70A-2-107. Goods to be severed from realty -- Recording.
(1) A contract for the sale of minerals or the like (including oil or gas) or a structure or its
materials to be removed from realty is a contract for the sale of goods within this chapter if they
are to be severed by the seller but until severance a purported present sale thereof which is not
effective as a transfer of an interest in land is effective only as a contract to sell.
(2) A contract for the sale apart from the land of growing crops or other things attached to
realty and capable of severance without material harm thereto but not described in Subsection (1)
or of timber to be cut is a contract for the sale of goods within this chapter whether the subject
matter is to be severed by the buyer or by the seller even though it forms part of the realty at the
time of contracting, and the parties can by identification effect a present sale before severance.
(3) The provisions of this section are subject to any third- party rights provided by the law
relating to realty records, and the contract for sale may be executed and recorded as a document
transferring an interest in land and shall then constitute notice to third parties of the buyer's rights
under the contract for sale.
Amended by Chapter 272, 1977 General Session
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Last revised: Thursday, May 28, 2009