Homeowners' Association Modifications

55
10-20-809
13-79-103
13-79-104
17-79-709
57-1-46
57-8-2
57-8-3
57-8-6.1
57-8-7.6
57-8-10
57-8-13.1
57-8-16.5
57-8-17
57-8-32
57-8a-103
57-8a-105
57-8a-105.1
57-8a-212
57-8a-215
57-8a-227
57-8a-232
0
Homeowners' Association Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor:
LONG TITLE
General Description:
This bill amends provisions relating to homeowners' associations.
Highlighted Provisions:
This bill:
defines terms;
provides the circumstances under which a homeowners' association may convey a portion
of the common areas;
requires that the Office of the Homeowners' Association Ombudsman (office) make
public each advisory opinion the office issues;
requires that the office publish educational materials on the office's website;
provides that a homeowners' association's declaration may not contain certain provisions;
provides that an action by an attorney employed by the office does not create an
attorney-client relationship;
provides that the filing fee a person pays for an advisory opinion from the office is
nonrefundable;
provides that a homeowners' association may not require a person to engage in binding
arbitration before obtaining an advisory opinion from the office;
provides the requirements for the contents of a request for an advisory opinion;
amends the amount of the civil penalty a court may issue after qualifying conditions are
met;
repeals the requirement that the parties to an advisory opinion split the cost of the
advisory opinion;
provides that an association transfer fee may not exceed $200;
establishes the conditions under which Title 57, Chapter 8, Condominium Ownership Act,
or Title 57, Chapter 8a, Community Association Act, applies;
requires that an association of unit owners prepare and adopt an annual budget for the
association;
amends provisions relating to the applicability of Title 57, Chapter 8, Condominium
Ownership Act, or Title 57, Chapter 8a, Community Association Act;
removes the requirement that a board member and president of an association provide a
physical address to the Department of Commerce for registration;
provides that certain documents are considered property of an association;
provides that if a person maintains a document considered property of an association, the
person shall provide the document to the association upon request;
provides that a declarant may sell a part of the common areas during the period of
administrative control to certain persons; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-20-809
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 15
13-79-103
, as enacted by Laws of Utah 2025, Chapter 226
13-79-104
, as enacted by Laws of Utah 2025, Chapter 226
17-79-709
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 14
57-1-46
, as last amended by Laws of Utah 2025, Chapter 226
57-8-2
, as enacted by Laws of Utah 1963, Chapter 111
57-8-3
, as last amended by Laws of Utah 2025, Chapter 291
57-8-6.1
, as enacted by Laws of Utah 2020, Chapter 75
57-8-10
, as last amended by Laws of Utah 2014, Chapter 397
57-8-13.1
, as last amended by Laws of Utah 2025, Chapter 226
57-8-16.5
, as last amended by Laws of Utah 2016, Chapter 210
57-8-17
, as last amended by Laws of Utah 2025, Chapters 197, 226
57-8-32
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
57-8a-103
, as enacted by Laws of Utah 2004, Chapter 153
57-8a-105
, as last amended by Laws of Utah 2025, Chapter 226
57-8a-105.1
, as enacted by Laws of Utah 2020, Chapter 75
57-8a-212
, as last amended by Laws of Utah 2013, Chapter 152
57-8a-215
, as enacted by Laws of Utah 2011, Chapter 355
57-8a-227
, as last amended by Laws of Utah 2025, Chapters 197, 226
57-8a-232
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
ENACTS:
57-8-7.6
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-20-809
is amended to read:
10-20-809
. Common area parcels on a plat -- No separate ownership --
Ownership interest equally divided among other parcels on plat and included in
description of other parcels.
(1)
As used in this section:
(a)
"Association" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(b)
"Common area" means the same as that term is defined in Section
57-8a-102
.
(c)
"Common area and facility" means the same as that term is defined in Section
57-8-3
.
(d)
"Condemnor" means the same as that term is defined in Section
78B-6-520.3
.
(d)
(e)
"Declarant" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(e)
(f)
"Declaration," regarding a common area and facility, means the same as that
term is defined in Section
57-8-3
.
(f)
(g)
"Period of administrative control" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(h)
"Under threat of condemnation" means the same as that term is defined in Section
78B-6-520.3
.
(2)
A person may not separately own, convey, or modify a parcel designated as a common
area or common area and facility, on a plat recorded in compliance with this part,
independent of the other lots, units, or parcels created by the plat unless:
(a)
an association holds in trust the parcel designated as a common area for the owners
of the other lots, units, or parcels created by the plat;
or
(b)
the conveyance or modification is approved under Subsection
(5)
.
; or
(c)
the conveyance or modification is made in accordance with Subsection
(6)
.
(3)
If a conveyance or modification of a common area or common area and facility is
approved in accordance with Subsection
(5)
, the person who presents the instrument of
conveyance to a county recorder shall:
(a)
attach a notice of the approval described in Subsection
(5)
as an exhibit to the
document of conveyance; or
(b)
record a notice of the approval described in Subsection
(5)
concurrently with the
conveyance as a separate document.
(4)
When a plat contains a common area or common area and facility:
(a)
for purposes of assessment, each parcel that the plat creates has an equal ownership
interest in the common area or common area and facility within the plat, unless the
plat or an accompanying recorded document indicates a different division of interest
for assessment purposes; and
(b)
each instrument describing a parcel on the plat by the parcel's identifying plat
number implicitly includes the ownership interest in the common area or common
area and facility, even if that ownership interest is not explicitly stated in the
instrument.
(5)
Notwithstanding Subsection
(2)
, a person may modify the size or location of or
separately convey a common area or common area and facility if the following approve
the conveyance or modification:
(a)
the local government;
(b)
(i)
for a common area that an association owns, 67% of the voting interests in the
association; or
(ii)
for a common area that an association does not own, or for a common area and
facility, 67% of the owners of lots, units, and parcels designated on a plat that is
subject to a declaration and on which the common area or common area and
facility is included; and
(c)
during the period of administrative control, the declarant.
(6)
(a)
Notwithstanding Subsection
(2)
, an individual that the association's board
designates by a vote, may convey a portion of a common area or a common area and
facility in accordance with Section
57-8-32
or
57-8a-232
, if:
(i)
the individual makes the conveyance to a condemnor; and
(ii)
the common area or common area and facility is under threat of condemnation.
(b)
If an individual makes a conveyance in accordance with Subsection
(6)(a)
, no lot
owner or unit owner is required to approve the conveyance or modification.
Section 2. Section
13-79-103
is amended to read:
13-79-103
. Duties and jurisdiction of office.
(1)
The attorneys of the office shall:
(a)
develop and maintain expertise in and understanding of issues and statutes impacting
unit owners, lot owners, associations of lot owners, and associations of unit owners;
and
(b)
upon request:
(i)
analyze a complaint from a lot owner, a unit owner, an association of lot owners,
or an association of unit owners regarding the conduct of a lot owner, a unit
owner, an association of lot owners, or an association of unit owners; and
(ii)
provide an advisory opinion as described in Section
13-79-104
.
(2)
(a)
Neither the office nor the office's attorneys may represent private parties, state
agencies, local governments, or any other individual or entity in a legal action that
arises from or relates to a matter addressed in this chapter.
(b)
No attorney of the office may be compelled to testify in a civil action filed
concerning the subject matter of any review or advisory opinion arranged through the
office.
(3)
Except as provided in
Section
13-75-105
Subsection
13-79-104(10)
, evidence of a
review by the office and the opinions, writings, findings, and determinations of the
office are not admissible as evidence in a judicial action or arbitration.
(4)
The office
:

(a)
shall
:
(a)

analyze a complaint and issue an advisory opinion only for issues relating to a
violation of a state statute;
and
(b)
make public each advisory opinion the office issues in accordance with Subsection
(4)(a)
; and
(c)
publish educational materials on the office's website providing, in simple and easy to
understand language, a brief overview of state law governing associations of unit
owners and associations of lot owners, including:
(i)
a description of the rights and responsibilities provided in Title 57, Chapter 8,
Condominium Ownership Act, to a party under the jurisdiction of Title 57,
Chapter 8, Condominium Ownership Act;
(ii)
a description of the rights and responsibilities provided in Title 57, Chapter 8a,
Community Association Act, to a party under the jurisdiction of Title 57, Chapter
8a, Community Association Act; and
(iii)
instructions regarding how an association of unit owners or an association of lot
owners may be organized and dismantled in accordance with this chapter.
(b)
(5)
The office
may not provide
any
a
service that requires interpreting the governing
documents of an association of lot owners or the governing documents of an association
of unit owners, including determining whether a provision of the governing documents
is reasonable.
(6)
An action that an attorney employed by the office takes within the scope of the
attorney's employment in the office does not create an attorney-client relationship
between the office or the office's attorneys and any of the following:
(a)
a lot owner;
(b)
a unit owner;
(c)
an association of lot owners; or
(d)
an association of unit owners.
Section 3. Section
13-79-104
is amended to read:
13-79-104
. Advisory opinion -- Process of advisory opinions.
(1)
A lot owner, a unit owner, an association of lot owners, or an association of unit owners
may request a written advisory opinion:
(a)
from the office to determine compliance with:
(i)
Title 57, Chapter 8, Condominium Ownership Act, and Title 57, Chapter 8a,
Community Association Act; or
(ii)
other applicable statutes of this state; and
(b)
at any time before the commencement of:
(i)
an action in a court with jurisdiction; or
(ii)
binding arbitration.
(2)
(a)
A person making a request for an advisory opinion described in Subsection
(1)

