2020 Updates to the Condo and Community Association Acts

This blog entry outlines recent ‘HOA’ legislation in Utah.

At the most recent legislative session two separate bills passed effecting the  Utah Ownership Act and the Community Association Act.  The two amendments to the Condominium and Community Association Act have now gone into effect.  Below is some information regarding these updates to Utah Code and how they effect Association living.    

House Bill 155 (2020) Senate Bill 183 (2020)
FOR CONDOMINIUMS:  see Utah Code 57-8-6.1; 57-8-13.1 FOR NON-CONDOMINIUMS:  see Utah Code 57-8a-105.1; 57-8a-105FOR CONDOMINIUMS:  see Utah Code 57-8-3; 57-8-37; 57-8-46 FOR NON-CONDOMINIUMS:  see Utah Code 57-8a-303; 57-8a-208
Requires the seller of a unit or property to make certain disclosures before the closing of a sale in relation to the property.  Changes nonjudicial foreclosure process as they pertain to the Condo & Community Association Act.  
Disclosure requirements include:
* A copy of the Association’s Governing Documents.* “Nonjudicial Foreclosure Amendments,” this legislation changes provisions related to nonjudicial foreclosure of a lien on a unit or lot by an association, including establishing limitations on nonjudicial foreclosure (fines cannot be a basis for foreclosure).  A nonjudicial foreclosure is a foreclosure without a lawsuit done by the Association’s attorney – without court supervision.
* Disclosure of either the members of the Board or property manager.* Includes definitions for judicial and nonjudicial foreclosure information and mirrors in the community association act.
* A link to the department of commerce education materials concerning Community Associations.* Amends the notice that must be sent to owner before an HOA begins nonjudicial foreclosure process.
* This applies to all associations regardless of the when the association was formed.* Association fines do not constitute reason for nonjudicial foreclosure.  That is, fines cannot be a basis for HOA Lien foreclosure.

As a point of reference see below the definition of a judicial foreclosure. In a judicial foreclosure, the creditor files a lawsuit and the entire process is overseen by a Judge who, if you prevail, issues and order of foreclosure.

We are happy to answer any questions you may have concerning this or any other topics.  Richards Law is your one-stop shop for all association needs. 

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