160 E 300 S, SLC, UT 84111

(801) 530 6747

realestate@utah.gov

www.realestate.utah.gov Division of Real EstateUtah Department of Commerce

Gary R. Herbert, Governor Francine A. Giani, Executive Director Jonathan C. Stewart, Division Director

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Director’s Message………….…1-2Mortgage Uniform State Test……2Staff Spotlight……………………..3Licensing/Disciplinary Actions..4-7Rule Developments ……………..8Kagie’s Korner..…………………..9Mortgage License Renewal……10Knowledge Is the Key.………….11AMC Rule Amendment…………12Real Estate Advertising Rules...13Division Annual Report……..14-15IDW Recap…………………..16-17

In This Issue

As a regulatory agency, the Divisionof Real Estate is tasked with protect-ing the public, but we do not want todo this at the expense of promotingresponsible business practices. Weunderstand that there is an importantbalance between regulation and en-hancing commerce. We continue tolook at our statutes and rules andhow we enforce them to determinehow we can continue to protect thepublic while promoting responsiblebusiness practices and enhancingcommerce. The Division looks foropportunities to help licensees un-derstand the statutes and rules and

Director’s MessageFourth Quarter 2016

Jonathan Stewarthow to best protect themselves from violating the law.

One principle that made an impression on me in an undergraduatecriminology class was that for a punishment to deter future violations,the punishment cannot be more severe than the violation warrants.When punishments are too severe, the individual receiving the punish-

Division of Real Estate

ment only thinks about how unfair thepunishment was instead of thinking aboutthe behavior and how to avoid repeatingit.

We work to make sure that whateversanction we hand out, whether through astipulation or an order issued by theCommission or Board, fits the violationcommitted. The Division looks for ways toeducate licensees through the investiga-tive process. When action is necessary,the Division and Commission/Board al-ways consider the requirement of educa-tion in addition to--or instead of--a civilpenalty. In scenarios where educationmakes more sense than a fine, that issomething we consider. I believe educa-tion as part of resolving a case enhancescommerce while simultaneously protect-ing the public. Education helps the per-son who is being sanctioned becomebetter able to assist the public whileavoiding future violations.

Although we look for ways to educate,when our investigations uncover evi-dence of intentional violations that de-fraud or harm consumers, we make surethat those are handled differently. Wewant to make it hard for the bad guys sothere is an even playing field for all licens-ees. Please help us by reporting viola-tions.

Thank you for all you do foryour respective industries.

We wish you all aHappy New Year.

In the third quarter news-letter we informed licens-ees that the MortgageCommission had voted tonot adopt the UST. Sever-al weeks following thevote, the idea of a com-promise was proposedand additional discussionensued. The Commissionand Division discussedthe possibility of adding anew continuing educationrequirement in exchangefor adoption of the UST.Several lenders werepresent at this meetingand all spoke in favor ofthe proposed idea.

Originally it was proposedto add additional CE forall licensees. After muchdiscussion, it was decidedthat the Commission andDivision did not want toadd an additional require-ment on those who hadalready obtained their li-cense. Those familiar with

the Real Estate require-ments know that all newsales agents are requiredto complete a 12-hour newsales agent course prior totheir first renewal.

This real estate post li-censing CE requirementwas discussed and theCommission and Divisionagreed and voted to adoptthe UST with the additionof a new 3 to 6-hour newloan originator CE coursethat will be required priorto a loan originator’s firstrenewal. The Division hasalready updated proposedlegislation to include theadoption of the UST andrulemaking authority forthe new CE course. In thenext few months the Com-mission and Division willdiscuss the specific re-quirements for this newCE course. The adoptionof the UST should takeplace in May of 2017.

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Division of Real Estate

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Utah! Division of Real Estate

Director …………..Jonathan StewartEditor/Contributor…Mark FagergrenContributor/Layout…Jennica GruverContributor……….…..Kadee WrightContributor ………….. Justin BarneyContributor ……….…….. Van Kagie

2016 Published by

Utah Division of Real EstateDepartment of Commerce

160 E 300 S (84111)PO Box 146711SLC UT 84114(801) 530-6747

Real Estate Commissioners

Lerron E. Little, ChairLori Chapman, Vice ChairRussell K. BoothCalvin MusselmanWilliam O. Perry IVResidential Mortgage RegulatoryCommissioners

Steve A. Hiatt, ChairGeorge P. Richards, Vice ChairCathy J. GardnerKay R. AshtonScott GibsonAppraiser Licensing andCertification Board Members

Kristin Coleman-Nichol, ChairJohn E. Ulibarri, II, Vice ChairDaniel BrammerJames S. BringhurstJeffrey T. Morley

Kadee Wright is our “new” Chief Investi-gator! After 3 years as a Real EstateInvestigator with the Division she beganher new position as Chief Investigator inOctober of 2016. Prior to her employ-ment with the Division Kadee obtained 9years of experience in residential sales.Kadee earned her associate’s degreefrom Salt Lake Community College as aparalegal and has also worked as aninvestigator for both UTA and the Depart-ment of Workforce Services.

Specialist. She relocated to Oregonwhere she worked with Farmers Insur-ance for about 6 months before return-ing to Utah.

When asked about her position with theDivision, Hillarie said she has enjoyedlearning the different aspects of RealEstate, as well as interacting and assist-ing with various individuals throughoutthe Real Estate Industry.

Hillarie is among one of the newest of our Real Estate Licensingteam! She began her position with the Division as a Real EstateLicensing Specialist in July of 2016.

