Utah Code 57-29-203. Required disclosures
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(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:
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: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- real property: includes :(31)(a) land;(31)(b) a tenement;(31)(c) a hereditament;(31)(d) a water right;(31)(e) a possessory right; and(31)(f) a claim. See Utah Code 68-3-12.5
- 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:
(8)(a)(i) a tenancy in common; or(8)(a)(ii) a fee estate. See Utah Code 57-29-102(1)(a) if applicable:(1)(a)(i) includes a copy of any master lease agreement; and(1)(a)(ii) states whether the sponsor is the master lease tenant or an affiliate of the master lease tenant;(1)(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;(1)(c) includes a copy of:(1)(c)(i) a tenants in common agreement; or(1)(c)(ii) an agreement that forms the substance of the undivided fractionalized long-term estate and includes a definition of the undivided fractionalized interest;(1)(d) describes any improvements to the real property in which the undivided fractionalized long-term estate is offered;(1)(e) includes a copy of any management agreement;(1)(f) describes the relationship, if any, between each property manager and the sponsor; and(1)(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.