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Terms Used In Utah Code 57-8a-209

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Assessment: includes :
              (1)(b)(i) a common expense; and
              (1)(b)(ii) an amount assessed against a lot owner under Subsection 57-8a-405(7). See Utah Code 57-8a-102
  • association: means a corporation or other legal entity, any member of which:
              (2)(a)(i) is an owner of a residential lot located within the jurisdiction of the association, as described in the governing documents; and
              (2)(a)(ii) by virtue of membership or ownership of a residential lot is obligated to pay:
                   (2)(a)(ii)(A) real property taxes;
                   (2)(a)(ii)(B) insurance premiums;
                   (2)(a)(ii)(C) maintenance costs; or
                   (2)(a)(ii)(D) for improvement of real property not owned by the member. See Utah Code 57-8a-102
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Director: means a member of the board of directors. See Utah Code 57-8a-102
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Governing documents: includes :
              (11)(b)(i) articles of incorporation;
              (11)(b)(ii) bylaws;
              (11)(b)(iii) a plat;
              (11)(b)(iv) a declaration of covenants, conditions, and restrictions; and
              (11)(b)(v) rules of the association. See Utah Code 57-8a-102
  • Land: includes :
         (18)(a) land;
         (18)(b) a tenement;
         (18)(c) a hereditament;
         (18)(d) a water right;
         (18)(e) a possessory right; and
         (18)(f) a claim. See Utah Code 68-3-12.5
  • 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
  • Life estate: A property interest limited in duration to the life of the individual holding the interest (life tenant).
  • Lot: means :
         (16)(a) a lot, parcel, plot, or other division of land:
              (16)(a)(i) designated for separate ownership or occupancy; and
              (16)(a)(ii)
                   (16)(a)(ii)(A) shown on a recorded subdivision plat; or
                   (16)(a)(ii)(B) the boundaries of which are described in a recorded governing document; or
         (16)(b)
              (16)(b)(i) a unit in a condominium association if the condominium association is a part of a development; or
              (16)(b)(ii) a unit in a real estate cooperative if the real estate cooperative is part of a development. See Utah Code 57-8a-102
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means :
         (24)(a) an individual;
         (24)(b) an association;
         (24)(c) an institution;
         (24)(d) a corporation;
         (24)(e) a company;
         (24)(f) a trust;
         (24)(g) a limited liability company;
         (24)(h) a partnership;
         (24)(i) a political subdivision;
         (24)(j) a government office, department, division, bureau, or other body of government; and
         (24)(k) any other organization or entity. See Utah Code 68-3-12.5
  • rental lot: means :
         (23)(a) a lot that:
              (23)(a)(i) is not owned by an entity or trust; and
              (23)(a)(ii) is occupied by an individual while the lot owner is not occupying the lot as the lot owner's primary residence;
         (23)(b) an occupied lot owned by an entity or trust, regardless of who occupies the lot; or
         (23)(c) an internal accessory dwelling unit as defined in Section 10-9a-530 or 17-27a-526. See Utah Code 57-8a-102
  • Residential lot: means a lot, the use of which is limited by law, covenant, or otherwise to primarily residential or recreational purposes. See Utah Code 57-8a-102
  • Rule: means a policy, guideline, restriction, procedure, or regulation of an association that:
              (25)(a)(i) is not set forth in a contract, easement, article of incorporation, bylaw, or declaration; and
              (25)(a)(ii) governs:
                   (25)(a)(ii)(A) the conduct of persons; or
                   (25)(a)(ii)(B) the use, quality, type, design, or appearance of real property or personal property. See Utah Code 57-8a-102
  • Trustee: A person or institution holding and administering property in trust.
     (1)(a) Subject to Subsections (1)(b), (5), (6), and (10), an association may:

          (1)(a)(i) create restrictions on the number and term of rentals in an association; or
          (1)(a)(ii) prohibit rentals in the association.
     (1)(b) An association that creates a rental restriction or prohibition in accordance with Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of covenants, conditions, and restrictions, or by amending the recorded declaration of covenants, conditions, and restrictions.
(2) If an association prohibits or imposes restrictions on the number and term of rentals, the restrictions shall include:

     (2)(a) a provision that requires the association to exempt from the rental restrictions the following lot owner and the lot owner’s lot:

          (2)(a)(i) a lot owner in the military for the period of the lot owner’s deployment;
          (2)(a)(ii) a lot occupied by a lot owner’s parent, child, or sibling;
          (2)(a)(iii) a lot owner whose employer has relocated the lot owner for two years or less;
          (2)(a)(iv) a lot owned by an entity that is occupied by an individual who:

               (2)(a)(iv)(A) has voting rights under the entity’s organizing documents; and
               (2)(a)(iv)(B) has a 25% or greater share of ownership, control, and right to profits and losses of the entity; or
          (2)(a)(v) a lot owned by a trust or other entity created for estate planning purposes if the trust or other estate planning entity was created for:

