Utah Code 57-8-44 v2. Lien in favor of association of unit owners for assessments and costs of collection

Effective 7/1/2024

(1)

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Terms Used In Utah Code 57-8-44 v2

Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
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

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.

Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}

Lien: A claim against real or personal property in satisfaction of a debt.

Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

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

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)

Except as provided in Section 57-8-13.1, an association of unit owners has a lien on a unit for:

(i)	an assessment;

(ii)

except as provided in the declaration, fees, charges, and costs associated with collecting an unpaid assessment, including:

(A)	court costs and reasonable attorney fees;

(B)	late charges;

(C)	interest; and

(D)	any other amount that the association of unit owners is entitled to recover under the declaration, this chapter, or an administrative or judicial decision; and

(iii)

a fine that the association of unit owners imposes against a unit owner in accordance with Section 57-8-37, if:

(A)	the time for appeal described in Subsection 57-8-37(5) has expired and the unit owner did not file an appeal; or

(B)	the unit owner timely filed an appeal under Subsection 57-8-37(5) and a court issued a final order upholding a fine imposed under Subsection 57-8-37(1).

(b)	The recording of a declaration constitutes record notice and perfection of a lien described in Subsection (1)(a).

(2)	If an assessment is payable in installments, a lien described in Subsection (1)(a)(i) is for the full amount of the assessment from the time the first installment is due, unless the association of unit owners otherwise provides in a notice of assessment.

(3)

An unpaid assessment or fine accrues interest at the rate provided:

(a)	in Subsection 15-1-1(2); or

(b)	in the governing documents, if the governing documents provide for a different interest rate.

(4)

A lien under this section has priority over each other lien and encumbrance on a unit except:

(a)	a lien or encumbrance recorded before the declaration is recorded;

(b)	a first or second security interest on the unit secured by a mortgage or deed of trust that is recorded before a recorded notice of lien by or on behalf of the association of unit owners; or

(c)	a lien for real estate taxes or other governmental assessments or charges against the unit.

(5)	A lien under this section is not subject to 5.

(6)	Unless the declaration provides otherwise, if two or more associations of unit owners have liens for assessments on the same unit, the liens have equal priority, regardless of when the liens are created.

Amended by Chapter 401, 2023 General Session

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