Bulletin: UT000019

Dear Associates:

We are finding that lenders and owners are frequently requiring that the Company issue a subdivision map endorsement that modifies the exclusion found in the policy cover relating to regulations regarding the subdivision of the land.  This endorsement is used when the land has either been subdivided through a subdivision plat or the governmental body has waived the requirement for such a subdivision plat.  The statutes for the state of Utah require that a subdivision of land found in a city or unincorporated area be subdivided using a plat that contains appropriate approvals.

Unless exempt, whenever lands are divided, a subdivision plat satisfying the statutory and regulatory requirements must be presented for approval and recording to the local governmental entity.  A plat that is recorded without approval of the appropriate governmental body renders that plat void, therefore the plat needs to be reviewed for compliance with that process.

In certain cases, a person may determine to subdivide the land without a subdivision plat.  In order to determine whether a person has obtained a waiver of the platting requirements, the person must obtain a certificate from the approving body indicating approval of that division of the land.  For agricultural land where none of the land will be used for non-agricultural purposes, the division of the land must be graphically illustrated on a Record of Survey Map that is recorded with the appropriate County Recorder along with a copy of the certificate from the governmental body indicating approval.  For non-agricultural land, if a conveyance is recorded using a metes and bounds description, the certificate of approval must be attached to the deed evidencing approval of the division of the land.

COMPANY POLICY:

• Prior to issuing the subdivision map endorsement for platted subdivisions, a review of the plat must be made to determine if the appropriate local officials have signed the plat.
  
• Prior to issuing the subdivision map endorsement, the Company requires that for agricultural land which will not be used for non-agricultural uses that the record of survey and certificate of approval be recorded prior to the issuance of the endorsement.
  
• For non-agricultural land, the Company requires that the conveyance describing the deed by metes and bounds be recorded along with the certificate of approval described above.
  
• If the certificate in either case has not been recorded, prior to issuing the endorsement the certificate must be obtained and recorded.  The statutes authorizing the certificate of approval specifically authorize recording with the County Recorder.