57-29-203.  Required disclosures.

(1)  A sponsor or licensee who sells or offers to sell an undivided fractionalized long-term estate shall provide each prospective purchaser a written disclosure, related to the real property in which the undivided fractionalized long-term estate is offered, that:

contract signature

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Terms Used In Utah Code 57-29-203

  • Commission: means the Real Estate Commission created in Section 61-2f-103. See Utah Code 57-29-102
  • Division: means the Division of Real Estate created in Section 61-2-201. See Utah Code 57-29-102
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Management agreement: means an agreement between a person and each owner of an undivided fractionalized long-term estate in a piece of real property under which the person agrees to manage the leasing or operations of the real property. See Utah Code 57-29-102
  • Master lease: means an agreement under which a person is granted a leasehold interest in real property and may sublease all or a portion of the real property to one or more persons. See Utah Code 57-29-102
  • Master lease tenant: means the lessee in a master lease. See Utah Code 57-29-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • real property: includes :Utah Code 68-3-12.5
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Sponsor: means a person who is the original seller of an undivided fractionalized long-term estate. See Utah Code 57-29-102
  • Undivided fractionalized long-term estate: means an ownership interest in real property by two or more persons that is:
(i) a tenancy in common; or
(ii) a fee estate. See Utah Code 57-29-102
(a)  if applicable:

(i)  includes a copy of any master lease agreement; and

(ii)  states whether the sponsor is the master lease tenant or an affiliate of the master lease tenant;

(b)  includes any material information that relates to a current lease or sublease that affects the real property in which the undivided fractionalized long-term estate is offered;

(c)  includes a copy of:

(i)  a tenants in common agreement; or

(ii)  an agreement that forms the substance of the undivided fractionalized long-term estate and includes a definition of the undivided fractionalized interest;

(d)  describes any improvements to the real property in which the undivided fractionalized long-term estate is offered;

(e)  includes a copy of any management agreement;

(f)  describes the relationship, if any, between each property manager and the sponsor; and

(g)  includes any additional information that an ordinarily prudent purchaser would consider material to deciding whether to purchase the undivided fractionalized long-term estate, as determined by the commission, with concurrence by the division, by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2)  A sponsor or licensee who sells or offers to sell an undivided fractionalized long-term estate shall provide the written disclosure described in Subsection (1) to the prospective purchaser before the prospective purchaser purchases the undivided fractionalized long-term estate.

Enacted by Chapter 381, 2016 General Session

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