Hillarie is a decedent from the Northern Ute Tribe, located in FortDuchesne, Utah. Her favorite thing to do is travel. If you get thechance to talk to her, ask about her trips to Greece, Italy, Germanyand Austria. Hillarie has participated in and held titles for numerousNative American pageants through her teen years. In 2014 sheparticipated in the Miss Utah USA pageant! She was previouslyemployed with the Ute Indian Tribe Grants Department for about 3and a half years, first as a filing specialist and later as a Grant

Outside of the office Kadee enjoys spending time outdoors, cookingand traveling with her husband and kids. At the office you canalways tell when Kadee is around because she usually has adelightfully scented essential oil diffusing at her desk. Kadee lovesall things real estate and investigation, we’re lucky to have her onour team!

Division of Real Estate

Please note that Utah law allows 30 days for appeal of an order. Some of the actions belowmight be subject to this appeal right or currently under appeal.

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placed on probation for the initiallicensing period due to criminal his-tory. Case number RE-16-86991

BLUTH, BRANDON, sales agent,St. George, Utah. In an order datedSeptember 6, 2016, Mr. Bluth’slicense was granted and immedi-ately suspended for criminal histo-ry and for failing to pay childsupport. Mr. Bluth may apply forthe removal of his license suspen-sion after one year. Case numberRE-16-84844

CARTWRIGHT, BRET, associatebroker, Sandy, Utah. In a stipulatedorder dated September 21, 2016,Mr. Cartwright admitted to repre-senting a buyer in a transaction inwhich the subject property wasowned by a company owned andmanaged by Mr. Cartwright. Mr.Cartwright entered into a limitedagent consent agreement with thebuyer; however, Utah law prohibitsa licensee from acting as a limitedagent in any transaction in whichthe licensee is an officer, director,partner, member, employee, orstockholder of the entity in thetransaction. Mr. Cartwright agreedto pay a civil penalty of $3500.Case number RE-12-60416

CARTWRIGHT, MARVIN, associ-ate broker, American Fork, Utah. Ina stipulated order dated Septem-ber 21, 2016, Mr. Cartwright admit-ted to having paid a licensee a

license was granted and placed onprobation due to a pending criminalmatter. Case number MG-16-86670

REAL ESTATE

AGUILAR, TIMOTHY D., salesagent, South Ogden, Utah. In anorder dated November 15, 2016,Mr. Aguilar’s license was grantedand placed on probation for theinitial licensing period due to crimi-nal history. Case number RE-1687087

AVERETT, BRAYDEN, salesagent, Centerville, Utah. In an orderdated November 8, 2016, Mr. Aver-ett’s license was granted andplaced on probation for the initiallicensing period due to criminal his-tory. Case number RE-16-86961

BESS, LINDEE M., principal broker,North Ogden, Utah. In a stipulatedorder dated September 21, 2016,Ms. Bess admitted to having failedto obtain a written agency agree-ment and having failed to obtaininformed consent of the parties pri-or to providing real estate servicesas a limited agent. Ms. Bess agreedto pay a civil penalty of $1500. Casenumbers RE-14-72836 and RE-14-72837.

BILLINGS, JASON TODD, salesagent, Highland, Utah. In an orderdated November 10, 2016, Mr. Bill-ings’s license was granted and

APPRAISAL

HOKANSON, JESSE N., certifiedresidential appraiser, South Jor-dan, Utah. In a stipulated orderdated November 23, 2016, Mr.Hokanson admitted to having vio-lated the Uniform Standards ofProfessional Appraisal Practice, inthat he failed to: 1) determine andperform the scope of work neces-sary to develop credible assign-ment results, 2) employ methodsand techniques necessary to pro-duce a credible appraisal, and 3)failed to accurately disclose allhypothetical conditions used in theassignment. Mr. Hokansonagreed to pay a civil penalty of$3000 and to complete sevenhours of continuing education inaddition to the continuing educa-tion required for his next licenserenewal. Case number RE-1680577

MORTGAGE

DAN BAIRD, mortgage loan origi-nator, Ogden, Utah. In an orderdated September 15, 2016, Mr.Baird’s license was granted andplaced on probation until Decem-ber 31, 2017 due to criminal histo-ry. Case number MG-16-85930

BRYANT, ANDRE JOSEPH,mortgage loan originator, Chan-dler, Arizona. In an order datedOctober 25, 2016, Mr. Bryant’s

Division of Real Estate

sales commission after the licens-ee attempted to affiliate with Mr.Cartwright’s brokerage but failedto complete the affiliation process.In addition, Mr. Cartwright allowedanother licensee affiliated with hisbrokerage to act as both a limitedagent and the principal in twotransactions. As the agent’s bro-ker, Mr. Cartwright was responsi-ble to actively supervise theagent. Mr. Cartwright’s actionsare in violation of Utah law. Mr.Cartwright agreed to pay a civilpenalty of $4000. Case numbersRE-12-58665 and RE-12-58668

CHATWIN, ROBERT A., principalbroker, West Jordan, Utah. In anorder dated November 30, 2016,Mr. Chatwin’s application to re-new his license to practice as aprincipal broker was granted andhis license placed on probation forone year due to criminal history.Case number RE-16-87349

ECHLIN, JONATHAN D., salesagent, Salt Lake City, Utah. In astipulated order dated September21, 2016, Mr. Echlin admitted tocontinuing to represent buyersand sellers in several transactionsafter his license had expired andbefore his license was later rein-stated, in violation of Utah law. Mr.Echlin agreed to pay a civil penal-ty of $7000. Case number RE-13-67773

GIVENS, SARAH STEPHANIE,sales agent, Taylorsville, Utah. Inan order dated November 16,2016, Ms. Givens’s license wasgranted and placed on probationfor the initial licensing period due

HEITZ, JASON A., sales agent,West Jordan, Utah. In an orderdated October 26, 2016, Mr.Heitz’s license was renewed andplaced on probation for the renew-al period due to a pending criminalmatter. If Mr. Heitz is found to benot guilty, the probation may belifted. However, if Mr. Heitz is con-victed, his license will be suspend-ed for the remainder of therenewal period. Case number RE-16-86701