shall:
(i)
file the request with the office;
(ii)
pay a
nonrefundable
filing fee of $150;
and
(iii)
(A)
file the request no later than one year after the day on which the person
making the request knew or should have known about the alleged act that is the
subject of the advisory opinion; and
(B)
include in the request facts that demonstrate that the person submits the
request no later than a year after the day on which the person making the
request knew or should have known about the alleged act that is the subject of
the advisory opinion
.
; and
(iv)
in the request for an advisory opinion, describe:
(A)
the alleged act that is the subject of the advisory opinion; and
(B)
the impact of the alleged act that is the subject of the advisory opinion on the
person making the request.
(b)
A person making a request under this Subsection
(2)
may allege actual damages as a
result of the alleged act that is the subject of the advisory opinion.
(3)
The office may establish policies providing for partial fee waivers for a person who is
financially unable to pay the entire fee described in Subsection
(2)(a)(ii)
.
(4)
(a)
The
Except as provided in Subsection
(4)(b)
, the
office may not issue an advisory
opinion unless the person requesting an advisory opinion exhausts all existing
dispute
resolution
procedures provided in:
(i)
the governing documents of an association of lot owners, if the dispute involves a
lot owner; or
(ii)
the governing documents of an association of unit owners, if the dispute involves
a unit owner.
(b)
An association of unit owners or an association of lot owners may not require that a
person engage in binding arbitration before requesting an advisory opinion from the
office.
(b)
(c)
A person requesting an advisory opinion shall include in the person's complaint
a description of how that person
exhausted all existing procedures provided in the
applicable governing documents
complied with this Subsection
(4)
.
(5)
Upon receipt of a request for an advisory opinion, the office shall:
(a)
inquire of all parties if there are other necessary parties to the dispute;
(b)
determine whether the person bringing the request has
exhausted all existing
procedures provided in the applicable governing documents
complied with
Subsections
(1)
through
(4)
; and
(c)
deliver notice of the request to the opposing parties indicated in the request and any
other necessary party identified in accordance with Subsection
(5)(a)
.
(6)
Subject to Subsection
(7)
, after analyzing a complaint, the office shall:
(a)
issue a written advisory opinion addressing the issues described in the request for an
advisory opinion;
(b)
include in the advisory opinion a statement of the facts and law supporting the
opinion's conclusions; and
(c)
deliver copies of the advisory opinion to all necessary parties identified in
accordance with Subsection
(5)(a)
.
(7)
(a)
The office shall issue a written statement declining to issue an advisory opinion
when, in the opinion of the office:
(i)
the issues are not ripe for review;
(ii)
the person bringing the request has not exhausted all existing procedures provided
in the applicable governing documents; or
(iii)
the issues raised are beyond the scope of the office's statutory duty to review.
(b)
Notwithstanding Subsection
(7)(a)
, the office shall issue a written statement
declining to review a request, if the request deals solely with a contractual dispute.
(8)
(a)
(i)
If in the process of issuing an advisory opinion, the office determines that a
person knowingly filed a false or fraudulent request for an advisory opinion, the
office shall prohibit that person from filing a complaint with the office for two
years after the day on which the office makes the determination.
(ii)
The office may impose a civil penalty of up to $1,000 against a person if the
office determines under this Subsection
(8)(a)
that the person filed a false or
fraudulent request for an advisory opinion.
(b)
(i)
The office may designate a person as a vexatious filer if the person has filed a
request for three or more advisory opinions and for each request the office:
(A)
determines that the person requesting the advisory opinion has not exhausted
all existing procedures, as described in Subsection
(4)(a)
;
(B)
declines to issue an advisory opinion, as described in Subsection
(7)(a)
; or
(C)
determines that the request deals solely with a contractual dispute, as
described in Subsection
(7)(b)
.
(ii)
If the office designates a person as a vexatious filer under this Subsection
(8)(b)
,
the office may not accept a request by the person unless:
(A)
the person submits a written copy of the request to the executive director of
the department; and
(B)
the executive director of the department authorizes the person to file the
request for the advisory opinion with the office.
(9)
The party that requests the advisory opinion shall pay the filing fee described in
Subsection
(2)(a)(ii)
, unless the office issues an advisory opinion in favor of the party
that requests the advisory opinion, in which case all necessary parties shall share the cost
of the filing fee equally.
(10)
(9)
An advisory opinion issued under this section is neither binding on any party to,
nor admissible as evidence in, a dispute involving an association of lot owners or an
association of unit owners, except as provided in Subsection
(11)
(10)
.
(11)
(10)
(a)
As used in this Subsection
(11)
(10)
, "qualifying conditions" means:
(i)
the office issues an advisory opinion described in this section;
(ii)
the same issue that is the subject of the advisory opinion is subsequently litigated
in court; and
(iii)
the court rules in favor of the same party as the advisory opinion in a final
judgment.
(b)
If the qualifying conditions are met, the court may award the substantially prevailing
party:
(i)
reasonable attorney fees and court costs relating to the development of the cause
of action from the date the office delivers the advisory opinion to the date of the
court's resolution; and
(ii)
if the court finds that the opposing party knowingly and intentionally violated the
law governing the cause of action, a civil penalty of
$250 for each day described
in Subsection
(12)
.
$5,000.
(12)
The civil penalty described in Subsection (11)(b):
(a)
begins to accrue on the later of:
(i)
30 days after the day on which the office delivers the advisory opinion; or
(ii)
the day on which the substantially prevailing party or opposing party filed the
action in court; and
(b)
ends the day on which the court enters a final judgment.
Section 4. Section
17-79-709
is amended to read:
17-79-709
. Common area parcels on a plat -- No separate ownership --
Ownership interest equally divided among other parcels on plat and included in
description of other parcels.
(1)
As used in this section:
(a)
"Association" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(b)
"Common area" means the same as that term is defined in Section
57-8a-102
.
(c)
"Common area and facility" means the same as that term is defined in Section
57-8-3
.
(d)
"Condemnor" means the same as that term is defined in Section
78B-6-520.3
.
(d)
(e)
"Declarant" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(e)
(f)
"Declaration," regarding a common area and facility, means the same as that
term is defined in Section
57-8-3
.
(f)
(g)
"Period of administrative control" means the same as that term is defined in:
(i)
regarding a common area, Section
57-8a-102
; and
(ii)
regarding a common area and facility, Section
57-8-3
.
(h)
"Under threat of condemnation" means the same as that term is defined in Section
78B-6-520.3
.
(2)
A person may not separately own, convey, or modify a parcel designated as a common
area or common area and facility on a plat recorded in compliance with this part,
independent of the other lots, units, or parcels created by the plat unless:
(a)
an association holds in trust the parcel designated as a common area for the owners
of the other lots, units, or parcels created by the plat;
or
(b)
the conveyance or modification is approved under Subsection
(5)
.
; or
(c)
the conveyance or modification is made in accordance with Subsection
(6)
.
(3)
If a conveyance or modification of a common area or common area and facility is
approved in accordance with Subsection
(5)
, the person who presents the instrument of
conveyance to a county recorder shall:
(a)
attach a notice of the approval described in Subsection
(5)
as an exhibit to the
document of conveyance; or
(b)
record a notice of the approval described in Subsection
(5)
concurrently with the
conveyance as a separate document.
(4)
When a plat contains a common area or common area and facility:
(a)
each parcel that the plat creates has an equal ownership interest in the common area
or common area and facility within the plat, unless the plat or an accompanying
recorded document indicates a different division of interest for assessment purposes;
and
(b)
each instrument describing a parcel on the plat by the parcel's identifying plat
number implicitly includes the ownership interest in the common area or common
area and facility within the plat, even if that ownership interest is not explicitly stated
in the instrument.
(5)
Notwithstanding Subsection
(2)
, a person may modify the size or location of or
separately convey a common area or common area and facility if the following approve
the conveyance or modification:
(a)
the local government;
(b)
(i)
for a common area that an association owns, 67% of the voting interests in the
association; or
(ii)
for a common area that an association does not own, or for a common area and
facility, 67% of the owners of lots, units, and parcels designated on a plat that is
subject to a declaration and on which the common area or common area and
facility is included; and
(c)
during the period of administrative control, the declarant.
(6)
(a)
Notwithstanding Subsection
(2)
, an individual that the association's board
designates by a vote, may convey a portion of a common area or a common area and
facility in accordance with Section
57-8-32
or
57-8a-232
, if:
(i)
the individual makes the conveyance to a condemnor; and
(ii)
the common area or common area and facility is under threat of condemnation.
(b)
If an individual makes a conveyance in accordance with Subsection
(6)(a)
, no lot
owner or unit owner is required to approve the conveyance or modification.
Section 5. Section
57-1-46
is amended to read:
57-1-46
. Transfer fee and reinvestment fee covenants.
(1)
As used in this section:
(a)
"Association expenses" means expenses incurred by a common interest association
for:
(i)
the purchase, ownership, leasing, construction, operation, use, administration,
maintenance, improvement, repair, or replacement of association facilities,
including expenses for taxes, insurance, operating reserves, capital reserves, and
emergency funds;
(ii)
providing, establishing, creating, or managing a facility, activity, service, or
program for the benefit of property owners, tenants, common areas, the burdened
property, or property governed by the common interest association; or
(iii)
other facilities, activities, services, or programs that are required or permitted
under the common interest association's organizational documents.
(b)
"Association facilities" means any real property, improvements on real property, or
personal property owned, leased, constructed, developed, managed, or used by a
common interest association, including common areas.
(c)
"Association transfer fee" means a fee, charge, or payment that is:
(i)
related to the sale of real property; and
(ii)
as a result of a transfer of the real property, is imposed on a buyer or seller by:
(A)
a common interest association; or
(B)
a person acting on behalf of the common interest association.
(d)
"Burdened property" means the real property that is subject to a reinvestment fee
covenant or transfer fee covenant.
(e)
"Common areas" means areas described within:
(i)
the definition of "common areas and facilities" under Section
57-8-3
; and
(ii)
the definition of "common areas" under Section
57-8a-102
.
(f)
(i)
"Common interest association" means:
(A)
an association, as defined in Section
57-8a-102
;
(B)
an association of unit owners, as defined in Section
57-8-3
; or
(C)
a nonprofit association.
(ii)
"Common interest association" includes a person authorized by an association,
association of unit owners, or nonprofit association.
(g)
"Large master planned development" means an approved development:
(i)
of at least 500 acres or 500 units; and
(ii)
that includes a commitment to fund, construct, develop, or maintain:
(A)
common infrastructure;
(B)
