198
This rule was published in the November 15, 2010, issue (Vol. 2010, No. 22) of the Utah State Bulletin.
Commerce, Real Estate
Notice of Proposed Rule
DAR File No.: 34198
Filed: 11/01/2010 03:51:16 PM
Purpose of the rule or reason for the change:
The substantive elements of this rule have been incorporated into the proposed new Rule R162-2f. Therefore, this rule is no longer needed. (DAR NOTE: The proposed new Rule R162-2f is under DAR No. 34191 in this issue, November 15, 2010, of the Bulletin.)
Summary of the rule or change:
The rule is repealed in its entirety.
State statutory or constitutional authorization for this rule:
- Subsection 61-2f-103(1)(a)
Anticipated cost or savings to:
the state budget:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to the state budget is anticipated from this filing.
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to local governments is anticipated from this filing.
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to small businesses is anticipated from this filing.
persons other than small businesses, businesses, or local governmental entities:
Where the substantive provisions of this rule are incorporated into the proposed new Rule R162-2f, no fiscal impact to affected persons is anticipated from this filing.
Compliance costs for affected persons:
In repealing this rule, the division and commission relieve affected persons of any obligation to comply with it. There are no compliance costs.
Comments by the department head on the fiscal impact the rule may have on businesses:
No fiscal impact to businesses is anticipated from this rule repeal as the substance of these provisions is contained in the new Rule R162-2f proposed by the Division.
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
160 E 300 S
SALT LAKE CITY, UT 84111-2316
Direct questions regarding this rule to:
- Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at email@example.com
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:
This rule may become effective on:
Deanna Sabey, Director
R162. Commerce, Real Estate.
R162-5. Property Management.
R162-5-1. Definition. 5.1. For purposes of this rule, property management
requiring a real estate license includes advertising real estate
for lease or rent, procuring prospective tenants or lessees,
negotiating lease or rental terms, executing lease or rental
agreements, collecting rent and accounting for and disbursing the
money collected, arranging for repairs to be made to the real
estate, and all other acts listed in Section 61-2-2(13)(a). It
does not include the leasing or management of surface or
subsurface minerals, or oil and gas interests, which is separate
from a sale or lease of the surface estate.
R162-5-2. Exemptions. 5.2. The following individuals are not required to hold
active real estate licenses to engage in property
5.2.1. Owners. An owner of real estate who manages his
5.2.2. Employees. A regular salaried employee of an owner
of real estate who manages property owned by his
5.2.3. Apartment Managers. An individual who manages the
apartments at which he resides in exchange for free or reduced
rent on his apartment.
5.2.4. Homeowner's Association Employees. A full time
salaried employee of a homeowner's association who manages
units subject to the declaration of condominium which established
the homeowner's association.
R162-5-3. Property Management by Real Estate Brokerage. 5.3. All property management performed by a real estate
brokerage which has not obtained a separate property management
company registration, or any licensees or unlicensed assistants
affiliated with the brokerage, shall be done under the name of
the brokerage and not under a separate business name.
5.3.1. All property management activities by a sales
agent or associate broker affiliated with a principal broker
shall be actively supervised by that principal broker. In the
case of a branch office, the branch broker shall also actively
supervise the licensees and unlicensed assistants affiliated with
R162-5-4. Property Management by Separate Property
Management Company. 5.4. A separate property management company registration
must be obtained in order to conduct property management business
under a name different than that of the real estate
5.4.1. The business of a separate property management
company shall be exclusively property management. No real estate
sales activity may be conducted by a property management
5.4.2. A license to operate a property management company
will be granted upon compliance with the following
22.214.171.124. Application. Submission of the property
management company application form required by the division,
signed by an actively licensed principal broker, together with
the proper application fees.
126.96.36.199. Business Name Approval. Compliance with the name
approval provisions in R162-2.3. in the case of a principal
broker who registers the name of his property management company
with the division or R162-2.4. in the case of a property
management company registration issued to a corporation,
partnership, Limited Liability Company or association.
188.8.131.52. Property management by unlicensed principals or
owners prohibited. Individuals who are principals or owners of a
corporation, partnership, Limited Liability Company or
association which is issued a property management company
registration shall not engage in activity which requires a
license unless they are licensed with the division and properly
affiliated with the management broker for the corporation,
partnership, Limited Liability Company or association.
5.4.3. The principal broker shall sign and submit the
forms required by the division to affiliate with the property
management company of each associate broker, branch broker and
sales agent who will conduct property management services for the
property management company.
5.4.4. Support Services Personnel. Individuals who are
employees of a property management company may perform the
following services under the supervision of the principal broker
without holding active real estate licenses: providing a
prospective tenant with access to a vacant apartment; providing
secretarial, bookkeeping, maintenance, or rent collection
services; quoting predetermined rent and lease terms; and filling
out pre-printed lease or rental agreements.
5.4.5. Supervision. All property management activities by
an associate broker or sales agent affiliated with the management
company and all activities on behalf of the company by support
services personnel shall be actively supervised by the principal
broker of the company. In the case of a branch office, the branch
broker shall also actively supervise the licensees and support
services personnel affiliated with that branch.
KEY: real estate business
Date of Enactment or Last Substantive Amendment: April 23,
Notice of Continuation: April 18, 2007
Authorizing, and Implemented or Interpreted Law: 61-2-5 ]
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at http://www.rules.utah.gov/publicat/bull-pdf/2010/b20101115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
Text to be deleted is struck through and surrounded by brackets (e.g., [
example]). Text to be added is underlined (e.g., ). Older browsers may not depict some or any of these attributes on the screen or when the document is printed.
For questions regarding the content or application of this rule, please contact Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at firstname.lastname@example.org.