160 E 300 S, SLC, UT 84111 Utah Department of Commerce ...2016 Published by Utah Division of Real Estate Department of Commerce 160 E 300 S (84111) PO Box 146711 SLC UT 84114 (801)

160 E 300 S, SLC, UT 84111

(801) 530 6747

[email protected]

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………….…1-3Mortgage Utah Law Course……..3Lending Amendments……………4Mortgage Re-Licensing………….4Broker Notification System………5Rule Developments………………5Staff Spotlight……………………..6Licensing/Disciplinary Action..7-14Kagie’s Korner…………………..15HB72 - Timeshare Bill…………..16Allyn’s Retirement………………172016 CARAVAN…………….17-18

In This Issue

During the 2016 Legislative Ses-sion the Division worked withRepresentative Gage Froerer ontwo bills: HB402 Real EstateAmendments and HB72 Time-share Amendments. For a sum-mary of HB72 see page 16.

Director’s Message

We continue to appreciate Rep-resentative Froerer’s supportand assistance in running legis-lation for the Division each year.We would also like to thankChris Kyler and Mike Ostermillerfor their assistance in gettingHB402 through the session.This bill passed on the secondto last day of the session andneeded their help to get it priori-tized. The changes made inHB402 will go into effect on May10, 2016. This article provideshighlights of changes made; ifyou have questions, pleaseread the exact language foundin the bill or contact the Division.There are areas that grant rule-making authority. We encour-age licensees to participate inthe rulemaking process by at-tending commission or boardmeetings or providing com-ments to the Division.

First Quarter 2016

2016 Legislative Update

Jonathan Stewart

Division of Real Estate

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HB402 -http://le.utah.gov/~2016/bills/hbillint/HB0402.pdf

HB402 – Summary of Changes

Property Tax Appeal Assis-tance59-2-1017

A licensed or certified appraisermay present or provide an opin-ion of value or provide consulta-tion services, includingpresenting evidence or providingproperty tax information.

A licensed or certified appraiserwho does not provide an opinionof value, but who provides con-sultation services by presentingevidence or providing propertytax information may advocate fortheir client.

A licensed or certified appraisermay provide an opinion of value,present evidence, or provide taxinformation in a property tax ap-peal of the personal residence ofthe licensed or certified appraiserdespite any personal bias.

Adjudicative Proceedings –Citation Authority61-2-203

The Division may initiate anadjudicative proceeding througha citation.

A citation may only be issuedfor specific violations found in 61-2-203.

Allow the Division and Com-mission to reduce a lending man-ager license to a loan originatorlicense.

Appraisal Management Com-pany Registration and Regula-tion Act

Use of Licensed or CertifiedAppraisers61-2e-301

Allow for rulemaking authorityin relation to when use of a li-censed or certified appraiser isappropriate, including how an as-signment is offered to an apprais-er.

Required Disclosure –Customary and ReasonableCompensation61-2e-304

Require an appraisal manage-ment company to compensateappraisers with a customary andreasonable fee.

Allow for rulemaking authoritydealing with customary and rea-sonable compensation.

Removal of Appraiser fromAppraisal Panel61-2e-306

Allow for rulemaking authorityregarding the removal of an ap-praiser from a panel.

Prohibited Acts – Exclusions61-2e-307

Except in cases where a licens-ee fails to comply with a citation,the Division may not use a citationto deny, place on probation, sus-pend, or revoke a license.

A citation can be appealed byproviding notice to the Divisionwithin 20 calendar days of serviceof the citation.

The Division may only issue acitation within six months of theviolation.

A citation fine may not exceed$1,000 for the first offense, and$2,000 for the second and subse-quent offenses.

Residential Mortgage Practicesand Licensing Act

Prohibited Conduct61-2c-301

Act incompetently in a way thatwould fail to safeguard the inter-ests of the public or conform toacceptable standards of the resi-dential mortgage loan industry.

Sign or initial a document onbehalf of another person, exceptfor in a circumstance allowed bythe Division by rule.

Disciplinary Action61-2c-402

Clarify that the Division andCommission can take actionagainst a person previously li-censed for an act the person com-mitted while licensed.

http://le.utah.gov/~2016/bills/hbillint/HB0402.pdf




Removing or threatening to re-move an appraiser from the ap-praiser panel if an appraiserrequires a reasonable extensionin order to complete a credibleappraisal.

Real Estate Licensing andPractices Act

Exempt Persons andTransactions61-2f-202

Clarify that the power of attor-ney exemption must be unsolicit-ed.

Disciplinary Action – JudicialReview61-2f-404

Clarify that a person previouslylicensed remains responsible foractions committed while licensed.

Real Estate AppraiserLicensing and Certification Act

Contingent Fees61-2g-406

A person who is not licensedmay accept a contingent fee ifthey present or provide a priceestimate or property tax informa-tion in a tax appeal.

A licensed or certified appraisermay charge a contingent feewhen providing consultation ser-vices.

A person who charges a contin-gent fee shall clearly state in eachoral statement the fact that theperson is accepting contingentfee and whether the person islicensed or certified.

Clearly state in any written con-sultation report, summary, letterof transmittal, certification state-ment, price estimate, or propertytax information that the documentis prepared under a contingentfee and whether the person islicensed or certified.

Disciplinary Action – Grounds61-2g-502

Clarify that a person previouslylicensed, certified, or registeredremains responsible for actscommitted while licensed, certi-fied, or registered.

If you have any questions aboutthese statutory changes, pleasecontact the Division for additionalinformation. We appreciate allthose who provided feedbackand suggestions that resulted inthese changes.

Mortgage course providerswere given an outline for the2016 2-Hour Utah Law Courseearlier this year. Course appli-cations have been submittedand are currently in the reviewand approval process. Cours-es will be ready and availableto licensees soon.

Course provider contact infor-mation and their approvedmethod of instruction (onlineand/or classroom setting) willbe available on the Divisionwebsite as soon as it is avail-able.

The content for this year’s Utahspecific CE course includessignificant Legislative and Ad-ministrative Rule changes, aswell as disciplinary actions andnoteworthy causes for concernregarding several enforcementactions.

Mortgage licensees, avoid thelate year rush by becoming the“first in your office” to completeyour annually required UtahMortgage CE Course.

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A bill mortgage licensees should be aware of is HB177. Thiswas a bill sponsored by Representative Stanard. This billessentially does two things:

1. Creates a definition for a Mortgage Lender; and,

2. Requires all entities that fit the new definition to registerwith the Department of Financial Institutions.

The bill defines a mortgage lender as an entity that performseach of the following related to originating a mortgage loan:

Taking and processing an application;

Providing a required disclosure;

In some circumstances, underwriting the mortgage loanand making the final credit approval decision;

Closing the mortgage loan in its own name;

Funding the mortgage loan; and

Selling the mortgage loan to an investor.

If your entity fits this new definition, starting May 10th, yourentity will be required to register with the Department ofFinancial Institutions. Mortgage lenders required to regis-ter with DFI are not exempt from the Division of RealEstate and will continue to register with DRE as well.

Any individual desiring to holda mortgage license that didnot renew or reinstate theirlicense by February 28th, willneed to contact the Division todetermine the requirementsthat they will need to completein order to be re-licensed. Ex-pired entities can directly re-quest to be licensed in theNMLS. The Division can bereached at 801-530-6747.


The broker notification system which noti-fies brokers of the status of agents affiliat-ed with the broker has now beenfunctioning for the past three months. TheDivision has received a number of posi-tive communications from Principal Bro-kers (PBs), expressing their appreciationfor the convenience and benefit of receiv-ing these timely notices. Some minorenhancements have also been intro-duced in this system. Principal Brokersare now receiving renewal information ontheir Branch Brokers (BBs), along with thelist of all other licensees affiliated withtheir brokerage. PBs obviously have theresponsibility to supervise all licensedand unlicensed support staff working fortheir brokerage as well as their BranchBrokers.

In March there were still a relatively small,but significant number of PBs (34), thatdid not receive their broker notificationbecause their email addresses “failed orwere otherwise returned.” This is a signif-icant concern because these brokers donot have the capability to utilize theRELMS system to accept licensees desir-ing to affiliate or disassociate from theircompanies, verify the affiliation of theirlicensees, receive Division quarterlynewsletters, or other notifications. Bro-kers who have not received these month-ly notices should verify the accuracy ofthe email address they have indicated intheir personal RELMS account.

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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

Appraisal ManagementThere are no proposed rule amendments under considerationfor the appraisal management rules for the first quarter.

AppraisalThere are no proposed rule amendments under considerationfor the appraisal rules for the first quarter.

MortgageThere are no proposed rule amendments under considerationfor the residential mortgage rules for the first quarter.

Real EstateRule 162-2f. The following rule sections were amended ef-fective February 23, 2016:

1. R162-2f-102 – Definitions. The terms “closing gift” and“inducement gift” are defined;

2. R162-2f-401a – Affirmative Duties Required of All Li-censed Individuals. The subsection referring to induce-ments is deleted;

3. R162-2f-401i – Standards for Real Estate Auctions. Auc-tioneers and auction companies must work with a li-censed principal broker in advertising and conducting areal estate auction and may not advertise their servicesdirectly to an owner of real property who is already sub-ject to an agency agreement;

4. R162-2f-401l – Gifts and inducements. New section al-lowing inducement gifts and closing gifts as those termsare defined in the definition section.

Timeshare and Camp ResortThere are no proposed rule amendments under considerationfor the timeshare and camp resort rules for the first quarter.


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Utah! Division of Real Estate

Director …………..Jonathan StewartEditor/Contributor…Mark FagergrenContributor/Layout...Jennica GruverContributor ……….…… Jeff NielsenContributor ………….. 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

Russel K. Booth, ChairLerron E. Little, Vice ChairLori ChapmanCalvin MusselmanWilliam O. Perry IV

Residential Mortgage RegulatoryCommissioners

Steve A. Hiatt, ChairGeorge P. Richards, Vice ChairJohn T. GonzalesCathy J. GardnerKay R. Ashton

Appraiser Licensing andCertification Board Members

John E. Ulibarri, II, ChairKristin Coleman-Nichol, Vice ChairDaniel BrammerPaul W. ThrondsenJames S. Bringhurst

Staff Spotlight:Michael Page

Mike joined our team as a Mortgage Licensing Specialist last Septem-ber and has been a great addition to our Division family! Keep readingto hear directly from Mike a little bit about his interests and hobbies:

I was born and raised here in Utah with brief stints in WashingtonState and Missouri when I was younger. I grew up in Bountiful andwent to Bountiful High School and attended the U of U and WeberState University studying Business and History. I have one sister wholives in Shreveport Louisiana with her husband and 4 children. As formyself, my wife and I have been married for 22 years and have 3 kids.Two in High School and a 1st grader! Oh, and one orange and whitetabby cat named Gus.

An interesting thing about me that not very many people know is thatI play the Highland Bagpipes. I play and compete with the Wasatch &District Pipe Band all over the Western United States. I’ve had theopportunity to compete at the North American Pipe Band Champion-ship in Ontario Canada, and have traveled to Scotland to compete atthe World Pipe Band Championship back in 2011. I’m an avid flyfisherman, and outdoor enthusiast. I love history, and everythingabout the Old West! My family and I love to travel and spend time withour extended family whenever we get the chance, with Bear Lake asour favorite destination.

Before working for the State, I was employed for several differentcompanies in the Retail industry for 20 years as a General Manager.Needless to say, I was DONE with retail hours and started looking fora change. I was fortunate enough to comeon board with the Division of Real Estateas a Mortgage Licensing Specialist about 6months ago and love every minute of it. Itwas a bit of a trial by fire at first in that I hadno experience in the Mortgage industry,and it was learn as you go. I’m grateful topeople like Mark Fagergren, Lark Martinezand Director Stewart who saw somethingin me and took that chance. I love my job,and work with a group of fantastic people!I couldn’t be more grateful. Utah DRE rocks!


