Bulletin: UT2014004

Dear Associates:

The following is a summary of legislation that was passed during the 2014 legislation.

HB 16 Wrongful Lien Act (recodifies and amends U.C.A. 38-9)

Allows recorder to refuse to record nonconsensual common law documents recorded against property owned by public official.

If allowed to record, then the person recording the document must provide notice to those affected and file judicial enforcement to prove it is valid, and prevail that it is valid. If no notice or action, then the document becomes VOID. Document sponsor is liable for actual damages plus attorney fees. Petition to nullify wrongful lien limits expedited hearing to only determine if there was a wrongful lien.

HB 29 County Recorder Index Amendments (amends U.C.A. 17-21)

Index of instruments that contain water rights numbers to be established by county recorder.

HB 42 Construction Lien Amendments (amends U.C.A. 38-1a) Title 38, Chapter 1a, Preconstruction and 15 Construction Liens;

This bill eliminated the withdrawal of preliminary notice procedure. Construction Loan Trust Deed can now jump back into priority and is considered to have been filed before the first Preliminary Notice is filed as long as all preliminary notice filers whose filing predates recording of the Trust Deed receive full payment for all construction work before the Trust Deed was recorded. Receipt of full payment can be before or after the Trust Deed is recorded.

HB 315 Judgment Lien Amendments (amends U.C.A. 57-3-106, 78A-7-105, 78B-5-201, 202)

Requires the filing of a separate information sheet with a judgment lien.

SB 79 Uniform Real Property Electronic Recording (amends U.C.A. 17-21 and 17-21a)

Up to 10% surcharge to recording fee to pay for complying with the electronic recording requirements of this bill treats electronic signatures, notaries, documents the same as the original document for recording purposes. Creates a Commission (4 county recorders and 1 county commissioner and one title industry member nominated by ULTA) to set Standards/Rules for electronic recordings.

HB 220 S2 Land Use Amendments (amends U.C.A. 10-9a-509, 608, 609 and U.C.A. 17-27a-103, 508, 608, 609)

Recorded amended plat vacates a previously recorded plat. Vacating ordinance vacates the previously recorded plat. Amendment must be signed by land use authority and signed (with acknowledgment) by all owners.

HB 265 S1 Probate Code Amendments (amend U.C.A.75-5-408)

Allows for temporary conservator until further court order.

SB 133 Benefit Corporation (enacts U.C.A. 16-10b)

The Act establishes a new form of entity. The purpose of the corporation is to create a general public benefit.

SB 189 Residence Lien Restriction Amendments (amends 38-11-102)

Extends RLRF coverage to an owner or a person who purchases later but before completion.

SB 237 Urban Farming Amendments (amends U.C.A. 59-2-1702, 1703, 1705)

Reduces from 2 acres to 1½ acres to reduced real property tax for urban farm. Reduces the greenbelt rollback period from 10 years to 5 on urban farm.

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