47 topics · Updated 2026-09-17
A licensee owes a fiduciary duty to the client and must protect and promote the client's interests while dealing fairly with all other parties to a transaction.
A licensee must disclose in writing to all parties any information that materially or adversely affects the consideration to be paid, including inability of seller/lessor or buyer/lessee to perform, known adverse material facts or defects in the property, and any lien or encumbrance on the property.
A licensee must inform other parties in writing before any binding agreement of a present or prospective interest or conflict, including acting as a principal, family relationship of buyer/seller, employment relationships, or a financial interest beyond compensation.
A licensee shall not accept compensation from or represent more than one party without the prior written consent of all parties. A licensee cannot accept compensation for goods/services related to a transaction without the person's prior written acknowledgement.
A licensee owes a fiduciary duty to the client and must protect and promote the client's interests, while also dealing fairly with all other parties to a transaction.
A licensee must disclose in writing to all parties any information materially or adversely affecting the consideration to be paid, including a party's inability to perform, known adverse material facts or defects in the property, and any lien or encumbrance.
A licensee must disclose in writing, before any binding agreement, any present or prospective interest or conflict, including acting as a principal, a family relationship with a party, an ownership/employment link to the employing broker, or a financial interest beyond normal compensation.
A licensee cannot accept compensation from or represent more than one party without the prior written consent of all parties. Compensation for related goods/services requires the person's prior written acknowledgement.
A licensee must expeditiously perform all acts required by their license and not delay performance intentionally or through neglect. If unable to perform any required act, they must expeditiously notify their designated broker.
A licensee shall not allow a controversy with another licensee to jeopardize, delay, or interfere with a client's transaction. This does not obligate a licensee to alter compensation terms or relinquish rights to resolve a controversy.
Services must conform to recognized professional standards of practice and competence. A licensee must not provide services outside their field of competence without engaging a competent person, unless the lack of expertise is disclosed in writing and the client subsequently employs the licensee.
A licensee must exercise reasonable care to obtain material information relevant to the client's interests, accurately communicate it, and take reasonable steps to assist the client in confirming the accuracy of transaction-relevant information.
A licensee shall not permit or facilitate access or occupancy without prior written authorization from the owner, and shall not deliver possession prior to closing unless expressly instructed by the owner. Licensees must recommend clients seek insurance, legal, tax, and accounting counsel regarding pre- and post-possession risks.
A licensee must expeditiously perform all acts required by the license and may not delay performance intentionally or through neglect. If unable to perform a required act, the licensee must promptly notify their designated broker.
Services must conform to professional standards for the specific real estate discipline. A licensee may not handle property/services outside their competence without engaging a competent person, unless the lack of expertise is first disclosed in writing and the client still employs the licensee.
A licensee must exercise reasonable care to obtain information material to the client's interests, accurately communicate it, and take reasonable steps to help the client confirm its accuracy.
A licensee may not permit or facilitate access/occupancy to real property without prior written owner authorization, and may not deliver possession before closing unless expressly instructed by the owner. The licensee must recommend the client seek insurance, legal, tax, and accounting counsel about pre/post-possession risks.
A licensee may not allow a controversy with another licensee to jeopardize, delay, or interfere with a client's transaction. This does not obligate a licensee to alter compensation terms or give up the right to pursue a controversy.
Certain agreements must be in writing and signed by the party to be charged (or a lawfully authorized agent) to be enforceable in court. This protects against fraudulent claims of oral agreements and is highly relevant to real estate transactions.
Agreements for leasing longer than one year, or for the sale of real property or an interest therein, must be in writing. If made by an agent, they are invalid unless the agent's authority is in writing and subscribed by the party to be charged. Agreements employing an agent or broker to buy or sell real property for commission must also be in writing.
Additional agreements requiring writing include: answering for another's debt (suretyship), agreements in consideration of marriage, sales of goods of $500 or more, agreements not performable within one year, agreements not performable during the promisor's lifetime or to devise/bequeath property, and loan/credit commitments over $250,000 not for personal/family/household purposes.
Section 32-2151 governs disposition of funds and trust money deposit requirements, mandating that brokers properly handle and deposit client and customer funds. Amended by SB1171 in 2024.
Section 32-2151.01 sets out broker requirements and record keeping requirements. Brokers must maintain complete transaction records for inspection by the department. Amended by SB1171 in 2024.
