Title & Escrow Commission

Question:
I have a question about the rules changes that went into effect in June.

• [The previous version of the rule included, under permitted methods of competition, the ability to serve on a trade association committee and as an officer for the trade association.]
• Rule R592-6-4(6) states: "Furnishing all or any part of the time or productive effort of any employee of the title producer to any client when such time is not related to a bona fide title insurance, escrow, settlement or closing transaction."

Does this mean as a title producer we CANNOT serve on the committees or hold leadership positions within trade associations, such as NWAOR.

Answer:
NWAOR the Northern Wasatch Association of Realtors is considered a trade association. Refer to R592-6-3(7): “Trade association” means a recognized association of persons, a majority of whom are clients or persons whose primary activity involves real property. Refer to R592-6-3(3)(c): “Client” does not include a trade association, for the purposes of this rule.

August 19, 2024 TEC meeting

Question:
I have been asked by a Photographer, who is a friend of mine, to participate in the same marketing is __________ doing.

The photography studio owner does hold a Utah Mortgage License, but this has nothing to do with their mortgage business. It’s photography only. There isn’t any discussion at the photo shoots of them being a mortgage loan officer nor do they solicit business. It’s strictly photography. The title agency does NOT collect or handle any money, nor do they sponsor anything. We act only as a mediator in encouraging people in our industry to step up their branding game. The title agency does not handle any scheduling and is just the one who makes this post on social media to get attention of these photo shoots. The photography owner handles the rest. The title agency/agent would direct all interested parties to the photography owner directly.

What’s in it for the title agency/agent, the title agency/agent would be allowed to attend the photo shoot and have the opportunity to get photos taken of them.

I don’t see an issue with it other than holding a mortgage license, but it’s not the entity of their business we would be involved with. __________ said they have not done a loan for over 6 months and does nothing with their license but does not want it to expire. Just photography. Please confirm if this is okay for us to do? I know of one other title company besides who is doing this same thing. So, I just want to get permission.

Answer:
First, a point of clarification the TEC is not giving permission. The TEC’s responses are advisory. They are not legal advice and are not binding on the TEC, the Department, or the insurance commissioner.

Rule R592-6-4(12) would appear to apply to the scenario described. In this instance, the conduct being contemplated, if action is taken, would be a violation of R592-6-4 as the title producer is writing/creating the post and the post is a thing of value that may constitute "paying for any advertising on behalf of a client." The photographer holds a current mortgage license and would be considered a "client" under the rule. Additional comments were made to clarify a title producer can repost something that was created by someone else. See R592-6-4-12(b)(ii).

August 19, 2024 TEC meeting

Question:
The inquiry is about a class entitled "Social Media Marketing," and it is "presented" by Title Agent X, owner of XXXX Title Insurance Agency, and Real Estate Agent Y, owner of YYYY Real Estate Photography. The class promises to teach agents how to use "phones to create reels and content, to market listings for sale and connecting with clients." The XXXX Title Agency logo appears along with the host's, YYYY Real Estate.

Under the new rules, "conducting education" that "does not address title, escrow, or a related subject" is prohibited. A class on how to use cell phones for social media marketing does not appear "related" to title or escrow.

1. Is this class, or similar classes, compliant with the rule?
2. If it is not compliant, what steps may be taken to "officially" report XXXX Title Agency for "presenting" this class?

Answer:

1. Rule R592-6-4(18) deals with "conducting education." Specifically, the rule prohibits a title producer from "conducting education that … does not address title insurance, escrow, or a related subject." See R592-6-4(18)(a). As presented, this "Social Media Marketing" class does not address title insurance, escrow, or a related subject and therefore would be a violation of the rule.
2. According to Bulletin 2024-11, a title licensee's complaint against another title licensee shall be submitted to the Insurance Department by filing a completed Title Licensee Complaint Form. The form can be found at https://insurance.utah.gov/forms-reports/#forms. The form must be completed in its entirety and must include documentation to support the complaint’s allegations. The form and supporting documentation shall be sent to title@utah.gov.

September 9, 2024 TEC meeting

Question:
It our understanding certain practices regarding distribution of self-promotional items are prohibited, however, we see one of these practices in particular, in our marketing area on a regular basis: Promo/swag items that not permanently marked or branded. There have been cases where we have seen holiday/seasonal swag items that are being given to real estate agents where only a business card has been stapled or taped to the item’s packaging.

Stapling or taping a business card to an item that is not branded with a title producers company name or logo company name is not allowed, is this correct?

Answer:
Rule R592-6-4(16)(c) would apply in this circumstance. The rule prohibits the distribution to a client, consumer or member of the general public a self-promotional item that “does not contain a permanent marking identifying the title producer.” The stapling or taping of a business card to a self-promotional item lacks the intent of permanency required under Subsection 16(c). As presented, this conduct would be a violation of the rule.

September 9, 2024 TEC meeting

Question:
We understand there has been a title marketing rule that we cannot conduct a CE class more than once per calendar quarter, per physical location of a client. However, we need clarity on this rule for hosting a CE class at our title office:

R592-6-4(18) Conducting education that:
(a) does not address title insurance, escrow, or a related subject;
(b) involves expenditure of more than $20 per anticipated person including the
cost of meals and refreshments;
(c) involves expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical office location of a client more than
once per calendar quarter

An example:

• XXXX Title Agency teaches a CE class at XXXX Title Agency in July
• ABC Lender teaches a CE class at XXXX Title Agency in August
• 123 Vendor teaches a CE class at XXXX Title Agency in September

Would this be allowed? Three or even more CE classes hosted by XXXX Title Agency at XXXX Title Agency in a calendar quarter?

Answer:
Rule R592-6-4(18)(d) prohibits a title producer from conducting education that “is conducted at an individual, physical office location of a client more than once per calendar quarter.” A title producer is not a “client” under the definitions of the rule. Therefore, as presented, hosting multiple education classes at the title producer’s location would not be a violation of the rule.

September 9, 2024 TEC meeting

Question:
Is an agency required to charge for continuing education that clients attend and where the courses are hosted at the agency facility or a client's facility?

Answer:
Rule R592-6-4(18) prohibits a title producer from:

(18) Conducting education that:
(a) does not address title insurance, escrow, or a related subject;
(b) involves expenditure of more than $20 per anticipated person including the cost of meals and refreshments;
(c) involves expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical office location of a client more than once per calendar quarter. 

As the question has been presented, R592-6 does not require a title producer to charge for attending or participating in "education" that the title producer conducts. The title producer is otherwise expected to act in compliance with all the provisions of R592-6-4(18) for conducting education.

October 21, 2024 TEC meeting

Question:
Is it a violation of the rule if a continuing education course has been approved by the Utah Division of Real Estate but "does not address title insurance, escrow or a related subject"?

Answer:
Rule R592-6-4(18) prohibits a title producer from:

(18) Conducting education that:
(a) does not address title insurance, escrow, or a related subject;
(b) involves expenditure of more than $20 per anticipated person including the
cost of meals and refreshments;
(c) involves expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical office location of a client more than
once per calendar quarter.

As the question has been presented, R592-6-4(18) does not expressly exempt continuing education courses approved by the Utah Division of Real Estate from the scope of the rule. A continuing education course must be compliant with R592-6-4(18), including but not limited to the subject matter of the course. Though not defined in the rule, "a related subject" under R592-6-4(18) are those subjects directly connected with the provision of title insurance and/or escrow services.

November 25, 2024 TEC Meeting

Question:
Is it a violation of the rule if a title producer furnishes or provides information that may be considered "a farming tool"?

Answer:
Rule R592-6-4(11) prohibits a title producer from furnishing or providing the following, even for a cost:

(a) building plans;
(b) construction critical path timelines;
(c) "For Sale by Owner" lists;
(d) surveys;
(e) appraisals;
(f) credit reports;
(g) mortgage leads for loans;
(h) rental or apartment lists; or
(i) printed labels.

As the question has been presented, so long as a title producer's "farming tools" do not consist of the prohibited documentation or information expressly stated under R592-6-4(11), there would be no violation of the rule. For information only, the previous version of the rule did prohibit the providing of access to certain types of information and documentation.

November 25, 2024 TEC meeting

Question:
May a title producer contribute food or provide sponsorships at an event hosted by a "trade association"?

Answer:
Under Rule R592-6-3(7), "trade association" means a recognized association of persons, a majority of whom are clients or persons whose primary activity involves real property.

Under R592-6-3(3)(c), "client" does not include a trade association, for the purposes of this Rule.

If the event is, in fact, hosted by a "trade association" as defined in the rule, the prohibition only applies when "[s]ponsoring a trade association event at a cost that is greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event." See R592-6-4(10). A title producer may contribute food or give sponsorships at a trade association event if the cost is not greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event.

November 25, 2024 TEC meeting

Question:
May a title producer provide food around a trade association event without providing education?

Answer:
Under Rule R592-6-3(7), “Trade association” means a recognized association of persons, a majority of whom are clients or persons whose primary activity involves real property.

Under R592-6-3(3)(c), “Client” does not include a trade association, for the purposes of this rule.

If the event is, in fact, hosted by a “trade association” as defined in the rule, the prohibition only applies when “[s]ponsoring a trade association event at a cost that is greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event.” See R592-6-4(10). A title producer may provide food or sponsorships at a trade association event if the cost is not greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event.

