Utah Code 57-11-14. Revocation, suspension, or denial of registration — Grounds — Suspension or revocation of license

(1)

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Terms Used In Utah Code 57-11-14

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Division: means the Division of Real Estate created in Section 61-2-201. See Utah Code 57-11-2
Fraud: Intentional deception resulting in injury to another.
Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
Land: includes :Utah Code 68-3-12.5
Offer: includes an inducement, solicitation, or attempt to encourage a person to acquire an interest in land if undertaken for gain or profit. See Utah Code 57-11-2
Person: includes :

(a)	a business trust;

(b)	an estate;

(c)

a trust;

(d)	a partnership;

(e)	an unincorporated association;

(f)	two or more of any entity having a joint or common interest; or

(g)

any other legal or commercial entity. See Utah Code 57-11-2

real estate: means any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land. See Utah Code 57-1-1

subdivided lands: means land that is divided or is proposed to be divided for the purpose of disposition into 10 or more units including land, whether contiguous or not, if 10 or more units are offered as a part of a common promotional plan of advertising and sale. See Utah Code 57-11-2

Subdivider: means :

(a)	an owner of an interest in subdivided lands who offers the subdivided lands for disposition; or

(b)

a principal agent of an owner of an interest in subdivided lands if the owner is inactive. See Utah Code 57-11-2

(a)

If the division makes a written finding of fact that a subdivider engages in one or more acts described in Subsection (1)(b), the division may:

(i)	deny an application for registration;

(ii)	revoke, suspend, or deny reissuance of a registration; or

(iii)

impose a civil penalty not to exceed the greater of:

(A)	$2,500 for each violation; or

(B)	the amount of any gain or economic benefit derived from each violation.

(b)

Subsection (1)(a) applies if the division makes a written finding of fact that a subdivider:

(i)	fails to comply with the terms of a cease and desist order;

(ii)

is convicted in a court prior or subsequent to the filing of the application for registration of a crime involving:

(A)

fraud;

(B)	deception;

(C)	false pretenses;

(D)	misrepresentation;

(E)	false advertising; or

(F)	dishonest dealing in real estate transactions;

(iii)

is subject to an injunction or administrative order restraining a false or misleading promotional plan involving land dispositions;

(iv)	disposes of, conceals, or diverts funds or assets of any person so as to defeat the rights of subdivision purchasers;

(v)

fails to perform faithfully a stipulation or agreement made with the division as an inducement to:

(A)	grant a registration;

(B)	reinstate a registration;

(C)	revoke a cease and desist order; or

(D)	approve any promotional plan or public offering statement;

(vi)	makes an intentional misrepresentation, or conceals a material fact, in an application for registration;

(vii)

violates this chapter or the rules adopted under this chapter;

(viii)

directly or through an agent or employee knowingly engages in false, deceptive, or misleading advertising, promotional, or sales methods to offer or dispose of an interest in subdivided lands;

(ix)	engages in the offering of subdivided lands that has constituted or that may constitute a fraud upon purchasers or prospective purchasers of the subdivided lands; or

(x)	engages in a dishonest practice in any industry involving sales to consumers.

(c)	The division shall accompany with a finding of fact required by this Subsection (1) a concise and explicit statement of the underlying facts supporting the finding.

(2)	As an alternative to revoking the registration of a subdivider, the director may issue a cease and desist order if after notice and a hearing the director finds that the subdivider is guilty of a violation for which revocation may be ordered.

(3)

(a)	The division shall suspend or revoke the license of a principal broker, associate broker, or sales agent who violates this chapter for the period of time the director determines to be justified under the circumstances.

(b)	A suspension or revocation under this section is in addition to any other penalty that may be imposed under this chapter, subject to Section 61-2f-404.

Amended by Chapter 379, 2010 General Session

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