Bulletin: UT2022004

Dear Associates:

The following are summaries of some of the bills passed during the 2022 legislative session which are of interest to the title industry:

HB 132. Uniform Easement Relocation Act (UCA 57-13c et seq.): This bill enacts the Uniform Easement Relocation Act and addresses its applicability to certain easements and establishes the right of a property owner to relocate an easement in certain circumstances.
(Effective May 4, 2022)

HB 243. Regulatory Sandbox Program Amendments (UCA 63N-16 et seq.): The regulatory sandbox program is administered by the Governor's Office of Economic Opportunity. The program allows an insurance product or service to participate and potentially circumvent existing state laws and rules. The initial bill preserved the closed-door process of the sandbox program. Final bill imposes transparency and accountability to the sandbox program. 
(Effective May 4, 2022)

HB 276. Joint Tenancy Presumption Amendments (UCA 57-1-5): This bill clarifies and updates the language to UCA §57-1-5 regarding the joint tenancy presumption. The section of the code that establishes husband and wife to be joint tenants since May 5, 1997, will terminate on May 3, 2022. Beginning May 4, 2022, husband and wife will be replaced with ‘spouses’, to wit: 

(B) Beginning on May 4, 2022, an ownership interest in real estate granted to two persons in their own right who are designated as spouses in the granting documents is presumed to be a joint tenancy interest with rights of survivorship, unless severed, converted, or expressly declared in the grant to be otherwise.
(Effective May 4, 2022)

HB 291. Real Estate Interest Termination Amendments (UCA 57-1-5.1): The legislation makes technical and conforming changes to UCA §57-1-5.1 regarding the termination of an interest in real estate upon the death of a tenant holding a joint tenancy, tenancy by the entirety or life estate in real estate, to wit: 

(1)  (a) Joint tenancy, tenancy by the entirety, or life estate interest in real estate terminates upon the death of a tenant holding the interest.

(b) The termination of an interest upon death as described in Subsection (1)(a) may be disclosed by an affidavit that:

(i) cites the terminated interest that is being disclosed;
(ii) contains a legal description of the real property that is affected;
(iii) references the entry number and the book and page of the instrument creating the terminated interest;
(iv) has attached as an exhibit, a copy of the death certificate or other document issued by a government agency as described in Section 75-1-107; and
(v) is recorded in the office of the recorder of the county in which the affected property is located.

(2) A determinable or conditional interest in real estate may be terminated by an affidavit that:

(a) cites the interest that is being terminated;
(b) contains a legal description of the real property that is affected;
(c) references the entry number and the book and page of the instrument creating the interest to be terminated; and
(d) is recorded in the office of the recorder of the county in which the affected property is located.
(Effective May 4, 2022)

HB 303. Local Land Use Amendments (UCA 57-1-45): This bill expands UCA §57-1-45 to include language similar to that found in UCA§10-9a-524 and UCA§17-27a-523 regarding requirements and contents of a boundary line agreement.
(Effective May 4, 2022)

SB 80. Real Property Recording Amendments (UCA 57-3-105): This bill is a result of county recorders having issues with some mineral documents being submitted with descriptions that were broad and ambiguous, ie “all interests in the following sections” and not specifically describing the tract of land by legal description. The bill provides requirements for a legal description of real property in a document to be recorded with a county recorder. UCA§57-3-105(4) establishes what shall be included in a description of the real property for recording purposes, to wit:

(4) A legal description required under this Section and Subsection 17-21-20(2)(d) shall include a description of the real property by:

(a) metes and bounds;

(b) a government survey that:

(i) references the Public Land Survey System; and

(ii) specifies the township, range, base and meridian, and section, with aliquot part or government lot, if applicable, of the real property;

(c) if the real property consists of a mining claim:

(i) the claim name; and

(ii) if available, a state or federal agency serial number; or

(d) (i) a lot, block, tract, parcel, or unit within a previously recorded plat or map;

(ii) station and offset with reference to centerline;

(iii) a centerline described using:

(A) a bearing and distance; or

(B) at least three elements of curve data;

(iv) a point referenced to a corner of the Public Land Survey System or other controlling corner; or 

(v) a type of legal description not described in Subsections (4)(d)(i) through (iv) that meets the requirements described in Section  57-10-4 for a legal and satisfactory description of a land boundary.
(Effective July 1, 2022)

SB 119. Preconstruction and Construction Liens (UCA 31-1a-301): This legislation is intended to clarify the interests to which a mechanics lien could attach. The bill modifies the definition of Owner to ”a person who possesses an interest in a project property and contacts with an original contractor for preconstruction service or construction work”. The Bill also adds the following regarding those entitled to lien and what may be attached: 

(4) (a) A preconstruction or construction lien attaches only to the interest that the owner has in the project property that is the subject of the lien.

(b) If an owner possesses an interest in the project property that is less than fee simple, a preconstruction or construction lien attaches only to the lesser interest of the owner and does not attach to the fee simple interest.

(c) Notwithstanding Subsection (4)(b), a preconstruction or construction lien may attach to the fee simple interest in the project property, if the person who provides preconstruction service or construction work can demonstrate that the preconstruction service or construction work:

(i) was authorized by the person possessing the fee simple interest in the project property; and

(ii) provides a substantial benefit to the person who owns the fee simple interest beyond the time period of the lesser interest possessed by the owner.
(Effective May 4, 2022)

SB 148. Construction Registry Amendments (UCA 58-55-701 through 704): This legislation creates the Construction Business Registry which is a database of contact information for licensed contractors that is accessible to the public through an internet website. The division may link or otherwise associate the Construction Business Registry with the State Construction Registry. The division has indicated it will take time to identify where the two registries data will overlap and how the applications will tie together.
(Effective May 4, 2022)

SB 184. Recording Amendments (UCA 17-21-18.5): Beginning January 1, 2023, each county shall provide for electronic recording of a plat.
(Effective May 4, 2022)

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