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H.B. 104 Enrolled

             1     

HOMEOWNER ASSOCIATION AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: R. Curt Webb

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to condominium owner and homeowner
             10      associations.
             11      Highlighted Provisions:
             12          This bill:
             13          .    prohibits an association from charging a fee for providing payoff information
             14      needed for a closing of a unit or lot unless provided for in the declaration, limits the
             15      amount of the fee, provides a consequence if an association fails to provide the
             16      information within a specified time, and provides requirements for a request for
             17      payoff information; and
             18          .    requires associations to register with the Department of Commerce and to submit an
             19      updated registration under specified circumstances, and establishes consequences
             20      for a failure to register or update a previous registration.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      ENACTS:
             27          57-8-6.3, Utah Code Annotated 1953
             28          57-8-13.1, Utah Code Annotated 1953
             29          57-8a-105, Utah Code Annotated 1953


             30          57-8a-106, Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 57-8-6.3 is enacted to read:
             34          57-8-6.3. Fee for providing payoff information needed at closing.
             35          (1) Unless specifically authorized in the declaration, bylaws, or rules, an association of
             36      unit owners may not charge a fee for providing association payoff information needed in
             37      connection with the closing of a unit owner's financing, refinancing, or sale of the owner's unit.
             38          (2) An association of unit owners may not:
             39          (a) require a fee described in Subsection (1) that is authorized in the declaration,
             40      bylaws, or rules to be paid before closing; or
             41          (b) charge the fee if it exceeds $50.
             42          (3) (a) An association of unit owners that fails to provide information described in
             43      Subsection (1) within five business days after the closing agent requests the information may
             44      not enforce a lien against that unit for money due to the association at closing.
             45          (b) A request under Subsection (3)(a) is not effective unless the request:
             46          (i) is conveyed in writing to the primary contact person designated under Subsection
             47      57-8-13.1 (3)(d);
             48          (ii) contains:
             49          (A) the name, telephone number, and address of the person making the request; and
             50          (B) the facsimile number or email address for delivery of the payoff information; and
             51          (iii) is accompanied by a written consent for the release of the payoff information:
             52          (A) identifying the person requesting the information as a person to whom the payoff
             53      information may be released; and
             54          (B) signed and dated by an owner of the unit for which the payoff information is
             55      requested.
             56          (4) This section applies to each association of unit owners, regardless of when the
             57      association of unit owners is formed.


             58          Section 2. Section 57-8-13.1 is enacted to read:
             59          57-8-13.1. Registration with Department of Commerce.
             60          (1) As used in this section, "department" means the Department of Commerce created
             61      in Section 13-1-2 .
             62          (2) (a) No later than 90 days after the recording of a declaration, an association of unit
             63      owners shall register with the department in the manner established by the department.
             64          (b) An association of unit owners existing under a declaration recorded before May 10,
             65      2011, shall, no later than July 1, 2011, register with the department in the manner established
             66      by the department.
             67          (3) The department shall require an association of unit owners registering as required
             68      in this section to provide with each registration:
             69          (a) the name and address of the association of unit owners;
             70          (b) the name, address, telephone number, and, if applicable, email address of the
             71      president of the association of unit owners;
             72          (c) the name and address of each management committee member;
             73          (d) the name, address, telephone number, and, if the contact person wishes to use email
             74      or facsimile transmission for communicating payoff information, the email address or facsimile
             75      number, as applicable, of a primary contact person who has association payoff information that
             76      a closing agent needs in connection with the closing of a unit owner's financing, refinancing, or
             77      sale of the owner's unit; and
             78          (e) a registration fee not to exceed $37.
             79          (4) An association of unit owners that has registered under Subsection (2) shall submit
             80      to the department an updated registration, in the manner established by the department, within
             81      90 days after a change in any of the information provided under Subsection (3).
             82          (5) During any period of noncompliance with the registration requirements of
             83      Subsection (2) or the requirement for an updated registration under Subsection (4):
             84          (a) a lien for the nonpayment of common expenses may not arise under Section
             85      57-8-20 against any condominium unit; and


             86          (b) an association of unit owners may not enforce a previous lien under Section
             87      57-8-20 against any condominium unit.
             88          Section 3. Section 57-8a-105 is enacted to read:
             89          57-8a-105. Registration with Department of Commerce.
             90          (1) As used in this section, "department" means the Department of Commerce created
             91      in Section 13-1-2 .
             92          (2) (a) No later than 90 days after the recording of a declaration of covenants,
             93      conditions, and restrictions establishing an association, the association shall register with the
             94      department in the manner established by the department.
             95          (b) An association existing under a declaration of covenants, conditions, and
             96      restrictions recorded before May 10, 2011, shall, no later than July 1, 2011, register with the
             97      department in the manner established by the department.
             98          (3) The department shall require an association registering as required in this section to
             99      provide with each registration:
             100          (a) the name and address of the association;
             101          (b) the name, address, telephone number, and, if applicable, email address of the chair
             102      of the association board;
             103          (c) contact information for the manager;
             104          (d) the name, address, telephone number, and, if the contact person wishes to use email
             105      or facsimile transmission for communicating payoff information, the email address or facsimile
             106      number, as applicable, of a primary contact person who has association payoff information that
             107      a closing agent needs in connection with the closing of a lot owner's financing, refinancing, or
             108      sale of the owner's lot; and
             109          (e) a registration fee not to exceed $37.
             110          (4) An association that has registered under Subsection (2) shall submit to the
             111      department an updated registration, in the manner established by the department, within 90
             112      days after a change in any of the information provided under Subsection (3).
             113          (5) During any period of noncompliance with the registration requirements of


             114      Subsection (2) or the requirement for an updated registration under Subsection (4):
             115          (a) a lien for the nonpayment of an assessment may not arise under Section 57-8a-203
             116      against any lot; and
             117          (b) an association may not enforce a previous lien under Section 57-8a-203 against any
             118      lot.
             119          Section 4. Section 57-8a-106 is enacted to read:
             120          57-8a-106. Fee for providing payoff information needed at closing.
             121          (1) Unless specifically authorized in the declaration of covenants, conditions, and
             122      restrictions, the bylaws, or the rules, a fee for providing association payoff information needed
             123      in connection with the financing, refinancing, or closing of a lot owner's sale of the owner's lot.
             124          (2) An association may not:
             125          (a) require a fee described in Subsection (1) that is authorized in the declaration of
             126      covenants, conditions, and restrictions, the bylaws, or the rules to be paid before closing; or
             127          (b) charge the fee if it exceeds $50.
             128          (3) (a) An association that fails to provide information described in Subsection (1)
             129      within five business days after the closing agent requests the information may not enforce a lien
             130      against that unit for money due to the association at closing.
             131          (b) A request under Subsection (3)(a) is not effective unless the request:
             132          (i) is conveyed in writing to the primary contact person designated under Subsection
             133      57-8a-105 (3)(d);
             134          (ii) contains:
             135          (A) the name, telephone number, and address of the person making the request; and
             136          (B) the facsimile number or email address for delivery of the payoff information; and
             137          (iii) is accompanied by a written consent for the release of the payoff information:
             138          (A) identifying the person requesting the information as a person to whom the payoff
             139      information may be released; and
             140          (B) signed and dated by an owner of the lot for which the payoff information is
             141      requested.


             142          (4) This section applies to each association, regardless of when the association is
             143      formed.


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