November 25, 2024 TEC meeting

Question:
A title producer may not provide a CE class "at an individual, physical office location of a client more than once per calendar quarter." Does this mean that 1) only one course may be taught one time at any client office once per quarter; or 2) a class cannot be taught at that particular client’s office location more than once per quarter?

In other words, is the following a violation of R592-6-4(18)(d):

A title producer teaches a course at XYZ Realty on July 10. Then, the title producer teaches a course at ABC Realty (completely unrelated to XYZ Realty) in another city on July 20 of the same year.
1) Does the fact they are both "a client" make this a violation?
2) Is the fact they are not both the same "physical office location of a client" make this allowable?

Answer:
Rule R592-6-4(18) prohibits a title producer from conducting education that:
(a) does not address title insurance, escrow, or a related subject;
(b) involves expenditure of more than $20 per anticipated person including the cost of meals and refreshments;
(c) involves expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical office location of a client more than once per calendar quarter.

As the question has been presented, R592-6-4(18)(d) only expressly prohibits a title producer from conducting education at an individual, physical office location of a client more than once per calendar quarter. The rule as drafted does not limit the number of educational courses or educational offerings conducted. The rule as drafted does not narrowly define "a" client to mean "any" client.

So long as the education being conducted by the title producer is otherwise compliant with the other provisions of R592-6-4, and is limited to the same individual, physical office location of a client not more than once per calendar quarter, there would not be a violation of the rule.

April 14, 2025 TEC Meeting

Question:
Does it constitute an unfair inducement if an employee of a title insurance company also works for or volunteers at a company that requires title insurance and has direct influence over the selection of the title insurance provider?

Example 1: Employee of ABC Title Company is a board member of XYZ Lending Company. Being a member of the board is strictly a volunteer position. However, part of the board member's duties is to “vote on and approve loans that may or may not require title insurance."

Example 2: A 1099 employee of ABC Title works with Acme Lending Company and does have influence on direction of where closing takes place.

I have seen this on the commercial lending side, not on the residential side.

Answer:
Rule R592-6-4(6) prohibits a title insurer, individual title insurance producer, or agency title insurance producer or any officer or employee of the title insurer, individual title insurance producer, or agency title insurance producer from:

(6)  Furnishing all or any part of the time or productive effort of any employee of the title producer, including a secretary, clerk, messenger, or escrow officer, to any client when such time or productive effort is not reasonably related to a bona fide title insurance, escrow, settlement, or closing transaction.

As the question has been presented, the prohibition under R592-6-4(6) against furnishing all or any part of the time or productive effort of any employee of the title producer to any client if such time or productive effort of said employee is unrelated to a bona fide title insurance, escrow, settlement or closing transaction is not narrow in scope. In other words, the prohibition of R592-6-4(6) applies when such time or productive effort is as a “volunteer” or a “1099 employee” or in a “commercial” or “residential” context.

May 12, 2025 TEC Meeting

Question:
Can an employee of a title company/agency: a) work for, or b) volunteer for a client/provider of title insurance/escrow services (i.e., builder, realtor, developer, lender, etc.)?

If the answer is "No" then should an affiliated business arrangement (ABA) or Marketing Service Agreement (MSA) with a builder, realtor, developer, lender, etc., be allowed where the employee of the ABA/MSA also works for a non-ABA/MSA?

Specifically, is working in an ABA or MSA not literally working for a real estate agent, broker, developer, builder, in the title and settlement services and therefore prohibited if the title/escrow/marketing licensee is also working for another title insurance company/agency at the same time as the ABA/MSA?

Answer:
As the first part of the question has been presented, the answer is "No"; see the answer above, under the heading "Influencing selection of a title insurance provider."

As the second part of the question has been presented, in general the formation, governance, and enforcement of an arrangement or agreement with an ABA and/or MSA (as defined by the questioner) is governed by other laws and regulations that are beyond the scope of Rule R592-6, Unfair Inducements and Marketing Practices in Obtaining Title Insurance Business. For example, general information on affiliated business and title insurance may be found on the Utah Division of Real Estate’s website at https://realestate.utah.gov/affiliated-title/. At the same time, R592-6 specifically applies to any person identified in Subsection 31A-23a-402(2)(a) of the Utah Code.

June 9, 2025 TEC meeting

Question:
Is it a marketing rule violation if a title agency allows [a mortgage education provider] to use its training room for a CE class?

Answer:
Rule R592-6-4(18) prohibits a title producer from conducting education that:

(a) does not address title insurance, escrow, or a related subject;
(b) involves expenditure of more than $20 per anticipated person including the cost of meals and refreshments;
(c) involves expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical office location of a client more than once per calendar quarter.

As the question has been presented, any activity that constitutes "conducting education" pursuant to R592-6-4(18) must be compliant with the elements outlined in the rule, otherwise the activity is not permissible.