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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pended for 30 days for failure todisclose past criminal history.Case number MG-16-80559

BRUENING, CELESTE, mort-gage loan originator, South Jor-dan, Utah. In a stipulated orderdated January 26, 2016, Ms.Bruening’s license was placedon probation for the calendaryear 2015 in resolution of casenumber MG-14-74357.

BRUENING, JOHN, JR., mort-gage loan originator, South Jor-dan, Utah. In a stipulated orderdated January 26, 2016, Mr.Bruening’s license was placedon probation for the calendaryear 2015 in resolution of casenumber MG-14-74356.

CARTWRIGHT, BRET R., mort-gage loan originator, Draper,Utah. In a January 28, 2016order, Mr. Cartwright’s licensewas renewed and placed onprobation until he has formal-ized a plan to satisfy his taxarrearage. Case number MG16-80510

CHRISTENSEN, JON D., mort-gage loan originator, SpanishFork, Utah. In a December 22,2015 order, Mr. Christensen’sapplication for renewal of hislicense to practice as a mort-gage loan originator was grant-

MORTGAGE

AITKEN, KIM LAREA, lendingmanager, North Salt Lake, Utah.In a February 25, 2016 order,Ms. Aitken’s application for re-newal as a lending managerwas renewed and placed onprobation for the renewal perioddue to criminal history. Casenumber MG-16-81060

APOLLO MORTGAGE COM-PANY LC. mortgage entity,Bountiful, Utah. In a February25, 2016 order, Apollo MortgageCompany’s application for re-newal as a mortgage entity wasrenewed on probation untilcharges against the entity’s con-trol person are resolved or anew control person is named.Case number MG-16-81064

BARROW, DON RICHARD,JR., mortgage loan originator,Park City, Utah. In a December30, 2015 order, Mr. Barrow’slicense was renewed andplaced on probation until he hasa formalized plan to satisfy histax arrearage. Case numberMG-15-80055

BELLNAP, NORMAN V., mort-gage loan originator, Orem,Utah. In a February 1, 2016 or-der, Mr. Belnap’s license wasrenewed and immediately sus-

APPRAISAL

SHAW, JAMES R., certified res-idential appraiser, Sandy, Utah.In a stipulated order dated Jan-uary 27, 2016, Mr. Shaw admitsto using comparable sales with-out making appropriate adjust-ments to the sales price and toincorrectly using and applying amultiple regression analysis.With regard to another appraisalassignment, he admits to usingcomparable sales from superiorneighborhoods while failing toreport available sales data forproperties in the same develop-ment as the subject property.Mr. Shaw admits that in doingso, he violated USPAP. Mr.Shaw agreed to the revocationof his certified residential ap-praisal credential. Mr. Shaw hasbeen issued the credential of astate-licensed appraiser. He al-so agreed to complete coursesin basic appraisal procedures,basic appraisal principles, andthe 15-hour USPAP course. Mr.Shaw shall be supervised in hisperformance of all appraisals fortwo years. Mr. Shaw is perma-nently prohibited from usingmultiple regression analysis inthe performance of any apprais-al reports. Case numbers AP-11-57308 and AP-12-58362


JESSOP, THOMAS, lendingmanager, San Clemente, Cali-fornia. In a stipulated order dat-ed December 30, 2015, Mr.Jessop admitted that althoughhe disclosed a previous bank-ruptcy, he failed to do so within10 business days as required byUtah law. Mr. Jessop agreed topay a civil penalty of $250. Casenumber MG-15-79898

KELLEY, WAYNE C. JR., mort-gage loan originator, Midway,Utah. In a stipulated order datedJanuary 6, 2016, Mr. Kelley ad-mitted that although he dis-closed a previous bankruptcy,he failed to do so within 10 busi-ness days as required by Utahlaw. Mr. Kelley agreed to pay acivil penalty of $250. Case num-ber MG-16-80080

LIRA, PEDRO, lending manag-er, Salt Lake City, Utah. In aFebruary 10, 2016, order Mr.Lira’s license was renewed andimmediately suspended for 30days for misrepresenting in hisapplication to renew his licensethat he had not filed for bank-ruptcy in the past 10 years.Following the suspension, Mr.Lira’s license will be on proba-tion for the remainder of therenewal period. Case numberMG-16-80754

MARKOSIAN, CHRISTOPHERTHOMAS, mortgage loan origi-nator, Sandy, Utah. In a January21, 2016, order, Mr. Marko-sian’s application to renew hismortgage loan originator licensewas granted and placed on pro-

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ed and placed on probation forthe renewal licensing period dueto his criminal history. Casenumber MG-15-79963

CISNEY, RYAN, lending man-ager, Syracuse, Utah. In a stipu-lated order dated December 2,2015, Mr. Cisney admitted tohaving violated Utah law whichprohibits giving or receiving areferral fee or other compensa-tion in exchange for a referral ofresidential mortgage business.Mr. Cisney agreed to pay a civilpenalty of $1,000, to update hisMU4 disclosure form, and tocooperate with the Division inany investigation related to thematter. Case number MG-1578949

DAVIS, AARON MICHAEL,mortgage loan originator,Woods Cross, Utah. In a Febru-ary 9, 2016 order, Mr. Davis’sapplication for licensure as amortgage loan originator wasgranted and placed on proba-tion for the initial licensing peri-od due to his criminal history.Case number MG-16-80741

DEELSTRA, JAN, mortgageloan originator, South Jordan,Utah. In a February 11, 2016order, Ms. Deelstra’s applicationfor licensure as a mortgage loanoriginator was granted andplaced on probation for the ini-tial licensing period due to taxliens. Case number MG-1680773GARRETT, ADAM RUSSELL,mortgage loan originator, Co-lumbia, Missouri. In a December

22, 2015 order, Mr. Garrett’sapplication for licensure as amortgage loan originator wasgranted and placed on proba-tion for the initial licensing peri-od due to his criminal history.Case number MG-15-79961