association facilities;
(C)
community programming;
(D)
resort facilities;
(E)
open space; or
(F)
recreation amenities.
(h)
"Nonprofit association" means a nonprofit corporation organized under Title 16,
Chapter 6a, Utah Revised Nonprofit Corporation Act, to benefit, enhance, preserve,
govern, manage, or maintain burdened property.
(i)
"Organizational documents" means:
(i)
for an association, as
that term is
defined in Section
57-8a-102
, governing
documents as
that term is
defined in Section
57-8a-102
;
(ii)
for an association of unit owners, as
that term is
defined in Section
57-8-3
, a
declaration as
that term is
defined in Section
57-8-3
; and
(iii)
for a nonprofit association:
(A)
a written instrument by which the nonprofit association exercises powers or
manages, maintains, or otherwise affects the property under the jurisdiction of
the nonprofit association; and
(B)
articles of incorporation, bylaws, plats, charters, the nonprofit association's
rules, and declarations of covenants, conditions, and restrictions.
(j)
"Reinvestment fee" means a fee imposed, directly or indirectly, by a common interest
association:
(i)
upon a buyer or seller of real property;
(ii)
upon and as a result of a transfer of the real property; and
(iii)
that is dedicated to benefiting the common areas, including payment for:
(A)
common planning, facilities, and infrastructure;
(B)
obligations arising from an environmental covenant;
(C)
community programming;
(D)
resort facilities;
(E)
open space;
(F)
recreation amenities;
(G)
charitable purposes; or
(H)
association expenses.
(k)
"Reinvestment fee covenant" means a covenant, restriction, or agreement that:
(i)
affects real property; and
(ii)
obligates a future buyer or seller of the real property to pay to a common interest
association, upon and as a result of a transfer of the real property, a fee that is
dedicated to benefitting the burdened property, including payment for:
(A)
common planning, facilities, and infrastructure;
(B)
obligations arising from an environmental covenant;
(C)
community programming;
(D)
resort facilities;
(E)
open space;
(F)
recreation amenities;
(G)
charitable purposes; or
(H)
association expenses.
(l)
"Transfer fee covenant":
(i)
means an obligation, however denominated, expressed in a covenant, restriction,
agreement, or other instrument or document:
(A)
that affects real property;
(B)
that is imposed on a future buyer or seller of real property, other than a person
who is a party to the covenant, restriction, agreement, or other instrument or
document; and
(C)
to pay a fee upon and as a result of a transfer of the real property; and
(ii)
does not include:
(A)
an obligation imposed by a court judgment, order, or decree;
(B)
an obligation imposed by the federal government or a state or local
government entity; or
(C)
a reinvestment fee covenant.
(2)
A transfer fee covenant recorded on or after March 16, 2010, is void and unenforceable.
(3)
(a)
Except as provided in Subsection
(3)(b)
, a reinvestment fee covenant may not be
sold, assigned, or conveyed unless the sale, assignment, or conveyance is to a
common interest association that was formed to benefit the burdened property.
(b)
A common interest association may assign or pledge to a lender the right to receive
payment under a reinvestment fee covenant if:
(i)
the assignment or pledge is as collateral for a credit facility; and
(ii)
the lender releases the collateral interest upon payment in full of all amounts that
the common interest association owes to the lender under the credit facility.
(4)
A reinvestment fee covenant recorded on or after March 16, 2010, is not enforceable if
the reinvestment fee covenant is intended to affect property that is the subject of a
previously recorded transfer fee covenant or reinvestment fee covenant.
(5)
A reinvestment fee covenant recorded on or after March 16, 2010, may not obligate the
payment of a fee that exceeds .5% of the value of the burdened property, unless the
burdened property is part of a large master planned development.
(6)
(a)
A reinvestment fee covenant recorded on or after March 16, 2010, is void and
unenforceable unless a notice of reinvestment fee covenant, separate from the
reinvestment fee covenant, is recorded in the office of the recorder of each county in
which any of the burdened property is located.
(b)
A notice under Subsection
(6)(a)
shall:
(i)
state the name and address of the common interest association to which the fee
under the reinvestment fee covenant is required to be paid;
(ii)
include the notarized signature of the common interest association's authorized
representative;
(iii)
state that the burden of the reinvestment fee covenant is intended to run with the
land and to bind successors in interest and assigns;
(iv)
state that the existence of the reinvestment fee covenant precludes the imposition
of an additional reinvestment fee covenant on the burdened property;
(v)
state the duration of the reinvestment fee covenant;
(vi)
state the purpose of the fee required to be paid under the reinvestment fee
covenant; and
(vii)
state that the fee required to be paid under the reinvestment fee covenant is
required to benefit the burdened property.
(c)
A recorded notice of reinvestment fee covenant that substantially complies with the
requirements of Subsection
(6)(b)
is valid and effective.
(7)
(a)
A reinvestment fee covenant or transfer fee covenant recorded before March 16,
2010, is not enforceable after May 31, 2010, unless:
(i)
a notice that is consistent with the notice described in Subsection
(6)
is recorded in
the office of the recorder of each county in which any of the burdened property is
located; or
(ii)
a notice of reinvestment fee covenant or transfer fee covenant, as described in
Subsection
(7)(b)
, is recorded in the office of the recorder of each county in which
any of the burdened property is located.
(b)
A notice under Subsection
(7)(a)(ii)
shall:
(i)
include the notarized signature of the beneficiary of the reinvestment fee covenant
or transfer fee covenant, or the beneficiary's authorized representative;
(ii)
state the name and current address of the beneficiary under the reinvestment fee
covenant or transfer fee covenant;
(iii)
state that the burden of the reinvestment fee covenant or transfer fee covenant is
intended to run with the land and to bind successors in interest and assigns; and
(iv)
state the duration of the reinvestment fee covenant or transfer fee covenant.
(c)
A recorded notice of reinvestment fee covenant or transfer fee covenant that
substantially complies with the requirements of Subsection
(7)(b)
is valid and
effective.
(d)
A notice under Subsection
(7)(b)
:
(i)
that is recorded after May 31, 2010, is not enforceable; and
(ii)
shall comply with the requirements of Section
57-1-47
.
(e)
An amendment to a notice under Subsection
(7)(b)
recorded after May 31, 2010,
seeking to amend a notice under Subsection
(7)(b)
recorded before May 31, 2010, is
not an enforceable amendment.
(8)
A reinvestment fee covenant recorded on or after March 16, 2010, may not be enforced
upon:
(a)
an involuntary transfer;
(b)
a transfer that results from a court order;
(c)
a bona fide transfer to a family member of the seller within three degrees of
consanguinity who, before the transfer, provides adequate proof of consanguinity;
(d)
a transfer or change of interest due to death, whether provided in a will, trust, or
decree of distribution; or
(e)
the transfer of burdened property by a financial institution, except to the extent that
the reinvestment fee covenant requires the payment of a common interest
association's costs directly related to the transfer of the burdened property, not to
exceed $250.
(9)
(a)
An association transfer fee imposed on or after May 7, 2025, is void and
unenforceable unless the association uses the fee only to pay expenses related to the
transfer.
(b)
An association transfer fee imposed in accordance with this Subsection
(9)
may not
exceed $200.
(10)
On or after May 7, 2025, an association may not impose a reinvestment fee unless:
(a)
imposing the reinvestment fee is authorized in the declaration or a reinvestment fee
covenant; and
(b)
a majority of voting interests in the association, or a higher percentage if required in
the organizational documents, approves the reinvestment fee.
(11)
After a vote approving the reinvestment fee described in Subsection
(10)(b)
, an
association may set the amount of a reinvestment fee only:
(a)
in accordance with the terms of the declaration or a reinvestment fee covenant; and
(b)
upon providing notice in accordance with Section
57-8a-214
.
(12)
Members of the association may remove or amend a reinvestment fee by holding a
vote at a special meeting:
(a)
called by the members for the purpose of removing or amending the reinvestment
fee; and
(b)
at which:
(i)
at least 51% of the voting interests attend and vote; and
(ii)
a majority of the voting interests that attend vote to remove or amend the
reinvestment fee.
Section 6. Section
57-8-2
is amended to read:
57-8-2
. Applicability of chapter.
This act shall be applicable only to property which the sole owner or all the owners
submit to the provisions of the act by duly executing and recording a declaration as provided in
the act
.
(1)
This chapter applies to an association if:
(a)
the association's declaration states that this chapter applies; or
(b)
the association amends the association's declaration to state that this chapter applies
in accordance with Section
57-8-10.5
.
(2)
This section applies regardless of when an association is created.
Section 7. Section
57-8-3
is amended to read:
57-8-3
. Definitions.
As used in this chapter:
(1)
"Assessment" means any charge
imposed by
that
the association
imposes
, including:
(a)
common expenses on or against a unit owner
pursuant to
in accordance with
the
provisions of the declaration, bylaws, or this chapter; and
(b)
an amount that an association of unit owners assesses to a unit owner under
Subsection
57-8-43(9)(g)
.
(2)
"Association of unit owners" or "association" means all of the unit owners:
(a)
acting as a group in accordance with the declaration and bylaws; or
(b)
organized as a legal entity in accordance with the declaration.
(3)
"Building" means a building, containing units, and comprising a part of the property.
(4)
"Commercial condominium project" means a condominium project that has no
residential units within the project.
(5)
"Common areas and facilities" unless otherwise provided in the declaration or lawful
amendments to the declaration means:
(a)
the land included within the condominium project, whether leasehold or in fee
simple;
(b)
the foundations, columns, girders, beams, supports, main walls, roofs, halls,
corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the building;
(c)
the basements, yards, gardens, parking areas, and storage spaces;
(d)
the premises for lodging of janitors or persons in charge of the property;
(e)
installations of central services such as power, light, gas, hot and cold water, heating,
refrigeration, air conditioning, and incinerating;
(f)
the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all
apparatus and installations existing for common use;
(g)
such community and commercial facilities as may be provided for in the declaration;
and
(h)
all other parts of the property necessary or convenient to its existence, maintenance,
and safety, or normally in common use.
(6)
"Common expenses" means:
(a)
all sums lawfully assessed against the unit owners;
(b)
expenses of administration, maintenance, repair, or replacement of the common areas
and facilities;
(c)
expenses agreed upon as common expenses by the association of unit owners; and
(d)
expenses declared common expenses by this chapter, or by the declaration or the
bylaws.
(7)
"Common profits," unless otherwise provided in the declaration or lawful amendments
to the declaration, means the balance of all income, rents, profits, and revenues from the
common areas and facilities remaining after the deduction of the common expenses.
(8)
"Condominium" means the ownership of a single unit in a multiunit project together
with an undivided interest in common in the common areas and facilities of the property.
(9)
"Condominium plat" means a plat or plats of survey of land and units prepared in
accordance with Section
57-8-13
.
(10)
(a)
"Condominium project" means a real estate condominium project; a plan or
project whereby two or more units, whether contained in existing or proposed
apartments, commercial or industrial buildings or structures, or otherwise, are
separately offered or proposed to be offered for sale.
(b)

"
Condominium project
"

also means
includes
the property when the context so
requires.
(11)
(a)
"Condominium unit" means a unit together with the undivided interest in the
common areas and facilities appertaining to that unit.
(b)
Any reference in this chapter to a condominium unit
"Condominium unit"
includes
both a physical unit together with
its
the physical unit's
appurtenant undivided
interest in the common areas and facilities and a time period unit together with
its
the time period unit's
appurtenant undivided interest, unless the
reference
term
is
specifically limited to a time period unit.
(12)
(a)
"Contractible condominium" means a condominium project from which one or
more portions of the land within the project may be withdrawn in accordance with
provisions of the declaration and of this chapter.
(b)
If
"Contractible condominium" does not include a condominium project where
the
withdrawal
described in Subsection
(12)(a)

can occur only by the expiration or
termination of one or more leases
, then the condominium project is not a
contractible condominium within the meaning of this chapter.
.
(13)
"Convertible land" means a building site which is a portion of the common areas and
facilities, described by metes and bounds, within which additional units or limited
common areas and facilities may be created in accordance with this chapter.
(14)
"Convertible space" means a portion of the structure within the condominium project,
which portion may be converted into one or more units or common areas and facilities,
including limited common areas and facilities in accordance with this chapter.
(15)
(a)
"Declarant" means all persons who execute the declaration or on whose behalf
the declaration is executed.
From the time of the recordation of any amendment to
the declaration expanding an expandable condominium, all persons who execute that
amendment or on whose behalf that amendment is executed shall also come within
this definition.
(b)
Any successors of the persons referred to in this subsection who come
"Declarant"
includes:
(i)
a person that executes an amendment to the declaration expanding an expandable
condominium;
(ii)
a person on whose behalf a person executes an amendment described in
Subsection
(15)(b)(i)
; and
(iii)
a successor of a person described in Subsection
(15)(a)
that comes
to stand in the
same relation to the condominium project as
their predecessors also come within
this definition
the person's predecessor
.
(16)
"Declaration" means the instrument by which the property is submitted to the
provisions of this
act
chapter
, as
it
the declaration
from time to time may be lawfully
amended.
(17)
"Electrical corporation" means the same as that term is defined in Section
54-2-1
.
(18)
"Expandable condominium" means a condominium project to which additional land or
an interest in
it
the condominium project
may be added in accordance with the
declaration and this chapter.
(19)
"Gas corporation" means the same as that term is defined in Section
54-2-1
.
(20)
"Governing documents":
(a)
means a written instrument by which an association of unit owners may:
(i)
exercise powers; or
(ii)
manage, maintain, or otherwise affect the property under the jurisdiction of the
association of unit owners; and
(b)
includes:
(i)
articles of incorporation;
(ii)
bylaws;
(iii)
a plat;
(iv)
a declaration of covenants, conditions, and restrictions; and
(v)
rules of the association of unit owners.
(21)
"Independent third party" means a person that:
(a)
is not related to the unit owner;
(b)
shares no pecuniary interests with the unit owner; and
(c)
purchases the unit in good faith and without the intent to defraud a current or future
lienholder.
(22)
"Judicial foreclosure" means a foreclosure of a unit:
(a)
for the nonpayment of an assessment;
(b)
in the manner provided by law for the foreclosure of a mortgage on real property; and
(c)
as provided in this chapter.
(23)
(a)
"Leasehold condominium" means a condominium project in all or any portion of
which each unit owner owns an estate for years in
his
the unit owner's
unit, or in the
land upon which that unit is situated, or both, with all those leasehold interests to
expire naturally at the same time.
(b)
A
"Leasehold condominium" does not include a
condominium project including
leased land, or an interest in the land, upon which no units are situated or to be
situated
is not a leasehold condominium within the meaning of this chapter
.
(24)
"Limited common areas and facilities" means
those
the
common areas and facilities
designated in the declaration as reserved for use of a certain unit or units to the exclusion
of the other units.
(25)
"Majority" or "majority of the unit owners," unless otherwise provided in the
declaration or lawful amendments to the declaration, means the owners of more than
50% in the aggregate in interest of the undivided ownership of the common areas and
facilities.
(26)
"Management committee" means the committee as provided in the declaration charged
with and having the responsibility and authority to make and to enforce all of the
reasonable rules covering the operation and maintenance of the property.
(27)
"Management committee meeting" means a gathering of a management committee,
whether in person or by means of electronic communication, at which the management
committee can take binding action.
(28)
(a)
"Means of electronic communication" means an electronic system that allows
individuals to communicate orally in real time.
(b)
"Means of electronic communication" includes:
(i)
web conferencing;
(ii)
video conferencing; and
(iii)
telephone conferencing.
(29)
"Mixed-use condominium project" means a condominium project that has both
residential and commercial units in the condominium project.
(30)
"Nonjudicial foreclosure" means the sale of a unit:
(a)
for the nonpayment of an assessment;
(b)
in the same manner as the sale of trust property under Sections
57-1-19
through
57-1-34
; and
(c)
as provided in this chapter.
(31)
"Par value" means a number of dollars or points assigned to each unit by the
declaration
.
in accordance with the following:
(a)
Substantially
the declaration shall assign substantially
identical units
shall be
assigned
the same par value
,
;
(b)
but
units located at substantially different heights above the ground, or having
substantially different views, or having substantially different amenities or other
characteristics that might result in differences in market value, may be considered
substantially identical
within the meaning of this subsection
for purposes of
Subsection
(31)(a)
;
(c)
. If
if the declaration states
par value
is stated
in terms of dollars
, that statement
:
(i)
the dollar amount
may not be considered to reflect or control the sales price or fair
market value of
any
a
unit
,
;
and
(ii)
no
an
opinion,
an
appraisal, or
a
fair market transaction at a different figure may
not
affect
:
(A)

the par value of
any
a
unit
,
;
or
(B)
any
an
undivided interest in the common areas and facilities, voting rights in
the unit owners' association, liability for common expenses, or right to
common profits,
assigned
that the declaration assigns
on the basis
thereof
of
the par value
.
(32)
"Period of administrative control" means the period of control described in Subsection
57-8-16.5(1)
.
(33)
"Person" means an individual, corporation, partnership, association, trustee, or other
legal entity.
(34)
"Political sign" means
any
a
sign or document that advocates
for
:
(a)
the election or defeat of a candidate for public office; or
(b)
the approval or defeat of a ballot proposition.
(35)
"Property" means
:
(a)

the land, whether leasehold or in fee simple
,
;
(b)

the building, if any
,
;
(c)

all improvements and structures
thereon,
on the land;
(d)

all easements, rights, and appurtenances belonging
thereto,
to the land;
and
(e)

all articles of personal property intended for use in connection
therewith
with the
land
.
(36)
"Protected area" means the same as that term is defined in Section
53-29-306
.
(37)
"Record," "recording," "recorded," and "recorder"
have the meaning stated
mean the
same as the terms are defined
in Chapter 3, Recording of Documents.
(38)
"Rentals" or "rental unit" means:
(a)
a unit that:
(i)
is not owned by an entity or trust; and
(ii)
is occupied by
an individual
occupies
while the unit owner is not occupying the
unit as the unit owner's primary residence; or
(b)
an occupied unit
owned by
that
an entity or trust
owns
, regardless of who occupies
the unit.
(39)
"Rule" means a policy, guideline, restriction, procedure, or regulation of an association
that:
(a)
is not set forth in a contract, easement, article of incorporation, bylaw, or declaration;
and
(b)
governs:
(i)
the conduct of persons; or
(ii)
the use, quality, type, design, or appearance of real property or personal property.
(39)
(40)
(a)
"Size" means the number of cubic feet, or the number of square feet of
ground or floor space, within
each
a
unit as computed by reference to the record of
survey map and rounded off to a whole number.
(b)

Certain spaces
"Size" does not include the following
within
the units
a unit, if
when making the calculation described in Subsection
(40)(a)
, the following are
omitted or partially discounted by the use of a ratio, the same basis of calculation is
employed for all units in the condominium project, and that basis is described in the
declaration:
including attic, basement, or garage space may be omitted from the
calculation or be partially discounted by the use of a ratio, if the same basis of
calculation is employed for all units in the condominium project and if that basis is
described in the declaration
.
(i)
an attic;
(ii)
a basement; or
(iii)
a garage space.
(40)
(41)
"Time period unit" means an annually recurring part or parts of a year specified
in the declaration as a period for which a unit is separately owned and includes a
timeshare estate as
that term is
defined in Section
57-19-2
.
(41)
(42)
"Unconstructed unit" means a unit that:
(a)
is intended, as depicted in the condominium plat, to be fully or partially contained in
a building; and
(b)
is not constructed.
(42)
(43)
(a)
"Unit" means a separate part of the property intended for any type of
independent use, which is created by the recording of a declaration and a
condominium plat that describes the unit boundaries.
(b)
"Unit" includes
:

(i)
one or more rooms or spaces located in one or more floors or a portion of a floor
in a building
.
; and
(c)
(ii)
"Unit" includes
a convertible space, in accordance with Subsection
57-8-13.4(3)
.
(43)
(44)
"Unit number" means the number, letter, or combination of numbers and letters
designating the unit in the declaration and in the record of survey map.
(44)
(45)
"Unit owner" means the person or persons owning a unit in fee simple and an
undivided interest in the fee simple estate of the common areas and facilities in the
percentage specified and established in the declaration or, in the case of a leasehold
condominium project, the person or persons whose leasehold interest or interests in the
condominium unit extend for the entire balance of the unexpired term or terms.
(45)
(46)
"Water wise landscaping" means:
(a)
installation of plant materials, suited to the microclimate and soil conditions, that can:
(i)
remain healthy with minimal irrigation once established; or
(ii)
be maintained without the use of overhead spray irrigation;
(b)
use of water for outdoor irrigation through proper and efficient irrigation design and
water application; or
(c)
use of other landscape design features that:
(i)
minimize the landscape's need for supplemental water from irrigation;
(ii)
reduce the landscape area dedicated to lawn or turf; or
(iii)
encourage vegetative coverage.
(46)
(47)
"Water wise plant material" means a plant material suited to water wise
landscaping.
Section 8. Section
57-8-6.1
is amended to read:
57-8-6.1
. Information required before sale to independent third party.
(1)
Before the sale of
any
a
unit under the jurisdiction of an association of unit owners to
an independent third party, the grantor shall provide to the independent third party:
(a)
a copy of the association of unit owners' recorded governing documents; and
(b)
a link or other access point to the
department's
educational materials described in
Subsection
57-8-13.1(6)
13-79-103(4)
.
(2)
The grantor shall provide the information described in Subsection
(1)
before closing.
(3)
The association of unit owners shall, upon request by the grantor, provide to the grantor
the information described in Subsection
(1)
.
(4)
This section applies to each association of unit owners, regardless of when the
association of unit owners is formed.
Section 9. Section
57-8-7.6
is enacted to read:
57-8-7.6
. Budget.
(1)
At least once annually a management committee shall prepare and adopt a budget for
the association.
(2)
The management committee shall present the adopted budget to association members at
a meeting of the members.
(3)
A budget is disapproved if within 45 days after the date of the meeting under
Subsection(2) at which the management committee presents the adopted budget:
(a)
at least 51% of all the allocated voting interests of the unit owners in the association
vote to disapprove the adopted budget; and
(b)
the vote is taken at a special meeting called by unit owners under the declaration,
articles, or bylaws to disapprove the budget.
(4)
If a budget is disapproved under Subsection
(3)
or not adopted under Subsection
(1)
, the
budget that the management committee last adopted continues as the budget until the
management committee prepares and adopts a new budget for the association.
Section 10. Section
57-8-10
is amended to read:
57-8-10
. Contents of declaration.
(1)
(a)
Before the conveyance of
any
a
unit in a condominium project, a declaration
shall be recorded that contains the covenants, conditions, and restrictions relating to
the project that shall be enforceable equitable servitudes, where reasonable, and
which shall run with the land.
(b)

Unless otherwise provided,
these servitudes may be enforced by a unit owner or
a unit owner's successor in interest.
a unit owner or a unit owner's successor in
interest may enforce a servitude described in Subsection
(1)(a)
.
(2)
(a)
For every condominium project, the declaration shall:
(i)
include a description of the land or interests in real property included within the
project;
(ii)
contain a description of any buildings that states the number of storeys and
basements, the number of units, the principal materials of which the building is or
is to be constructed, and a description of all other significant improvements
contained or to be contained in the project;
(iii)
contain the unit number of each unit, the square footage of each unit, and any
other description or information necessary to properly identify each unit;
(iv)
describe the common areas and facilities of the project;
and
(v)
describe any limited common areas and facilities and state to which units the use
of the common areas and facilities is reserved
.
; and
(vi)
include a statement that the project is:
(A)
designated as a condominium project; and
(B)
governed by this chapter.
(b)
Any shutters, awnings, window boxes, doorsteps, porches, balconies, patios, or other
apparatus intended to serve a single unit, but located outside the boundaries of the
unit, shall constitute a limited common area and facility appertaining to that unit
exclusively,
regardless of
whether
or not
the declaration makes such a provision.
(c)
The condominium plat recorded with the declaration may provide or supplement the
information required under Subsections
(2)(a)
and
(b)
.
(d)
(i)
The declaration shall include the percentage or fraction of undivided interest in
the common areas and facilities appurtenant to each unit and the unit owner for all
purposes, including voting, derived and allocated in accordance with Subsection
57-8-7(2)
.
(ii)
If any use restrictions are to apply, the declaration shall state the purposes for
which the units are intended and the use restrictions that apply.
(iii)
(A)
The declaration shall include the name and address of a person to receive
service of process on behalf of the
condominium
project, in the cases provided
by this chapter.
(B)
The person described in Subsection
(2)(d)(iii)(A)
shall be a resident of, or
shall maintain a place of business within, this state.
(iv)
The declaration shall describe the method by which the declaration may be
amended consistent with this chapter.
(v)
Any further matters in connection with the property may be included in the
declaration, which the person or persons executing the declaration may consider
desirable, consistent with this chapter.
(vi)
The declaration shall contain a statement of intention that this chapter applies to
the property.
(e)
The initial recorded declaration shall include:
(i)
an appointment of a trustee who qualifies under Subsection
57-1-21(1)(a)(i)
or
(iv)
;
and
(ii)
the following statement: "The declarant hereby conveys and warrants pursuant to
U.C.A. Sections
57-1-20
and
57-8-45
to (name of trustee), with power of sale, the
unit and all improvements to the unit for the purpose of securing payment of
assessments under the terms of the declaration."
(3)
(a)
If the condominium project contains any convertible land, the declaration shall:
(i)
contain a legal description by metes and bounds of each area of convertible land
within the condominium project;
(ii)
state the maximum number of units that may be created within each area of
convertible land;
(iii)
state, with respect to each area of convertible land, the maximum percentage of
the aggregate land and floor area of all units that may be created and the use of
which will not or may not be restricted exclusively to residential purposes, unless
none of the units on other portions of the land within the project are restricted
exclusively to residential use;
(iv)
state the extent to which any structure erected on any convertible land will be
compatible with structures on other portions of the land within the condominium
project in terms of quality of construction, the principal materials to be used, and
architectural style;
(v)
describe all other improvements that may be made on each area of convertible
land within the condominium project;
(vi)
state that any units created within each area of convertible land will be
substantially identical to the units on other portions of the land within the project
or describe in detail what other type of units may be created; and
(vii)
describe the declarant's reserved right, if any, to create limited common areas
and facilities within any convertible land in terms of the types, sizes, and
maximum number of the limited common areas within each convertible land.
(b)
The condominium plat recorded with the declaration may provide or supplement the
information required under Subsection
(3)(a)
.
(4)
(a)
If the condominium project is an expandable condominium project, the
declaration shall:
(i)
contain an explicit reservation of an option to expand the project;
(ii)
include a statement of any limitations on the option to expand, including a
statement as to whether the consent of any unit owners is required and, a
statement as to the method by which consent shall be ascertained, or a statement
that there are no such limitations;
(iii)
include a time limit, not exceeding seven years after the day on which the
declaration is recorded, upon which the option to expand the condominium project
expires and a statement of any circumstances that will terminate the option before
expiration of the specified time limits;
(iv)
contain a legal description by metes and bounds of all land that may be added to
the condominium project, which is known as additional land;
(v)
state:
(A)
if any of the additional land is added to the condominium project, whether all
of it or any particular portion of it must be added;
(B)
any limitations as to what portions may be added; or
(C)
a statement that there are no such limitations;
(vi)
include a statement as to whether portions of the additional land may be added to
the condominium project at different times, including any limitations fixing the
boundaries of those portions by legal descriptions setting forth the metes and
bounds of these lands and regulating the order in which
they
the lands
may be
added to the condominium project;
(vii)
include a statement of any limitations on the locations of any improvements that
may be made on any portions of the additional land added to the condominium
project, or a statement that no assurances are made in that regard;
(viii)
(A)
state the maximum number of units that may be created on the additional
land;
(B)
if portions of the additional land may be added to the condominium project
and the boundaries of those portions are fixed in accordance with Subsection
(4)(a)(vi)
, state the maximum number of units that may be created on each
portion added to the condominium project; and
(C)
if portions of the additional land may be added to the condominium project
and the boundaries of those portions are not fixed in accordance with
Subsection
(4)(a)(vi)
, state the maximum number of units per acre that may be
created on any portion added to the condominium project;
(ix)
with respect to the additional land and to any portion of the additional land that
may be added to the condominium project, state the maximum percentage of the
aggregate land and floor area of all units that may be created on it, the use of
which will not or may not be restricted exclusively to residential purposes, unless
none of the units on the land originally within the project are restricted exclusively
to residential use;
(x)
state the extent to which any structures erected on any portion of the additional
land added to the condominium project will be compatible with structures on the
land originally within the project in terms of quality of construction, the principal
materials to be used, and architectural style, or that no assurances are made in
those regards;
(xi)
describe all other improvements that will be made on any portion of the
additional land added to the condominium project, including any limitations on
what other improvements may be made on the additional land, or state that no
assurances are made in that regard;
(xii)
contain a statement that any units created on any portion of the additional land
added to the condominium project will be substantially identical to the units on
the land originally within the project, a statement of any limitations on what types
of units may be created on the additional land, or a statement that no assurances
are made in that regard; and
(xiii)
describe the declarant's reserved right, if any, to create limited common areas
and facilities within any portion of the additional land added to the condominium
project, in terms of the types, sizes, and maximum number of limited common
areas within each portion, or state that no assurances are made in those regards.
(b)
The condominium plat recorded with the declaration may provide or supplement the
information required under Subsections
(4)(a)(iv)
through
(a)(vii)
and
(a)(x)
through
(a)(xiii)
.
(5)
(a)
If the condominium project is a contractible condominium, the declaration shall:
(i)
contain an explicit reservation of an option to contract the condominium project;
(ii)
contain a statement of any limitations on the option to contract, including a
statement regarding whether the consent of any unit owners is required, and if so,
a statement regarding the method by which this consent shall be ascertained, or a
statement that there are no such limitations;
(iii)
state the time limit, not exceeding seven years after the day on which the
declaration is recorded, upon which the option to contract the condominium
project expires, together with a statement of any circumstances that will terminate
the option before expiration of the specified time limit;
(iv)
include a legal description by metes and bounds of all land that may be
withdrawn from the condominium project, which is known as withdrawable land;
(v)
include a statement as to whether portions of the withdrawable land may be
withdrawn from the condominium project at different times, together with any
limitations fixing the boundaries of those portions by legal descriptions setting
forth the metes and bounds and regulating the order in which they may be
withdrawn from the condominium project; and
(vi)
include a legal description by metes and bounds of all of the land within the
condominium project to which the option to contract the project does not extend.
(b)
The condominium plat recorded with the declaration may provide or supplement the
information required under Subsections
(5)(a)(iv)
through
(vi)
.
(6)
(a)
If the condominium project is a leasehold condominium, the declaration shall,
with respect to any ground lease or other leases the expiration or termination of
which will or may terminate or contract the condominium project:
(i)
include recording information enabling the location of each lease in the official
records of the county recorder;
(ii)
include the date upon which each lease is due to expire;
(iii)
state whether any land or improvements will be owned by the unit owners in fee
simple;
(iv)
if there is to be fee simple ownership of any land or improvement, as described in
Subsection
(6)(a)(iii)
, include:
(A)
a description of the land or improvements, including a legal description by
metes and bounds of the land; or
(B)
a statement of
any rights
the right
the unit owners have to remove
these
the

improvements
described in Subsection
(6)(a)(iv)(A)

within a reasonable time
after the expiration or termination of the lease or leases involved, or a
statement that
they shall have no such rights
the unit owners do not have that
right
; and
(v)
include a statement of the
rights
right
the unit owners have to extend or renew
any of the leases or to redeem or purchase any of the reversions, or a statement
that
they have no such rights
the unit owners do not have that right
.
(b)
After the recording of the declaration, a lessor who executed the declaration, or the
lessor's successor in interest, may not terminate any part of the leasehold interest of
any
a
unit owner who:
(i)
makes timely payment of the unit owner's share of the rent to the persons
designated in the declaration for the receipt of the rent; and
(ii)
otherwise complies with all covenants which would entitle the lessor to terminate
the lease if the covenants were violated.
(7)
(a)
(i)
If the condominium project contains time period units, the declaration shall
also contain the location of each condominium unit in the calendar year.
(ii)
This information
The information described in Subsection
(7)(a)(i)
shall be set
out in a fourth column of the exhibit or schedule referred to in Subsection
57-8-7(2)
, if the exhibit or schedule accompanies the declaration.
(b)
The declaration shall also put timeshare owners on notice that tax notices will be sent
to the management committee, not each timeshare owner.
(c)
The time period units created with respect to any given physical unit shall be such
that the aggregate of the durations involved constitute a full calendar year.
(8)
(a)
The declaration, bylaws, and condominium plat shall be duly executed and
acknowledged by all of the owners and any lessees of the land
which
that
is
made
subject to this chapter.
(b)
As used in Subsection
(8)(a)
, "owners and lessees" does not include
, in their
respective capacities,
:
(i)
any
a
mortgagee
,
;
(ii)
any
a
trustee or beneficiary under a deed of trust
,
;
(iii)

any other lien holder
,
;
(iv)
any
a
person
having
that has
an equitable interest under
any
a
contract for the
sale or lease of a condominium unit
,
;
or
(v)
any
a
lessee whose leasehold interest does not extend to any portion of the
common areas and facilities.
(9)
(a)
Except as provided in Subsection
(9)(b)
, a declaration, or an amendment to a
declaration, may not vary the requirements of Section
57-8-8.1
or Subsection
57-8-8.1(1)(b)(ii)
.
(b)
A declaration, or an amendment to a declaration may vary the requirements of
Subsections
57-8-8.1(1)(a)
, (b)(i) and (iii), and 57-8-8.1(2) through (5).
Section 11. Section
57-8-13.1
is amended to read:
57-8-13.1
. Registration with Department of Commerce.
(1)
As used in this section, "department" means the Department of Commerce created in
Section
13-1-2
.
(2)
No later than 90 days after the recording of a declaration, an association of unit owners
shall register with the department in the manner
established by
that
the department

establishes
.
(3)
The department shall require an association of unit owners registering as required in this
section to provide with each registration:
(a)
the name and address of the association of unit owners;
(b)
the name,
address,
telephone number, and, if applicable, email address of the
president of the association of unit owners;
(c)
the name
,

and address
telephone number, and, if applicable, email address
of each
manager or management committee member;
(d)
the name, address, telephone number, and, if the contact person wishes to use email
or facsimile transmission for communicating payoff information, the email address or
facsimile number, as applicable, of a primary contact person who has association
payoff information that a closing agent needs in connection with the closing of a unit
owner's financing, refinancing, or sale of the owner's unit; and
(e)
a registration fee
set by
that
the department
sets
in accordance with Section
63J-1-504
.
(4)
(a)
An association of unit owners shall annually renew the registration of the
association of unit owners described in Subsection
(2)
.
(b)
The department may impose and set the amount of a renewal registration fee in
accordance with Section
63J-1-504
.
(5)
An association of unit owners
that has registered under
that registers in accordance with