               (2)(a)(v)(A) the estate of a current resident of the lot; or
               (2)(a)(v)(B) the parent, child, or sibling of the current resident of the lot;
     (2)(b) a provision that allows a lot owner who has a rental in the association before the time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of the county in which the association is located to continue renting until:

          (2)(b)(i) the lot owner occupies the lot;
          (2)(b)(ii) an officer, owner, member, trustee, beneficiary, director, or person holding a similar position of ownership or control of an entity or trust that holds an ownership interest in the lot, occupies the lot; or
          (2)(b)(iii) the lot is transferred; and
     (2)(c) a requirement that the association create, by rule or resolution, procedures to:

          (2)(c)(i) determine and track the number of rentals and lots in the association subject to the provisions described in Subsections (2)(a) and (b); and
          (2)(c)(ii) ensure consistent administration and enforcement of the rental restrictions.
(3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the following occur:

     (3)(a) the conveyance, sale, or other transfer of a lot by deed;
     (3)(b) the granting of a life estate in the lot; or
     (3)(c) if the lot is owned by a limited liability company, corporation, partnership, or other business entity, the sale or transfer of more than 75% of the business entity’s share, stock, membership interests, or partnership interests in a 12-month period.
(4) This section does not limit or affect residency age requirements for an association that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. § 3607.
(5) A declaration of covenants, conditions, and restrictions or amendments to the declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot from the initial declarant may prohibit or restrict rentals without providing for the exceptions, provisions, and procedures required under Subsection (2).
(6)

     (6)(a) Subsections (1) through (5) do not apply to:

          (6)(a)(i) an association that contains a time period unit as defined in Section 57-8-3;
          (6)(a)(ii) any other form of timeshare interest as defined in Section 57-19-2; or
          (6)(a)(iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009, unless, on or after May 12, 2015, the association:

               (6)(a)(iii)(A) adopts a rental restriction or prohibition; or
               (6)(a)(iii)(B) amends an existing rental restriction or prohibition.
     (6)(b) An association that adopts a rental restriction or amends an existing rental restriction or prohibition before May 9, 2017, is not required to include the exemption described in Subsection (2)(a)(iv).
(7) Notwithstanding this section, an association may restrict or prohibit rentals without an exception described in Subsection (2) if:

     (7)(a) the restriction or prohibition receives unanimous approval by all lot owners; and
     (7)(b) when the restriction or prohibition requires an amendment to the association’s recorded declaration of covenants, conditions, and restrictions, the association fulfills all other requirements for amending the recorded declaration of covenants, conditions, and restrictions described in the association’s governing documents.
(8) Except as provided in Subsection (9), an association may not require a lot owner who owns a rental lot to:

     (8)(a) obtain the association’s approval of a prospective renter;
     (8)(b) give the association:

          (8)(b)(i) a copy of a rental application;
          (8)(b)(ii) a copy of a renter’s or prospective renter’s credit information or credit report;
          (8)(b)(iii) a copy of a renter’s or prospective renter’s background check; or
          (8)(b)(iv) documentation to verify the renter’s age;
     (8)(c) pay an additional assessment, fine, or fee because the lot is a rental lot;
     (8)(d) use a lease agreement provided by the association; or
     (8)(e) obtain the association’s approval of a lease agreement.
(9)

     (9)(a) A lot owner who owns a rental lot shall give an association the documents described in Subsection (8)(b) if the lot owner is required to provide the documents by court order or as part of discovery under the Utah Rules of Civil Procedure.
     (9)(b) If an association’s declaration of covenants, conditions, and restrictions lawfully prohibits or restricts occupancy of the lots by a certain class of individuals, the association may require a lot owner who owns a rental lot to give the association the information described in Subsection (8)(b), if:

          (9)(b)(i) the information helps the association determine whether the renter’s occupancy of the lot complies with the association’s declaration of covenants, conditions, and restrictions; and
          (9)(b)(ii) the association uses the information to determine whether the renter’s occupancy of the lot complies with the association’s declaration of covenants, conditions, and restrictions.
     (9)(c) An association that permits at least 35% of the lots in the association to be rental lots may charge a lot owner who owns a rental lot an annual fee of up to $200 to defray the association’s additional administrative expenses directly related to a lot that is a rental lot, as detailed in an accounting provided to the lot owner.
     (9)(d) An association may require a lot owner who owns a rental lot and the renter of the lot owner’s rental lot to sign an addendum to a lease agreement provided by the association.
(10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the rental of an internal accessory dwelling unit, as defined in Section 10-9a-530 or 17-27a-526, constructed within a lot owner’s residential lot, if the internal accessory dwelling unit complies with all applicable:

     (10)(a) land use ordinances;
     (10)(b) building codes;
     (10)(c) health codes; and
     (10)(d) fire codes.
(11) The provisions of Subsections (8) through (10) apply to an association regardless of when the association is created.

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