Key Takeaways
- Utah requires agency disclosure to be confirmed in writing when executing a binding agreement
- Licensees must provide agency disclosure either in the Real Estate Purchase Contract or in a separate attached provision
- The Exclusive Right to Sell Listing Agreement and Exclusive Buyer-Broker Agreement include agency disclosure
- A Limited Agency Consent Agreement is required for in-house sales
- An Unrepresented Buyer Disclosure must be provided when a buyer is not represented
Utah Agency Disclosure Requirements
Utah law requires licensees to disclose their agency relationships to consumers. Proper disclosure timing and documentation is critical for compliance.
When to Disclose Agency
Agency disclosure must be confirmed in writing when executing a binding agreement. Disclosure should occur:
| Timing | Situation |
|---|---|
| At first substantive contact | When discussing specific properties or needs |
| Before listing appointment | Before taking a listing |
| Before showing properties | Before buyer representation begins |
| In purchase contract | Confirm prior disclosure in writing |
Confirmation in Writing
When executing a binding agreement in a sales transaction, Utah requires agents to confirm the prior agency disclosure either:
- In the Real Estate Purchase Contract (currently approved form), OR
- In a separate provision with substantially similar language incorporated in or attached to the binding agreement
Required Agency Forms
Utah uses several key forms for agency disclosure and agreement:
Listing Agreements
| Form | Purpose |
|---|---|
| Exclusive Right to Sell Listing Agreement & Agency Disclosure | Seller representation agreement with agency disclosure |
| Non-Exclusive Listing Agreement | Alternative listing arrangement |
Buyer Agreements
| Form | Purpose |
|---|---|
| Exclusive Buyer-Broker Agreement & Agency Disclosure | Buyer representation agreement with agency disclosure |
| Non-Exclusive Buyer Agreement | Alternative buyer arrangement |
Limited Agency (In-House Sales)
| Form | Purpose |
|---|---|
| Limited Agency Consent Agreement | Required when both buyer and seller in same transaction are represented by same brokerage |
Unrepresented Parties
| Form | Purpose |
|---|---|
| Unrepresented Buyer Disclosure | Required when a buyer is not represented by an agent |
| Unrepresented Seller Disclosure | Required when a seller is not represented |
Note: As of August 14, 2024, new agency disclosure forms were released following the NAR settlement, incorporating updated legal language.
Agency Disclosure Form Requirements
What Must Be Disclosed
The agency disclosure must include:
| Element | Description |
|---|---|
| Type of representation | Seller's agent, buyer's agent, or limited agent |
| Duties owed | Explanation of duties in each relationship type |
| Compensation | How and by whom the agent will be compensated |
| Consent | Acknowledgment of the agency relationship |
Licensee Signature Requirements
Licensees must:
- Sign the agency disclosure form
- Date the agency disclosure form
- Provide a copy to the consumer
- Retain a copy for records
Consumer Acknowledgment
| Requirement | Status |
|---|---|
| Consumer signature preferred | Yes, for documentation |
| Consumer signature legally required | Depends on form type |
| If consumer refuses | Document refusal with date |
Limited Agency Disclosure Process
When limited agency occurs (in-house sale), additional requirements apply:
Prior Informed Consent
Before proceeding with limited agency:
- Explain in writing that each party may be represented by a separate agent
- Obtain written consent from both buyer and seller
- Execute Limited Agency Consent Agreement
- Provide copies to both parties
Content of Limited Agency Disclosure
| Required Information | Description |
|---|---|
| Definition of limited agency | What it means and how it differs from single agency |
| Duties owed | Specific duties owed as a limited agent |
| Limitations | What the agent cannot do for either party |
| Right to separate representation | Each party may choose separate representation |
| Consent acknowledgment | Written consent from both parties |
Consequences of Improper Disclosure
Failure to properly disclose agency can result in:
| Consequence | Description |
|---|---|
| Disciplinary action | UDRE penalties including fines, suspension |
| Civil liability | Lawsuits from harmed parties |
| Contract issues | Potential voidability of agreements |
| Loss of commission | May forfeit compensation |
Exam Tip: Approximately 70% of real estate lawsuits are related to agency disclosure issues, particularly limited agency situations.
When must agency disclosure be confirmed in writing under Utah law?
What form is required when both buyer and seller in a Utah transaction are represented by the same brokerage?
What must be provided to a buyer who is not represented by an agent in Utah?