Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 155 Fourth Substitute (2020GS)

Sponsor

Rep. Acton, C.K.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• imposes certain disclosure requirements before the closing of a sale of homeowner association property to an independent third party;
• requires the Department of Commerce to publish certain educational materials on its website; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HOMEOWNER ASSOCIATION PROVISIONS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Cheryl K. Acton
Senate Sponsor: 
Daniel W. Thatcher
LONG TITLE
General Description:
This bill amends provisions related to homeowner associations and their governing
documents.
Highlighted Provisions:
This bill:
▸ imposes certain disclosure requirements before the closing of a sale of homeowner
association property to an independent third party;
▸ requires the Department of Commerce to publish certain educational materials on its
website; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
57-8-13.1
, as last amended by Laws of Utah 2013, Chapter 95
57-8a-105
, as last amended by Laws of Utah 2013, Chapter 95
ENACTS:
57-8-6.1
, Utah Code Annotated 1953
57-8a-105.1
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
57-8-6.1
 is enacted to read:
 57-8-6.1.
Information required before sale to independent third party.
(1) Before the sale of any unit under the jurisdiction of an association of unit owners to
an independent third party, the grantor shall provide to the independent third party:
(a) a copy of the association of unit owners' recorded governing documents; and
(b) a link or other access point to the department's educational materials described in
Subsection 
57-8-13.1
(6).
(2) The grantor shall provide the information described in Subsection (1) before
closing.
(3) The association of unit owners shall, upon request by the grantor, provide to the
grantor the information described in Subsection (1).
(4) This section applies to each association of unit owners, regardless of when the
association of unit owners is formed.
Section 2. Section 
57-8-13.1
 is amended to read:
57-8-13.1.
Registration with Department of Commerce -- Department publication
of educational materials.
(1) As used in this section, "department" means the Department of Commerce created
in Section 
13-1-2
.
(2) [
(a)
] No later than 90 days after the recording of a declaration, an association of
unit owners shall register with the department in the manner established by the department.
[
(b) An association of unit owners existing under a declaration recorded before May
10, 2011, shall, no later than July 1, 2011, register with the department in the manner
established by the department.
]
(3) The department shall require an association of unit owners registering as required
in this section to provide with each registration:
(a) the name and address of the association of unit owners;
(b) the name, address, telephone number, and, if applicable, email address of the
president of the association of unit owners;
(c) the name and address of each 
manager or
 management committee member;
(d) the name, address, telephone number, and, if the contact person wishes to use email
or facsimile transmission for communicating payoff information, the email address or facsimile
number, as applicable, of a primary contact person who has association payoff information that
a closing agent needs in connection with the closing of a unit owner's financing, refinancing, or
sale of the owner's unit; and
(e) a registration fee not to exceed $37.
(4) An association of unit owners that has registered under Subsection (2) shall submit
to the department an updated registration, in the manner established by the department, within
90 days after a change in any of the information provided under Subsection (3).
(5) (a) During any period of noncompliance with the registration requirement described
in Subsection (2) or the requirement for an updated registration described in Subsection (4):
(i) a lien may not arise under Section 
57-8-44
; and
(ii) an association of unit owners may not enforce an existing lien that arose under
Section 
57-8-44
.
(b) A period of noncompliance with the registration requirement of Subsection (2) or
with the updated registration requirement of Subsection (4) does not begin until after the
expiration of the 90-day period specified in Subsection (2) or (4), respectively.
(c) An association of unit owners that is not in compliance with the registration
requirement described in Subsection (2) may end the period of noncompliance by registering
with the department in the manner established by the department under Subsection (2).
(d) An association of unit owners that is not in compliance with the updated
registration requirement described in Subsection (4) may end the period of noncompliance by
submitting to the department an updated registration in the manner established by the
department under Subsection (4).
(e) Except as described in Subsection (5)(f), beginning on the date an association of
unit owners ends a period of noncompliance:
(i) a lien may arise under Section 
57-8-44
 for any event that:
(A) occurred during the period of noncompliance; and
(B) would have given rise to a lien under Section 
57-8-44
 had the association of unit
owners been in compliance with the registration requirements described in this section; and
(ii) an association of unit owners may enforce a lien described in Subsection (5)(e) or a
lien that existed before the period of noncompliance.
(f) If an owner's unit is conveyed to an independent third party during a period of
noncompliance described in this Subsection (5):
(i) a lien that arose under Section 
57-8-44
 before the conveyance of the unit became
final is extinguished when the conveyance of the unit becomes final; and
(ii) an event that occurred before the conveyance of the unit became final, and that
would have given rise to a lien under Section 
57-8-44
 had the association of unit owners been
in compliance with the registration requirements of this section, may not give rise to a lien
under Section 
57-8-44
 if the conveyance of the unit becomes final before the association of unit
owners ends the period of noncompliance.
