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S.B. 97 Enrolled

                 

REMOVAL OF UNENFORCEABLE COVENANTS

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Lyle W. Hillyard

                  AN ACT RELATING TO REAL ESTATE; DEFINING UNENFORCEABLE COVENANT;
                  PROVIDING FOR THE RECORDING OF DOCUMENTS WITH UNENFORCEABLE
                  COVENANTS; VOIDING UNENFORCEABLE COVENANTS; AND MAKING TECHNICAL
                  CHANGES.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      57-3-107, as renumbered and amended by Chapter 61, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 57-3-107 is amended to read:
                       57-3-107. Unenforceable covenants -- Definition -- Inclusion in recorded document.
                      (1) [Restrictions on alienation of real property contained in a document to be recorded] As
                  used in this chapter, "unenforceable covenant" means a restriction on alienation of real property,
                  whether recited in a document to be recorded under this chapter, or recited in a document of record
                  under this chapter, which [are] is based on race, gender, national origin, marital status, or a similar
                  classification determined to be unenforceable under state or federal law[, do not affect the
                  eligibility of that document for recording under this chapter].
                      [(2) A restriction described in Subsection (1) may be removed from a document eligible
                  for recording under this section by any of the following means:]
                      [(a) A purchaser or seller of real estate may amend a prior recorded restriction by causing
                  a corrected copy of the documents to be prepared for recording which deletes the unenforceable
                  language from the document.]
                      [(b) A purchaser or seller of real estate may cause a copy of the documents to be prepared
                  on which the unenforceable language has been overwritten or stamped with words such as
                  "VOID", "UNENFORCEABLE UNDER LAW", or words of similar meaning.]
                      [(c) A purchaser or seller of real estate may cause a copy of the documents to be prepared


                  on which appears the statement "Any provision of this document which violates state or federal law
                  is void."]
                      [(3) The cost of preparing and filing a document under Subsection (2) shall be the
                  responsibility of the purchaser or seller making the correction and not that of the county recorder.]
                      (2) A document which recites an unenforceable covenant may be recorded as provided in
                  this chapter.
                      (3) Any unenforceable covenant recited in a document to be recorded under this chapter or
                  recited in a document of record is considered void, but does not invalidate the remainder of the
                  document.

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