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H.B. 264 Enrolled

                 

INSURANCE COVERAGE AND COMMON AREA

                 
AMENDMENTS FOR CONDOMINIUMS

                 
2000 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Marda Dillree

                  AN ACT RELATING TO THE CONDOMINIUM OWNERSHIP ACT; REQUIRING
                  CONDOMINIUM ASSOCIATIONS TO OBTAIN INSURANCE COVERING ALL COMMON
                  AREAS AND BUILDINGS; AMENDING PROVISIONS RELATING TO COMMON AREAS;
                  AND MAKING TECHNICAL CHANGES.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      57-8-7, as last amended by Chapter 173, Laws of Utah 1975
                      57-8-29, as enacted by Chapter 111, Laws of Utah 1963
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 57-8-7 is amended to read:
                       57-8-7. Common areas and facilities.
                      (1) Each unit owner shall be entitled to an undivided interest in the common areas and
                  facilities in the percentages or fractions expressed in the declaration. The declaration may allocate
                  to each unit an undivided interest in the common areas and facilities proportionate to either the size
                  or par value of such unit. Otherwise, the declaration shall allocate to each unit an equal undivided
                  interest in the common areas and facilities, subject to the following exception: each convertible
                  space depicted on the record of survey map shall be allocated an undivided interest in the common
                  areas and facilities proportionate to the size of such space vis-a-vis the aggregate size of all units
                  so depicted, while the remaining undivided interest in the common areas and facilities shall be
                  allocated equally among the other units so depicted. The undivided interest in the common areas
                  and facilities allocated in accordance with this subsection shall add up to one if stated as fractions
                  or to 100% if stated as percentages. If an equal undivided interest in the common areas and facilities
                  is allocated to each unit, the declaration may simply state that fact and need not express the fraction
                  or percentage so allocated. Otherwise, the undivided interest allocated to each unit shall be


                  reflected by a table in the declaration, or by an exhibit or schedule accompanying the declaration and
                  recorded simultaneously with it, containing columns. The first column shall identify the units, listing
                  them serially or grouping them together in the case of units to which identical undivided interests are
                  allocated. Corresponding figures in the second and third columns shall set forth the respective sizes
                  or par values of those units and the fraction or percentage of undivided interest in the common areas
                  and facilities allocated thereto.
                      (2) Except as otherwise expressly provided by this act, the undivided interest of each unit
                  owner in the common areas and facilities as expressed in the declaration shall have a permanent
                  character and shall not be altered without the consent of [all] two-thirds of the unit owners expressed
                  in an amended declaration duly recorded. The undivided interest in the common areas and facilities
                  shall not be separated from the unit to which it appertains and shall be deemed to be conveyed or
                  encumbered or released from liens with the unit even though such interest is not expressly mentioned
                  or described in the conveyance or other instrument. A time period unit may not be further divided into
                  shorter time periods by a conveyance or disclaimer.
                      (3) The common areas and facilities shall remain undivided and no unit owner or any other
                  person shall bring any action for partition or division of any part thereof, unless the property has been
                  removed from the provisions of this act as provided in Sections 57-8-22 and 57-8-31 . Any covenants
                  to the contrary shall be null and void.
                      (4) Each unit owner may use the common areas and facilities in accordance with the purpose
                  for which they were intended without hindering or encroaching upon the lawful rights of the other
                  unit owners.
                      (5) The necessary work of maintenance, repair and replacement of the common areas and
                  facilities and the making of any additions or improvements thereon shall be carried out only as
                  provided in this act or in the declaration or bylaws.
                      (6) The manager or management committee shall have the irrevocable right to have access
                  to each unit from time to time during reasonable hours as may be necessary for the maintenance,
                  repair or replacement of any of the common areas and facilities or for making emergency repairs
                  necessary to prevent damage to the common areas and facilities or to another unit or units.

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                      Section 2. Section 57-8-29 is amended to read:
                       57-8-29. Insurance.
                      (1) The manager, management committee, or association of unit owners[, if required by the
                  declaration, bylaws or by a majority of the unit owners, or at the request of a mortgagee having a first
                  mortgage of record covering a unit, shall have the authority to, and shall, obtain insurance for the
                  property] shall obtain insurance against loss or damage by fire and [such] other hazards [under such
                  terms and for such amounts as shall be required or requested.] for:
                      (a) all common areas and facilities; and
                      (b) all buildings that contain more than one condominium unit, including any improvement
                  which is a permanent part of a building.
                      (2) Insurance coverage shall be written on the property in the name of the manager,
                  management committee, or association of unit owners, as trustee for each of the unit owners in the
                  percentages established in the declaration.
                      (3) Premiums on insurance required by this section shall be common expenses.
                      (4) Provision for insurance shall be without prejudice to the right of each unit owner to insure
                  his own unit for his benefit.

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