Newsletters

• Director's Message – 2021 Legislative Update
• Rap Back Fingerprinting Likely returning for July Renewals
• Rule Developments Since January 1, 2020
• 2021 Caravan Cancelled
• Kagie's Korner
• AMC National Registry Reporting and Fees
• Property Management
• Division Staff Spotlight — Joy Natale
• Mortgage Renewal and Reinstatement
• 2021 IDW Announcement
• Appraiser PAREA Courses
• Welcome Executive Director Busse
• First Quarter Licensing & Disciplinary Actions
• Credits

The Division continues to discuss and formulate policies regarding the resumption of fingerprinting for licensees that are renewing their real estate and/or appraisal licenses. This article reflects the Division’s current thinking as of the time of this newsletter. However, as COVID-19 conditions change, the resumption date for fingerprinting could potentially be delayed, but will not be initiated any earlier than July of 2021. Before getting fingerprinted as part of your license renewal, please check the Division’s website first for the most current information.

As the pandemic situation continues to improve, the Division plans to resume the requirement for appraisers and active and inactive real estate licensees to be fingerprinted and enrolled in RAP Back for July license renewals.

If as anticipated, fingerprinting resumes for July renewals, those renewing will be prevented from renewing prior to July to ensure that once RAP Back fingerprinting resumes, only July renewals would be initially enrolled in RAP Back. As we move into later summer (August/September) renewal windows will return to 45 days for real estate licensees and 3 months for appraisal licensees. Once again, licensees should continue to monitor the Division’s website for up-to-date information about fingerprinting and renewal information.

Real Estate Brokers and Sales Agents
Real Estate Brokers and Sales Agents can typically renew 45 days before their expiration. Because of the complexity with renewing a license with RAP Back enrollment, licensees renewing in July will be prevented from renewing until July 1st. In anticipation of the fingerprinting requirement, licensees renewing in July will be able to get fingerprinted prior to July 1st. Please check the Division’s website for information about how early you can get fingerprinted.

Appraisers
Appraisers can typically renew their license three months before expiration. Because of the complexity with renewing a license with RAP Back enrollment, appraisers renewing in July will be prevented from renewing until July 1st. In anticipation of the fingerprinting requirement, licensees renewing in July will be able to get fingerprinted prior to July 1st. Please check the Division’s website for information about how early you can get fingerprinted.

In an effort to help all licensees avoid any delays in license renewal, these are the most common questions we receive about RAP Back and license renewal:

1. What is Rap Back?

   "The Rap Back service allows authorized agencies to receive notification of activity on individuals who hold positions of trust (e.g. school teachers, daycare workers [and now real estate and appraisal licensees]), thus eliminating the need for recurring background checks on a person from the same applicant agency"  (https://www.fbi.gov/services/cjis/fingerprints-and-other-biometrics/ngi )

2. Who has to be fingerprinted?

   S.B. 140 from the 2019 Utah Legislative Session requires all active and inactive real estate agents, brokers, and all appraisers to be fingerprinted and enrolled in RAP Back.

3. What is the cost?

   The Bureau of Criminal Identification ("BCI") charges $40.00 for processing fingerprints and $5.00 to enroll a licensee in RAP Back.  Third Party fees: Depending on where you get fingerprinted, there may be additional fees.

4. When should licensees be fingerprinted?

   July, 2021 renewals:
   For real estate licensees and appraisers renewing in July of this year, please refer to the beginning of the article.

   Licensees renewing after July, 2021:
   Licensees must wait for their renewal window to get fingerprinted.  Please check the Division’s website for the most current information about when to get fingerprinted.  The fingerprinting, background check, and RAP Back enrollment must be completed prior to renewing your license.

5. Why do licensees need to wait until their renewal window to be fingerprinted?

   As mentioned above, the fee for fingerprint processing and RAP Back enrollment is $45.  When a licensee’s fingerprints are submitted to BCI, BCI bills the Division for the $45.  A licensee will not pay the $45 until they renew their license.  The Division needs to collect the funds from licensees to pay BCI for the processing of fingerprints and enrollment in RAP Back.

6. Where can they be fingerprinted?

   The Division of Real Estate has tried to make it as convenient as possible for licensees to be fingerprinted.  Because fingerprinting has been on hold since last March 2020, the Division needs to contact fingerprinting locations to ensure the public is welcome, business hours, and third-party fees.  Additional information will be available in the next few months.

7. What do you need to do prior to being fingerprinted?
   1. Each licensee must visit the Division’s website: http://52.39.65.14 to review and sign a Consent to Background Check form (this form is currently not available on the DRE website but will be available in June).  This will all be done electronically and licensees will have the ability to print a copy for their own records.
   2. After, and only after the licensee reviews and signs the consent form, will they have access to the Authorization for Live Scan Fingerprinting Form that licensees will be required to take with them to be fingerprinted.  Please do not make copies of this authorization form for other licensees; the FBI requires that each licensee sign the consent form.  Failure to review and sign the consent form on the Division’s website would likely prevent you from being able to renew your license.
   3. The Consent to Background Check form and the Authorization for Live Scan Fingerprinting Form can be found on the main page of the Division website http://52.39.65.14.  When you are authorized to be fingerprinted (based on information found in Question 4 above), click the RAP Back Fingerprinting button.
8. What should you take with you when being fingerprinted?
   1. A copy of your license, you must submit your license number with your fingerprints;
   2. Valid driver’s license or passport; and,
   3. The Authorization for Live Scan Fingerprinting Form that you can print on our website once you have completed the Consent to Background Check Form. Print the completed authorization form and bring the form with you when you are fingerprinted. If you do not have all the requested information on the authorization form, you may not be fingerprinted, or your background check may not properly link to your license, which could delay your license renewal.
9. What is the timeframe after being fingerprinted?