GONZALEZ, ROBERT JR.,mortgage loan originator, Tus-tin, California. In a February 26,2016 order, Mr. Gonzalez’s ap-plication for licensure as a mort-gage loan originator wasgranted and placed on proba-tion for the initial licensing peri-od due to his criminal history.Case number MG-16-81070

HARWARD, JOEL R., mortgageloan originator, Elk Ridge, Utah.In a stipulated order dated Feb-ruary 3, 2016, Mr. Harward ad-mitted to having violated Utahlaw which precludes the makingof a false statement or repre-sentation in a residential mort-gage loan transaction,regardless of whether the loancloses. Mr. Harward agreed topay a civil penalty of $1,000 andto update his MU4 disclosureform. Case number MG-1575159

HOLFERTY, RYAN R., mort-gage loan originator, Salt LakeCity, Utah. In a stipulated orderdated December 30, 2015, Mr.Holferty admitted that althoughhe disclosed a previous bank-ruptcy, he failed to do so within10 business days as required byUtah law. Mr. Holferty agreed topay a civil penalty of $250. Casenumber MG-15-79894


that she misrepresented in herapplication to renew her licensethat she had not filed for bank-ruptcy in the past 10 years. Ms.Russon’s license was renewedand she agreed to pay a civilpenalty of $500. Case numberMG-16-80081

SIMPSON, BRIAN, mortgageloan originator, American Fork,Utah. In a stipulated order datedFebruary 3, 2016, Mr. Simpsonadmitted that he did not disclosepast criminal charges in his ap-plication to renew his license.His failure to disclose is a viola-tion of Utah law. Mr. Simpson’slicense was renewed and heagreed to pay a civil penalty of$500. Case number MG-1680568

SMITH, BRAD L., mortgageloan originator, Salt Lake City,Utah. In a December 30, 2015order, Mr. Smith’s license wasrenewed and placed on proba-tion until he has formalized aplan to satisfy his tax arrearage.Case number MG-15-80056

SMITH, CHRISTOPHER DA-VID, mortgage loan originator,Novi, Michigan. In a stipulatedorder dated December 2, 2015,Mr. Smith admitted that he didnot disclose pending criminalcharges in his application to re-new his license. His failure todisclose the charges is a viola-tion of Utah law. Mr. Smithagreed to pay a civil penalty of$500. Case number MG-1579660

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bation for the licensing perioddue to his criminal history. Casenumber MG-16-80291

MARTIN, JOHN ROGERS,mortgage loan originator, Drap-er, Utah. In a January 16, 2016order, Mr. Martin’s applicationfor licensure as a mortgage loanoriginator was denied becauseof a permanent injunction en-tered against him by the UtahSecurities Board and for misrep-resentations and omissionsmade in connection with the of-fer and sale of a security in vio-lation of the Securities Act.Case number MG-16-80388

NIELSEN, GARY C., lendingmanager, Bountiful, Utah. In aFebruary 9, 2016 order, Mr.Nielsen’s application for rein-statement of his license to prac-tice as a lending manager wasgranted and placed on proba-tion for pending criminal charg-es. Case number MG-16-80715

OLPIN, STEVE N., mortgageloan originator, Sandy, Utah. Ina January 27, 2016 order, Mr.Olpin’s license was renewedand placed on probation until hehas formalized a plan to satisfyhis tax arrearage. Case numberMG-16-80492OSSOLA, MICHAEL, unli-censed, Riverton, Utah. In astipulated order dated Decem-ber 30, 2016, Mr. Ossola admit-ted to having violated Utah lawby engaging in loan modificationassistance without being li-censed. Mr. Ossola agreed todiscontinue providing loan mod-

ification assistance and to pay acivil penalty of $2,500. Casenumber MG-15-78210

PARKS, LINDY, mortgage loanoriginator, Salt Lake City, Utah.In a stipulated order dated Jan-uary 6, 2016, Ms. Parks admit-ted that she misrepresented inher application to renew her li-cense that she had not filed forbankruptcy in the past 10 years.Ms. Parks agreed to pay a civilpenalty of $500. Case numberMG-16-80877

PITCHER, KENT, mortgageloan originator, Layton, Utah. Ina February 1, 2016 order, Mr.Pitcher’s license was renewedand immediately suspended for30 days for misrepresenting inhis application to renew his li-cense that he has not filed forbankruptcy in the past 10 years.Following the suspension, Mr.Pitcher’s license will be on pro-bation for the remainder of therenewal period. Case numberMG-16-80560

REYNOLDS, MICHAEL CRAIG,II, mortgage loan originator,Huntington Beach, California.In a January 28, 2016 order, Mr.Reynolds’s license was re-newed and placed on probationuntil he has formalized a plan tosatisfy his tax arrearage. Casenumber MG-16-80537

RUSSON, ANGIE R., mortgageloan originator, Layton, Utah. Ina stipulated order dated January6, 2016, Ms. Russon admitted


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TANG, DARRON, lending man-ager, San Leandro, California.In a February 3, 2016 order, Mr.Tang’s license was renewedand placed on probation until hehas formalized a plan to satisfyhis tax arrearage. Case numberMG-16-80608

TIDWELL, MICHAEL B., lend-ing manager, Bountiful, Utah. Ina February 3, 2016 order, Mr.Tidwell’s license was renewedand placed on probation until hehas paid the tax due or formal-ized a plan to satisfy his taxarrearage. Case number MG16-80613

WEIR, NICHOLOUS J., mort-gage loan originator, Sandy,Utah. In a January 29, 2016order, Mr. Weir’s license wasrenewed and placed on proba-tion until he has formalized aplan to satisfy his tax arrearage.Case number MG-16-80550

REAL ESTATE

APARICIO, ALICIA ANA, salesagent, Ogden, Utah. In a Janu-ary 22, 2016 order, Ms. Apari-cio’s license was granted andplaced on probation for the ini-tial licensing period due to crim-inal history. Case numberRE-16-80407

