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H.B. 457

             1     

RECORDING OF TRANSACTIONS AFFECTING REAL

             2     
PROPERTY BY COUNTY RECORDER

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Susan Duckworth

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill requires that a person record a document, instrument, or transaction with the
             11      county recorder.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires that a person record a document, instrument, or transaction with the county
             15      recorder;
             16          .    requires that a person record certain information with a document, instrument, or
             17      transaction; and
             18          .    makes technical corrections.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          17-21-6, as last amended by Laws of Utah 2010, Chapter 381
             26          57-3-103, as renumbered and amended by Laws of Utah 1998, Chapter 61
             27     


             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 17-21-6 is amended to read:
             30           17-21-6. General duties of recorder -- Records and indexes.
             31          (1) Each recorder shall:
             32          (a) keep an entry record, in which the recorder shall, upon acceptance and recording of
             33      any instrument, enter the instrument in the order of its recording, the names of the parties to the
             34      instrument, its date, the hour, the day of the month and the year of recording, and a brief
             35      description, and endorse upon each instrument a number corresponding with the number of the
             36      entry;
             37          (b) keep a grantors' index, in which the recorder shall index deeds and final judgments
             38      or decrees partitioning or affecting the title to or possession of real property, which shall show
             39      the entry number of the instrument, the name of each grantor in alphabetical order, the name of
             40      the grantee, the date of the instrument, the time of recording, the kind of instrument, the book
             41      and page, and a brief description;
             42          (c) keep a grantees' index, in which the recorder shall index deeds and final judgments
             43      or decrees partitioning or affecting the title to or possession of real property, which shall show
             44      the entry number of the instrument, the name of each grantee in alphabetical order, the name of
             45      the grantor, the date of the instrument, the time of recording, the kind of instrument, the book
             46      and page, and a brief description;
             47          (d) keep a mortgagors' index, in which the recorder shall enter all mortgages, deeds of
             48      trust, liens, and other instruments in the nature of an encumbrance upon real estate, which shall
             49      show the entry number of the instrument, the name of each mortgagor, debtor, or person
             50      charged with the encumbrance in alphabetical order, the name of the mortgagee, lien holder,
             51      creditor, or claimant, the date of the instrument, the time of recording, the instrument,
             52      consideration, the book and page, and a brief description;
             53          (e) keep a mortgagees' index, in which the recorder shall enter all mortgages, deeds of
             54      trust, liens, and other instruments in the nature of an encumbrance upon real estate, which shall
             55      show the entry number of the instrument, the name of each mortgagee, lien holder, creditor, or
             56      claimant, in alphabetical order, the name of the mortgagor or person charged with the
             57      encumbrance, the date of the instrument, the time of recording, the kind of instrument, the
             58      consideration, the book and page, and a brief description;


             59          (f) subject to Subsection (3), keep a tract index, which shall show by description every
             60      instrument recorded, the date and the kind of instrument, the time of recording, and the book
             61      and page and entry number;
             62          (g) keep an index of recorded maps, plats, and subdivisions;
             63          (h) keep an index of powers of attorney showing the date and time of recording, the
             64      book, the page, and the entry number;
             65          (i) keep a miscellaneous index, in which the recorder shall enter all instruments of a
             66      miscellaneous character not otherwise provided for in this section, showing the date of
             67      recording, the book, the page, the entry number, the kind of instrument, from, to, and the
             68      parties;
             69          (j) keep an index of judgments showing the judgment debtors, the judgment creditors,
             70      the amount of judgment, the date and time of recording, the satisfaction, and the book, the
             71      page, and the entry number; [and]
             72          (k) keep a general recording index in which the recorder shall index all executions and
             73      writs of attachment, and any other instruments not required by law to be spread upon the
             74      records, and in separate columns the recorder shall enter the names of the plaintiffs in the
             75      execution and the names of the defendants in the execution[.]; and
             76          (l) record a document, instrument, or transaction in accordance with Section 57-3-103 .
             77          (2) The recorder shall alphabetically arrange the indexes required by this section and
             78      keep a reverse index.
             79          (3) (a) The tract index required by Subsection (1)(f) shall be kept so that it shows a true
             80      chain of title to each tract or parcel, together with each encumbrance on the tract or parcel,
             81      according to the records of the office.
             82          (b) A recorder shall abstract an instrument in the tract index unless:
             83          (i) the instrument is required to contain a legal description under Section 17-21-20 and
             84      does not contain that legal description; or
             85          (ii) the instrument contains errors, omissions, or defects to the extent that the tract or
             86      parcel to which the instrument relates cannot be determined.
             87          (c) If a recorder abstracts an instrument in the tract index or another index required by
             88      this section, the recorder may:
             89          (i) use a tax parcel number;


             90          (ii) use a site address;
             91          (iii) reference to other instruments of record recited on the instrument; or
             92          (iv) reference another instrument that is recorded concurrently with the instrument.
             93          (d) A recorder is not required to go beyond the face of an instrument to determine the
             94      tract or parcel to which an instrument may relate.
             95          (e) A person may not bring an action against a recorder for injuries or damages
             96      suffered as a result of information contained in an instrument recorded in a tract index or other
             97      index that is required by this section despite errors, omissions, or defects in the instrument.
             98          (f) The fact that a recorded instrument described in Subsection (3)(e) is included in the
             99      tract index does not cure a failure to give public notice caused by an error, omission, or defect.
             100          (g) A document that is indexed in all or part of the indexes required by this section
             101      shall give constructive notice.
             102          (4) Nothing in this section prevents the recorder from using a single name index if that
             103      index includes all of the indexes required by this section.
             104          Section 2. Section 57-3-103 is amended to read:
             105           57-3-103. Recording required -- Effect of failure to record.
             106          (1) (a) No later than 10 days after securing an interest or completing a transaction, a
             107      person shall record in the office of the county recorder of the county in which real property is
             108      located:
             109          (i) each mortgage on the real property or assignment of the mortgage;
             110          (ii) each deed of trust secured by real property or assignment of the deed of trust;
             111          (iii) each lien on the real property or assignment of the lien;
             112          (iv) each conveyance of an interest in the real property or assignment of the interest;
             113          (v) any other instrument, including an assignment, in the nature of an encumbrance on
             114      the real property; and
             115          (vi) any other transaction affecting an interest in real property.
             116          (b) An assignment described in Subsections (1)(a)(i) through (v) shall include an
             117      assignment of a partial beneficial interest.
             118          (c) (i) A document, instrument, or transaction described in Subsection (1)(a) shall
             119      include:
             120          (A) the name of each mortgagee, deed holder, lien holder, creditor, claimant, beneficial


             121      interest holder, partial beneficial interest holder, or party to a transaction, respectively;
             122          (B) an address, a telephone number, and an email address of a person described in
             123      Subsection (1)(c)(i)(A); and
             124          (C) any other information required by law.
             125          (ii) If a person's information that is described in Subsection (1)(c)(i)(A) or (B) changes,
             126      the person shall no later than 10 days after the change file a notice with the updated
             127      information with the county recorder.
             128          (2) An instrument or document prepared by a land surveyor, as defined in Section
             129      17-23-17 , in the land surveyor's official capacity is not subject to Subsection (1) or (2).
             130          (3) Each document not recorded as provided in this title is void as against any
             131      subsequent purchaser of the same real property, or any portion of it, if:
             132          [(1)] (a) the subsequent purchaser purchased the property in good faith and for a
             133      valuable consideration; and
             134          [(2)] (b) the subsequent purchaser's document is first duly recorded.




Legislative Review Note
    as of 2-16-11 3:52 PM


Office of Legislative Research and General Counsel


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