Subsection
(2)
shall submit to the department an update to the association of unit
owners' registration information, in the manner
established by
that
the department

establishes
, within 90 days after
the day on which
a change in any of the information
provided under Subsection
(3)
occurs
.
(6)
(a)
During any period of noncompliance with the registration requirement described
in Subsection
(2)
or the requirement for an updated registration described in
Subsection
(5)
:
(i)
a lien may not arise under Section
57-8-44
; and
(ii)
an association of unit owners may not enforce an existing lien that arose under
Section
57-8-44
.
(b)
A period of noncompliance with the registration requirement of Subsection
(2)
or
with the updated registration requirement of Subsection
(5)
does not begin until after
the expiration of the 90-day period specified in Subsection
(2)
or (5), respectively.
(c)
An association of unit owners that is not in compliance with the registration
requirement described in Subsection
(2)
may end the period of noncompliance by
registering with the department in the manner
established by
that
the department

establishes
under Subsection
(2)
.
(d)
An association of unit owners that is not in compliance with the updated registration
requirement described in Subsection
(5)
may end the period of noncompliance by
submitting to the department an updated registration in the manner
established by
that
the department
establishes
under Subsection
(5)
.
(e)
Except as described in Subsection
(6)(f)
, beginning on the date an association of unit
owners ends a period of noncompliance:
(i)
a lien may arise under Section
57-8-44
for any event that:
(A)
occurred during the period of noncompliance; and
(B)
would have given rise to a lien under Section
57-8-44
had the association of
unit owners been in compliance with the registration requirements described in
this section; and
(ii)
an association of unit owners may enforce a lien described in Subsection
(6)(c)
(6)(e)(i)
or a lien that existed before the period of noncompliance.
(f)
If an owner's unit is conveyed to an independent third party during a period of
noncompliance described in this Subsection
(6)
:
(i)
a lien that arose under Section
57-8-44
before the conveyance of the unit became
final is extinguished when the conveyance of the unit becomes final; and
(ii)
an event that occurred before the conveyance of the unit became final, and that
would have given rise to a lien under Section
57-8-44
had the association of unit
owners been in compliance with the registration requirements of this section, may
not give rise to a lien under Section
57-8-44
if the conveyance of the unit becomes
final before the association of unit owners ends the period of noncompliance.
(7)
The department shall publish educational materials on the department's website
providing, in simple and easy to understand language, a brief overview of state law
governing associations of unit owners, including:
(a)
a description of the rights and responsibilities provided in this chapter to any party
under the jurisdiction of an association of unit owners; and
(b)
instructions regarding how an association of unit owners may be organized and
dismantled in accordance with this chapter.
Section 12. Section
57-8-16.5
is amended to read:
57-8-16.5
. Period of administrative control -- Renewal or ratification of
contracts -- Failure to establish association or committee -- Declarant responsibilities.
(1)
(a)
The declaration may authorize the declarant,
or
a managing agent
,
or
some other
a
person
or persons selected or to be selected by
that
the declarant
selects
, to
:
(i)

appoint and remove some or all of
:
(A)

the members of the management committee
;
or
(B)
some or all of
the officers of the association of unit owners
,
;
or
(ii)
to
exercise powers and responsibilities otherwise assigned by the declaration
and by this
act
chapter
to the association of unit owners,
its
the association's

officers, or the management committee.
(b)
If the declaration authorizes the declarant to
appoint or remove some or all members
of the management committee or some or all of the officers of the association of unit
owners
conduct the actions described in Subsection
(1)(a)(i)
during the period of
administrative
control
contemplated by
described in
this Subsection
(1)
, the
declarant may appoint the declarant's officers, employees or agents as members of the
management committee or as officers of the association of unit owners.
(c)
No
An
amendment to the declaration
not consented to by all unit owners shall
may
not
increase the scope of
this authorization
the authorization described in Subsection
(1)(b)
, unless all unit owners unanimously consent to the amendment.
(d)
, and no such authorization shall be valid after the first to occur of the following
The authorization described in Subsection
(1)(b)
terminates on the day on which the
first of the following occurs
:
(i)
expiration of
the time limit set by the declaration
expires
,
which shall
that may

not exceed
:
(A)
six years in the case of
for
an expandable condominium
, six years
,
;
(B)
four years in the case of
for
a condominium project containing any
convertible land,
four years;
or
(C)
three years in the case of
for
any other condominium project
, three years
;
or
(ii)
after
units to which three-fourths of the undivided interest in the common areas
and facilities appertain have been conveyed
,
;
or
(iii)
after
all additional land has been added to the project and all convertible land
has been converted, whichever last occurs.
(2)
If entered into during the period of
administrative
control contemplated by Subsection
(1)
,
no
a
management contract, lease of recreational areas or facilities, or any other
contract or lease designed to benefit the declarant which was executed by or on behalf of
the association of unit owners or the unit owners as a group
shall be
is not
binding after
such
the
period of
administrative
control unless
then renewed or ratified by the consent
of
unit owners of units to which a majority of the votes in the association of unit owners
appertains
renew and ratify the management contract, lease of recreational areas or
facilities, or any other contract or lease designed to benefit the declarant
.
(3)
If the association of unit owners or management committee is not in existence or does
not have officers at the time of the creation of a condominium project, the declarant
shall, until there is an association or management committee with these officers, have
the power and responsibility to act in all instances where this
act
chapter
or the
declaration requires action by the association of unit owners, the management
committee, or any of the officers of
them
the association of unit owners or the
management committee
.
(4)
This section shall be strictly construed to protect the rights of the unit owners.
(5)
During the period of administrative control, the declarant shall:
(a)
use reasonable care and prudence in managing and maintaining the common areas
and facilities;
(b)
establish a sound fiscal basis for the association by imposing and collecting
assessments and establishing reserves for the maintenance and replacement of
common areas and facilities;
(c)
for a service that the association is or will be obligated to provide, disclose to the unit
owners the amount of money the declarant provides for or subsidizes for that service;
(d)
comply with and enforce the terms of the declaration, including design controls,
land-use restrictions, and the payment of assessments; and
(e)
disclose to the unit owners all material facts and circumstances affecting:
(i)
the condition of the property that the association is responsible for maintaining;
and
(ii)
the financial condition of the association, including the interest of the declarant
and the declarant's affiliates in a contract, lease, or other agreement entered into
by the association.
Section 13. Section
57-8-17
is amended to read:
57-8-17
. Records -- Availability for examination.
(1)
(a)
Subject to Subsection
(1)(b)
and regardless of whether the association of unit
owners is incorporated under
Title 16, Chapter 6a, Utah Revised Nonprofit
Corporation Act
, an association of unit owners shall keep and make available to unit
owners:
(i)
each record identified in Subsections
16-6a-1601(1)
through
(5)
, in the manner
described in Sections
16-6a-1601
,
16-6a-1602
,
16-6a-1603
,
16-6a-1605
,
16-6a-1606
, and
16-6a-1610
; and
(ii)
a copy of the association's:
(A)
governing documents;
(B)
most recent approved minutes;
(C)
most recent annual budget and financial statement;
(D)
most recent reserve analysis;
(E)
certificate of insurance for each insurance policy the association of unit
owners holds;
(F)
management committee meeting minutes from the previous three calendar
years;
(G)
a
profit and loss statement for the previous three fiscal years; and
(H)
a
balance sheet for the previous three fiscal years.
(b)
An association of unit owners may redact the following information from any
document the association of unit owners produces for inspection or copying:
(i)
a Social Security number;
(ii)
a bank account number; or
(iii)
any communication subject to attorney-client privilege.
(c)
The following are considered property of the association:
(i)
a record or document described in Subsection
(1)(a)(i)
or
(ii)
; and
(ii)
the funds contained in an account described in Section
57-8-60
.
(d)
If a person other than the association of unit owners has control over or possession of
a record described in Subsection
(1)(a)(i)
or
(ii)
, the person shall, upon the
association's request, provide the record to the association of unit owners without
charge.
(2)
(a)
In addition to the requirements described in Subsection
(1)
, an association of unit
owners shall:
(i)
make documents available to unit owners in accordance with the association of
unit owners' governing documents; and
(ii)
(A)
if the association of unit owners has an active website, make the documents
described in Subsections
(1)(a)(ii)(A)
through
(C)
available to unit owners, free
of charge, through the website; or
(B)
if the association of unit owners does not have an active website, make
physical copies of the documents described in Subsections
(1)(a)(ii)(A)