   If you are fingerprinted using a Live Scan machine the processing time is typically 24-48 hours.  If you are fingerprinted using paper fingerprint cards it can take five business days to process.  Keep this in mind when deciding when and where to be fingerprinted.  If you know you will be using a location that only does paper fingerprint cards, plan accordingly.

   You will be prevented from renewing your license until the RELMS system receives an electronic acknowledgement from the Utah Bureau of Criminal Identification (BCI) that you have submitted your fingerprints to the FBI for processing, you have no criminal history, or the Division has reviewed your criminal history.

10. What should you do with fingerprint cards?

    Most Live Scan locations will still print off a fingerprint card for your records.  The only time you need to send the fingerprint cards to the Division is if your fingerprints were not electronically submitted to BCI.  If you are unsure, please ask the third-party location if your fingerprints have been electronically submitted or not.  If they have been, you can retain the cards for your own records.

11. What about Dual Brokers?

    Dual Brokers only need to be fingerprinted for their principal broker license.

12. What about those holding another license?

    If you are a real estate agent and appraiser, you must be fingerprinted for each license type you have.  In addition, if you are already enrolled in RAP Back because you have been enrolled for another reason, you still must be fingerprinted and enrolled for each license you have with the Division.  The FBI requires separate enrollment for each license type.

13. Do licensees have to be fingerprinted again?

    Once you are enrolled in RAP Back you will stay enrolled as long as you maintain your license and renew on time.  Allowing your license to expire could result in removal from the RAP Back system requiring you resubmit to a background check.

    I hope this gives you a better understanding of what RAP Back is and what to expect the next time you renew your license.  I know this is an inconvenience, but hope that you all see the value this will add to your industry.  I wish you all the best in the new year.

To view and comment on any proposed or amended rules during the public comment period, please visit the Utah State Bulletin at http://www.rules.utah.gov/publications/bulletin.htm

There are no recently adopted or proposed rule amendments under consideration for the Appraisal Management Company rules.

A recent rule amendment added Subsection 502(8) to the Real Estate Appraiser Licensing and Certification Rules (Appraiser Board). Subsection 502(8) was intended to clarify the rule relating to property inspections. However, members of the appraisal management company and financial services industries raised questions and concerns about Subsection 502(8) and the collection of property data for use in an appraisal. The Appraiser Board then approved a proposal to consider deleting Subsection 502(8) from rules. The public comment period about whether to delete Subsection 502(8) ended March 31, 2021. The Real Estate Appraiser Licensing and Certification Board will consider all public comments received during the public comment period and will determine whether to move forward with the proposed amendment.

On February 3, 2021, the Residential Mortgage Regulatory Commission (Mortgage Commission) voted to consider a possible rule amendment that would clarify the timing of the required five-year fingerprint background check and five-year credit report check. The purpose of the proposed rule amendment is to ensure that the timeframe for these requirements by the state corresponds with the time frame accepted by the Nationwide Multistate Licensing System & Registry (NMLS). Currently, the NMLS allows licensees to complete these requirements earlier than our administrative rules allow. The proposed amendment would not change the once every five-year requirement, only how soon before applying for renewal a licensee could complete their background and credit check. Language for the proposed rule amendment has not yet been drafted by the Division or considered by the Mortgage Commission. When the proposed rule amendment has been drafted, it will be presented to the Mortgage Commission for their consideration.

A draft proposal of a significant rule amendment affecting numerous rule sections of the Real Estate Licensing and Practices Rules has been approved for filing and is currently in process. As of the date of the drafting of this article, the proposed rule amendment has not yet been published and the timing of the window for public comment not yet established.

The Real Estate Commission organized committees to consider the broker supervision and the trust account rules. These committees met and presented recommendations to the Real Estate Commission for possible rule amendments. Other proposed rule amendments have also been considered by the Real Estate Commission at meetings over the past several months. The proposed rule amendment would amend the following sections:

Section 102 – The proposed amendment would add "mandatory course" to the definition of "continuing education" and add the definition of "virtual-live continuing education" to the rule.

Section 201 – The proposed amendment would eliminate the requirement to deny an application for licensure of an applicant who was:

1. convicted of a felony, or was released from jail or prison for a felony, within five years preceding the date of application; or
2. convicted of, or released from jail or prison for a misdemeanor involving fraud, misrepresentation, theft, or dishonesty, within three years preceding the date of application.

Instead of the mandatory denial required by the current rule, the proposed amendment would provide discretion to the division and Commission in evaluating whether to deny a license, or to issue a restricted license to an applicant with such criminal history.  The proposed amendment provides that the division and Commission give particular consideration to such felonies or misdemeanors in reaching a licensing decision.

Section 202a – The proposed amendment would clarify that an individual must pass both the state and national components of the licensing examination within 12 months of completion of the applicant’s prelicensing education and would simplify, and in rare circumstances, extend the deadline for application which would be 90 days from the date the applicant achieves a passing score on both examination components.

Section 205 – The proposed amendment would add "assumed name" as a category of businesses that are required to register with the division.

