61-2f-411. Enforcement related to a property manager -- Maintenance of client funds.

410 words·~2 min read·/ut/title-61/chapter-2f/61-2f-411

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)Nothing in this section applies to an individual:

(a)buying, selling, or exchanging real estate for another person; or

(b)offering to buy, sell, or exchange real estate for another person.

(2)When engaging in property management, a property manager may:

(a)solicit referrals for clients, owners, customers, and renters;

(b)pay a finder's fee or exchange valuable consideration to an unlicensed person for referring a prospective client;

(c)accept a referral fee from an individual, whether licensed or unlicensed;

(d)contract for services, pay bills, and act on behalf of an owner as provided in a management agreement; and

(e)advertise properties for rent or lease.

(3)Except as provided in Subsection

(4), and subject to Subsection

(5), a property manager shall associate with at least one real estate trust account in a bank or credit union:

(a)located within the state;

(b)that, unless otherwise modified by a contract for property management, one or more property managers use for the purpose of securing:

(i)tenant security deposits;

(ii)rent;

(iii)money tendered by a property owner as a reserve fund or for payment of an unexpected expense; and

(iv)any other purpose designated by the commission; and

(c)that is non-interest bearing, unless the parties to a property management contract:

(i)agree in writing to deposit the funds in an interest-bearing account;

(ii)designate in writing the individuals to whom the parties will pay the interest on completion or failure of the property management contract; and

(iii)ensure that the parties and trust account comply with any other rules established by the commission or division.

(4)Except as provided in Subsection

(5), a property manager is not required to maintain the property management client funds in a trust account if:

(a)the property owner agrees in the property management agreement that the property manager is not required to hold property management client funds in a trust account; and

(b)a lease agreement states that the property manager is not required to hold property management client funds in a trust account.

(5)A property manager who is affiliated with a principal broker shall keep property management client funds in the principal broker's trust account in accordance with:

(a)rules established by the commission or division; and

(b)requirements established by the principal broker.

Amended by Chapter 142 , 2026 General Session