UtahH.B. 3772026 General SessionHouse

Real Estate Amendments

Sponsored By: R. Neil Walter (Republican)

Signed by Governor

BusinessReal EstateReal Property

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 4 costs, 2 mixed.

New licensing rules for property managers

Beginning January 1, 2027, paid managers of Utah real estate generally need a license; property manager licenses cover residential rentals only. Applicants generally need at least 24 training hours and an exam, with questions divided to match each topic's training time. Training hours last 50 minutes, with no more than eight hours per day. Managers licensed in another state may also need a Utah-specific course approved by the Division of Real Estate. The Real Estate Commission sets licensing rules for property managers and dual brokers, with the division's agreement.

Licensed agents can skip manager training

Beginning January 1, 2027, active Utah real estate license holders have a simpler path to a property manager license. People with an active broker, associate broker, or sales agent license can skip the property manager training and exam.

Real estate complaints need approved forms

Reports of suspected, known, or anticipated real estate licensing violations must go only to Utah's Division of Real Estate. Reports must use a form the division approves. This also applies to violations of related rules or orders.

Property managers face ongoing background checks

Property manager applicants applying on or after January 1, 2027, must submit fingerprints and pay a background-check fee. They must consent to state and federal checks and acknowledge fingerprint retention and ongoing criminal-history monitoring through Rap Back. Any license issued before the check finishes remains conditional. Inaccurate criminal-history disclosures can lead to license limits or revocation.

Real estate firms must safeguard records

Covered brokerages and property managers must protect business records, including trust-account and transaction records. Records must stay on file for at least three calendar years after the year of the applicable event. Those events include offer rejection, transaction closing or failure, lease start, and management agreement termination. Records must be stored at a designated business location or in compliant electronic storage and provided to the division on request. A closing brokerage must report record locations within 10 business days; it must also report bankruptcy filings and record locations.

Rental funds can bypass trust accounts

Beginning May 6, 2026, property managers generally must keep client funds, including rent and deposits, in an in-state trust account. Funds can stay outside a trust account if the owner agrees in the management agreement and the lease says so. Managers affiliated with a principal broker must still use that broker's trust account. Trust accounts earn no interest unless the management contract requires interest and names who receives it. The law removes the earlier exemption using a security bond worth at least 30% of estimated funds.

Broker oversight with property manager exceptions

Covered property managers must affiliate with a principal broker before managing, offering, or advertising services for someone else. The broker must be connected to the associated licensee, employer, or contracting party, as applicable. Housing authority employees are exempt. Employees of a property management company are also exempt if it managed at least 750 Utah residential rental units in any of the previous three calendar years.

Sponsors & Cosponsors

Sponsor

R. Neil Walter
Republican • House

Cosponsors

Calvin R. Musselman
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 176 • No: 14

Senate vote • 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 25 • No: 0

House vote • 3/6/2026

House/ concurs with Senate amendment

Yes: 53 • No: 13

Senate vote • 3/6/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 2/27/2026

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

Senate vote • 2/27/2026

Senate Comm - Amendment Recommendation

Yes: 6 • No: 0

House vote • 2/23/2026

House/ passed 3rd reading

Yes: 67 • No: 1

House vote • 2/17/2026

House Comm - Favorable Recommendation

Yes: 10 • No: 0