Second Substitute H.B. 104

Senator J. Stuart Adams proposes the following substitute bill:

1 HOMEOWNER ASSOCIATION AMENDMENTS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: R. Curt Webb
5 Senate Sponsor: J. Stuart Adams
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to condominium owner and homeowner
10 associations.
11 Highlighted Provisions:
12 This bill:
13 . prohibits an association from charging a fee for providing payoff information
14 needed for a closing on a sale of a unit or lot unless provided for in the declaration,
15 limits the amount of the fee, provides a consequence if an association fails to
16 provide the information within a specified time, and provides requirements for a
17 request for payoff information; and
18 . requires associations to register with the Department of Commerce and to submit an
19 updated registration under specified circumstances, and establishes consequences
20 for a failure to register or update a previous registration.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:

26 ENACTS:
27 57-8-6.3, Utah Code Annotated 1953
28 57-8-13.1, Utah Code Annotated 1953
29 57-8a-105, Utah Code Annotated 1953
30 57-8a-106, Utah Code Annotated 1953
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 57-8-6.3 is enacted to read:
34 57-8-6.3. Fee for providing information needed at closing.
35 (1) Unless specifically authorized in the declaration, bylaws, or rules, an association of
36 unit owners may not charge a fee for providing association payoff information needed in
37 connection with the closing of a unit owner's financing, refinancing, or sale of the owner's unit.
38 (2) An association of unit owners may not:
39 (a) require a fee described in Subsection (1) that is authorized in the declaration,
40 bylaws, or rules to be paid before closing; or
41 (b) charge the fee if it exceeds $50.
42 (3) (a) An association of unit owners that fails to provide information described in
43 Subsection (1) within five business days after the closing agent requests the information may
44 not enforce a lien against that unit for money due to the association at closing.
45 (b) A request under Subsection (3)(a) is not effective unless the request:
46 (i) is conveyed in writing to the primary contact person designated under Subsection
47 57-8-13.1 (3)(d);
48 (ii) contains:
49 (A) the name, telephone number, and address of the person making the request; and
50 (B) the facsimile number or email address for delivery of the payoff information; and
51 (iii) is accompanied by a written consent for the release of the payoff information:
52 (A) identifying the person requesting the information as a person to whom the payoff
53 information may be released; and
54 (B) signed and dated by an owner of the unit for which the payoff information is
55 requested.
56 (4) This section applies to each association of unit owners, regardless of when the

57 association of unit owners is formed.
58 Section 2. Section 57-8-13.1 is enacted to read:
59 57-8-13.1. Registration with Department of Commerce.
60 (1) As used in this section, "department" means the Department of Commerce created
61 in Section 13-1-2 .
62 (2) (a) No later than 90 days after the recording of a declaration, an association of unit
63 owners shall register with the department in the manner established by the department.
64 (b) An association of unit owners existing under a declaration recorded before May 10,
65 2011, shall, no later than July 1, 2011, register with the department in the manner established
66 by the department.
67 (3) The department shall require an association of unit owners registering as required
68 in this section to provide with each registration:
69 (a) the name and address of the association of unit owners;
70 (b) the name, address, telephone number, and, if applicable, email address of the
71 president of the association of unit owners;
72 (c) the name and address of each management committee member;
73 (d) the name, address, telephone number, and, if the contact person wishes to use email
74 or facsimile transmission for communicating payoff information, the email address or facsimile
75 number, as applicable, of a primary contact person who has association payoff information that
76 a closing agent needs in connection with the closing of a unit owner's financing, refinancing, or
77 sale of the owner's unit; and
78 (e) a registration fee not to exceed $37.
79 (4) An association of unit owners that has registered under Subsection (2) shall submit
80 to the department an updated registration, in the manner established by the department, within
81 90 days after a change in any of the information provided under Subsection (3).
82 (5) During any period of noncompliance with the registration requirements of
83 Subsection (2) or the requirement for an updated registration under Subsection (4):
84 (a) a lien for the nonpayment of common expenses may not arise under Section
85 57-8-20 against any condominium unit; and
86 (b) an association of unit owners may not enforce a previous lien under Section
87 57-8-20 against any condominium unit.

88 Section 3. Section 57-8a-105 is enacted to read:
89 57-8a-105. Registration with Department of Commerce.
90 (1) As used in this section, "department" means the Department of Commerce created
91 in Section 13-1-2 .
92 (2) (a) No later than 90 days after the recording of a declaration of covenants,
93 conditions, and restrictions establishing an association, the association shall register with the
94 department in the manner established by the department.
95 (b) An association existing under a declaration of covenants, conditions, and
96 restrictions recorded before May 10, 2011, shall, no later than July 1, 2011, register with the
97 department in the manner established by the department.
98 (3) The department shall require an association registering as required in this section to
99 provide with each registration:
100 (a) the name and address of the association;
101 (b) the name, address, telephone number, and, if applicable, email address of the chair
102 of the association board;
103 (c) contact information for the manager;
104 (d) the name, address, telephone number, and, if the contact person wishes to use email
105 or facsimile transmission for communicating payoff information, the email address or facsimile
106 number, as applicable, of a primary contact person who has association payoff information that
107 a closing agent needs in connection with the closing of a lot owner's financing, refinancing, or
108 sale of the owner's lot; and
109 (e) a registration fee not to exceed $37.
110 (4) An association that has registered under Subsection (2) shall submit to the
111 department an updated registration, in the manner established by the department, within 90
112 days after a change in any of the information provided under Subsection (3).
113 (5) During any period of noncompliance with the registration requirements of
114 Subsection (2) or the requirement for an updated registration under Subsection (4):
115 (a) a lien for the nonpayment of an assessment may not arise under Section 57-8a-203
116 against any lot; and
117 (b) an association may not enforce a previous lien under Section 57-8a-203 against any
118 lot.

119 Section 4. Section 57-8a-106 is enacted to read:
120 57-8a-106. Fee for providing information needed at closing.
121 (1) Unless specifically authorized in the declaration of covenants, conditions, and
122 restrictions, the bylaws, or the rules, a fee for providing association payoff information needed
123 in connection with the financing, refinancing, or closing of a lot owner's sale of the owner's lot.
124 (2) An association may not:
125 (a) require a fee described in Subsection (1) that is authorized in the declaration of
126 covenants, conditions, and restrictions, the bylaws, or the rules to be paid before closing; or
127 (b) charge the fee if it exceeds $50.
128 (3) (a) An association that fails to provide information described in Subsection (1)
129 within five business days after the closing agent requests the information may not enforce a lien
130 against that unit for money due to the association at closing.
131 (b) A request under Subsection (3)(a) is not effective unless the request:
132 (i) is conveyed in writing to the primary contact person designated under Subsection
133 57-8a-105 (3)(d);
134 (ii) contains:
135 (A) the name, telephone number, and address of the person making the request; and
136 (B) the facsimile number or email address for delivery of the payoff information; and
137 (iii) is accompanied by a written consent for the release of the payoff information:
138 (A) identifying the person requesting the information as a person to whom the payoff
139 information may be released; and
140 (B) signed and dated by an owner of the lot for which the payoff information is
141 requested.
142 (4) This section applies to each association, regardless of when the association is
143 formed.