The Utah Insurance Department (UID) has confirmed that it considers an Escrow Officer that processes or negotiates any short sale transaction(s) in violation of the insurance laws and are putting their license in jeopardy. The UID issued a June 21, 2010 Bulletin 2010-5 to put all Title Agencies and Insurers on notice of this fact.
The UID’s bulletin goes hand in hand with the Utah Division of Real Estate’s (DRE) position that the negotiation of a short sale falls under the province of a licensed real estate agent, and that all others (except attorneys) conducting such negotiations are in violation of Utah law by acting as unlicensed real estate agents. The DRE has commented on this issue several times in their quarterly newsletters.
The UID Bulletin cautions any dual licensed individuals (those holding title, real estate, and/or law licenses) that there are clear boundaries on when a licensee can negotiate a short sale while also handling the title work.
We agree with both the UID and URE’s positions since real estate agents are professional sales advocates who are in the best position to negotiate the terms of a short sale transaction.