Enforcement related to a property manager -- Maintenance of client funds

(1) Nothing in this section applies to an individual: (a) buying, selling, or exchanging real estate for another person; or (b) offering to buy, sell, or exchange real estate for another person. (2) When engaging in property management, a property manager may: (a) solicit referrals for clients, owners, customers, and renters; (b) pay a finder's fee or exchange valuable consideration to an unlicensed person for referring a prospective client; (c) accept a referral fee from an individual, whether licensed or unlicensed; (d) contract for services, pay bills, and act on behalf of an owner as provided in a management agreement; and (e) advertise properties for rent or lease. (3) Except as provided in Subsection (4), and subject to Subsection (5), a property manager shall associate with at least one real estate trust account in a bank or credit union: (a) located within the state; (b) that, unless otherwise modified by a contract for property management, one or more property managers use for the purpose of securing: (i) tenant security deposits; (ii) rent; (iii) money tendered by a property owner as a reserve fund or for payment of an unexpected expense; and (iv) any other purpose designated by the commission; and (c) that is non-interest bearing, unless the parties to a property management contract: (i) agree in writing to deposit the funds in an interest-bearing account; (ii) designate in writing the individuals to whom the parties will pay the interest on completion or failure of the property management contract; and (iii) ensure that the parties and trust account comply with any other rules established by the commission or division. (4) Except as provided in Subsection (5), a property manager is not required to maintain the property management client funds in a trust account if: (a) the property owner agrees in the property management agreement that the property manager is not required to hold property management client funds in a trust account; and (b) a lease agreement states that the property manager is not required to hold property management client funds in a trust account. (5) A property manager who is affiliated with a principal broker shall keep property management client funds in the principal broker's trust account in accordance with: (a) rules established by the commission or division; and (b) requirements established by the principal broker.