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Terms Used In Utah Code 57-8-10.1
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Assessment: means any charge imposed by the association, including:
(a)
common expenses on or against a unit owner pursuant to the provisions of the declaration, bylaws, or this chapter; and
(b)
an amount that an association of unit owners assesses to a unit owner under Subsection 57-8-43(9)(g). See Utah Code 57-8-3
association: means all of the unit owners:
(a)
acting as a group in accordance with the declaration and bylaws; or
(b)
organized as a legal entity in accordance with the declaration. See Utah Code 57-8-3
Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
Condominium: means the ownership of a single unit in a multiunit project together with an undivided interest in common in the common areas and facilities of the property. See Utah Code 57-8-3
Condominium project: means a real estate condominium project; a plan or project whereby two or more units, whether contained in existing or proposed apartments, commercial or industrial buildings or structures, or otherwise, are separately offered or proposed to be offered for sale. See Utah Code 57-8-3
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
Declarant: means all persons who execute the declaration or on whose behalf the declaration is executed. See Utah Code 57-8-3
Declaration: means the instrument by which the property is submitted to the provisions of this act, as it from time to time may be lawfully amended. See Utah Code 57-8-3
Deed: The legal instrument used to transfer title in real property from one person to another.
Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
Life estate: A property interest limited in duration to the life of the individual holding the interest (life tenant).
Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
Person: means an individual, corporation, partnership, association, trustee, or other legal entity. See Utah Code 57-8-3
rental unit: means :
(a)
a unit that:
(i)
is not owned by an entity or trust; and
(ii)
is occupied by an individual while the unit owner is not occupying the unit as the unit owner's primary residence; or
(b)
an occupied unit owned by an entity or trust, regardless of who occupies the unit. See Utah Code 57-8-3
Time period unit: means an annually recurring part or parts of a year specified in the declaration as a period for which a unit is separately owned and includes a timeshare estate as defined in Section 57-19-2. See Utah Code 57-8-3
Trustee: A person or institution holding and administering property in trust.
Unit: includes one or more rooms or spaces located in one or more floors or a portion of a floor in a building. See Utah Code 57-8-3
Unit owner: means the person or persons owning a unit in fee simple and an undivided interest in the fee simple estate of the common areas and facilities in the percentage specified and established in the declaration or, in the case of a leasehold condominium project, the person or persons whose leasehold interest or interests in the condominium unit extend for the entire balance of the unexpired term or terms. See Utah Code 57-8-3
(a)
Subject to Subsections (1)(b), (5), and (6), an association of unit owners may:
(i)
create restrictions on the number and term of rentals in a condominium project; or
(ii)
prohibit rentals in the condominium project.
(b)
An association of unit owners that creates a rental restriction or prohibition in accordance with Subsection (1)(a) shall create the rental restriction or prohibition in a declaration or by amending the declaration.
(2)
If an association of unit owners prohibits or imposes restrictions on the number and term of rentals, the restrictions shall include:
(a)
a provision that requires a condominium project to exempt from the rental restrictions the following unit owner and the unit owner’s unit:
(i)
a unit owner in the military for the period of the unit owner’s deployment;
(ii)
a unit occupied by a unit owner’s parent, child, or sibling;
(iii)
a unit owner whose employer has relocated the unit owner for two years or less;
(iv)
a unit owned by an entity that is occupied by an individual who:
(A)
has voting rights under the entity’s organizing documents; and
(B)
has a 25% or greater share of ownership, control, and right to profits and losses of the entity; or
(v)
a unit owned by a trust or other entity created for estate planning purposes if the trust or other estate planning entity was created for the estate of:
(A)
a current resident of the unit; or
(B)
the parent, child, or sibling of the current resident of the unit;
(b)
a provision that allows a unit owner who has a rental in the condominium project before the time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of the county in which the condominium project is located to continue renting until:
(i)
the unit owner occupies the unit;
(ii)
an officer, owner, member, trustee, beneficiary, director, or person holding a similar position of ownership or control of an entity or trust that holds an ownership interest in the unit, occupies the unit; or
(iii)
the unit is transferred; and
(c)
a requirement that the association of unit owners create, by rule or resolution, procedures to:
(i)
determine and track the number of rentals and units in the condominium project subject to the provisions described in Subsections (2)(a) and (b); and
(ii)
ensure consistent administration and enforcement of the rental restrictions.
(3)
For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the following occur:
(a)
the conveyance, sale, or other transfer of a unit by deed;
(b)
the granting of a life estate in the unit; or
(c)
if the unit is owned by a limited liability company, corporation, partnership, or other business entity, the sale or transfer of more than 75% of the business entity’s share, stock, membership interests, or partnership interests in a 12-month period.
(4)
This section does not limit or affect residency age requirements for an association of unit owners that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. § 3607.
(5)
A declaration or amendment to a declaration recorded before transfer of the first unit from the initial declarant may prohibit or restrict rentals without providing for the exceptions, provisions, and procedures required under Subsection (2).
(6)
(a)
Subsections (1) through (5) do not apply to:
(i)
a condominium project that contains a time period unit as defined in Section 57-8-3;
(ii)
any other form of timeshare interest as defined in Section 57-19-2; or
(iii)
subject to Subsection (6)(b), a condominium project in which the initial declaration is recorded before May 12, 2009, unless, on or after May 12, 2015, the association of unit owners:
(A)
adopts a rental restriction or prohibition; or
(B)
amends an existing rental restriction or prohibition.
(b)
An association that adopts a rental restriction or amends an existing rental restriction or prohibition before May 9, 2017, is not required to include the exemption described in Subsection (2)(a)(iv).
(7)
Notwithstanding this section, an association of unit owners may restrict or prohibit rentals without an exception described in Subsection (2) if:
(a)
the restriction or prohibition receives unanimous approval by all unit owners; and
(b)
when the restriction or prohibition requires an amendment to the association of unit owners’ declaration, the association of unit owners fulfills all other requirements for amending the declaration described in the association of unit owners’ governing documents.
(8)
Except as provided in Subsection (9), an association of unit owners may not require a unit owner who owns a rental unit to:
(a)
obtain the association of unit owners’ approval of a prospective renter;
(b)
give the association of unit owners:
(i)
a copy of a rental application;
(ii)
a copy of a renter’s or prospective renter’s credit information or credit report;
(iii)
a copy of a renter’s or prospective renter’s background check; or
(iv)
documentation to verify the renter’s age; or
(c)
pay an additional assessment, fine, or fee because the unit is a rental unit.
(9)
(a)
A unit owner who owns a rental unit shall give an association of unit owners the documents described in Subsection (8)(b) if the unit owner is required to provide the documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
(b)
If an association of unit owners’ declaration lawfully prohibits or restricts occupancy of the units by a certain class of individuals, the association of unit owners may require a unit owner who owns a rental unit to give the association of unit owners the information described in Subsection (8)(b), if:
(i)
the information helps the association of unit owners determine whether the renter’s occupancy of the unit complies with the association of unit owners’ declaration; and
(ii)
the association of unit owners uses the information to determine whether the renter’s occupancy of the unit complies with the association of unit owners’ declaration.
(c)
An association that permits at least 35% of the units in the association to be rental units may charge a unit owner who owns a rental unit an annual fee of up to $200 to defray the association’s additional administrative expenses directly related to a unit that is a rental unit, as detailed in an accounting provided to the unit owner.
(10)
The provisions of Subsections (8) and (9) apply to an association of unit owners regardless of when the association of unit owners is created.