through
(C)
available to unit owners during regular business hours at the
association of unit owners' address registered with the Department of
Commerce under Section
57-8-13.1
.
(b)
Subsection
(2)(a)(ii)
does not apply to an association as defined in Section
57-19-2
.
(c)
If a provision of an association of unit owners' governing documents conflicts with a
provision of this section, the provision of this section governs.
(3)
In a written request to inspect or copy documents:
(a)
a unit owner shall include:
(i)
the association of unit owners' name;
(ii)
the unit owner's name;
(iii)
the unit owner's property address;
(iv)
the unit owner's email address;
(v)
a description of the documents requested; and
(vi)
any
an
election or
a
request described in Subsection
(3)(b)
; and
(b)
a unit owner may:
(i)
elect whether to inspect or copy the documents;
(ii)
if the unit owner elects to copy the documents, request hard copies or electronic
scans of the documents; or
(iii)
subject to Subsection
(4)
, request that:
(A)
the association of unit owners make the copies or electronic scans of the
requested documents;
(B)
a recognized third party duplicating service make the copies or electronic
scans of the requested documents;
(C)
the unit owner be allowed to bring any necessary imaging equipment to the
place of inspection and make copies or electronic scans of the documents while
inspecting the documents; or
(D)
the association of unit owners email the requested documents to an email
address provided in the request.
(4)
(a)
An association of unit owners shall comply with a request described in Subsection
(3)
within
two weeks
10 business days
after the day on which the association of unit
owners receives the request.
(b)
If an association of unit owners produces the copies or electronic scans:
(i)
the copies or electronic scans shall be legible and accurate;
(ii)
the unit owner shall pay the association of unit owners the reasonable cost of the
copies and for time spent meeting with the unit owner, which may not exceed:
(A)
the actual cost that the association of unit owners paid to a recognized third
party duplicating service to make the copies or electronic scans; or
(B)
10 cents per page and $20 per hour for the employee's, manager's, or other
agent's time making the copies or electronic scans; and
(iii)
the association may not charge the unit owner for any costs associated with
fulfilling a request for the electronic transmission of the documents described in
Subsection
(3)
.
(c)
If a unit owner requests a recognized third party duplicating service make the copies
or electronic scans:
(i)
the association of unit owners shall arrange for the delivery and pick up of the
original documents; and
(ii)
the unit owner shall pay the duplicating service directly.
(d)
Subject to Subsection
(9)
, if a unit owner requests to bring imaging equipment to the
inspection, the association of unit owners shall provide the necessary space, light, and
power for the imaging equipment.
(e)
An association may comply with a request described in Subsection
(3)
by posting the
documents described in Subsection
(3)
to the association's website or online owner
portal.
(5)
If, in response to a unit owner's request to inspect or copy documents, an association of
unit owners fails to comply with a provision of this section, the association of unit
owners shall pay:
(a)
the reasonable costs of inspecting and copying the requested documents;
(b)
for items described in Subsections
(1)(a)(ii)(A)
through
(C)
, $25 to the unit owner
who made the request for each day the request continues unfulfilled, beginning the
sixth day
eleventh business day
after the day on which the unit owner made the
request; and
(c)
reasonable attorney fees and costs
incurred by
that
the unit owner
incurs
in
obtaining the inspection and copies of the requested documents.
(6)
(a)
In addition to any remedy in the association of unit owners' governing documents
or as otherwise provided by law, a unit owner may file an action in court under this
section if:
(i)
subject to Subsection
(9)
, an association of unit owners fails to make documents
available to the unit owner in accordance with this section, the association of unit
owners' governing documents, or as otherwise provided by law; and
(ii)
the association of unit owners fails to timely comply with a notice described in
Subsection
(6)(d)
.
(b)
In an action described in Subsection
(6)(a)
:
(i)
the unit owner may request:
(A)
injunctive relief requiring the association of unit owners to comply with the
provisions of this section;
(B)
$1,000 or actual
damage
damages
, whichever is greater; or
(C)
any other relief provided by law; and
(ii)
the court may award costs and reasonable attorney fees to the prevailing party,
including any reasonable attorney fees incurred before the action was filed that
relate to the request that is the subject of the action.
(c)
(i)
In an action described in Subsection
(6)(a)
, upon motion by the unit owner
made in accordance with Subsection
(6)(b)
, notice to the association of unit
owners, and a hearing in which the court finds a likelihood that the association of
unit owners failed to comply with a provision of this section, the court shall order
the association of unit owners to immediately comply with the provision.
(ii)
The court shall hold a hearing described in Subsection
(6)(c)(i)
within 30 days
after the day on which the unit owner files the motion.
(d)
At least 10 days before the day on which a unit owner files an action described in
Subsection
(6)(a)
, the unit owner shall deliver a written notice to the association of
unit owners that states:
(i)
the unit owner's name, address, telephone number, and email address;
(ii)
each requirement of this section with which the association of unit owners has
failed to comply;
(iii)
a demand that the association of unit owners comply with each requirement with
which the association of unit owners has failed to comply; and
(iv)
a date by which the association of unit owners shall remedy the association of
unit owners' noncompliance that is at least 10 days after the day on which the unit
owner delivers the notice to the association of unit owners.
(7)
(a)
The provisions of Section
16-6a-1604
do not apply to an association of unit
owners.
(b)
The provisions of this section apply regardless of any conflicting provision in
Title
16, Chapter 6a, Utah Revised Nonprofit Corporation Act
.
(8)
A unit owner's agent may, on the unit owner's behalf, exercise or assert any right that
the unit owner has under this section.
(9)
An association of unit owners is not liable for identifying or providing a document in
error, if the association of unit owners identified or provided the erroneous document in
good faith.
Section 14. Section
57-8-32
is amended to read:
57-8-32
. Sale of property and common areas and facilities.
(1)
As used in this section:
(a)
"Condemnor" means the same as that term is defined in Section
78B-6-520.3
.
(b)
"Under threat of condemnation" means the same as that term is defined in Section
78B-6-520.3
.
(1)
(2)
Subject to Subsection
10-20-809(5)
or
17-79-709(5)
, unless otherwise provided in
the declaration or bylaws, and notwithstanding the provisions of Sections
57-8-30
and
57-8-31
, the unit owners may by an affirmative vote of at least 67% of unit owners, elect
to sell, convey, transfer, or otherwise dispose of the property or all or part of the
common areas and facilities.
(2)
(3)
An affirmative vote described in Subsection
(1)
(2)
is binding upon all unit
owners, and each unit owner shall execute and deliver the appropriate instruments and
perform all acts as necessary to affect the sale, conveyance, transfer, or other disposition
of the property or common areas and facilities.
(3)
(4)
The general easement of ingress, egress, and use of the common areas and facilities
granted to an association and unit owners through recorded governing documents is
extinguished in any portion of the common areas and facilities the unit owners sell,
convey, transfer, or otherwise dispose of, if:
(a)
the unit owners, in selling, conveying, transferring, or otherwise disposing of the
portion of the common areas and facilities, comply with:
(i)
the provisions of this section; and
(ii)
Section
10-20-809
or
17-79-709
; and
(b)
the sale, conveyance, transfer, or other disposition of the portion of the common
areas and facilities results in a person other than the association owning the portion of
the common areas and facilities.
(4)
(5)
This section applies to an association of unit owners regardless of when the
association of unit owners is created.
(5)
(6)
A declarant may not sell
or otherwise encumber
any part of the common areas and
facilities during the period of administrative control, except:
(a)
as allowed for convertible land or convertible space within a condominium project;

or
(b)
as provided in Section
10-20-809
or
17-79-709
.
; or
(c)
if the declarant sells or otherwise encumbers a part of the common areas and
facilities that are under threat of condemnation to a condemnor.
(6)
(7)
Unless otherwise prohibited by the association's declaration or bylaws, an
authorized representative of the association may act as attorney-in-fact for the
association's unit owners in executing a sale, conveyance, transfer, or other disposition
of the common areas and facilities following an affirmative vote described in Subsection
(1)
(2)
.
Section 15. Section
57-8a-103
is amended to read:
57-8a-103
. Scope of chapter -- Applicability of chapter.
(1)
Remedies provided in this chapter, by law, or in equity are not mutually exclusive.
(2)
This chapter applies to an association if:
(a)
the association's declaration states that this chapter applies;
(b)
the association amends the association's declaration to state that this chapter applies
in accordance with Section
57-8a-107
; or
(c)
the association's declaration does not state whether this chapter or Chapter 8,
Condominium Ownership Act, applies.
(3)
This section applies regardless of when an association is created.
Section 16. Section
57-8a-105
is amended to read:
57-8a-105
. Registration with Department of Commerce.
(1)
As used in this section, "department" means the Department of Commerce created in
Section
13-1-2
.
(2)
(a)
No later than 90 days after the recording of a declaration of covenants, conditions,
and restrictions establishing an association, the association shall register with the
department in the manner
established by
that
the department
establishes
.
(b)
An association existing under a declaration of covenants, conditions, and restrictions
recorded before May 10, 2011, shall, no later than July 1, 2011, register with the
department in the manner
established by
that
the department
establishes
.
(3)
The department shall require an association registering as required in this section to
provide with each registration:
(a)
the name and address of the association;
(b)
the name,
address,
telephone number, and, if applicable, email address of the chair
of the association board;
(c)
contact information for the manager
the name, telephone number, and, if applicable,
email address of each manager or board member
;
(d)
the name, address, telephone number, and, if the contact person wishes to use email
or facsimile transmission for communicating payoff information, the email address or
facsimile number, as applicable, of a primary contact person who has association
payoff information that a closing agent needs in connection with the closing of a lot
owner's financing, refinancing, or sale of the owner's lot; and
(e)
a registration fee
set by
that
the department
sets
in accordance with Section
63J-1-504
.
(4)
(a)
An association shall annually renew the association's registration described in
Subsection
(2)
.
(b)
The department may impose and set the amount of a renewal registration fee in
accordance with Section
63J-1-504
.
(5)
An association that has registered under Subsection
(2)
shall submit to the department
an update to the association's registration information, in the manner
established by
that

the department
establishes
, within 90 days after a change in any of the information
provided under Subsection
(3)
.
(6)
(a)
During any period of noncompliance with the registration requirement described
in Subsection
(2)
or the requirement for an updated registration described in
Subsection
(5)
:
(i)
a lien may not arise under Section
57-8a-301
; and
(ii)
an association may not enforce an existing lien that arose under Section
57-8a-301
.
(b)
A period of noncompliance with the registration requirement of Subsection
(2)
or
with the updated registration requirement of Subsection
(5)
does not begin until after
the expiration of the 90-day period specified in Subsection
(2)
or (5), respectively.
(c)
An association that is not in compliance with the registration requirement described
in Subsection
(2)
may end the period of noncompliance by registering with the
department in the manner
established by
that
the department
establishes
under
Subsection
(2)
.
(d)
An association that is not in compliance with the updated registration requirement
described in Subsection
(5)
may end the period of noncompliance by submitting to
the department an updated registration in the manner
established by
that
the
department
establishes
under Subsection
(5)
.
(e)
Except as described in Subsection
(6)(f)
, beginning on the date an association ends a
period of noncompliance:
(i)
a lien may arise under Section
57-8a-301
for any event that:
(A)
occurred during the period of noncompliance; and
(B)
would have given rise to a lien under Section
57-8a-301
had the association
been in compliance with the registration requirements described in this section;
and
(ii)
an association may enforce a lien described in this Subsection
(6)(e)
or a lien that
existed before the period of noncompliance.
(f)
If an owner's residential lot is conveyed to an independent third party during a period
of noncompliance described in this Subsection
(6)
:
(i)
a lien that arose under Section
57-8a-301
before the conveyance of the residential
lot became final is extinguished when the conveyance of the residential lot
becomes final; and
(ii)
an event that occurred before the conveyance of the residential lot became final,
and that would have given rise to a lien under Section
57-8a-301
had the
association been in compliance with the registration requirements of this section,
may not give rise to a lien under Section
57-8a-301
if the conveyance of the
residential lot becomes final before the association ends the period of
noncompliance.
(7)
The department shall publish educational materials on the department's website
providing, in simple and easy to understand language, a brief overview of state law
governing associations, including:
(a)
a description of the rights and responsibilities provided in this chapter to any party
under the jurisdiction of an association; and
(b)
instructions regarding how an association may be organized and dismantled in
accordance with this chapter.
(8)
(a)
Unless otherwise expressly exempted, this chapter applies to an association that
registers, or renews or updates the association's registration, with the department
under this section.
(b)
This section applies to an association regardless of when the association is created.
Section 17. Section
57-8a-105.1
is amended to read:
57-8a-105.1
. Information required before sale to independent third party.
(1)
Before the sale of
any
a
lot under the jurisdiction of an association to an independent
third party, the grantor shall provide to the independent third party:
(a)
a copy of the association's recorded governing documents; and
(b)
a link or other access point to the
department's
educational materials described in
Subsection
57-8a-105(6)
13-79-103(4)
.
(2)
The grantor shall provide the information described in Subsection
(1)
before closing.
(3)
The association shall, upon request by the grantor, provide to the grantor the
information described in Subsection
(1)
.
(4)
This section applies to each association, regardless of when the association is formed.
Section 18. Section
57-8a-212
is amended to read:
57-8a-212
. Content of a declaration.
(1)
An initial declaration
recorded on or after May 10, 2011
shall contain:
(a)
the name of the project;
(b)
the name of the association;
(c)
a statement that the project is not a cooperative;
(d)
a statement indicating any portions of the project that contain condominiums
governed by
Chapter 8, Condominium Ownership Act
;
(e)
a statement that the project is governed by this chapter;
(e)
(f)
if the declarant desires to reserve the option to expand the project, a statement
reserving the option to expand the project;
(f)
(g)
the name of each county in which any part of the project is located;
(g)
(h)
a legally sufficient description of the real estate included in the project;
(h)
(i)
a description of any limited common areas and any real estate that is or is
required to become common areas;
(i)
(j)
any restriction on the alienation of a lot, including a restriction on leasing; and
(j)
(k)
(i)
an appointment of a trustee who qualifies under Subsection
57-1-21(1)(a)(i)