HUNTER, CHRISTOPHER ROD-NEY, sales agent, Nibley, Utah. Inan order dated September 15,2016, Mr. Hunter’s license wasgranted and placed on probationfor the initial licensing period dueto criminal history. Case numberRE-16-85927

JOHNSON, BRANDON, salesagent, Riverton, Utah. In a stipu-lated order dated September 21,2016, Mr. Johnson admitted tohaving failed to include the nameof his real estate brokerage on asign displayed in the rear windowof an automobile, in violation ofUtah law. Mr. Johnson agreed topay a civil penalty of $150. Casenumber RE-14-73304

LOPEZ, MAYRA, sales agent, Le-hi, Utah. In a stipulated order dat-ed November 16, 2016, Ms. Lopezadmitted to failing to follow theinstructions of her principal, in vio-lation of Utah law. Ms. Lopezagreed to pay a civil penalty of$750 and to complete four hoursof continuing education, two hoursin agency law and two hours incontracts, in addition to the con-tinuing education required for her

to criminal history. Case numberRE-16-87086

GRAHAM, JAMES D., sales agent,Herriman, Utah. In a stipulated or-der dated November 16, 2016, Mr.Graham admitted to facts whichconstitute the following violations ofUtah law: 1) failing to obtain writteninformed consent prior to repre-senting both parties as a limitedagent; 2) failing to follow the in-structions of his principal; and 3)failing to exercise reasonable careand diligence. Mr. Graham agreedto pay a civil penalty of $1500 andto complete nine hours of continu-ing education on the topics of con-tract law (3 hours), ethics (3 hours),and agency law (3 hours) in addi-tion to the continuing education re-quired for his next license renewal.Case number RE-13-66586

HAMMON, BRANDI, principal bro-ker, Eden, Utah. In a stipulatedorder dated October 19, 2016, Ms.Hammon admitted to having failedto execute a written agency agree-ment prior to providing propertymanagement services, in violationof Utah law. Ms. Hammon agreedto pay a civil penalty of $1000 andto complete a three hour course inagency law in addition to the con-tinuing education required for hernext license renewal. Case numberRE-14-68828

HEALEY, DAVID JAMES, salesagent, Pleasant Grove, Utah. In anorder dated October 26, 2016, Mr.Healey’s license was granted andplaced on probation for one yeardue to criminal history. Case num-ber RE-16-86702

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Division of Real Estate

agent, Woods Cross, Utah. In anorder dated September 16, 2016,Mr. Roger’s license was renewedand placed on probation for therenewal period due to criminal his-tory. Case number RE-16-85965

ROUNKLES, BLAKE D., salesagent, Kaysville, Utah. In a stipulat-ed order dated September 21,2016, Mr. Rounkles admitted thathe did not include his brokerageinformation in direct mail and elec-tronic advertising, in violation of ad-ministrate rule. Mr. Rounklesagreed to pay a civil penalty of$150. Case number RE-14-72547

SIMONSEN, SCOTT, sales agent,Cottonwood Heights, Utah. In astipulated order dated September21, 2016, Mr. Simonsen admitted tocontinuing to represent a client in atransaction after his license hadexpired and before his license waslater reinstated, in violation of Utahlaw. Mr. Simonsen agreed to pay acivil penalty of $2,500 and to com-plete a one hour course in the RealEstate Licensing Management Sys-tem in addition to the continuingeducation required for his next li-cense renewal. Case number RE-13-67771

SMITH, CARLOS M., sales agent,Salt Lake City, Utah. In an orderdated September 26, 2016, Mr.Smith’’s license was granted andplaced on probation for the initiallicensing period due to criminal his-tory. Case number RE-16-86105

TANNER, BRADY T., sales agent,Salt Lake City, Utah. In a stipulatedorder dated October 19, 2016, Mr.Tanner admitted to having failed to

next license renewal. Case num-ber RE-14-72619

MADSEN, JEFFREY DARRELL,sales agent, Orem, Utah. In anorder dated September 20, 2016,Mr. Madsen’s license was re-newed and placed on probation forthe renewal period due to a pend-ing criminal matter. If Mr. Madsenis found to be not guilty, the proba-tion may be lifted. However, if Mr.Madsen is convicted of a felony,his license will be immediately re-voked and if he is convicted of amisdemeanor, his license will beimmediately suspended. Casenumber RE-16-86007

MOSS, SHAWN, sales agent, Syr-acuse, Utah. In an order datedOctober 25, 2016, Mr. Moss’s li-cense was granted and placed onprobation due to criminal historyand unpaid civil judgments includ-ing tax liens and a child supportlien. After the initial licensing peri-od, Mr. Moss may renew his li-cense on probation if he has apayment plan in place for the taxliens and has made regular andsubstantial payments on the childsupport lien. Case number RE-16-86654

NELSON, ERIC, sales agent, ParkCity, Utah. In a stipulated orderdated September 21, 2016, Mr.Nelson admitted that in 2012, hemade a substantial misrepresen-tation while representing his clientand failed to act competently inorder to safeguard the interest ofthe public, in violation of Utah law.He had self-reported the violationand asserted that the violations

were the result of a medical condi-tion. Mr. Nelson voluntarily paidrestitution to the affected parties,agreed to pay a civil penalty of$15,000, and agreed to have hislicense placed on probation for theremainder of the two year licenseterm. Case number RE-12-62849

OLSON, BRANDON, sales agent,Salt Lake City, Utah. In an orderdated November 15, 2016, Mr. Ol-son’s license was granted andplaced on probation for one yeardue to criminal history. Case num-ber RE-16-87083

PAYNE, TED L., branch broker, St.George, Utah. In an order datedOctober 20, 2016, Mr. Payne’s li-cense was renewed and placed onprobation due to a pending criminalmatter. If Mr. Payne is found to benot guilty, the probation may belifted. However, if Mr. Payne is con-victed, his license will remain onprobation for the renewal period.Case number RE-16-86598

REBER, COLTON LYN, salesagent. Far West, Utah. In an orderdated November 8, 2016, Mr. Re-ber’s license was granted andplaced on probation for the initiallicensing period due to criminal his-tory. Case number RE-16-86958

RIDD, NICHOLAS JAMES, salesagent, Salt Lake City, Utah. In acorrected order dated November16, 2016, Mr. Ridd’s license wasgranted and placed on probationfor the initial licensing period due tocriminal history. Case number RE-16-86989

ROGERS, DOUGLAS, sales6

Division of Real Estate

sales agent, Santa Clara, Utah. Inan order dated October 20, 2016,Mr. Weakley’s license was grantedand placed on probation for theinitial licensing period due to crimi-nal history. Case number RE-1686596

WILLIAMS, BRIAN C., sales agent,Midvale, Utah. In a stipulated orderdated November 16, 2016, Mr. Wil-liams admitted to having failed toexecute a written agency agree-ment prior to offering to sell proper-ty for the owner, in violation of Utahlaw. Mr. Williams agreed to pay acivil penalty of $1000 and completethree hours of continuing educationon the topic of agency in addition tothe continuing education requiredfor his next license renewal. Casenumber RE-14-70361

WILSON, ALLISON, sales agent,Ogden, Utah. In an order datedNovember 18, 2016, Ms. Wilson’slicense was granted and placed onprobation for the initial licensing pe-riod due to criminal history. Casenumber RE-16-87167

TIMESHARE

CROWELL, RORY B., timesharesales person, Midvale, Utah. In anorder dated November 29, 2016,Mr. Crowell’s application for time-share sales person was denied dueto his criminal history and for filingan application with misleading infor-mation. Mr. Crowell’s applicationcontained misleading informationas he failed to fully disclose theextent of his criminal history. Casenumber TS-16-87313

timely provide a cancellation no-tice in a transaction and to havingfailed to inform the sellers’ agentthat the buyer had not deposited aportion of the agreed upon earnestmoney. Mr. Tanner agreed to paya civil penalty of $500 and to com-plete three hours of continuing ed-ucation on the topic of contracts inaddition to the continuing educa-tion required for his next licenserenewal. Case number RE-1368255

TATOM, KEVIN B., sales agent,Herriman, Utah. In an order datedOctober 28, 2016, Mr. Tatom’slicense was granted and placed onprobation for the initial licensingperiod due to criminal history.Case number RE-16-86762

TELAROLI, DALLIN, sales agent,Saratoga Springs. In an order dat-ed November 17, 2016, Mr. Tela-roli’s license was granted andplaced on probation for the initiallicensing period due to criminalhistory. Case number RE-1687157

TERRY, ALICIA J., sales agent,Highland, Utah. In a stipulated or-der dated November 16, 2016,Ms. Terry admitted to having ad-vertised a property for sale ap-proximately one week after theproperty had sold. In addition, Ms.Terry failed to disclose the fullname of the brokerage in the ad-vertisement. Ms. Terry agreed topay a civil penalty of $500 and tocomplete three hours of continuingeducation on the topic of agency inaddition to the continuing educa-tion required for her next license

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renewal. Case number RE-1472257

THOMPSON, DEBRA J., salesagent, Salt Lake City, Utah. In anorder dated October 4, 2016, Ms.Thompson’s license was denieddue to the prior sanction of Ms.Thompson’s title insurance license.Case number RE-16-85267

TIPPETTS, NANCY DIANE, salesagent, Layton, Utah. In an orderdated October 4, 2016, Ms. Tip-petts’s application for licensure asa real estate sales agent was de-nied due to several unsatisfied civiljudgments. Case number RE-1685266

TORRES, KATY, sales agent, Tay-lorsville, Utah. In an order datedSeptember 16, 2016, Ms. Torres’slicense was granted and placed onprobation for the initial licensingperiod due to criminal history. Casenumber RE-16-85963

VAN EKELENBURG, THOMASJEFFREY, sales agent, Sandy,Utah. In an order dated November3, 2016, Mr. Van Ekelenburg’s li-cense was granted and placed onprobation for the initial licensingperiod due to criminal history. Casenumber RE-16-86888

VARGA, SEBASTIAN FERNAN-DO, sales agent, Stansbury Park,Utah. In an order dated November22, 2016, Mr. Varga’s license wasgranted and placed on probation forthe initial licensing period due tocriminal history. Case number RE-16-87131

WEAKLEY, MARION CLARK,

Division of Real Estate

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tion to the proposed amendmentto the advertising rule, the Com-mission approved another possi-ble amendment to the brokerexperience rules. This amend-ment would limit broker experi-ence points for experienceresulting from a non-exclusivebroker agreement. The publiccomment period for the proposedrule amendment ends January 3,2017. Please see the associatednewsletter article on page 13 fordetails of the proposed ruleamendment.

Timeshare and Camp ResortThere are no proposed ruleamendments under considerationfor the timeshare and camp resortrules.

MortgageThe Mortgage Commission is cur-rently considering an administra-tive rule addressing licenseessigning on behalf of another.Nothing has been voted on at thistime.

Real Estate1. A rule amendment that addsthe topic of Fair Housing as a coretopic for real estate continuing ed-ucation and makes changes to thebroker experience requirementsbecame effective in December.This rule clarifies the broker expe-rience points that a licensee repre-senting a client under a writtenproperty management agreementmay accumulate.