BAQUE, JOHN, sales agent,Salt Lake City, Utah. In a De-cember 3, 2015 order, Mr.Baque’s license was renewedand placed on probation for therenewal period due to criminal

mission. Case number RE-16880806

CARLSON, JOEL D., salesagent, Salt Lake City, Utah. In aDecember 4, 2015 order, Mr.Carlson’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-79724

CHACON, ADAM THEODORE,sales agent, Salt Lake City,Utah. In a February 29, 2016order, Mr. Chacon’s license wasgranted and placed on proba-tion for the initial licensing peri-od due to criminal history. Casenumber RE-16-81117

CLARK, JEFFREY, sales agent,South Jordan, Utah. In a Febru-ary 16, 2016 order, Mr. Clark’slicense was granted, immedi-ately suspended for 30 days,and thereafter placed on proba-tion for the remainder of theinitial licensing period due tocriminal history. Case numberRE-16-80818

CREWS, TANNER B., salesagent, Roy, Utah. In a February9, 2016 order, Mr. Crews’s li-cense was granted and placedon probation for the initial licens-ing period and the pendency ofcriminal proceedings due tocriminal history and a pendingcriminal charge. Case numberRE-16-80726

DIAZ, MARCO, sales agent,South Jordan, Utah. In a De-

history. Case number RE-16-79703

BEHNKE, LAURA, sales agent,Park City, Utah. In a February 4,2016 order, Ms. Behnke’s li-cense was granted and placedon probation for the initial licens-ing period due to criminal histo-ry. Case number RE-16-80652

BLACKHURST, LAURIE, salesagent, Linden, Utah. In a De-cember 22, 2015 order, Ms.Blackhurst’s license was grant-ed and placed on probation forthe initial licensing period due tocriminal history. Case numberRE-16-79989

BOONE, JASON, sales agent,Salt Lake City, Utah. In a De-cember 29, 2015 order, Mr.Boone’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80036

BRACY, ASHLEY B., salesagent, Bountiful, Utah. In a Jan-uary 14, 2016 order, Ms. Bra-cy’s license was renewed andplaced on probation for the re-newal period due to criminalhistory. Case number RE-16-80272

BURNINGHAM, CHERYL,sales agent, Sandy, Utah. In aFebruary 17, 2016 order, Ms.Burningham’s license was re-newed and placed on probationfor the renewal period due to therevocation of her notary com-


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cember 3, 2015 order, Mr. Di-az’s license was granted andplaced on probation for the ini-tial licensing period due to crim-inal history. Case numberRE-16-79718

DUVALL, SCOTT, sales agent,Ogden, Utah. In a January 15,2016, order, Mr. DuVall’s appli-cation for licensure was denieddue to criminal history. Casenumber RE-16-80274

FLEMING, ANDREW TOD,sales agent, South Jordan,Utah. In a December 10, 2015order, Mr. Fleming’s license wasgranted and placed on proba-tion for the initial licensing peri-od due to criminal history. Casenumber RE-16-79740

FOX, J. DANIEL, principal bro-ker, Sandy, Utah. In a February26, 2016 order, Mr. Fox’s li-cense was renewed and placedon probation for the renewal pe-riod due to his failure to disclosean abstract of judgment enteredagainst him in a civil case. Casenumber RE-14-69658

GARRETT, STEPHEN L., salesagent, Draper, Utah. In a Febru-ary 18, 2016 order, Mr. Garrett’slicense was reinstated andplaced on probation for the re-newal period due to criminalhistory. Case number RE-16-80890

GLAITTLI, BROOKE, salesagent, Riverton, Utah. In a stip-ulated order dated December16, 2015, Ms. Glaittli admitted to

granted and placed on proba-tion for the initial licensing peri-od due to criminal history. Casenumber RE-16-80033

HOLSMAN, TODD R., salesagent, Elk Ridge, Utah. In a De-cember 22, 2015 order, Mr.Holsman’s license was renewedand placed on probation for therenewal period due to criminalhistory. Case number RE-1579982

HORMAN, TODD A., principalbroker, North Logan, Utah. In astipulated order dated Decem-ber 16, 2015, Mr. Horman ad-mitted to engaging in thepractice of real estate from alocation with signs which adver-tised a marketing entity withoutincluding the name of his bro-kerage. This conduct continuedfor several months after the Di-vision notified Mr. Horman of theviolation. In addition, Mr. Hor-man used online marketing us-ing the name of the marketingentity without using the name ofthe brokerage. Mr. Hormanagreed to pay a civil penalty of$2,000 and complete threehours of additional continuingeducation. Case number RE14-72153

INGRAM, DEBORAH, salesagent, Syracuse, Utah. In a stip-ulated order dated February 17,2016, Ms. Ingram admitted toplacing multiple advertisements,misrepresenting that she wasthe listing agent and withoutidentifying the listing brokeragein the advertisements in viola-

marketing residential propertiesfor sale without including thename of her brokerage in theadvertising in violation of Utahregulations. Ms. Glaittli agreedto pay a civil penalty of $150.Case numbers RE-14-70362,RE-14-72624, and RE-1578230

GOLDMAN, SANDRA, associ-ate broker, Park City, Utah. In astipulated order dated February17, 2016, Ms. Goldman is al-leged to have failed to update aseller’s property condition dis-closure in a transaction in whichshe had an ownership interestwhich would be a violation ofUtah law. Ms. Goldman agreedto pay a civil penalty of $500and complete additional con-tinuing education. Case numberRE-14-71940

HARDY, BRUCE, associatebroker, St. George, Utah. In aDecember 29, 2015 order, Mr.Hardy’s license was renewedand placed on probation for therenewal period due to a pendingcriminal charge. Case numberRE-15-80032HELM, DAVID C., II, principalbroker, Stansbury Park, Utah. Ina December 16, 2015 order, Mr.Helm’s license was renewedand placed on probation for therenewal period due to criminalhistory. Case number RE-1579654

HELM, JACK ALLEN, salesagent, Cottonwood Heights,Utah. In a December 29, 2015order, Mr. Helm’s license was


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tion of Utah law. Ms. Ingramagreed to pay a civil penalty of$500. Case number RE-1472611