Section 206c – The proposed amendment would add virtual-live continuing education (CE) to the approved categories of CE.  Although virtual-live CE was initially developed in response to the social distancing required by the COVID-19 pandemic, virtual-live CE is not a temporary solution but would be a permanent option for CE instruction.  CE providers are not required to provide virtual-live CE but this is an optional format that may be used to reach potential participants.  The proposed rule amendment would establish minimum standards for virtual-live CE including class size limits, the use of monitoring assistants, and communication requirements including microphones and live cameras. The proposed amendment would not change or restrict the existing CE options of traditional classroom CE and distance education.  In addition, the proposed amendment also lists the types or options of mandatory CE courses that were provided for in a prior approved rule amendment.

Section 401c – Under existing law and rule, a broker is required to provide active and reasonable supervision of each licensee and unlicensed staff member employed by or affiliated with the broker.  The proposed rule amendment provides direction to brokers as to the minimum standard for active and reasonable supervision while retaining the safe harbor to protect a broker who meets the minimum standard from liability for violations of law or rule by persons required to be supervised by the broker.

Section 401k – The proposed amendment would clarify that:

1. monthly reconciliation records are among those trust account records required to be maintained and safeguarded by a broker; and
2. a broker must maintain records from a lease transaction for at least three years following the year in which the lease agreement is terminated.

Section 403a – The proposed amendment rearranges and combines the provisions of trust account rules currently found in sections 403a and 403b for a real estate company and adds the following provisions:

1. a broker must notify the division if the trust account is moved to another bank or credit union or the trust account number is changed;
2. non-traditional electronic transfers of funds would be expressly allowed;
3. a broker is required to reconcile brokerage trust account records with the brokerage client records at least monthly;
4. a broker is required to transfer funds out of the trust account and into an operating account prior to further disbursing the funds; and
5. with the client’s written consent, a broker may reallocate earnest money funds from a failed transaction held in a trust account as earnest money for the same client in another transaction.

Section 403b – The proposed amendment rearranges and combines the provisions of trust account rules currently found in sections 403a and 403c for a property management company and adds the following provisions:

1. a broker must notify the division if the trust account is moved to another bank or credit union or the trust account number is changed;
2. non-traditional electronic transfers of funds would be expressly allowed;
3. a broker is required to reconcile brokerage trust account records with the brokerage client records at least monthly;
4. a broker may deposit up to $10,000 of the broker’s own funds into a property management trust account;
5. a broker must transfer earnings for property management services out of the trust account and into an operating account within 60 days of the date the earnings are earned according to contract and received; and
6. a broker is required to transfer funds out of the trust account and into an operating account prior to further disbursing the funds.

Section 403c – The current provisions of this section have been combined into Section 403b.  The proposed rule amendment would delete this section.

There are no recently adopted or proposed rule amendments under consideration for the Timeshare and Camp Resort Rules.

Due to the continuing COVID-19 pandemic, the 2021 CARAVAN has been canceled for all locations. It is currently deemed to be unsafe to encourage our licensees to attend a 3-hour indoor interactive training session given the risk of virus spread.

We appreciate your patience and understanding. With hope and optimism, we look forward to 2022 for the return of our annual spring CARAVAN.

The Division of Real Estate would like to address a topic of interest which all real estate licensees should consider when using an electronic document signing service such as DocuSign, Dotloop, PandaDoc, HelloSign, SignRequest, Adobe, etc.

The use of electronic signing services to collect electronic signatures is common place and a matter of convenience in the real estate industry. However, if you are not careful, such signing services can generate unintended negative consequences for your clients. For example: an agent sends a document to their client to sign, which the client promptly does. Nothing to worry about right, so far, it’s a normal transaction. However, when the licensee set up the Document they inserted "EDT" Eastern Daylight Time in the signature block instead of correcting it to show "MST" Mountain Standard Time before sending to the client. The client signed the Real Estate Purchase Contract and Addendums, with the incorrect time stamp. This small error became a problem when the client decided to cancel the offer on the Due Diligence Deadline Date. The signature was stamped at 10:09 pm EDT. The client lost their earnest money because they "missed" the deadline.

Remember the State approved forms, including the Real Estate Purchase Contract, typically incorporate Mountain Standard Time. Any time zone other than Mountain Standard Time would require an addendum to change the agreement.

It is the recommendation of the Division that all licensees take sufficient time to become comfortable with and verify the appropriateness and accuracy of the electronic service data, including the date and time, for the client and other parties when setting up such services. This ensures that your clients are protected and you do not find yourself under investigation for breaching a fiduciary duty.

A few problem areas we’ve seen trending in our property management investigations include improperly registered entities, inadequate record retention, and a failure to conduct line item reconciliations of all deposits and withdrawals from trust accounts.  Let's take a look at all 3 issues.

Performing Property Management Transactions

A principal broker has two options for engaging in property management activities.

Option 1: Perform Both Real Estate & Property Management Under Existing Real Estate Brokerage

A principal broker can choose to perform a combination of real estate and property management activities within their existing real estate brokerage. Licensees affiliated with that broker/brokerage can perform either real estate and/or property management transactions (with their broker’s prior approval). All marketing activities for either real estate or property management are required to include the exact name of the real estate brokerage to which they are affiliated (the name that is approved by the Division).

