§ 57-11-14. Revocation, suspension, or denial of registration -- Grounds -- Suspension or revocation of license.

(1)

(a) If the division makes a written finding of fact that a subdivider engages in one or more acts described in Subsection (1)(b), the division may:

(i) deny an application for registration;

(ii) revoke, suspend, or deny reissuance of a registration; or

(iii) impose a civil penalty not to exceed the greater of:

(A) $2,500 for each violation; or

(B) the amount of any gain or economic benefit derived from each violation.

(b) Subsection (1)(a) applies if the division makes a written finding of fact that a subdivider:

(i) fails to comply with the terms of a cease and desist order;

(ii) is convicted in a court prior or subsequent to the filing of the application for registration of a crime involving:

(A) fraud;

(B) deception;

(C) false pretenses;

(D) misrepresentation;

(E) false advertising; or

(F) dishonest dealing in real estate transactions;

(iii) is subject to an injunction or administrative order restraining a false or misleading promotional plan involving land dispositions;

(iv) disposes of, conceals, or diverts funds or assets of any person so as to defeat the rights of subdivision purchasers;

(v) fails to perform faithfully a stipulation or agreement made with the division as an inducement to:

(A) grant a registration;

(B) reinstate a registration;

(C) revoke a cease and desist order; or

(D) approve any promotional plan or public offering statement;

(vi) makes an intentional misrepresentation, or conceals a material fact, in an application for registration;

(vii) violates this chapter or the rules adopted under this chapter;

(viii) directly or through an agent or employee knowingly engages in false, deceptive, or misleading advertising, promotional, or sales methods to offer or dispose of an interest in subdivided lands;

(ix) engages in the offering of subdivided lands that has constituted or that may constitute a fraud upon purchasers or prospective purchasers of the subdivided lands; or

(x) engages in a dishonest practice in any industry involving sales to consumers.

(c) The division shall accompany with a finding of fact required by this Subsection (1) a concise and explicit statement of the underlying facts supporting the finding.

(2) As an alternative to revoking the registration of a subdivider, the director may issue a cease and desist order if after notice and a hearing the director finds that the subdivider is guilty of a violation for which revocation may be ordered.

(3)

(a) The division shall suspend or revoke the license of a principal broker, associate broker, or sales agent who violates this chapter for the period of time the director determines to be justified under the circumstances.

(b) A suspension or revocation under this section is in addition to any other penalty that may be imposed under this chapter, subject to Section 61-2f-404.

Amended by Chapter 379, 2010 General Session