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Utah Governor Signs RESPRO® Bill Expanding Consumer Choice

Friday, March 29, 2019   (0 Comments)
Posted by: Brittany Sawyer
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RESPRO® Utah Governor Signs RESPRO® Bill Expanding Consumer Choice

 

Washington, District of Columbia – Today, Utah Governor Gary Herbert signed Senate Bill 121 dramatically expanding affiliated business arrangements (AfBAs) in title and real estate. The bill was sponsored by Senator Daniel Hemmert and Representative Mike Shultz.

 

Real Estate Services Providers Council (RESPRO®) President Ken Trepeta applauded the Governor and Utah legislature stating, “Utah’s elected leaders have done a great deal that to provide Utahns with more choices and exceptional service in helping them achieve the American Dream.”

 

With the passage of SB 121, Utah repealed onerous provision severely restricting title AfBAs and replaced them with a more workable system that expands consumer choice and industry competition.  The previous rule prohibited title AfBAs if they were intended to earn a profit and exceeded 30% of affiliate business referrals.

 

As long as Real Estate Settlement Procedures Act (RESPA) Section 8(c)4 is followed along with other provisions of RESPA, the new law will allow AfBAs under certain requirements. The affiliates must meet minimum capital requirements; seek and obtain 30% of their business from outside the affiliate relationship, and follow other elements of the federal AfBA regulations.  In other states, RESPRO® members have been complying with these rules for decades. Utah now joins majority of the country in truly allowing AfBAs.

 

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Press Release: https://cdn.ymaws.com/www.respro.org/resource/resmgr/RESPRO_UT_AfBA_Press_Release.pdf



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