2. In April 2016, the Real EstateCommission, acting with the Divi-sion of Real Estate established arules committee to consider possi-ble amendments to the advertisingrule. The committee met numer-ous times and presented a recom-mendation to the Commission toamend the advertising rule. TheCommission considered the rec-ommendation of the committeeand authorized the filing of a pro-posed rule amendment consistentwith the recommendation. In addi-

Appraisal ManagementIn April 2016, the AppraiserBoard, acting with the Division ofReal Estate, established a rulescommittee to consider possibleamendments to the administra-tive rules relating to the mannerby which an appraiser may beremoved from an AMC’s apprais-er panel and how appraisal as-signments are offered toappraisers by an AMC. The Ap-praiser Board considered the rec-ommendation of the rulescommittee and approved the filingof a proposed rule amendmentconsistent with the recommenda-tion. A proposed rule amendmenthas been filed and a period forpublic comment on the proposedrule is open through January 17,2017. Please see the associatednewsletter article on page 12 fordetails of the proposed ruleamendment. A public hearing isscheduled for January 25, 2017to allow anyone interested in thismatter to comment on the pro-posed rule amendment.

AppraisalThere are no proposed ruleamendments under considerationfor the appraisal rules.

To view and comment on any proposed or amended rules,please visit the Utah State Bulletin at

http://www.rules.utah.gov/publicat/bulletin.htm

Division of Real Estate

The Division occasionally re-ceives calls from licensees want-ing to know if, as an investor, theycan represent the other side of areal estate transaction. The Divi-sion informs these callers that ifthey did so, they would be in vio-lation of the following Administra-tive Rules:

R162-2f-401a(1) (An individual li-censee shall) uphold the followingfiduciary duties in the course ofrepresenting a principal:

(a) loyalty, which obligates theagent to place the bestinterests of the principalabove all other interests,including the agent's own;

R162-2f-401b(15) (An individuallicensee may not) act or attemptto act as a limited agent in anytransaction in which:(a) the licensee is a principal inthe transaction; or(b) any entity in which thelicensee is an officer, director,partner, member, employee, orstockholder is a principal in thetransaction;

by Mr. Sly, given to the buyer whosigns it, returns it to Mr. Sly whothen accepts the offer. Threemonths later, just before closing,Mr. Sly sends the buyer anaddendum disclosing that he is alicensee and owner of theproperty.

Any licensee who is a principal ina transaction and attempts torepresent the other party is inviolation of the above referencedadministrative rules. The rulespreclude a licensee fromrepresenting the other side of atransaction when the licensee hasa personal interest in the property.Any agent attempting to do sowould breach his or her fiduciaryduty to the client. In addition, thelicensee would potentially subjectthemselves and their brokerage tolegal scrutiny, and sanctions ordisciplinary action from theDivision.

The Division has seen anincrease of complaints involving alicensee who is a principal in atransaction and also representsthe other side. Here are a fewexamples to help clarify the issue:

Scenario 1 – Agent Slick finds aproperty that is in default andcontacts the distressed owner.After some discussion, thelicensee ends up getting a listingagreement and presents theowner an offer from SlickSolutions LLC. Mr. Slick is thesole owner of Slick Solutions. Hediscloses his interest in anaddendum while also acting as alicensed Utah real estateprofessional representing theseller in the transaction.

Scenario 2 - Agent Sly is aninvestor and is the seller of aninvestment property. Anunrepresented buyer views theproperty and calls back the nextday wanting to write an offer onthe property. Mr. Sly tells theunrepresented buyer that he canrepresent him and enters into anexclusive buyer agencyagreement. A Real EstatePurchase Contract is then drafted

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Division of Real Estate

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2016-17

The year 2016 has come to anend, and so too has the mortgagelicense renewal process for2017. This year applicants seek-ing to renew their mortgage li-censes were not required toauthorize a criminal backgroundcheck (CBC) or credit history inconjunction with their 2017 li-cense renewal. The only Utahspecific requirement this year isthe 2 hour Utah Law Course. This2 hour course is in addition to the8 hour NMLS CE required nation-ally for all renewing mortgagelicensees.

All in all, this year’s renewal pro-cess has been relatively calm,with fewer industry phone calls,e-mails, and live chats regardingstate specific renewal require-ments. At the time of this writing88% of our licensees have re-quested renewal and 88% ofthose requested have been ap-proved. There are 359 renewalson pending status due to out-standing deficiencies. There are267 applicants whose applica-tions are awaiting processing.Some minor delays are a result ofpending uncleared deficiencieson individual or entity licenses.

If you have not received an emailconfirmation through the NMLSsystem that your license renewalis approved and you requestedrenewal more than two weeksago, please log into your NMLSaccount and see if there are defi-

email or fax and we will clear thedeficiency and quickly renew yourlicense. Please send emails to:realestate@utah.gov or faxes to801-526-4382.

If you failed to request your re-newal before year end, youshould immediately discontin-ue any activity that requires amortgage license until you havea renewal approved by the Divi-sion. You will need to submit alate renewal application beforeFebruary 28, 2017.

If you find that you have not re-quested renewal prior to the endof the year and you still wish tomaintain your mortgage license,you can reinstate your license pri-or to February 28, 2017. You willneed to complete the continuingeducation requirement, the 2016Late CE, and the Utah 2 hour lawcourse, request your renewalthrough the NMLS, pay the renew-al fee and a $50 late fee. If youcompleted your CE prior to theend of the year, but did not re-quest renewal, you will not needadditional CE, you will just need torequest renewal and pay the re-newal and late fee through NMLSprior to February 28, 2017.

Please note the importance of theFebruary 28, 2017 deadline. Afterthat date, licensees who wish toreinstate their license will haveadditional requirements and fees.

ciencies on your license (licenseitems) that are holding up the ap-proval. If you requested renewalprior to the December 31, 2016,deadline, you can continue to useyour license according to your li-cense status as of October 31,2016, while we review your appli-cation. In addition to receiving aconfirmation email from the NMLSstating that your renewal has beenapproved, you will also receive anemail from the Division of RealEstate with your Mortgage licenseattached (please allow up to 10business days from the day yourrenewal is approved to receive theDRE email). You may print yourlicense at your convenience.

