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7 LONG TITLE
8 General Description:
9 This bill modifies the Real Estate Code to enact provisions related to liens for
10 homeowner association charges.
11 Highlighted Provisions:
12 This bill:
13 . provides definitions;
14 . requires that in certain circumstances, a failure to pay homeowner association
15 charges may result in a lien; and
16 . establishes provisions related to the recording and priority of the lien.
17 Monies Appropriated in this Bill:
19 Other Special Clauses:
21 Utah Code Sections Affected:
23 57-24-1, Utah Code Annotated 1953
24 57-24-2, Utah Code Annotated 1953
25 57-24-3, Utah Code Annotated 1953
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 57-24-1 is enacted to read:
30 57-24-1. Title.
31 This chapter is known as the "Homeowner Associations Act."
32 Section 2. Section 57-24-2 is enacted to read:
33 57-24-2. Definitions.
34 As used in this chapter:
35 (1) "Homeowner association" means a mandatory membership association of owners
36 of real property:
37 (a) created pursuant to a recorded instrument that subjects property within the
38 homeowner association to certain restrictive covenants;
39 (b) that represents the mutual interests of the real property owners regarding the
40 construction, protection, and maintenance of the property and improvements commonly owned
41 or used by the homeowner association; and
42 (c) that has the authority under the recorded instrument described in Subsection (1)(a)
43 to compel members of the homeowner association to pay the expenses incurred in performing
44 the obligations of the homeowner association.
45 (2) "Planned unit development" means an area of land developed under unified control
46 or a unified plan of development.
47 Section 3. Section 57-24-3 is enacted to read:
48 57-24-3. Lien for nonpayment of common expenses.
49 (1) (a) If a homeowner association manages or owns common areas within a planned
50 unit development, a property owner within the homeowner association shall pay the property
51 owner's share of the common expenses of the homeowner association.
52 (b) A payment described in Subsection (1)(a) shall be in the amount and at the time
54 (i) by the homeowner association; and
55 (ii) pursuant to the recorded instrument under which the homeowner association was
57 (2) (a) Subject to Subsection (3), if a property owner fails or refuses to pay a payment
58 described in Subsection (1)(a), that amount constitutes a lien on the interest of the property
59 owner in the property that is subject to the homeowner association.
60 (b) Subject to Subsection (3), upon the recording of notice of lien by the homeowner
61 association, a lien described in Subsection (2)(a) is a lien on the interest of the property owner
62 in the property prior to all other liens and encumbrances, recorded or unrecorded, except:
63 (i) tax and special assessment liens on the property in favor of any assessing unit or
64 special improvement district; and
65 (ii) encumbrances on the interest of the property owner:
66 (A) recorded prior to the date of the recording of notice of lien described in Subsection
67 (2)(b); and
68 (B) that by law would be a lien prior to subsequently recorded encumbrances.
69 (3) A lien described in Subsection (2) is valid only if:
70 (a) the homeowner association maintains current records for its officers, directors, and
71 trustees with the Division of Corporations and Commercial Code; and
72 (b) the recording of notice of lien contains:
73 (i) a day time telephone number of the homeowner association; and
74 (ii) a mailing address of the homeowner association.
Legislative Review Note
as of 12-23-03 12:49 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.