While only using the approved business name of their real estate brokerage, the principal broker can manage up to six individual units using the brokerage real estate trust account.  If the brokerage manages seven or more individual units, a separate property management trust account (or accounts) would need to be opened by the brokerage to secure tenant security deposits, rents, and money tendered by a property owner as a reserve fund or for payment of unexpected expenses. (R162-2f-403b (3))

All trust and operating account locations and account numbers are required to be provided by the principal broker to the Division.  All brokerage trust and operating accounts must be maintained by a bank or credit union located in Utah. R162-2f-205 (4)(d)

Option 2: A Principal Broker Can Open a Dual Brokerage for Property Management

In option 2, the principal broker (PB) of the real estate brokerage can also apply to the Division for a Dual Broker (DB) license and Property Management Company registration to operate an independent, exclusively property management transactions brokerage.  This unique situation allows the principle broker to personally, and simultaneously, be the broker of two separate brokerages under two different approved names; a real estate brokerage under their Company (CN) registration number (where affiliated licensees can perform both real estate and property management transactions), and a property management brokerage under their Property Management (MN) registration number (where affiliated licensees are limited to exclusively performing only property management transactions*).

Once again, the approved name of the DBs property management brokerage is required to have a different name than their real estate brokerage and with only a narrow exception, affiliated licensees can only perform property management transactions*.

The principal/dual broker is personally responsible to actively supervise both the real estate brokerage and the property management brokerage.

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. (61-2f-206 and R162-2f-205).  This is where some licensees find themselves in violation.  They conduct property management services under an entity that is not registered with the Division.

I've seen several of these "unregistered entity" cases this past year and there isn’t any wiggle room for broker explanations that include, "it's a simple infraction," or "I simply overlooked this requirement", or "it's no big deal."  It is a serious violation to conduct business within an unregistered entity.  Fines may be assessed at $5,000 for a single violation.  The kicker to that single violation is that if you’ve been operating without proper registration, many of your business operations will prove to be additional violations.

Give section R162-2f-401j Standards for Property Management a quick a review to refresh your mind concerning broker supervision and duties that can be performed by licensed sales agents and unlicensed assistants affiliated with your brokerage.

Record Keeping Requirements — R162-2f-401k

A principal broker shall maintain and safeguard all trust account records, any records submitted by a licensee pertaining to a transaction as well as any documents signed by an owner, seller, buyer, property manager, or tenant for 3 years following the year the transaction closes, fails, or is rejected.  These files can be kept physically or electronically (Title 46 Chapter 4, Utah Uniform Electronic Transactions Act).

A broker is responsible for collecting and keeping records for each property and/or client.  If the division requests your transaction file on a property, it includes all of the above-mentioned items as well as the financial accounting and reconciliations for that property.

Property Management Trust Accounts — R162-2f-403

Principal brokers are not limited to depositing $1,000 of their own funds into a property management trust account, so it’s important to be vigilant in performing a monthly line-item reconciliation of all deposits and withdrawals of funds belonging to the principal broker. (R162-2f-403c (2)(b))

A Principal Broker shall reconcile the property management trust account at least monthly and maintain a date-sequential record of all deposits and disbursements from that account. Brokers must maintain a current, running total of the balance contained in the trust account and ensure that each closed transaction balances to zero.  The broker must reconcile the Trust Account records with the Utah bank or credit union where the trust account funds are held.  If this account is out of balance, the imbalance must be cured within 30 days or the Division must be notified.  Some of our largest penalties this past year involve stolen, commingled, or misused monies within a property management trust account. (R162-2f-403a (9 & 10))

The fines assessed this past year for registered and unregistered property management companies are unprecedented, so take a moment to verify that your property management entity is properly registered.  Audit some transaction files to establish that you are collecting and maintaining the necessary records for your transaction files and personally reconcile your trust accounts, at least monthly.

The Division will be updating the trust account sections of the administrative rules to help distinguish between real estate and property management trust account requirements, stay tuned.

*Real estate licensees affiliated with a Dual Broker through a Property Management Company may conduct real estate transactions under the Principal Broker’s Real Estate Brokerage only if they hold a current Property Management Sales Agent (PMSA) Designation. R162-2f-202d (1-3)

On Wednesday and Thursday, October 27th and 28th the 2021 Instructor Development Workshop (IDW) will be held at the Sheraton Park City for Real Estate, Mortgage and Appraisal Prelicense and Continuing Education instructors.  At this time the event is being planned and scheduled as a traditional classroom instructional event subject to COVID-19 conditions and possible restrictions.

Craig Grant "The Real Estate Tech Guru" from Stuart, Florida will be the featured presenter for this two-day event.  Craig presents over 150 speaking engagements around the country every year including some of the industry’s top events for NAR, CRS, many state associations, and national franchises.  Mr. Grant will engage our industries' instructors to improve their techniques and skills.

Among other things, Craig plans to "raise attendees overall tech skill level."  "He will show you how you can modernize your classrooms and perform technology marketing."

The morning of October 27th Division staff will present information to the participants.

Plan now by saving these dates for this important event!

Additional information for registration for this event will be forthcoming in the 2nd and 3rd quarter Division Newsletters.

The Division of Real Estate would like to welcome Margaret Busse, the new Executive Director of the Department of Commerce.  Governor Cox appointed Margaret on December 21, 2020.

Prior to her appointment to Commerce, Ms. Busse was an adjunct faculty member for BYU’s Political Science Department as well as an advisor to social impact organizations.  Ms. Busse also served for several years as the Associate Director of the Social Enterprise Initiative at Harvard Business School, where she worked on issues such as the future of the work, opportunity and prosperity for all, and educational improvement.  In addition, Ms. Busse worked as a strategy consultant at the Bridgespan Group and spent several years at the U.S. Treasury Department as a Presidential Management Fellow.  Ms. Busse developed her passion for public service by serving for many years in leadership roles in local government.

