Utah Code 57-30-201. Prohibited residential property service agreements — Recording — Damages — Actual or constructive notice

57-30-201. Prohibited residential property service agreements — Recording — Damages — Actual or constructive notice.

(1)

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Terms Used In Utah Code 57-30-201

Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Document: means every instrument in writing, including every conveyance, affecting, purporting to affect, describing, or otherwise concerning any right, title, or interest in real property, except wills and leases for a term not exceeding one year. See Utah Code 57-1-1
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Land: includes :Utah Code 68-3-12.5
Lien: A claim against real or personal property in satisfaction of a debt.
Person: means :Utah Code 68-3-12.5
Property: includes both real and personal property. See Utah Code 68-3-12.5
real estate: means any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land. See Utah Code 57-1-1
Record: means to submit a document to a county recorder for official placement in a public land record. See Utah Code 57-30-101
Residential property service agreement: means , except as provided in Subsection (4)(b), an agreement to provide services in connection with:

(i)	the purchase or sale of residential real estate; or

(ii)

the maintenance of residential real estate in preparation for purchase or sale. See Utah Code 57-30-101

Residential real estate: means real property located in the state that is:

(a)	used primarily for a personal, family, or household purpose; and

(b)

contains fewer than five dwelling units. See Utah Code 57-30-101

(a)

A residential property service agreement entered into after May 3, 2023, may not:

(i)	allow the services to be provided under the agreement to begin more than one year after the day on which the residential property service agreement is signed by all parties;

(ii)

indicate that the residential property service agreement:

(A)	runs with the land;

(B)	is binding on a future owner of an interest in the residential real estate that is the subject of the residential property service agreement; or

(C)	creates a lien, encumbrance, or other real property security interest; or

(iii)

allow for the assignment of the right to provide the services without notice to and agreement by the owner of the residential real estate that is the subject of the residential property service agreement.

(b)

A residential property service agreement that violates Subsection (1)(a):

(i)	is void; and

(ii)	does not provide actual or constructive notice to a bona fide purchaser or creditor.

(2)

(a)

A person may not record or cause to be recorded:

(i)	a void residential property service agreement; or

(ii)	a notice or memorandum concerning a void residential property service agreement.

(b)

If a document is recorded in violation of Subsection (2)(a), a party with an interest in the residential real estate that is the subject of the void residential property service agreement may file a petition with a court of competent jurisdiction to recover actual damages from the person who violated Subsection (2)(a).

(c)	A document recorded in violation of Subsection (2)(a) may be a violation of Title 38, Chapter 9, Wrongful Lien Act.

Enacted by Chapter 141, 2023 General Session

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