INGRAM, JERRY A., principalbroker, Syracuse, Utah. In astipulated order dated February17 2016, Mr. Ingram admitted toplacing multiple advertisements,misrepresenting that he was thelisting agent and without identi-fying the listing brokerage in theadvertisements in violation ofUtah law. Mr. Ingram agreed topay a civil penalty of $500. Casenumbers RE-15-77223 and RE-15-79595

JOLLEY, MAX G., sales agent,St. George, Utah. In a stipulatedorder dated January 20, 2016,Mr. Jolley admitted to forgery byunlawfully duplicating resortguest passes for use by tenantsand guests of condominiumsthat he managed, acts whichare in violation of Utah law. Mr.Jolley pleaded guilty to felonytheft and forgery charges in theresulting criminal proceeding.Mr. Jolley agreed to the revoca-tion of his license and to pay acivil penalty of $5,000 whichpenalty will be reduced to$1,000 if Mr. Jolley pays fullrestitution to his victims withinone year. Mr. Jolley shall ap-pear before the Real EstateCommission prior to any futureapplications for licensure as areal estate sales agent in thestate of Utah. Case number RE-13-66710

Longhurst’s license was re-newed and placed on probationfor one year due to criminalhistory. Case number RE-15-79739

MATAELE, RAYMOND, salesagent, Taylorsville, Utah. In aJanuary 26, 2016 order, Mr.Raymond’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80476

MERRILL, ANGELA, salesagent, Lehi, Utah. In a Decem-ber 3, 2015 order, Ms. Merrill’slicense was granted and placedon probation for the initial licens-ing period due to criminal histo-ry. Case number RE-16-79701

MILLER, ELIZABETH ES-TELLE, sales agent, St.George, Utah. In a January 21,2016 order, Ms. Miller’s licensewas renewed and placed onprobation for the renewal perioddue to criminal history. In addi-tion, Ms. Miller was ordered topay a civil penalty of $500 forfailing to notify the Division with-in ten days of entering into aplea in abeyance on the criminalcharges. Case number RE-13-68045

MITCHELL, LYNANN, salesagent, Orem, Utah. In a January8, 2016 order, Ms. Mitchell’slicense was granted and placedon probation for the initial licens-ing period due to criminal histo-ry. Case number RE-16-80190

JONES, KAYSON, sales agent,Spanish Fork, Utah. In a De-cember 29, 2015 order, Mr.Jones’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80035

KIRCHHOEFER, ERICH S.,sales agent, Layton, Utah. In astipulated order dated January20, 2016, Mr. Kirchhoefer admit-ted to marketing residentialproperties online without includ-ing the name of his brokerage inthe advertising in violation ofUtah regulations. Mr. Kirchhoe-fer agreed to pay a civil penaltyof $150. Case numbers RE-14-69342

KRAHENBUHL, BRIAN DAN-IEL, sales agent, South Jordan,Utah. In a February 4, 2016 or-der, Mr. Krahenbuhl’s licensewas granted and placed on pro-bation for the initial licensingperiod due to criminal history.Case number RE-16-80656LARSEN, JUSTIN L., salesagent, Farmington, Utah. In aJanuary 26, 2016 order, Mr. Lar-sen’s license was granted andplaced on probation due to apending criminal charge. If Mr.Larsen is convicted of thecharge he is required to notifythe Division within 10 businessdays. Case number RE-1680468

LONGHURST, D. BRADY,sales agent, Sandy, Utah. In aDecember 4, 2015 order, Mr.


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MONTAGUE, KATHY, salesagent, Draper, Utah. In a De-cember 4, 2015 order, Ms. Mon-tague’s license was renewedand placed on probation for therenewal period due to criminalhistory. Case number RE-1579733

MORTENSEN, NANTAWAN,sales agent, Salt Lake City,Utah. In a stipulated order datedJanuary 20, 2016, Ms. Mortens-en admitted to listing a propertyfor sale without the authoriza-tion of the co-owner of the prop-erty. After being informed thatshe did not have the co-owner’spermission to list the propertyfor sale, Ms. Mortensen contin-ued negotiations for the sale ofthe property. These acts are inviolation of Utah law and regula-tions. In mitigation, Ms.Mortensen was a relatively newagent at the time and had beeninformed by her client’s attorneythat her client was authorized tolist and sell the property. Ms.Mortensen agreed to pay a civilpenalty of $500 and completethree hours of additional con-tinuing education. Case numberRE-13-68579

MUELLER, JONATHANSCOTT, sales agent, Park City,Utah. In a February 2, 2016 or-der, Mr. Mueller’s license wasgranted and placed on proba-tion for one year due to criminalhistory. Case number RE-16-80588

PORTER, BRENDON BOL-TON, sales agent, Salt LakeCity, Utah. In an October 30,2015 order, Mr. Porter’s licensewas granted and placed on pro-bation for one year due to crimi-nal history. Case numberRE-16-79279

RACHUBA, CHRISTOPHERJACK, sales agent, Woodbine,Maryland. In a February 9, 2016order, Mr. Rachuba’s licensewas granted and placed on pro-bation for the initial licensingperiod due to criminal history.Case number RE-16-80722

ROBERTS, DOUG, salesagent, West Point, Utah. In aDecember 22, 2015 order, Mr.Roberts’s license was renewedand placed on probation for oneyear. Case number RE-1579986

ROBERTS, RACHEL ANN,sales agent, Ogden, Utah. In aFebruary 29, 2016 order, Ms.Roberts’s license was renewedand placed on probation for oneyear due to criminal history.Case number RE-16-81115

SANCHEZ, MICHAEL J., salesagent, West Valley City, Utah. Ina stipulated order dated Decem-ber 16, 2015, Mr. Sanchez ad-mitted to failing to disclose aplea in abeyance to a class Bmisdemeanor in his applicationto renew his license. His failureto disclose is a misrepresenta-tion in his application in violationof Utah law. Mr. Sanchez

OLSEN, NICHOLAS GARY,sales agent, Bountiful, Utah. Ina January 22, 2016 order, Mr.Olsen’s license was renewedand placed on probation due toa pending criminal charge. Casenumber RE-16-80406

