Real Estate Amendments

Added new definitions for 'dual broker' (a principal broker managing a separate property management company) and 'property manager' to clarify licensing requirements.

Extended the implementation date for the mandatory property manager license requirement from July 1, 2026, to January 1, 2027.

Requires property managers employed by entities that must affiliate with a principal broker to also affiliate with that principal broker, with specific exemptions for large property management companies.

Updated record-keeping requirements to explicitly include property managers meeting certain criteria alongside traditional brokerages.

Clarified that property management actions are not 'consumer transactions' under the Utah Consumer Sales Practices Act, transferring jurisdiction over related complaints to the Division of Real Estate.

Amended trust account requirements, allowing property managers to hold client funds in a trust account only if the property owner and lease agreement agree, or if a security bond covers at least 30% of estimated funds.

Added exemptions for unlicensed remote assistants, regional managers, and immediate family members of property owners from needing a property manager license.

The deadline for property managers to obtain a license was moved from July 1, 2026, to January 1, 2027, giving the industry more time to prepare.

A new definition for 'dual broker' was added, allowing a principal broker to function as the property manager for a separate property management company.

Property managers who are employees of large property management companies (managing at least 750 units) or housing authorities are now exempt from the requirement to affiliate with a principal broker.

A new requirement was added for property managers to affiliate with a principal broker if they perform real estate-related services on behalf of a broker, unless they meet specific exemptions.

The bill clarifies that property managers can manage residential rental units without a license if they are immediate family members of the owner or unlicensed assistants.

Record-keeping requirements were updated to specify that certain records must be kept for three years after the transaction closes or the lease term ends.

Rules regarding when property managers must hold client funds in a trust account were amended to allow exceptions if the property owner agrees in writing.

Investigation timelines were adjusted to ensure cases are resolved within two years of the violation being reported, with specific exceptions for court judgments.

Extended the effective date for property manager licensing education and examination requirements from July 1, 2026, to January 1, 2027.

Added a new license category for 'property manager' and clarified the roles of 'dual broker' and 'associate broker'.

Allowed dual brokers to engage in property management without obtaining a separate property management license.

Exempted property managers who are already licensed in another state from certain education and examination requirements.

Modified the conditions under which property managers are exempt from maintaining client funds in a trust account.

Exempted property managers employed by firms managing at least 750 residential rental units from principal broker affiliation requirements.

Added or clarified definitions for terms including 'dual broker,' 'property manager,' 'branch office,' and 'business opportunity.'

Added new definitions for 'dual broker' (a principal broker who also manages a separate property management company) and 'principal property manager'.

Extended the implementation date for requiring a property manager license from July 1, 2026, to January 1, 2027.

Updated the date for property manager licensing requirements from July 1, 2026, to January 1, 2027, in multiple sections.

Established a new Real Estate Commission consisting of five members appointed by the governor to create rules for licensing, education, and conduct.

Changed the conditions under which property managers are exempt from holding client funds in a trust account to include both the property owner's agreement and the lease agreement.

Modified affiliation rules to allow property managers to operate without affiliating with a principal broker if they work for large companies (750+ units) or housing authorities.

Added a new section requiring the Department of Commerce to submit a report to the Business and Labor Interim Committee by August 31, 2026, recommending how to resolve overlapping jurisdiction between the Division of Real Estate and the Division of Consumer Protection over property management.

Amended record-keeping rules to require brokerages to maintain specific documents for at least three years and to notify the Division of Real Estate immediately upon bankruptcy or termination of business.

Extended the implementation date for the new property manager license from July 1, 2026, to January 1, 2027.

Clarified that property managers employed by entities required to affiliate with a principal broker must also affiliate with that broker, while those not employed by such entities are not required to do so.

Added a new definition for 'dual broker,' allowing a principal broker to obtain a separate license to manage a property management company that is a distinct legal entity.

Adjusted the statute of limitations for disciplinary investigations, tolling the two-year limit during the enforcement of subpoenas.