Ms. Busse holds an MBA from Harvard University, a master’s degree in Public Policy from Brigham Young University and a bachelor’s degree in both Public Policy and Economics from Brigham Young University, where she graduated cum laude and with university honors.

Ms. Busse is a Utah native: she grew up in Holladay and graduated from Olympus High School.  She and her husband, Franz, have five children, ages 8 to 18, and love traveling, hiking and skiing together.

We are excited to have Margaret as the new Executive Director and look forward to her leadership and the new direction she will take the Department of Commerce.

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

To view a copy of an order referenced in this article please visit the Utah Division of Real Estate Disciplinary Actions Search at: http://52.39.65.14/licensing-and-disciplinary-actions/

CLEARCAPITAL.COM, INC., Appraisal Management Company, John Brenan, control person, Reno Nevada.  In a stipulated order approved January 27, 2021, Respondent admitted that after several individual solicitations to four appraisers were declined, ClearCapital.Com simultaneously sent out a new solicitation to the four appraisers and to three additional appraisers.  An employee of ClearCapital.Com then awarded the appraisal assignment to an appraiser without waiting 120 minutes for each of the seven appraisers to respond to the solicitation, as required by Utah Administrative Code R162-2e-306(1).  In mitigation, ClearCapital.Com responded that its employees were reminded of Utah's requirements and that it regularly audits the company's processes to ensure future compliance with Utah’s requirements.  ClearCapital.Com agreed to pay a civil penalty of $3,000. Case number AP-20-116850

CABRERA, MIGUEL ANTONIO, mortgage loan originator, West Jordan, Utah.  In an order dated December 11, 2020, Mr. Cabrera's license was renewed and placed on probation for the renewal period due to a plea in abeyance in a criminal matter.  Case number MG-20-123418

CHESNEY, MCKENZIE SUE, mortgage loan originator, Salt Lake City, Utah.  In an order dated February 5, 2021, Ms. Chesney's license was renewed and placed on probation for the renewal period due to a plea in abeyance in a criminal matter.  Case number MG-21-124804

CUMMINGS, NATHAN, mortgage loan originator, Pleasant Grove, Utah.  In an order dated December 11, 2020, Mr. Cummings's application for licensure as a mortgage loan originator was denied due to criminal history.  Case number MG-20-123425

HANCOCK, LANCE LOUIS, mortgage loan originator, Eagle Mountain, Utah.  In a stipulated order dated December 29, 2020, Mr. Hancock admitted that he had altered several details of a hazard insurance quote and submitted the falsified quote to the title company on behalf of his client.  The client was not aware of Mr. Hancock's actions in this matter.  The title company closed the loan and the client was without hazard insurance for two days.  The mortgage lender had relied on a policy having been issued prior to closing.  Mr. Hancock admits that his actions violated Utah law in that he made a false statement and caused a false document to be generated to induce a lender to extend credit in a residential mortgage loan transaction and that he had engaged in an act in transacting the business of residential mortgage loans that constitutes dishonesty, fraud, or misrepresentation.  Mr. Hancock agreed that his mortgage loan originator license be immediately revoked, that he be banned for life from applying for a mortgage loan originator license in the State of Utah, and that he would update his answers in the NMLS to reflect this regulatory action.  Case number MG-17-94151

JOHNSON, KIRK ALAN, lending manager, Ogden, Utah.  In an order dated December 4, 2020, Mr. Johnson's application for licensure as a lending manager was granted and placed on probation for the renewal period due to criminal history.  Case number MG-20-123272

KEY, MARTIN NICHOLAS, mortgage loan originator, Midvale, Utah.  In an order dated December 22, 2020, Mr. Key's license was renewed and placed on probation due to a pending criminal matter.  Case number MG-20-123649

MCHATTON, JEFFREY, lending manager, Chandler, Arizona.  In an order dated January 14, 2021, Mr. McHatton's application for the renewal of his license was denied due to a finding by the Arizona Corporation Commission that Mr. McHatton committed fraud in the offer and sale of securities, in violation of Arizona law.  Case number MG-20-123619

PEART, CODY JAY, mortgage loan originator, Heber, Utah.  In an order dated December 17, 2020, Mr. Peart's license was renewed and placed on probation for the renewal period due to an unpaid civil judgment and criminal history.  Case number MG-20-123585

PENA, DANIEL, mortgage loan originator, Pleasant Grove, Utah.  In an order dated January 22, 2021, Mr. Pena's license was reinstated and placed on probation due to a pending criminal matter.  Case number MG-21-124470

VARGAS, OSCAR S., mortgage loan originator, Salt Lake City, Utah.  Pursuant to a stipulated order dated January 6, 2021, Mr. Vargas's license was renewed and placed on probation due to a pending criminal matter.  In the stipulation, he agreed that another person would be present at all times when he is meeting with a client, mortgage applicant, or borrower while his license is on probation.  Case number RE-20-123405

WHITAKER, WILLIAM S., mortgage loan originator, Spanish Fork, Utah.  In an order dated February 5, 2021, Mr. Whitaker's license was renewed and placed on probation for the renewal period.  Case number MG-20-123428

WHITE, MARK HARRIS, mortgage loan originator, Austin, Texas.  In an order dated January 6, 2021, Mr. Whites license was renewed and placed on probation for the renewal period due to a pending criminal matter.  Case number MG-20-124003