For those who have not receivedan email indicating that your re-newal has been approved, pleasecheck your NMLS account in thefollowing manner. Log in to yourNMLS account: Under “compositeview,” click on “license/registrationstatus,” and then click on “licenseitems” next to your Utah License.Generally, there are corrections oradditions required in your NMLSaccount that you can take care offairly easily. Mostly, they are forupdating your employer history,completing the Utah 2 Hour CEcourse, or failing to authorize orprovide required documentation. Ifyou see a deficiency for failure tocomplete the Utah 2 Hour Lawcourse and you know you com-pleted it, you may send a copy ofyour certificate of completion by

Division of Real Estate

Knowledge Is the

- Chris MartindaleReal Estate Investigator

The mission of the UtahDivision of Real Estateis to protect the publicand promote responsi-ble business practices

through education, licensure, and regulation of realestate, mortgage, and appraisal professionals. Withthis mission in mind, licensees venture into the worldto assist the public with the purchase and sale of theirhomes and other properties. Real estate sales can bea fun, lucrative, and a rewarding business. From thefirst transaction fresh out of licensing school to thepainstaking responsibilities of running a brokerage,every transaction is a different experience. With everytransaction you learn something new and, hopefully,beneficial to your life and business. But, such is life,not every transaction goes as hoped or as planned.Mistakes can be made and details can be overlookedand a transaction can go belly up. People get upset orare harmed and a complaint is filed with the Divisionof Real Estate.

The Division receives complaints from all over thestate from licensed agents, loan officers, appraisers,and the general public. We examine each complaintclosely to determine if the statutes and administrativerules were followed. On occasion, licensees underinvestigation justify their actions based on the adviceof an attorney. Keep in mind the Division has specificstatutes and rules that require consideration. If adviceis given without consideration for these statutes andrules, a small problem could quickly become a big

problem. It is essential to ensure that the statutesand rules are being considered by your attorney.

Knowledge is the key! Located on the home pageof the Division of Real Estate website are tabs foreach industry. Under each industry tab there is asection titled “Statutes and Administrative Rules.”These statues and rules govern our actions in thisindustry. They are not just a set of boring laws.They are a compilation of valuable informationregarding licensing procedures, document require-ments, trust account provisions, rules regardingpersonal conduct in a transaction, and much more.You do not have to memorize these rules andstatues, but as a licensee, you should know whatis in them and where to find them. The more youstudy and familiarize yourself with the statutes andrules, the more fine-tuned your business will be-come. Nearly every question the Division receivesis answered by referring to these statutes andrules. It would take you far less time to readthrough and develop a solid understanding ofthem, than it took you to obtain your license. Thecombination of your practical knowledge and expe-rience, with a solid understanding of the statutesand rules, will help to make you the best agent youcan be. Call us anytime if you need assistance inhow to apply a specific statute or rule to yoursituation. The Division would certainly rather havea conversation with you prior to a violation occur-ring than work the next case file with your name onit.

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Division of Real Estate

AMCIn April 2016, the Appraiser Board,acting with the Division of RealEstate, established a rules commit-tee to consider the possibleamendment of the AMC adminis-trative rules relating to the mannerby which an appraiser may be re-moved from an AMC’s appraiserpanel and how appraisal assign-ments are offered to appraisers byan AMC. The following individualswere appointed to serve on theAMC Rules Committee:

1. Appraiser Board members, Kris-tin Coleman-Nicholl and DanielBrammer;

2. AMC Representatives, MichaelJorgensen of Home Base Apprais-al Management and Greg Bern-stein of Value Trend Solutions;

3. Appraisers, Matthew Frenthe-way and Keven Ewell; and

4. Staff members of the Division ofReal Estate, Jeffrey Nielsen andJustin Barney.

The committee met in nine meet-ings over a period of approximatelyfive months to consider the issuesfor which the Rules Committee wasformed. Matthew Frentheway wasappointed and served as the chairof the Rules Committee. Over thecourse of the nine meetings theRules Committee discussed theissues and prepared a written rec-ommendation for possible rule

amendment. The Division appreci-ates the members of the Rule Com-mittee who volunteered their time inthis process.

The Rules Committee presented itsrecommendation to the AppraiserBoard on September 27, 2016. TheBoard discussed the recommenda-tion and asked the Rules Commit-tee to consider a furtheramendment relating to the rank andtier models used by some AMCsand to consider whether in theevent that a time calculation is usedby an AMC to rank an appraiser orto establish tiers of appraisal pan-els, the AMC should only use busi-ness days in the calculation. TheRules Committee considered theseissues and updated its recommen-dation to the Board.

The Appraiser Board consideredthe updated recommendation of theRules Committee and approved thefiling of a proposed rule amendmentconsistent with the recommenda-tion. For exact language, we sug-gest reading the rule amendmentfound here:

http://www.rules.utah.gov/publicat/bulletin/2016/20161215/41024.htm

The intent of the proposed ruleamendment is to:

a. provide clarity and transparencyin communications between an

AMC and an appraiser with regardto disclosures and notices from theAMC to the appraiser;

b. provide an assumption of compli-ance for an AMC that its appraisalfees are customary and reasonableas required by law if the AMC paysan appraiser consistent with theUnited States Department of Veter-ans Affairs fee schedule;

c. clarify the manner by which anAMC may offer an appraisal as-signment to an appraiser whichcannot include offering the assign-ment to a group of two or moreappraisers by broadcasting a simul-taneous electronic communication;and

d. specify that if an AMC uses deliv-ery time for completion of an ap-praisal report for a tiered panelmodel or when ranking an apprais-er, the AMC shall only use businessdays in the time calculation.

On November 17, 2016, the pro-posed rule amendment was filedwith the Office of AdministrativeRules. The public including mem-bers of the appraisal managementand appraisal industries may com-ment on the proposed rule amend-ment until January 17, 2017. Apublic hearing is scheduled for Jan-uary 25th, 2017 to allow anyoneinterested in this matter to com-ment on the proposed rule amend-ment.