(6) The department shall publish educational materials on the department's website
providing, in simple and easy to understand language, a brief overview of state law governing
associations of unit owners, including:
(a) a description of the rights and responsibilities provided in this chapter to any party
under the jurisdiction of an association of unit owners; and
(b) instructions regarding how an association of unit owners may be organized and
dismantled in accordance with this chapter.
Section 3. Section 
57-8a-105
 is amended to read:
57-8a-105.
Registration with Department of Commerce -- Department
publication of educational materials.
(1) As used in this section, "department" means the Department of Commerce created
in Section 
13-1-2
.
(2) (a) No later than 90 days after the recording of a declaration of covenants,
conditions, and restrictions establishing an association, the association shall register with the
department in the manner established by the department.
(b) An association existing under a declaration of covenants, conditions, and
restrictions recorded before May 10, 2011, shall, no later than July 1, 2011, register with the
department in the manner established by the department.
(3) The department shall require an association registering as required in this section to
provide with each registration:
(a) the name and address of the association;
(b) the name, address, telephone number, and, if applicable, email address of the chair
of the association board;
(c) contact information for the manager;
(d) the name, address, telephone number, and, if the contact person wishes to use email
or facsimile transmission for communicating payoff information, the email address or facsimile
number, as applicable, of a primary contact person who has association payoff information that
a closing agent needs in connection with the closing of a lot owner's financing, refinancing, or
sale of the owner's lot; and
(e) a registration fee not to exceed $37.
(4) An association that has registered under Subsection (2) shall submit to the
department an updated registration, in the manner established by the department, within 90
days after a change in any of the information provided under Subsection (3).
(5) (a) During any period of noncompliance with the registration requirement described
in Subsection (2) or the requirement for an updated registration described in Subsection (4):
(i) a lien may not arise under Section 
57-8a-301
; and
(ii) an association may not enforce an existing lien that arose under Section 
57-8a-301
.
(b) A period of noncompliance with the registration requirement of Subsection (2) or
with the updated registration requirement of Subsection (4) does not begin until after the
expiration of the 90-day period specified in Subsection (2) or (4), respectively.
(c) An association that is not in compliance with the registration requirement described
in Subsection (2) may end the period of noncompliance by registering with the department in
the manner established by the department under Subsection (2).
(d) An association that is not in compliance with the updated registration requirement
described in Subsection (4) may end the period of noncompliance by submitting to the
department an updated registration in the manner established by the department under
Subsection (4).
(e) Except as described in Subsection (5)(f), beginning on the date an association ends
a period of noncompliance:
(i) a lien may arise under Section 
57-8a-301
 for any event that:
(A) occurred during the period of noncompliance; and
(B) would have given rise to a lien under Section 
57-8a-301
 had the association been in
compliance with the registration requirements described in this section; and
(ii) an association may enforce a lien described in Subsection (5)(e) or a lien that
existed before the period of noncompliance.
(f) If an owner's residential lot is conveyed to an independent third party during a
period of noncompliance described in this Subsection (5):
(i) a lien that arose under Section 
57-8a-301
 before the conveyance of the residential
lot became final is extinguished when the conveyance of the residential lot becomes final; and
(ii) an event that occurred before the conveyance of the residential lot became final,
and that would have given rise to a lien under Section 
57-8a-301
 had the association been in
compliance with the registration requirements of this section, may not give rise to a lien under
Section 
57-8a-301
 if the conveyance of the residential lot becomes final before the association
ends the period of noncompliance.
(6) The department shall publish educational materials on the department's website
providing, in simple and easy to understand language, a brief overview of state law governing
associations, including:
(a) a description of the rights and responsibilities provided in this chapter to any party
under the jurisdiction of an association; and
(b) instructions regarding how an association may be organized and dismantled in
accordance with this chapter.
Section 4. Section 
57-8a-105.1
 is enacted to read:
 57-8a-105.1.
Information required before sale to independent third party.
(1) Before the sale of any lot under the jurisdiction of an association to an independent
third party, the grantor shall provide to the independent third party:
(a) a copy of the association's recorded governing documents; and
(b) a link or other access point to the department's educational materials described in
Subsection 
57-8a-105
(6).
(2) The grantor shall provide the information described in Subsection (1) before
closing.
(3) The association shall, upon request by the grantor, provide to the grantor the
information described in Subsection (1).
(4) This section applies to each association, regardless of when the association is
formed.