Utah License law prohibits which of the following?
Question & Answer
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Net listings
Open listings
Open listings are legal in Utah; they are non-exclusive agreements that allow sellers to list their property with multiple brokers simultaneously, with only the broker who produces the buyer earning a commission β a competitive structure that generally benefits sellers.
Exclusive Agency
Exclusive agency listings are legal in Utah; they allow the seller to retain the right to sell the property themselves without paying a commission while granting one broker the exclusive right to market the property β a standard and widely used listing type.
MLS listings
MLS listings are not only legal in Utah but are a cornerstone of cooperative real estate marketing; participation in the MLS system is encouraged and regulated by both the National Association of Realtors and local MLS boards, and there is no prohibition on MLS listings in Utah.
Why is this correct?
The correct answer is A (Net listings) because Utah's real estate licensing law explicitly prohibits net listings as an unfair and deceptive practice that creates an irreconcilable conflict of interest between the broker's financial incentive and the seller's best interest. The Utah Division of Real Estate enforces this prohibition, and a licensee who enters into a net listing agreement can face disciplinary action including license suspension or revocation.
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