ALLEN, DEVIN CHASE, sales agent, Ogden, Utah. In an order dated February 5, 2021, Mr. Allen's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-124805

ANDERSON, BARRETT, sales agent, American Fork. On March 25, 2020, the Division issued a citation to Mr. Anderson for multiple social media advertisements that did not contain his brokerage information. The citation assessed a fine in the amount of $500. Citation # DREC-20-5, Case number RE-20-116567

ANDERSON, MICHELLE MAE, sales agent, West Jordan, Utah. In an order dated December 4, 2020, Ms. Anderson's license was renewed and placed on probation due to a pending criminal matter. Case number RE-20-123246

BAILEY, JACOB HYRUM, sales agent, Provo, Utah. In an order dated December 1, 2020, Mr. Bailey's license was granted and placed on probation for the initial licensing period due to a plea in abeyance agreement in a criminal matter. Case number RE-20-123162

BANKS, MICAH, sales agent, Sandy, Utah. In an order dated February 12, 2021, Mr. Banks's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-124963

BARLOW, ELENA, sales agent, Millcreek, Utah. On December 5, 2019, the Division issued a citation to Ms. Barlow for multiple social media advertisements that did not contain her brokerage information. The citation assessed a fine in the amount of $500. Citation # DREC-19-27, Case number RE-19-107724

BELKNAP, BRYAN, sales agent, Sandy, Utah. In an order dated February 19, 2021, the Real Estate Commission granted Mr. Belknap's application for licensure as a real estate sales agent and placed his license on probation for the initial licensing period due to criminal history. Docket No. RE-2020-012 and Case number RE-20-113254

BERGSTROM, DEREK, sales agent, St. George, Utah. On October 27, 2020, the Division issued a citation to Mr. Bergstrom for multiple internet advertisements that did not contain his brokerage information. The citation assessed a fine in the amount of $500. Citation # DREC-20-16, Case number RE-20-117989

BOERSTRA, SCOTT, sales agent, Hooper, Utah. A stipulated order dated December 16, 2020, involves two property transactions. In the first transaction, Mr. Boerstra offered to assist a property owner with regard to a property scheduled to be sold at auction the following day. Mr. Boestra told the property owner that he could prevent the foreclosure if the owner deeded his property a limited liability company. The limited liability company would then rent the property back to the owner. The owner did deed his property to the limited liability company but Mr. Boerstra did not disclose in writing that he was a licensed real estate sales agent or that because of his interest in the limited liability company, he was a principal in the transaction. The owner refused to sign a lease agreement and was eventually evicted from the property. Mr. Boerstra states that the underlying mortgage had a favorable interest rate, that there was no equity in the property, and that he believed that keeping the loan in place would improve the owner's credit and would allow him to retain the tax deduction for mortgage interest. The Division does not join in these statements.

In the second transaction, a corporation owned and operated by Mr. Boerstra purchased a home from the sellers, paid $26,857 to bring the underlying mortgage current, and leased the property back to sellers. The sellers failed to make several rent payments and were evicted. Mr. Boerstra’s corporation then sold the property to a third party. Prior to the execution of the purchase agreement, Mr. Boerstra did not disclose to the sellers in writing that he was a real estate licensee or that he was a principal in the transaction. Mr. Boerstra agreed to pay a civil penalty of $20,000 for his conduct in both of these transactions and to complete 12 hours of continuing education in addition to the continuing education required for his next license renewal. In addition, he agreed that his license would be suspended until July 31, 2022 and would then be placed on probation for the next renewal period through July 31, 2024. Case numbers RE-17-93631 and RE-19-112562

BURK, BRANDON, sales agent, Cedar City, Utah. In an order dated November 20, 2020, the Real Estate Commission granted Mr. Burk's application for licensure as a real estate sales agent, immediately suspended the license for one year, with the license to then be placed on probation for the remainder of the initial licensing period and for the following renewal licensing period. Mr. Burk is required to notify the Division within ten business days if he is arrested or charged with class A or B misdemeanor or a felony, while his license is suspended or on probation. The Commission took this action due to Mr. Burk's prior criminal history. Case number RE-20-120954

CALDWELL, WILLIAM H., principal broker, Ogden, Utah. On June 25, 2020, the Division issued a citation to Mr. Caldwell for failing to respond to a request by the Division in an investigation within 10 days after the request is served. The citation assessed a fine in the amount of $1,000. Citation # DREC-20-11, Case number RE-19-110883

CHECKETTS, JORDAN NORELL, sales agent, Brigham, Utah. In an order dated January 7, 2021, Mr. Checketts's license was granted and placed on probation for one year due to a plea in abeyance agreement in a criminal matter. Case number RE-21-124063

CISNEROS, CRYSTAL, sales agent, South Jordan, Utah. In an order dated January 15, 2021, Ms. Cisneros's license was granted, suspended for 30 days, and placed on probation for the remainder of the initial licensing period due to her failure to disclose a plea in abeyance agreement in her application for licensure. Case number RE-21-124338

CROSBY, JUSTIN MICHAEL, sales agent, Ogden, Utah. In an order dated February 23, 2021, Mr. Crosby's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-125204

DODD, SAMUEL, associate broker, Cedar City, Utah. In a stipulated order dated February 17, 2021, Mr. Dodd admitted that he operated an unregistered call center soliciting real estate business using unlicensed personal assistants in violation of Utah law and administrative rules. Mr. Dodd agreed to pay a civil penalty of $10,000, to complete six hours of continuing education in addition to the continuing education required for his next license renewal, and that his license be placed on probation through October 31, 2022. Case numbers RE-18-103931, RE-19-108198, RE-19-110153, and RE-20-120552

