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

   1. (a) buying, selling, or exchanging real estate for another person; or
   2. (b) offering to buy, sell, or exchange real estate for another person.

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

   1. (a) solicit referrals for clients, owners, customers, and renters;
   2. (b) pay a finder's fee or exchange valuable consideration to an unlicensed person for referring a prospective client;
   3. (c) accept a referral fee from an individual, whether licensed or unlicensed;
   4. (d) contract for services, pay bills, and act on behalf of an owner as provided in a management agreement; and
   5. (e) advertise properties for rent or lease.

3. (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:

   1. (a) located within the state;

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

      1. (i) tenant security deposits;
      2. (ii) rent;
      3. (iii) money tendered by a property owner as a reserve fund or for payment of an unexpected expense; and
      4. (iv) any other purpose designated by the commission; and

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

      1. (i) agree in writing to deposit the funds in an interest-bearing account;
      2. (ii) designate in writing the individuals to whom the parties will pay the interest on completion or failure of the property management contract; and
      3. (iii) ensure that the parties and trust account comply with any other rules established by the commission or division.

4. (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:

   1. (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
   2. (b) a lease agreement states that the property manager is not required to hold property management client funds in a trust account.

5. (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:

   1. (a) rules established by the commission or division; and
   2. (b) requirements established by the principal broker.

Amended by Chapter 142, 2026 General Session