each area of convertible land.
(iii) (A) The declaration shall 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.
(B) The statements described in Subsection (3)(a)(iii)(A) need not be supplied if none of
the units on other portions of the land within the project are restricted exclusively to residential
use.
(iv) The declaration shall 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) The declaration shall describe all other improvements that may be made on each area
of convertible land within the condominium project.
(vi) The declaration shall 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 it
shall describe in detail what other type of units may be created.
(vii) The declaration shall 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) If the condominium is an expandable condominium project:
(a) (i) (A) The declaration shall contain an explicit reservation of an option to expand the
project.
(B) The declaration shall include a statement of any limitations on the option to expand,
including a statement as to whether the consent of any unit owners shall be required and, a
statement as to the method by which consent shall be ascertained, or a statement that there are no
such limitations.
(ii) The declaration shall include a time limit, not exceeding seven years from the date of
the recording of the declaration, upon which the option to expand the condominium project shall
expire, together with a statement of any circumstances which will terminate the option prior to
expiration of the specified time limits.
(iii) The declaration shall 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.
(iv) The declaration shall 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.
(v) The declaration shall include a statement as to whether portions of the additional land
may be added to 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 of these
lands and regulating the order in which they may be added to the condominium project.
(vi) The declaration shall include a statement of any limitations as to 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.
(vii) The declaration shall state the maximum number of units that may be created on the
additional land. 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)(v), the
declaration shall also state the maximum number of units that may be created on each portion
added to the condominium project. 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)(v), then the declaration shall also state the maximum number of units per acre
that may be created on any portion added to the condominium project.
(viii) With respect to the additional land and to any portion of it that may be added to the
condominium project, the declaration shall 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. However, these statements need not be supplied if
none of the units on the land originally within the project are restricted exclusively to residential
use.
(ix) The declaration shall 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. The declaration may also state that no assurances are made in
those regards.
(x) The declaration shall describe all other improvements that will be made on any
portion of the additional land added to the condominium project, or it shall contain a statement of
any limitations as to what other improvements may be made on it. The declaration may also state
that no assurances are made in that regard.
(xi) The declaration shall 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, or a statement of any limitations as to what types of units
may be created on it. The declaration may also contain a statement that no assurances are made
in that regard.
(xii) The declaration shall 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. The declaration may also 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)(iii) through (a)(vi) and (a)(ix) through (a)(xii).
(5) If the condominium project is a contractible condominium:
(a) (i) The declaration shall contain an explicit reservation of an option to contract the
condominium project.
(ii) The declaration shall contain a statement of any limitations on the option to contract,
including a statement as to whether the consent of any unit owners shall be required, and if so, a
statement as to the method by which this consent shall be ascertained. The declaration may also
contain a statement that there are no such limitations.
(iii) The declaration shall state the time limit, not exceeding seven years from the
recording of the declaration, upon which the option to contract the condominium project shall
expire, together with a statement of any circumstances which will terminate this option prior to
expiration of the specified time limit.
(b) (i) The declaration shall 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.
(ii) The declaration shall 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.
(iii) The declaration shall 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.
(c) The condominium plat recorded with the declaration may provide or supplement the
information required under Subsection (5)(b).
(6) (a) If the condominium project is a leasehold condominium, then 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) The declaration shall include recording information enabling the location of each
lease in the official records of the county recorder.
(ii) The declaration shall include the date upon which each lease is due to expire.
(iii) The declaration shall state whether any land or improvements will be owned by the
unit owners in fee simple. If there is to be fee simple ownership, the declaration shall include:
(A) a description of the land or improvements, including without limitation, a legal
description by metes and bounds of the land; or
(B) a statement of any rights the unit owners have to remove these improvements 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.
(iv) The declaration shall include a statement of the rights 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.
(b) After the recording of the declaration, no lessor who executed the declaration, and no
successor in interest to this lessor, has any right or power to terminate any part of the leasehold
interest of any unit owner who:
(i) makes timely payment of his 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 they were violated.
(7) (a) If the condominium project contains time period units, the declaration shall also
contain the location of each condominium unit in the calendar year. This information 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 is made subject to this
chapter.
(b) As used in Subsection (8)(a), "owners and lessees" does not include, in their
respective capacities, any mortgagee, any trustee or beneficiary under a deed of trust, any other
lien holder, any person having an equitable interest under any contract for the sale or lease of a
condominium unit, or any lessee whose leasehold interest does not extend to any portion of the
common areas and facilities.
(9) (a) As used in this section, "rentals" or "rental unit" means:
(i) a unit owned by an individual not described in Subsection (9)(a)(ii) that is occupied
by someone while no unit owner occupies the unit as the unit owner's primary residence; and
(ii) a unit owned by an entity or trust, regardless of who occupies the unit.
(b) (i) Subject to Subsections (9)(c), (f), and (g), an association of unit owners may:
(A) create restrictions on the number and term of rentals in a condominium project; or
(B) prohibit rentals in the condominium project.
(ii) An association of unit owners that creates a rental restriction or prohibition in
accordance with Subsection (9)(b)(i) shall create the rental restriction or prohibition in a
declaration or by amending the declaration.
(c) If an association of unit owners prohibits or imposes restrictions on the number and
term of rentals, the restrictions shall include:
(i) a provision that requires a condominium project to exempt from the rental restrictions
the following unit owner and the unit owner's unit:
(A) a unit owner in the military for the period of the unit owner's deployment;
(B) a unit occupied by a unit owner's parent, child, or sibling;
(C) a unit owner whose employer has relocated the unit owner for no less than two years;
or
(D) a unit owned by a trust or other entity created for estate planning purposes if the trust
or other estate planning entity was created for the estate of:
(I) a current resident of the unit; or
(II) the parent, child, or sibling of the current resident of the unit;
(ii) a provision allowing a unit owner who has a rental in the condominium project
before the time the rental restriction described in Subsection (9)(b)(i) is recorded with the county
recorder of the county in which the condominium project is located to continue renting until:
(A) the unit owner occupies the unit; or
(B) an officer, owner, member, trustee, beneficiary, director, or person holding a similar
position of ownership or control of an entity or trust that holds an ownership interest in the unit,
occupies the unit; and
(iii) a requirement that the association of unit owners create, by rule or resolution,
procedures to:
(A) determine and track the number of rentals and units in the condominium project
subject to the provisions described in Subsections (9)(c)(i) and (ii); and
(B) ensure consistent administration and enforcement of the rental restrictions.
(d) For purposes of Subsection (9)(c)(ii), a transfer occurs when one or more of the
following occur:
(i) the conveyance, sale, or other transfer of a unit by deed;
(ii) the granting of a life estate in the unit; or
(iii) if the unit is owned by a limited liability company, corporation, partnership, or other
business entity, the sale or transfer of more than 75% of the business entity's share, stock,
membership interests, or partnership interests in a 12-month period.
(e) This section does not limit or affect residency age requirements for an association of
unit owners that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C.
Sec. 3607.
(f) A declaration or amendment to a declaration recorded prior to transfer of the first unit
from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
provisions, and procedures required under Subsection (9)(c).
(g) This section does not apply to:
(i) a condominium project containing a time period unit as defined in Section 57-8-3;
(ii) any other form of timeshare interest as defined in Section 57-19-2; or
(iii) a condominium project in which the initial declaration is recorded before May 12,
2009.
(h) Notwithstanding this section, an association of unit owners may, upon unanimous
approval by all unit owners, restrict or prohibit rentals without an exception described in
Subsection (9)(c).
Amended by Chapter 178, 2009 General Session
Download Code Section Zipped WordPerfect 57_08_001000.ZIP 7,884 Bytes