The DRE will not issue a license if the applicant

• A. Lacks sufficient capital
• B. Does not have a sponsor
• C. Is under investigation
• D. Is in a different state

Answer: (B)

A sponsor is required for a DRE license because the licensing framework relies on a licensed principal or employer to supervise and take responsibility for the licensee’s conduct. The sponsor provides oversight, ensures ongoing training and compliance with Utah real estate and lending laws, and stands behind the licensee as the accountable party. Without a sponsor, there’s no supervising entity to attach the license to, so the division will not issue it.

Lacking sufficient capital isn’t the gating factor for issuing this license, and being under investigation or being in a different state doesn’t automatically prevent licensure if a sponsor can be identified and approved. The essential requirement here is having a willing, qualified sponsor to supervise the licensee.