or
(iv)
; and
(ii)
the following statement: "The declarant hereby conveys and warrants pursuant to
U.C.A. Sections
57-1-20
and
57-8a-302
to (name of trustee), with power of sale,
the lot and all improvements to the lot for the purpose of securing payment of
assessments under the terms of the declaration."
(2)
A declaration may contain any other information the declarant considers appropriate,
including
any
a
restriction on the use of a lot, the number of persons who may occupy a
lot, or other qualifications of a person who may occupy a lot.
(3)
The location of a limited common area or real estate described in Subsection
(1)(g)
may
be shown on a subdivision plat.
(4)
(a)
Except as provided in Subsection
(4)(b)
, a declaration, or an amendment to a
declaration, may not vary the requirements of Section
57-8a-218
or Subsection
57-8a-218(1)(b)(ii)
.
(b)
A declaration, or an amendment to a declaration may vary the requirements of
Subsections
57-8a-218(1)(a)
, (b)(i) and (iii), 57-8a-218(2), 57-8a-218(6), and
57-8a-218(8) through (14).
Section 19. Section
57-8a-215
is amended to read:
57-8a-215
. Budget.
(1)
At least
once
annually the board shall prepare and adopt a budget for the association.
(2)
The board shall present the adopted budget to association members at a meeting of the
members.
(3)
A budget is disapproved if within 45 days after the date of the meeting under Subsection
(2)
at which the board presents the adopted budget:
(a)
there is a vote of disapproval by at least 51% of all the allocated voting interests of
the lot owners in the association; and
(b)
the vote is taken at a special meeting called for that purpose by lot owners under the
declaration, articles, or bylaws.
(4)
If a budget is disapproved under Subsection
(3)
,
or not adopted under Subsection
(1)
,
then
the budget that the board last adopted
that was not disapproved by members
continues as the budget until
and unless the board presents another budget to members
and that budget is not disapproved
the board prepares and adopts a new budget for the
association
.
(5)
During the period of administrative control, association members may not disapprove a
budget.
Section 20. Section
57-8a-227
is amended to read:
57-8a-227
. Records -- Availability for examination.
(1)
(a)
Subject to Subsection
(1)(b)
and regardless of whether the association is
incorporated under
Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act
, an
association shall keep and make available to lot owners:
(i)
each record identified in Subsections
16-6a-1601(1)
through
(5)
, in the manner
described in Sections
16-6a-1601
,
16-6a-1602
,
16-6a-1603
,
16-6a-1605
,
16-6a-1606
, and
16-6a-1610
; and
(ii)
a copy of the association's:
(A)
governing documents;
(B)
most recent approved minutes;
(C)
most recent annual budget and financial statement;
(D)
most recent reserve analysis;
(E)
certificate of insurance for each insurance policy the association holds;
(F)
board meeting minutes from the previous three calendar years;
(G)
a
profit and loss statement for the previous three fiscal years; and
(H)
a
balance sheet for the previous three fiscal years
;
.
(b)
An association may redact the following information from any document the
association produces for inspection or copying:
(i)
a Social Security number;
(ii)
a bank account number; or
(iii)
any communication subject to attorney-client privilege.
(c)
The following are considered property of the association:
(i)
a record or document described in Subsection
(1)(a)(i)
or
(ii)
; and
(ii)
the funds contained in an account described in Section
57-8a-230
.
(d)
If a person other than the association has control over or possession of a record
described in Subsection
(1)(a)(i)
or
(ii)
, the person shall, upon the association's
request, provide the record to the association without charge.
(2)
(a)
In addition to the requirements described in Subsection
(1)
, an association shall:
(i)
make documents available to lot owners in accordance with the association's
governing documents; and
(ii)
(A)
if the association has an active website, make the documents described in
Subsections
(1)(a)(ii)(A)
through
(C)
available to lot owners, free of charge,
through the website; or
(B)
if the association does not have an active website, make physical copies of the
documents described in Subsections
(1)(a)(ii)(A)
through
(C)
available to lot
owners during regular business hours at the association's address registered
with the Department of Commerce under Section
57-8a-105
.
(b)
Subsection
(2)(a)(ii)
does not apply to an association as defined in Section
57-19-2
.
(c)
If a provision of an association's governing documents conflicts with a provision of
this section, the provision of this section governs.
(3)
In a written request to inspect or copy documents:
(a)
a lot owner shall include:
(i)
the association's name;
(ii)
the lot owner's name;
(iii)
the lot owner's property address;
(iv)
the lot owner's email address;
(v)
a description of the documents requested; and
(vi)
any election or request described in Subsection
(3)(b)
; and
(b)
a lot owner may:
(i)
elect whether to inspect or copy the documents;
(ii)
if the lot owner elects to copy the documents, request hard copies or electronic
scans of the documents; or
(iii)
subject to Subsection
(4)
, request that:
(A)
the association make the copies or electronic scans of the requested
documents;
(B)
a recognized third party duplicating service make the copies or electronic
scans of the requested documents;
(C)
the lot owner be allowed to bring any necessary imaging equipment to the
place of inspection and make copies or electronic scans of the documents while
inspecting the documents; or
(D)
the association email the requested documents to an email address provided in
the request.
(4)
(a)
An association shall comply with a request described in Subsection
(3)
within
two weeks
10 business days
after the day on which the association receives the
request.
(b)
If an association produces the copies or electronic scans:
(i)
the copies or electronic scans shall be legible and accurate;
(ii)
the lot owner shall pay the association the reasonable cost of the copies and for
time spent meeting with the lot owner, which may not exceed:
(A)
the actual cost that the association paid to a recognized third party duplicating
service to make the copies or electronic scans; or
(B)
10 cents per page and $20 per hour for the employee's, manager's, or other
agent's time; and
(iii)
the association may not charge the lot owner for any costs associated with
fulfilling a request for electronic transmission of the documents described in
Subsection
(3)
.
(c)
If a lot owner requests a recognized third party duplicating service make the copies
or electronic scans:
(i)
the association shall arrange for the delivery and pick up of the original
documents; and
(ii)
the lot owner shall pay the duplicating service directly.
(d)
If a lot owner requests to bring imaging equipment to the inspection, the association
shall provide the necessary space, light, and power for the imaging equipment.
(e)
An association may fulfill the request described in Subsection
(3)
by posting the
documents described in Subsection
(3)
to the association's website or online owner
portal.
(5)
Subject to Subsection
(9)
, if, in response to a lot owner's request to inspect or copy
documents, an association fails to comply with a provision of this section, the
association shall pay:
(a)
the reasonable costs of inspecting and copying the requested documents;
(b)
for items described in Subsections
(1)(a)(ii)(A)
through
(C)
, $25 to the lot owner
who made the request for each day the request continues unfulfilled, beginning the
sixth
eleventh business
day after the day on which the lot owner made the request;
and
(c)
reasonable attorney fees and costs incurred by the lot owner in obtaining the
inspection and copies of the requested documents.
(6)
(a)
In addition to any remedy in the association's governing documents or otherwise
provided by law, a lot owner may file an action in court against the association under
this section if:
(i)
subject to Subsection
(9)
, an association fails to make documents available to the
lot owner in accordance with this section, the association's governing documents,
or as otherwise provided by law; and
(ii)
the association fails to timely comply with a notice described in Subsection
(6)(d)
.
(b)
In an action described in Subsection
(6)(a)
:
(i)
the lot owner may request:
(A)
injunctive relief requiring the association to comply with the provisions of this
section;
(B)
$1,000 or actual damage, whichever is greater; or
(C)
any other relief provided by law; and
(ii)
the court may award costs and reasonable attorney fees to the prevailing party,
including any reasonable attorney fees incurred before the action was filed that
relate to the request that is the subject of the action.
(c)
(i)
In an action described in Subsection
(6)(a)
, upon motion by the lot owner made
in accordance with Subsection
(6)(b)
, notice to the association, and a hearing in
which the court finds a likelihood that the association failed to comply with a
provision of this section, the court shall order the association to immediately
comply with the provision.
(ii)
The court shall hold a hearing described in Subsection
(6)(c)(i)
within 30 days
after the day on which the lot owner files the motion.
(d)
At least 10 days before the day on which a lot owner files an action described in
Subsection
(6)(a)
, the lot owner shall deliver a written notice to the association that
states:
(i)
the lot owner's name, address, telephone number, and email address;
(ii)
each requirement of this section with which the association has failed to comply;
(iii)
a demand that the association comply with each requirement with which the
association has failed to comply; and
(iv)
a date by which the association shall remedy the association's noncompliance
that is at least 10 days after the day on which the lot owner delivers the notice to
the association.
(7)
(a)
The provisions of Section
16-6a-1604
do not apply to an association.
(b)
The provisions of this section apply regardless of any conflicting provision in
Title
16, Chapter 6a, Utah Revised Nonprofit Corporation Act
.
(8)
A lot owner's agent may, on the lot owner's behalf, exercise or assert any right that the
lot owner has under this section.
(9)
An association is not liable for identifying or providing a document in error, if the
association identified or provided the erroneous document in good faith.
Section 21. Section
57-8a-232
is amended to read:
57-8a-232
. Sale of common areas.
(1)
As used in this section:
(a)
"Condemnor" means the same as that term is defined in Section
78B-6-520.3
.
(b)
"Under threat of condemnation" means the same as that term is defined in Section
78B-6-520.3
.
(1)
(2)
Subject to Subsection
10-20-809(5)
or
17-79-709(5)
, unless otherwise provided in
the governing documents, an association may by an affirmative vote of at least 67% of
the voting interests of the association, elect to sell, convey, transfer, or otherwise dispose
of all or part of the common areas.
(2)
(3)
An affirmative vote described in Subsection
(1)
(2)
is binding upon all lot owners,
and each lot owner shall execute and deliver the appropriate instruments and perform all
acts as necessary to effect the sale, conveyance, transfer, or other disposition of the
common areas.
(3)
(4)
The general easement of ingress, egress, and use of the common areas and facilities
granted to an association and lot owners through recorded governing documents is
extinguished in any portion of the common areas the association sells, conveys,
transfers, or otherwise disposes of, if:
(a)
the lot owners, in selling, conveying, transferring, or otherwise disposing of the
portion of the common areas, comply with:
(i)
the provisions of this section; and
(ii)
Section
10-20-809
or
17-79-709
; and
(b)
the sale, conveyance, transfer, or other disposition of the portion of the common
areas results in a person other than the association owning the portion of the common
areas.
(4)
(5)
This section applies to an association regardless of when the association is created.
(5)
(6)
A declarant may not sell
or otherwise encumber
any part of the common areas
during the period of administrative control, except
:
(a)

as provided in Section
10-20-809
or
17-79-709
.
; or
(b)
if the declarant sells or otherwise encumbers a part of the common areas and
facilities that are under threat of condemnation to a condemnor.
(6)
(7)
Unless otherwise prohibited by the association's governing documents, an
authorized representative of the association may act as attorney-in-fact for the
association's lot owners in executing a sale, conveyance, transfer, or other disposition of
the common areas following an affirmative vote described in Subsection
(1)
(2)
.
Section 22.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-8-26 9:24 PM