Utah Is Raising the Bar on Compliance
Each quarter, the Utah Division of Real Estate highlights rule developments and disciplinary trends that signal where enforcement is headed. The Q1 2025 newsletter makes one thing clear: the Division is cracking down on sloppy or uninformed practices, especially among licensees and property managers.
Whether you’re a real estate professional or a landlord who works with one, these updates aren’t just academic—they’re a roadmap to staying out of trouble.
Rule Changes to Know in 2025
While not all rules apply to every landlord, here are three key developments that could affect your business:
- Property Management Licensing (HB 337):
Now fully in effect, this rule requires a license for most property managers in Utah. If you’re collecting rent, handling maintenance, or managing leases for someone else, you likely need to be licensed. For full details, read:
New Utah Law Requires Licensure for Property Managers in 2025 - Updated Administrative Rules for Real Estate Licensees:
The Real Estate Commission is revising certain education, advertising, and brokerage management standards. If you’re operating a brokerage or supervising licensees, these updates likely apply to you. - Renewal and Continuing Education Enforcement:
Licensees are now being held more strictly accountable for verifying their CE compliance before renewal. Waiting until the last minute or assuming a provider submitted your hours could cost you your license.
Disciplinary Trends: What Keeps Getting People in Trouble
The Division’s disciplinary section tells you exactly what’s happening behind the scenes. Here are recurring themes from Q1 2025 enforcement actions:
- Failing to supervise unlicensed staff (especially in property management roles)
- Advertising violations (false or misleading claims, outdated branding, or failure to disclose license status)
- Acting beyond the scope of licensure, such as conducting transactions without a written agreement
- Handling trust funds improperly or co-mingling funds with operational accounts
- Failing to disclose personal interest in a transaction
In one recent case, a licensee was disciplined for using an unlicensed assistant to manage multiple rental units, collect rent, and communicate directly with tenants—without oversight or documentation. The fines and probation conditions were severe.
What Utah Landlords Can Learn
Even if you’re not a licensee, you’re still on the hook for choosing who represents your interests. If your property manager, leasing agent, or assistant is breaking the rules, you can’t claim ignorance as a defense.
Landlords should:
- Verify licensure of any third-party managers
- Review trust account practices regularly
- Require written agreements with agents and brokers
- Monitor advertising for legal compliance
If you’re unsure how to structure or document those relationships, see:
Avoiding Costly Eviction Mistakes: A Guide for Utah Landlords
Final Thoughts
The message from the Division of Real Estate is simple: Do the work. Know the rules. Get it in writing.
Whether you’re holding a license or just hiring someone who does, Utah’s 2025 enforcement trends show there’s less tolerance for informal practices or “I didn’t know” excuses.
If you’re navigating a complaint, need help reviewing compliance practices, or want legal support around licensing or trust account issues, Duckworth Legal Group is ready to help.
Call (801) 882-7444 or email info@duckworthlegalgroup.com to protect yourself before the Division calls you first.