EDMUNDS, DOUGLAS J., principal broker, Midvale, Utah. On August 7, 2020, the Division issued a citation to Mr. Edmunds for failing to respond to a request by the Division in an investigation within 10 days after the request is served. The citation assessed a fine in the amount of $1,000. Citation # DREC-20-12, Case number RE-19-110630

EDWARDS, ROBERT WARREN, sales agent, Kaysville, Utah. In an order dated December 15, 2020, Mr. Edwards's license was renewed and placed on probation for the renewal period due to criminal conduct during the past licensing period. Case number RE-20-123492

EVANS, JESSICA L., sales agent, St. George, Utah. In an order dated January 29, 2021, Ms. Evans's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-124658

GOMEZ, GILDA VANESSA, sales agent, West Valley City, Utah. In an order dated February 24, 2021, Ms. Gomez's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-125231

GORDON, ALEX, sales agent, Park City, Utah. In an order dated December 10, 2020, Mr. Gordon's license was reinstated and placed on probation for the renewal period due to a plea in abeyance agreement in a criminal matter. Case number RE-20-123397

HENRY, BRETT, principal broker, Saratoga Springs, Utah. In a stipulated order dated December 16, 2020, Mr. Henry admitted that he had paid sales commissions on several transactions to a sales agent or associate broker who was not affiliated with him at the time, and that he failed to exercise reasonable supervision over the activities of his licensed or unlicensed staff members, in violation of Utah law. Mr. Henry agreed to pay a civil penalty of $5,000 and to complete five hours of continuing education in addition to the continuing education required for his next license renewal. Docket No. RE-2020-021 and Case number RE-20-119271

HIDALGO, KEVIN ALEJANDRO, sales agent, Sandy, Utah. In an order dated February 12, 2021, Mr. Hidalgo's license was granted, immediately suspended for 30 days, and then placed on probation for the remainder of the initial licensing period due to his failure to disclose criminal history in his application for licensure. Case number RE-21-124958

JOHNSON, RANDY, sales agent, Riverton, Utah. In a stipulated order dated January 20, 2021, Mr. Johnson admitted that he acted as both a limited agent and as principal in two transactions, in violation of Utah law and administrative rules. Mr. Johnson agreed to pay a civil penalty of $3,000 and to complete three hours of continuing education in addition to the continuing education required for his next license renewal. Case number RE-17-91408

KENWOOD, AUDREY LEIGH, sales agent, Millcreek, Utah. In an order dated February 23, 2021, Ms. Kenwood's license was granted, immediately suspended for 30 days, and then placed on probation for the remainder of the initial licensing period due to her failure to disclose criminal history in her application for licensure. Case number RE-21-125003

LAMOREAUX, DAVID, sales agent, St. George, Utah. In an order dated December 24, 2020, the Commission denied Mr. Lamoreaux's application for licensure as a real estate sales agent due to his prior criminal history, his failure to disclose his prior criminal history in his application for licensure, and a prior administrative order denying him registration as a timeshare salesperson. Case No. RE-20-117547

MANVILLE, NICHOLAS JOHN, associate broker, Salt Lake City, Utah. In an order dated December 4, 2020, Mr. Manville's license was renewed and placed on probation for the renewal period due to criminal conduct during the past licensing period. Case number RE-20-123247

MCCLUNG, CASEY EDWARD, sales agent, Wellsville, Utah. In a stipulated order dated January 20, 2021, Mr. McClung admitted that he failed to disclose in his application for licensure a prior plea in abeyance agreement in a criminal matter, in violation of Utah law. Mr. McClung agreed that his license be placed on probation during the remainder of the initial licensing period and to pay a civil penalty of $500. Case number RE-20-123395

MCLANE, BOONHEE, sales agent, Herriman, Utah. In an order dated February 23, 2021, Ms. McLane's license was granted and placed on probation for the initial licensing period due to a plea in abeyance agreement in a criminal matter. Case number RE-21-125197

MEACHAM, LAURIE, associate broker, River Heights, Utah. In a stipulated order dated January 20, 2021, Ms. Meacham admitted that she advertised a property for which the listing had expired and without the owner's written consent, and that she failed to include her brokerage information in the ad. She admits that her actions violated Utah law and administrative rules. Ms. Mecham agreed to pay a civil penalty of $1,150 and to complete six hours of continuing education in addition to the continuing education required for her next license renewal. Case number RE-19-108723

MELARA, BOBBY, sales agent, Pleasant Grove, Utah. In an order dated December 17, 2020, Mr. Melara's license was granted, suspended for 30 days, and then placed on probation for the remainder of the initial licensing period due to his failure to disclose criminal history in his application for licensure. Case number RE-20-123570

NEWLAND, DANE R., principal broker, Sandy, Utah. In an order dated December 22, 2020, Mr. Newland's license was renewed and placed on probation for one year due to a plea in abeyance agreement in a criminal matter. Case number RE-20-123662

O'DONNELL, STEVEN, sales agent, Santaquin, Utah. In an order dated December 23, 2020, Mr. O'Donnell's license was granted and placed on probation for the initial licensing period and until he has paid or satisfied certain judgments entered against him. This action is due to his criminal history and unpaid civil judgments. Case number RE-20-123679

