(1)  Upon the assignor‘s default, or as otherwise agreed by the assignor, the assignee may give the assignor a notification demanding that the assignor pay over the proceeds of any rents that the assignee is entitled to collect under Section 57-26-106. The assignee shall also give a copy of the notification to any other person that, 10 days before the notification date, held a recorded assignment of rents arising from the real property.

contract signature

Need help reviewing a real estate contract?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Utah Code 57-26-108

  • Assignee: means a person entitled to enforce an assignment of rents. See Utah Code 57-26-102
  • Assignment of rents: means a transfer of an interest in rents in connection with an obligation secured by real property located in this state and from which the rents arise. See Utah Code 57-26-102
  • Assignor: means a person that makes an assignment of rents or the successor owner of the real property from which the rents arise. See Utah Code 57-26-102
  • Notification: means a document containing information that this chapter requires a person to provide to another, signed by the person required to provide the information. See Utah Code 57-26-102
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Utah Code 57-26-102
  • Proceeds: means personal property that is received or collected on account of a tenant's obligation to pay rents. See Utah Code 57-26-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • Rents: means :
(a) sums payable for the right to possess or occupy, or for the actual possession or occupation of, real property of another person;
(b) sums payable to an assignor under a policy of rental interruption insurance covering real property;
(c) claims arising out of a default in the payment of sums payable for the right to possess or occupy real property of another person;
(d) sums payable to terminate an agreement to possess or occupy real property of another person;
(e) sums payable to an assignor for payment or reimbursement of expenses incurred in owning, operating and maintaining, or constructing or installing improvements on, real property; or
(f) any other sums payable under an agreement relating to the real property of another person that constitute rents under law of this state other than this chapter. See Utah Code 57-26-102
  • Security interest: means an interest in property that arises by agreement and secures performance of an obligation. See Utah Code 57-26-102
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Utah Code 57-26-102
    • (2)  If an assignee enforces an assignment of rents under this section, the date of enforcement is the date on which the assignor receives a notification under Subsection (1).

    (3)  An assignee’s failure to give a notification under Subsection (1) to any person holding a recorded assignment of rents does not affect the effectiveness of the notification as to the assignor, but the other person is entitled to any relief permitted under law of this state other than this chapter.

    (4)  An assignee that holds a security interest in rents solely by virtue of Subsection 57-26-104(1) may not enforce the security interest under this section while the assignor occupies the real property as the assignor’s primary residence.

    Enacted by Chapter 139, 2009 General Session

      Previous section
    Next section  
     Chapter 26 Contents