Utah Code 61-2f-409. Actions for recovery of compensation restricted
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Terms Used In Utah Code 61-2f-409
- Associate broker: means an individual who is:(1)(a) employed or engaged as an independent contractor by or on behalf of a principal broker to perform an act described in Subsection (20) for valuable consideration; and(1)(b) licensed under this chapter as an associate broker. See Utah Code 61-2f-102
- Commission: means the Real Estate Commission established under this chapter. See Utah Code 61-2f-102
- Division: means the Division of Real Estate. See Utah Code 61-2f-102
- Entity: means :
(14)(a) a corporation;(14)(b) a partnership;(14)(c) a limited liability company;(14)(d) a company;(14)(e) an association;(14)(f) a joint venture;(14)(g) a business trust;(14)(h) a trust; or(14)(i) any organization similar to an entity described in Subsections (14)(a) through (h). See Utah Code 61-2f-102- Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
- Person: means an individual or entity. See Utah Code 61-2f-102
- Principal broker: means an individual who is licensed or required to be licensed as a principal broker under this chapter who:
(20)(a) sells or lists for sale real estate, including real estate being sold as part of a foreclosure rescue, or a business opportunity with the expectation of receiving valuable consideration;(20)(b) buys, exchanges, or auctions real estate, an option on real estate, a business opportunity, or an improvement on real estate with the expectation of receiving valuable consideration;(20)(c) advertises, offers, attempts, or otherwise holds the individual out to be engaged in the business described in Subsection (20)(a) or (b);(20)(d) is employed by or on behalf of the owner of real estate or by a prospective purchaser of real estate and performs an act described in Subsection (20)(a), whether the individual's compensation is at a stated salary, a commission basis, upon a salary and commission basis, or otherwise;(20)(e) with the expectation of receiving valuable consideration, manages property owned by another person;(20)(f) advertises or otherwise holds the individual out to be engaged in property management;(20)(g) with the expectation of receiving valuable consideration, assists or directs in the procurement of prospects for or the negotiation of a transaction listed in Subsections (20)(a) and (e);(20)(h) except for a mortgage lender, title insurance producer, or an employee of a mortgage lender or title insurance producer, assists or directs in the closing of a real estate transaction with the expectation of receiving valuable consideration;(20)(i) engages in foreclosure rescue; or(20)(j) advertises, offers, attempts, or otherwise holds the person out as being engaged in foreclosure rescue. See Utah Code 61-2f-102- Real estate: includes leaseholds and business opportunities involving real property. See Utah Code 61-2f-102
- Sales agent: means an individual who is:
(28)(a) affiliated with a principal broker, either as an independent contractor or an employee as provided in Section61-2f-303 , to perform for valuable consideration an act described in Subsection (20); and(28)(b) licensed under this chapter as a sales agent. See Utah Code 61-2f-102- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(1)(a) A person may not bring or maintain an action in any court of this state for the recovery of a commission, fee, or compensation, for any act done or service rendered if the act or service is prohibited under this chapter.(1)(b) Except as provided in Subsection(1)(a) , a person may bring or maintain an action in any court of this state for the recovery of a commission, fee, or compensation if the person is:(1)(b)(i) a principal broker;(1)(b)(ii) an individual that was licensed as a principal broker at the time the act or service that is the subject of the lawsuit was performed; or(1)(b)(iii) an entity that, under the records of the Division of Real Estate, is affiliated with a principal broker.(2)(2)(a) A sales agent or associate broker may not sue in that individual’s own name for the recovery of a fee, commission, or compensation for services as a sales agent or associate broker unless the action is against the principal broker with whom the sales agent or associate broker is or was affiliated.(2)(b) An action for the recovery of a fee, commission, or other compensation may only be instituted and brought by the principal broker with whom a sales agent or associate broker is affiliated.