2006 Utah Code - 61-2-27 — Exclusive brokerage agreement.

     61-2-27.   Exclusive brokerage agreement.
     (1) As used in this section:
     (a) "Client" means a person who makes an exclusive brokerage agreement with a principal broker under Subsection (1)(c).
     (b) "Closed" means that:
     (i) all documents required to be executed under the contract are executed;
     (ii) all monies required to be paid by either party under the contract are paid in the form of collected or cleared funds;
     (iii) the proceeds of any new loan are delivered by the lender to the seller; and
     (iv) all applicable documents are recorded in the office of the county recorder for the county in which the property is located.
     (c) "Exclusive brokerage agreement" means a written agreement between a client and a principal broker:
     (i) (A) to list for sale, lease, or exchange:
     (I) real estate;
     (II) an option on real estate; or
     (III) an improvement on real estate; or
     (B) for representation in the purchase, lease, or exchange of:
     (I) real estate;
     (II) an option on real estate; or
     (III) an improvement on real estate;
     (ii) that gives the principal broker the sole right to act as the agent or representative of the client for the purchase, sale, lease, or exchange of:
     (A) real estate;
     (B) an option on real estate; or
     (C) an improvement on real estate; and
     (iii) that gives the principal broker the expectation of receiving valuable consideration in exchange for the principal broker's services.
     (2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an exclusive brokerage agreement shall:
     (i) accept delivery of and present to the client offers and counteroffers to buy, lease, or exchange the client's property;
     (ii) assist the client in developing, communicating, and presenting offers, counteroffers, and notices; and
     (iii) answer any question the client has concerning:
     (A) an offer;
     (B) a counteroffer;
     (C) a notice; and
     (D) a contingency.
     (b) A principal broker subject to an exclusive brokerage agreement need not comply with Subsection (2)(a) after:
     (i) an agreement for the sale, lease, or exchange of the real estate, option on real estate, or improvement on real estate is:
     (A) signed;
     (B) all contingencies related to the sale, lease, or exchange are satisfied or waived; and

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     (C) the sale, lease, or exchange is closed; or
     (ii) the exclusive brokerage agreement expires or terminates.
     (3) A principal broker who violates this section is subject to Section 61-2-17.

Enacted by Chapter 252, 2005 General Session