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Division of Real Estate

As mentioned in the third quarternewsletter, a committee made upof representatives from the Com-mission, industry, and the Divisionhave been reviewing real estateadvertising rules. During the RealEstate Commission meeting onOctober 19th, the Committee pre-sented a proposal to the RealEstate Commission. The Com-mission voted in favor of submit-ting the proposal for publiccomment. The public commentperiod will run from December 4through January 3. The followingis a brief description of the chang-es. For exact language, we sug-gest reading the rule amendmentfound here:

http://www.rules.utah.gov/publicat/bulletin/2016/20161201/40952.htm

● All advertisements shall clearlyand conspicuously identify thename of the brokerage withwhich the licensee is affiliated;

● When it is not reasonable to

● identify the brokerage in anelectronic advertisement, theelectronic advertisement mustdirectly link to a display thatclearly and conspicuously iden-tifies the brokerage name;

● Licensees are not required toidentify the brokerage if:

-Advertising a property not list-ed with the brokerage and,

-Licensee has an ownershipinterest in the property and theproperty is not listed and,

-Identifies the individual as“owner-agent” or “owner-bro-ker” and the property is notlisted

● The brokerage name must bethe name of the brokerage onDivision records;

● Teams, groups, or other mar-keting entities are subject to thesame advertising requirements

● as an individual;

● If advertising a guaranteedsales plan, the advertisementmust include, in a clear andconspicuous manner:

● A statement that costs and con-ditions may apply; and

-Information about how to con-tact the licensee to obtain thedisclosures required underR162-2f-401a(23).

● Any radio or television adver-tisement of a guaranteed salesplan shall include a conspicu-ous statement advising of anyconditions or limitations.

This administrative rule filing alsoincludes changes to the Appendi-ces section, R162-2f-501. Thesechanges relate to calculating ex-perience points to become a bro-ker when using an agencyagreement other than an exclu-sive brokerage agreement as de-fined under R162-2f-308(1)(d).

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Division of Real Estate

2016 SUCCESS Goals

In fiscal year 2016, the Division of Real Estatecontinued following the Governor’s challenge toincrease efficiency. Although the number of newlicense applications increased from fiscal year2015, Division licensing staff was able to maintaina more efficient processing time than the baseline.

Licensing

The Division renews real estate and appraisal li-censes on a biennial basis (two years followinginitial application) and mortgage licenses annuallyfrom November 1 through December 31. Licenseesare sent an email license renewal reminder notifica-tion 45 days, 30 days, and 14 days prior to licenseexpiration and 2 days following expiration. Thesenotices cease following the renewal of a license.

For a number of years Real Estate Brokers, bothPrincipal and Branch, have desired and requestedsome method of Broker Notification to provide aneasy means of tracking licensees that are affiliatedwith their brokerage. A system has now been intro-duced that allows the Broker to easily account forthose licensees whose licenses will soon be, or thathave expired.

Since January of 2016, all Principal and BranchBrokers began receiving a monthly email notifica-

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tion from the Division with timely information regardingall licensees affiliated with their brokerage or branch.

Those affiliated individuals whose licenses are set toexpire in the next 45 days, are highlighted in yellow sothat the broker will easily be able to see whose licens-es will be expiring as well as the current number ofContinuing Education hours that the licensees havecompleted (as of the date of the Division email notifi-cation). Brokers are now better able to monitor theirlicensees and encourage them to renew prior to expi-ration.

If an individual has allowed their license to expire, theexpired (now formerly affiliated licensee’s) licenseappears highlighted in red. Brokers should take stepsto immediately have this licensee discontinue per-forming anything that requires a license until theycomplete the renewal process.

This new notification system better enables Principaland Branch Brokers to be aware of the license statusof their licensees and encourage their timely licenserenewal.

Education

The Division conducts an annual Instructor Develop-ment Workshop to assist professional instructors ofreal estate, mortgage, and appraisal education. Theannual workshop helps educators refine and improvetheir instructional skills. State licensees benefit fromhaving knowledgeable, well trained educators that notonly know their subject matter, but also have en-hanced delivery skills to heighten the learning experi-ence of prospective and established licensees.

Baseline Fiscal Year 2016Average Applications received per month 194.4 288.58

Percentage processed within five days. 74.9% 85.04%

Division of Real Estate

Support Services

The Division has well trained and helpful licensingspecialists that professionally assist the public andlicensees in resolving questions about the licensingor renewal process, rules and regulations, or generalindustry practices for the real estate, mortgage, andappraisal professions. Communication by phone call,easily accessible website information, and live chatconversations are conducted by accommodating,service oriented experts.

Total Number of Licenses/Registrations

New Licenses/Registrations Issued

*Includes temporary permit and reciprocal licenses.

Licenses/Registrations Renewed

Fiscal Year2011

Fiscal Year2012

Fiscal Year2013

Fiscal Year 2014

Fiscal Year 2015

Fiscal Year 2016

Real Estate 21,559 20,754 18,198 21,739 22,858 24,745Mortgage 4,308 4,241 4,840 4,358 5,276 5,786Appraiser 1,457 1,393 1,384 1,396 1,314 1,415Appraisal Management Companies (AMCs) 133 143 147 140 148 142

Subdivision/Timeshare 400 393 566 657 643 558Total 27,857 26,924 25,135 28,290 30,239 32,646

Fiscal Year2011

Fiscal Year2012

Fiscal Year2013

Fiscal Year 2014

Fiscal Year 2015

Fiscal Year 2016

Real Estate 1,362 1,401 1,042 2,197 2,479 2,600Mortgage 853 665 1,113 1,174 949 1,112Appraiser 196* 236* 145* 255* 252* 267*Appraisal ManagementCompanies (AMCs) 50 26 21 16 12 12