June 9, 2025 TEC meeting

Question:

1. In the context where a notice of default is of record on a property and the property is listed by an agent and with a title insurer or title agency having been already identified, can we as escrow officers (from a different title insurer or title agency) travel along with a different agent, door knocking, visiting homeowners with a mortgage in default? Also, can we as escrow officers, during the visit with the homeowners, ask the seller(s) to sign an Authorization Form so we can request their payoff information?
2. Can a Title and Escrow Company’s name be included in a sign displayed, at the Real Estate Brokerage office, as one of that Brokerage’s partners? The sign includes the Brokerage name, preferred lender, preferred title company and other vendors are also included.

Answer:

1. As this part of the question has been presented, the escrow officer’s actions as described are likely in violation of Rule R592-6-4(6) which prohibits "[f]urnishing all or any part of the time or productive effort of any employee of the title producer, including a secretary, clerk, messenger, or escrow officer, to any client when such time or productive effort is not reasonably related to a bona fide title insurance, escrow, settlement, or closing transaction." (emphasis added). "Client" as defined in R592-6-3(3)(b), may include "real estate agents" and "consumers."
2. As this part of the question has been presented, the displaying of the name of a title insurer, individual title insurance producer, or agency title insurance producer, or any officer or employee of the title insurer, individual title insurance producer, or agency title insurance producer, on signage at the real estate brokerage office, as described, is likely in violation of R592-6-4(12)(a)(ii), which prohibits "advertising jointly with a client." "Client" as defined in R592-6-3(3)(b) may include "real estate agents, real estate brokers, mortgage brokers, lending or financial institutions, builders, developers, subdividers, attorneys, consumers, escrow companies, and their employees, agents, representatives, and solicitors." (emphasis added). For further information on advertising jointly with a client, see Bulletin 2025-1.

July 14, 2025 TEC meeting

Question:
A group that has a parade of homes entry has indicated that we (as a title insurer, individual title insurance producer, or agency title insurance producer, or an officer or employee of the title insurer, individual title insurance producer, or agency title insurance producer) can have the "privilege" of being at one of their booths (for a fee of course) at their parade of home property. The "group" consists of investors that own the homes in question. Is this permissible?

Answer:
Rule R592-6-4(12) prohibits a title insurer, individual title insurance producer, or agency title insurance producer, or an officer or employee of the title insurer, individual title insurance producer, or agency title insurance producer from:

(12)(a) Engaging in the following advertising activity:
(i) paying for any advertising on behalf of a client;
(ii) advertising jointly with a client;
(iii) placing an advertisement in a publication, including an internet web page and its links, that is hosted, published, produced for, or distributed by or on behalf of a client;
(iv) placing an advertisement that fails to comply with Section 31A-23a-402 and Rule R590-130;
(v) placing an advertisement that is in an official trade association publication that does not offer each title producer an equal opportunity to advertise in the publication and at the standard rates other advertisers in the publication are charged
(vi) advertising with free or paid social media services that are not open and available to the general public; or
(vii) paying a fee to share, like, respond to, comment on, or increase the visibility, ranking, or distribution of any social media involving a client or a client’s social media page.

(b) Nothing in Subsection (12)(a) prohibits the following
(i) advertising independently that the title producer has provided title insurance for a particular subdivision or condominium project, but the title producer may not indicate that all future title insurance will be written by that title producer; or
(ii)(A) writing or posting on social media services about an event that directly involves the title producer and a client; and
(B) referencing or linking to the event on the client’s social media page or the client company’s social media page.

As the question has been presented, the "group" may constitute a "client." As defined in R592-6-3(3)(b), "Client" may include "real estate agents, real estate brokers, mortgage brokers, lending or financial institutions, builders, developers, subdividers, attorneys, consumers, escrow companies, and their employees, agents, representatives, and solicitors." As such, any activity that constitutes "advertising jointly with a client" is not permissible under R592-6-4(12). For further information on advertising jointly with a client, see Bulletin 2025-1.

July 14, 2025 TEC meeting

Question:
I have been asked to be a sponsor of the Women’s Council of Realtors state orientation meeting. Is this an event that a title company can sponsor?

Answer:
As the question has been presented, if the Women’s Council of Realtors is a "trade association", then sponsoring a meeting as described may be permissible. Under Rule R592-6-3(7), "trade association" means a recognized association of persons, a majority of whom are clients or persons whose primary activity involves real property. Under R592-6-3(3)(c), "client" does not include a trade association, for the purposes of this rule.

If the described event is, in fact, hosted by a "trade association" as defined in the rule, the prohibition only applies when "[s]ponsoring a trade association event at a cost that is greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event." See R592-6-4(10). A title producer may provide food or sponsorships at a trade association event if the cost is not greater than the sponsorships offered to members of the association, affiliates, vendors or other participants of the event.

October 20, 2025 TEC meeting