PAGE, TYSON CURTIS, salesagent, South Weber, Utah. In aFebruary 9, 2016 order, Mr.Page’s license was granted andplaced on probation for one yeardue to criminal history. Casenumber RE-16-80719

PARKER, DAVID L., associatebroker, North Salt Lake, Utah. Ina stipulated order dated Febru-ary 17, 2016, Mr. Parker admit-ted to entering into a limitedagency consent agreement toact as limited agent in a salestransaction for a property ownedby a limited liability company ofwhich he was a member. Theseactions violate Utah regulations.The transaction did not closedue to the buyer’s cancellationof the REPC prior to the duediligence deadline. Mr. Parkeragreed to pay a civil penalty of$500. Case number RE-1470943

PATTERSON, MATTHEW,sales agent, Layton, Utah. In aDecember 4, 2015 order, Mr.Patterson’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-79736


agreed to pay a civil penalty of$500 and that his license wouldbe on probation during the re-newal period. Case number RE-15-79727

SMITH, SKYLAR, sales agent,St. George, Utah. In a February26, 2016 order, Mr. Smith’s li-cense was renewed and placedon probation for the renewal pe-riod due to criminal history.Case number RE-16-81076

TAEOALII, CONNIE M., salesagent, West Valley City, Utah. Ina February 4, 2016 order, Ms.Taeoalii’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80673

TAYLOR, MARCI ANN, salesagent, Brigham City, Utah. In aDecember 3, 2015 order, Ms.Taylor’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-15-79706

TAYLOR, ZACHARY JAMES,sales agent, Holladay, Utah. Ina February 17, 2016 order, Mr.Taylor’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80825

TEW, BRAD, unlicensed,Springville, Utah. In a stipulatedorder dated December 16,2015, Mr. Tew admitted to act-

2016 order, Mr. Waters’s li-cense was renewed and placedon probation for the renewal pe-riod due to criminal history andfailure to pay child support.Case number RE-16-80405

WINN, JOSHUA, sales agent,Orem, Utah. In a stipulated or-der dated February 17, 2016,Mr. Winn admitted that whileunder an agreement to repre-sent both sides of a sales trans-action as a limited agent, he hadadvised and represented theseller, and assisted the seller insettlement negotiations, in viola-tion of the fiduciary duty heowed to the buyer in the trans-action. Mr. Winn agreed to paya civil penalty of $6,000 andcomplete 12 hours of additionalcontinuing education. Casenumber RE-13-64200

TIMESHARE

FRANCE, CHRISTOPHER,salesperson, Salt Lake City,Utah. In a February 2, 2016 or-der, Mr. France’s application forlicensure was denied due tocriminal history. Case numberTS-16-80580SHERR, STACY E., salesper-son, Heber City, Utah. In aJanuary 13, 2016 order, Ms.Sherr’s application for licensurewas denied due to criminal his-tory. Case number TS-16-80256

ing as an unlicensed salesagent following the suspensionand later expiration of his realestate license in violation ofUtah law. Without an active li-cense, Mr. Tew represented atleast two individuals in the pur-chase of their home and provid-ed management services for atleast 14 separate properties.Mr. Tew agreed to pay a civilpenalty of $37,150 and to ceaseand desist from all activities re-quiring a real estate license.Case number RE-14-71312

THORNTON, JACEE ANN,sales agent, Ogden, Utah. In aDecember 22, 2015 order, Ms.Thorton’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-79993

TWELVES, MIRIAM GRACE,sales agent, Hurricane, Utah. Ina February 4, 2016 order, Ms.Twelves’s license was grantedand placed on probation for theinitial licensing period due tocriminal history. Case numberRE-16-80647

WALDEN, SPENCER S., princi-pal broker, Las Vegas, Nevada.In a February 2, 2016 order, Mr.Walden’s license was reinstatedand placed on probation for therenewal period due to criminalhistory. Case number RE-1680590

WATERS, CORY, sales agent,Richfield, Utah. In a January 22,

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In this addition of the Korner, Iwould like to address two differ-ent topics based on types oftelephone calls I consistently re-ceive.

Advertising Call

The first call goes somethinglike this:Agent Jon Smith calls to file acomplaint about a KSL classi-fied advertisement his buyer,Ms. Andrews found yesterday. Itis her dream home so she wasreally excited and wanted toknow when she could view theproperty. Mr. Smith reviewedthe MLS listing and contactedthe listing agent, Ms. Jones,who informed him the propertywas under contract. Mr. Smithand Ms. Andrews became upsetas they feel the advertisement ismisleading. They want to file acomplaint with the Division be-cause the property, despite be-ing advertised for sale, does notseem to be available for pur-chase.

As presented, the Division doesnot see this as a violation. Iwould like to clarify why. Eventhough the property is undercontract with another potentialbuyer, Ms. Jones appears to belooking out for her client's bestinterest. In this case, Ms.Jones’s client, after consultingwith Ms. Jones, expressed a

this should be done via the RealEstate Purchase Contract(REPC). The short answer tothis question is NO.

Remember, a commissionagreement is a written agree-ment between a broker and aclient. This is usually donethrough the listing agreement onthe listing side, and through abuyer broker agreement on thebuyer’s side. Commissionsshould never be part of theREPC since the REPC is a legalcontract between the seller andbuyer regarding the propertytransfer. Agents should not in-sert their agreements into theREPC.

Any time an agreement to pay acommission is changed for oneor both of the agents, thatchange should be reflected inother documents. First, an ad-dendum to the listing, the buyerbroker agreement, or both,should be made to reflect thechange as agreed upon by thebroker/agent and the client.Second, the change should bedone via escrow instructions tonotify the escrow agent of thecommission split between bro-kerages. That way, you informthe correct parties but do notbecome a part of a contract thatotherwise does not involve yourinterests.

desire to keep the property ad-vertised in case the current pro-spective buyer’s contract fails.The client may want to also con-sider having a backup offer inplace. A listing agent acting un-der such guidance can, andshould, keep marketing theproperty. Ms. Jones wouldseem to be following the instruc-tions of her client by continuingto market the property for sale.

