61-2f-308 - Exclusive brokerage agreement.
61-2f-308. Exclusive brokerage agreement.
(1) As used in this section:
(a) "Client" means a person who makes an exclusive brokerage agreement with aprincipal broker under Subsection (1)(c).
(b) "Closed" means that:
(i) the documents required to be executed under the contract are executed;
(ii) the money required to be paid by either party under the contract is paid in the form ofcollected or cleared funds;
(iii) the proceeds of any new loan are delivered by the lender to the seller; and
(iv) the applicable documents are recorded in the office of the county recorder for thecounty in which the real estate is located.
(c) "Exclusive brokerage agreement" means a written agreement between a client and aprincipal 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 ofthe 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 inexchange for the principal broker's services.
(2) (a) Except as provided in Subsection (2)(b), a principal broker subject to an exclusivebrokerage agreement shall:
(i) accept delivery of and present to the client offers and counteroffers to buy, lease, orexchange the client's real estate;
(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 withSubsection (2)(a) after:
(i) (A) an agreement for the sale, lease, or exchange of the real estate, option on realestate, or improvement on real estate is signed;
(B) the contingencies related to the sale, lease, or exchange are satisfied or waived; and
(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 Sections 61-2f-404 and61-2f-405.
Renumbered and Amended by Chapter 379, 2010 General Session