PARKER, TRAVIS WILLIAM, sales agent, Vineyard, Utah. In an order dated December 17, 2020, Mr. Parker's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-20-123578

PERRY, JACK, sales agent, Salt Lake City, Utah. On February 24, 2021, the Division issued a citation to Mr. Perry for multiple social media advertisements that advertised in the name of the Perry Group and did not contain his brokerage information. The citation assessed a fine in the amount of $150. Citation # DREC-21-2, Case number RE-20-122831

PHELPS, BRANDON, sales agent, Farmington, Utah. In an order dated February 23, 2021, Mr. Phelps's license was renewed and placed on probation for the renewal period due to criminal conduct during the past licensing period. Case number RE-21-125184

RICHMOND, REGAN T., associate broker, Sandy, Utah. In a stipulated order dated December 16, 2020, Mr. Richmond admitted that he participated in two foreclosure rescue plans. In the first plan, a person was required to transfer title to real estate to the licensee or to a third-party with whom the licensee has a business relationship or financial interest. The second plan involved a buyer entering into an agreement that was not disclosed to the lender, and, if it had been disclosed, might have had a material effect on the terms or the granting of the loan. This conduct is in violation of Utah law. Mr. Richmond agreed that his license should be placed on probation for a period of one year, that he would pay a civil penalty of $9,000, and that he would complete six hours of continuing education in addition to the continuing education required for his next license renewal. Docket No. RE-2020-015 and Case numbers RE-16-86570, RE-17-92736, and RE-17-95082

RYDALCH, TERESA, sales agent, Stansbury Park, Utah. In an order dated January 14, 2021, Ms. Rydalch's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-124297

SALLADE, ALEXANDER, sales agent, Salt Lake City, Utah. In an order dated December 15, 2020, Mr. Sallade's license was granted and placed on probation for one year due to a plea in abeyance agreement in a criminal matter. Case number RE-20-123494

SMITH, TYLER J. AND SMITH REALTY GROUP, sales agent, Manti, Utah. On October 26, 2020, the Division issued a citation to Mr. Smith and the Smith Realty Group for multiple advertisements of his real estate services on the internet under the name Smith Realty Group and did not disclose the name of the brokerage with which he is affiliated. The citation assessed a fine in the amount of $1,000. Citation # DREC-20-13, Case number RE-20-119296

STANWORTH, BRAXTON NATHAN, sales agent, Bluffdale, Utah. In an order dated December 23, 2020, Mr. Stanworth's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-20-123664

STEVENS, EVAN GREG, sales agent, Santa Clara, Utah. In an order dated January 7, 2021, Mr. Stevens's license was renewed and placed on probation for the renewal period due to a pending criminal matter. Case number RE-21-124078

STORY, KYLER R., sales agent, Sandy, Utah. In an order dated December 1, 2020, Mr. Story's license was renewed and placed on probation for the renewal period due to criminal conduct during the past licensing period. Case number RE-20-123168

SUMSION, MATTHEW, sales agent, Springville, Utah. In a stipulated order dated December 16, 2020, Mr. Sumsion admitted that he had placed an internet advertisement for the sale of a residential property without the written consent of the owner and that the advertisement was false, misleading, or deceptive. This conduct is in violation of Utah law and administrative rules. Mr. Sumsion agreed to pay a civil penalty of $1,000 and to complete three hours of continuing education in addition to the continuing education required for his next license renewal. Docket No. RE-2020-022 and Case number RE-19-108726

VANDERLAAN, STEVEN R., principal broker, South Jordan, Utah. In a stipulated order dated December 16, 2020, Mr. Vanderlaan admitted that he did not promptly return earnest money received in conjunction with a cancelled real estate transaction, despite his client's numerous written requests. Mr. Vanderlaan's conduct violated Utah law. He agreed to pay a civil penalty of $1,000 and to complete three hours of continuing education in addition to the continuing education required for his next license renewal. Case number RE-17-91201

VIAU, MARK PADILLA, sales agent, Layton, Utah. In an order dated January 25, 2021, the Real Estate Commission denied Mr. Viau's application for licensure as a real estate sales agent due to his criminal history. Case number RE-20-122806

VIRGEN, BARBARA, sales agent, West Valley City, Utah. In an order dated December 30, 2020, Ms. Virgen's license was renewed and placed on probation for the renewal period due to a pending criminal matter. Case number RE-20-123884

WHITNEY, GEORGE P., sales agent, Ogden, Utah. In an order dated January 22, 2021, Mr. Whitney's license was granted and placed on probation for the initial licensing period due to criminal history. Case number RE-21-124393

WILSON, KYLE, sales agent, Provo, Utah. In a stipulated order dated February 17, 2021, Mr. Wilson admitted that he continued to work as a real estate sales agent during a period of time when his license status was inactive and also continued working after his license had expired. During these time periods, he represented clients and was compensated in five real estate transactions. In one of the transactions, Mr. Wilson advertised the property for sale without first obtaining the written consent of the property owner. In mitigation, Mr. Wilson attempted to renew his license with the Division but failed to complete the renewal process and pay the renewal fee. He admits that his actions violated Utah law and administrative rules. Mr. Wilson agreed to pay a civil penalty of $7,500 and to complete six hours of continuing education in addition to the continuing education required for his next license renewal. Case number RE-20-117346

POLLMANN, CONNOR J., salesperson, Laverkin, Utah. In an order dated December 30, 2020, Mr. Pollmann's application for registration as a timeshare salesperson was denied due to his failure to disclose criminal history in his application. Case number TS-20-123857