A couple of things you shouldconsider regarding this scenar-io. First, MLS requirements mayhave a time frame within whichyou need to update a listing’savailability on the MLS. There isnot a similar requirement underthe Division statutes and rules.Second, an online advertise-ment is similar to a yard sign.Not all agents place an “undercontract” or “sale pending” rideron yard signs, so why wouldother forms of advertising berequired to be handled different-ly?

Commissions Call

The second call goes like this:

A buyer’s agent has been incontact with a listing agent. Toget a deal done, the agents de-cide there will need to be a re-duction in the commissions.One of the agents calls to ask if


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Timeshare and Camp Resort Projects

Registration – Filing Application57-19-5

Remove the requirement to pay an inspec-tion fee upfront.

If the Division determines that an inspectionis necessary, require the development to paythe Division the actual cost and expensesincurred by the Division in performing theon-site inspection.

Effective Date of Application57-19-6

Allows for the Division to grant a developerwho has submitted an application that hasnot yet been approved the ability to adver-tise, offer, or sell an interest for a period of 30days or less.

Disclosure Required57-19-11

Allow for electronic versions of documents.

Clarify that a development will not issue moreinterests than they can accommodate.

Purchaser’s Right to Cancel57-19-12

Clarify a purchaser’s right to cancel.

Suspension, Revocation, or Denial of Registra-tion – Fine57-19-13

Increase maximum fine amount from $500per violation to $5,000.

Application for Registration of Salesperson57-19-15

Clarify that the Division can exercise discre-tion in approving the application of a sales-person based on honesty, integrity,truthfulness, and reputation.

The Division of Real Estate worked with the American Resort Development Association on HB72. This isonly a summary of the changes; please review the bill for exact language:



On March 15th, all Utah Division of Real Es-tate licensees were sent an email invitation,for the upcoming 2016 Spring CARAVAN.3-hour presentations will be provided at ninedifferent locations throughout the state.

As of the publication of this newsletter, threelocations are filled, and are no longer avail-able for reservations. In the remaining sixsites: Vernal, Logan, Moab, Richfield, CedarCity, and St. George, there is still limitedseating available. For additional informationor to register, please go to the Division web-site at:

http://realestate.utah.gov/caravan.html.

Please keep in mind that the Division’s annualSpring CARAVAN was originally created, andis currently designed to reach out and provideservices to real estate, mortgage, and ap-praiser licensees in the underserved areasthroughout the state.

NOTE: If you have reserved seating at thisyear’s CARAVAN and you find that you havea conflict, please contact the Division RealEstate Education Coordinator, Jennica GruverAt 801-530-6751 or [email protected] to can-cel your reservation so that other interestedparties may attend.

See the following page for more informationabout CARAVAN locations.

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Congrats on

Allyn Stutsman retired this week from her service tothe State of Utah. Allyn has served the state as anemployee for 22 years and has been a fixture at theDivision of Real Estate. It is difficult to quantify hercontributions to the operations of the Division. Herwork as Enforcement Secretary supported her co-workers in the performance of their responsibilitiesand she filled a vital role in the mission of the Divisionwhich is to protect the public and promote responsi-ble business practices through education, licensure,and regulation of real estate, mortgage, and appraisalprofessions.

Allyn has always been a strong advocate of protect-ing the public. She was careful and meticulous in herwork documenting actions taken against individualswho strayed from the laws and rules regulating thereal estate industry. In doing so, she contributed to apositive environment for real estate transactions inthe state to not only protect the public but also pro-vide a more level playing field for the conscientious,licensed real estate professional.

We will miss seeing and working with Allyn on a dailybasis, but wish her well in retirement. While we are alittle sad that we will not see Allyn at the office everyday, we are happy for her and happy to have beenassociated with her. We hope that retirement bringsher fulfillment and we thank her for a job well done.

Happy trails Allyn!

Retirement Allyn!

mailto:[email protected]

mailto:[email protected]

The Division of Real Estate isoffering a FREE 3 hour COREcontinuing education course forreal estate, appraiser, and*mortgage licensees. (*Mortgagelicensees will receive 2 hours ofcredit to fulfill their state specificCE requirement).

Jonathan Stewart, Director of theDivision of Real Estate, MarkFagergren, Director of Licensingand Education, and Jeff Nielsen,Chief Investigator, will bediscussing current issues and hottopics facing the real estate,mortgage, and appraisalindustries. They will also beavailable to answer anyquestions or concerns you mayhave as a licensee.

There continues to be no chargeto attend the Division CARAVAN.However, if you can not attendplease be courteous and cancelyour registration at least threebusiness days prior to yourscheduled event.

VERNALApril 19, 20169:00am - Noon

Springhill Suites Marriott1205 W Highway 40

PARK CITYApril 21, 20169:00am - Noon

Park City Marriott1895 Sidewinder Dr.

LOGANApril 26, 2016

1:00pm - 4:00pmBridgerland AppliedTechnology Center

1301 N 600 W

LAYTONMay 3, 2016

9:00am - NoonDavis Convention College

1651 N 700 W

PROVOMay 5, 2016

9:00am - NoonUtah Valley Convention Center

220 W Center St.

MOABMay 10, 2016

9:00am - NoonGrand Center182 N 500 W

RICHFIELDMay 11, 2016

9:00am - NoonSevier County Admin. Building

250 N Main St.

CEDAR CITYMay 12, 20169:00am - Noon

Springhill Suites Marriott1477 S Old Hwy 91

ST GEORGEMay 13, 20169:00am - Noon

Dixie State University,Browning Learning Center

Dunford Auditorium225 S 700 E

*Reserve Your Seat Early**Seating is Limited**Stand-by Seating isNOT Guaranteed*

PLEASE COMPLETE THE ONLINE REGISTRATION BY LOGGING ONTO:www.realestate.utah.gov/caravan.html

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www.realestate.utah.gov/caravan.html


19

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