Timeshare 71 115 276 211 220 164Total 2,532 2,443 2,597 3,853 3,912 4,154

Fiscal Year2011

Fiscal Year2012

Fiscal Year2013

Fiscal Year 2014

Fiscal Year 2015

Fiscal Year 2016

Real Estate 8,388 8,475 8,229 8,998 8,060 8,950Mortgage 3,704 4,137 4,045 5,752 4,603 4,915Appraiser 626 597 651 694 691 603Timeshare 36 63 194 72 125 130Total 12,754 13,272 13,119 15,516 13,479 14,598

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The following tables give historical data as to thenumber of certifications issued by the Division, aswell as the number of prelicensing examinations thathave been administered:

Certifications Issued

*Under the licensing program that has been adoptedacross the country in order to comply with the federalS.A.F.E. Act, continuing education (CE) courses formortgage professionals are now reviewed and ap-proved at the national level by the Nationwide Mort-gage Licensing System (NMLS). In fiscal year 2014,the Division implemented a state-specific CE coursethat is handled outside of the NMLS.

Pre-licensing Examinations Administered

* Mortgage Loan Originator exams are now sched-uled and administered through Nationwide MortgageLicensing System.

Fiscal Year2012

Fiscal Year2013

Fiscal Year 2014

Fiscal Year 2015

Fiscal Year 2016

Real Estate Agent Exams 795 1,388 2,673 3,029 3559Real Estate Broker Exams 124 144 272 304 275Mortgage PLM Exams 242 79 179 144 123Appraiser Exams 44 27 46 57 32

Fiscal Year2013

FiscalYear2014

Fiscal Year 2015

Fiscal Year 2016

Educational Programs 36 32 31 39Real Estate Pre-Licensing Instructors 38 35 32 29

Real Estate CE Courses 1,102 1,215 1,007 741Real Estate CE Instructors 390 426 452 568Mortgage Pre-Licensing Instructors 8 7 7 5

Mortgage CE Courses 0* 6* 7* 7*Mortgage CE Instructors 0* 6* 7* 4*Appraisal CE Courses 455 479 425 448Appraisal Instructors 41 34 63 68Appraisal Pre-Licensing Instructors 18 53 23 33

Division of Real Estate

IDWIn the last week of October theannual 2016 Instructor Develop-ment Workshop (IDW) was held inPark City. Those in attendanceincluded education representa-tives and practicing licensees ofthe Real Estate, Mortgage, andAppraisal industries.

Day One –The Division was fortu-nate to have Justin Harding, theGovernor’s Chief of Staff speak tothe attendees of the IDW. Helaunched the program by sharinghis insight regarding the rapidlygrowing business sector of ourstate. He shared his thoughts re-garding the real estate industryand the important role it plays inour state’s economy. Next, theworkshop included Director Stew-art’s discussion of proposed legis-lative changes and overallchallenges and opportunities fac-

how instructors, above all, need tolove their listeners, love the sub-ject, and love to teach. If any ofthese three fundamentals aremissing, your presentation will notbe very successful.

ing our professions. Mark Fager-gren, Licensing and EducationDirector, presented information onindustry exams (pass rates, con-tent outline changes, and recentexamination changes). KadeeWright, introduced as the NewChief Investigator of the Division,spoke to attendees along with in-vestigators Marv Everett andCraig Livingston about enforce-ment and disciplinary issues thatthey have recently been experi-encing.

Eric B. Storey and Tage Flint pre-sented a very informative and in-sightful three hour CE courseentitled “The Flow of H2O – UtahWater Issues.” Mr. Storey is theSenior Vice President and Manag-er of Corporate Properties for Zi-ons Bank in Salt Lake City,overseeing property manage-ment, construction/project man-agement, and purchase/leasing ofbank properties. He is a licensedReal Estate Broker, Certified Gen-eral Appraiser, and ContinuingEducation Instructor in the state ofUtah. Eric Storey and Tage Flint(General Manager of Weber BasinWater), are considered to be in-dustry leaders in understandingand addressing Utah water rightsissues and challenges.Day Two – Included a full-day ofinstructor development principlestaught by Eric Storey regarding

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Eric taught about the principles ofmemory and learning. He present-ed information on how our brainsencode information and how thatinformation is stored and later re-called. The importance for learn-ers to pay attention, concentrate,and avoid distractions was ex-plained. He taught how motivatedlearners will store information ifthey rehearse and “overlearn” thematerial they are studying. Thefundamentals of practice, applica-tion, repetition, and re-learninghelp students to be able to storeand retrieve studied information.We were taught that learning byour students is improved if weimplement three basic actions asan instructor. These actions are toLearn, Act, and Share.

Justin Harding

Division of Real Estate

Eric explained that when puppies are trained,they have three things on their mind: Food, Fun,and Safety. People experience these samethoughts and concerns as they participate in apresentation. In many cases, presentations areintended to train people and people react in muchthe same way as pets. People wonder if there isgoing to be any fun, food, or reward involved. Isit going to be fun or interesting, and am I going tobe safe physically and psychologically?

Eric discussed the fundamentals of organizing asuccessful presentation with ideas of how toenhance and significantly improve teaching (thebeginning, the main body, and the ending of yourcourse).

Finally, Eric discussed ten tips for success forpresenters:

1. Be genuine, and natural. Be yourself.

2. Less is more. Keep it simple and get to thepoint.

3. Share your passion. Inspire with enthusiasm.

4. Be sensitive. Give physical and mentalbreaks.

5. Listen responsively.

6. Have a sense of humor.

7. Don’t read from Power Point slides. Don’toverload slides with material.

8. Provoke participation.

9. Encourage reflection.

10. Be humble.

We thank all workshop presenters and partici-pants and especially Eric B. Storey for makingour annual IDW a great success!

drenewsletter@utah.gov

801-530-6747

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