Section 32-2151.02 governs real estate employment agreements (listing and representation agreements), including required contents and definitions.
Section 32-2152 provides that a broker or salesperson may bring an action to collect compensation only if properly licensed and with a valid written agreement.
Section 32-2153 lists the grounds for denial, suspension, or revocation of licenses, letters of concern, provisional licenses, and retention of jurisdiction by the commissioner. This is a central disciplinary statute amended by SB1171 in 2024.
Section 32-2155 restricts the employment or compensation of a person as a broker or salesperson, prohibiting payment of commissions to unlicensed persons.
Section 32-2156 requires disclosure in real estate sales and leases, obligating licensees to disclose material facts to the parties.
Section 32-2153.01 covers consent orders and their terms, and 32-2154 authorizes cease and desist orders with a hearing right.
Section 32-2157 covers written notice of changes, summary suspensions, hearing rights, and voluntary surrender of license.
Sections 32-2158 and 32-2159 govern hearings (witnesses, depositions, service of process) and judicial review including costs and transcript. Section 32-2160 covers filing of complaints and prosecution.
Section 32-2160.01 authorizes civil penalties for violations of the chapter, providing a monetary enforcement mechanism.
Section 32-2161 addresses false statements or publications concerning land, subdivisions, or membership camping contracts (with classification as a crime). Sections 32-2162 through 32-2166 cover unlawful cemetery speculation, out-of-state broker cooperation, unlawful subdivision lot sales, unlicensed activity, and activities while incarcerated.
Article 2 does not apply to numerous persons, including owners dealing in their own property (without special compensation), attorneys performing their duties, court-appointed persons, deed of trust trustees, certain residential leasing agents/on-site managers, government officers, and others.
Article 2 applies to real estate brokers/salespersons, cemetery brokers/salespersons, and membership camping brokers/salespersons. It is unlawful to engage in these activities without first obtaining a license and complying with the chapter.
Any act, in consideration or expectation of compensation, that falls within the definition of a broker—whether incidental or the entire transaction—constitutes acting as a broker/salesperson under the chapter, requiring a license. A non-licensee may collect in-person rent and fees as clerical duty.
Exemptions also cover unlicensed clerical/administrative employees, certain telemarketers, advertising communications media meeting specified conditions, nursing/life-care marketing, registered securities dealers for property securities, hotel/motel/RV park managers, short-term (31 days or fewer) rental reservation handlers, escrow/title agents, and finder-fee recipients.
The commissioner may grant a licensure exemption to a nonprofit corporation that provides project-based housing services and operates solely as a charitable organization, if its sole real estate activities involve ownership or management of residential property it owns or controls.
A broker shall employ and pay only active licensees, and a licensee shall accept employment and compensation only from the legally licensed broker to whom they are licensed, or from another qualifying employer meeting specific W-2 and permission conditions.
If a licensee is licensed through a professional corporation or professional LLC, the employing broker may pay and the licensee may receive compensation only through that licensed professional corporation (of which the licensee is officer and shareholder) or professional LLC (of which the licensee is member or manager).
It is unlawful for any person, firm or corporation (including an obligor or escrow holder) to pay compensation for broker acts to someone not licensed when the service was rendered. Reliance in good faith on a current license card/certificate relieves the payer from penalty.
A broker or salesperson cannot collect compensation for negotiating loans secured by real property unless licensed under title 6, chapter 9 (or is employee/officer/partner of such licensed entity), has disclosed dual compensation for both brokerage and mortgage broker services, and the compensation does not violate other law.
Brokers may employ residential leasing agents or managers of residential rental properties as prescribed by 32-2121(A)(6). The exemption of these agents does not relieve the designated broker of the duty to exercise reasonable supervision.
The commissioner must issue a final written decision within 90 calendar days of receiving a completed application, except during proration hearings, deficient applications, or written extensions. If no decision is rendered in time, the claim is deemed approved on the day following the final decision day.
On denial, the notice must state the claimant may pursue the application in court within six months of receiving the notice, filed in the court where the underlying judgment was entered. On payment decisions, the judgment debtor gets notice of license termination and a 30-day window to petition superior court for judicial review.
The commissioner may approve, deny, or enter into a compromise to pay less than the full claim. If the claimant refuses a settlement offer, the commissioner must deny the claim. Notice of decision is given to the claimant and any judgment debtor who filed a timely response.
In considering and investigating an application, the department may use all appropriate means of investigation and discovery available under the chapter.
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