S.B. 97

1

REMOVAL OF UNENFORCEABLE COVENANTS
2 1999 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Lyle W. Hillyard
5 AN ACT RELATING TO REAL ESTATE; DEFINING UNENFORCEABLE COVENANT;
6 PROVIDING FOR THE RECORDING OF DOCUMENTS WITH UNENFORCEABLE
7 COVENANTS; VOIDING UNENFORCEABLE COVENANTS; AND MAKING TECHNICAL
8 CHANGES.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 57-3-107, as renumbered and amended by Chapter 61, Laws of Utah 1998
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 57-3-107 is amended to read:
14 57-3-107. Unenforceable covenants -- Definition -- Inclusion in recorded document.
15 (1) [Restrictions on alienation of real property contained in a document to be recorded] As
16 used in this chapter, "unenforceable covenant" means a restriction on alienation of real property,
17 whether recited in a document to be recorded under this chapter, or recited in a document of record
18 under this chapter, which [are] is based on race, gender, national origin, marital status, or a similar
19 classification determined to be unenforceable under state or federal law[, do not affect the
20 eligibility of that document for recording under this chapter].
21 [(2) A restriction described in Subsection (1) may be removed from a document eligible
22 for recording under this section by any of the following means:]
23 [(a) A purchaser or seller of real estate may amend a prior recorded restriction by causing
24 a corrected copy of the documents to be prepared for recording which deletes the unenforceable
25 language from the document.]
26 [(b) A purchaser or seller of real estate may cause a copy of the documents to be prepared
27 on which the unenforceable language has been overwritten or stamped with words such as

28 "VOID", "UNENFORCEABLE UNDER LAW", or words of similar meaning.]
29 [(c) A purchaser or seller of real estate may cause a copy of the documents to be prepared
30 on which appears the statement "Any provision of this document which violates state or federal
31 law is void."]
32 [(3) The cost of preparing and filing a document under Subsection (2) shall be the
33 responsibility of the purchaser or seller making the correction and not that of the county recorder.]
34 (2) A document which recites an unenforceable covenant may be recorded as provided in
35 this chapter.
36 (3) Any unenforceable covenant recited in a document to be recorded under this chapter
37 or recited in a document of record is considered void, but does not invalidate the remainder of the
38 document.




Legislative Review Note
as of 1-20-99 9:28 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel