Superseded 7/1/2024 57-8a-301. Lien in favor of association for assessments and costs of collection.
(1)
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Terms Used In Utah Code 57-8a-301
Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
association: means a corporation or other legal entity, any member of which:
(i)
is an owner of a residential lot located within the jurisdiction of the association, as described in the governing documents; and
(ii)
by virtue of membership or ownership of a residential lot is obligated to pay:
(A)
real property taxes;
(B)
insurance premiums;
(C)
maintenance costs; or
(D)
for improvement of real property not owned by the member. See Utah Code 57-8a-102
Deed: The legal instrument used to transfer title in real property from one person to another.
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Lien: A claim against real or personal property in satisfaction of a debt.
Lot: means :
(a)
a lot, parcel, plot, or other division of land:
(i)
designated for separate ownership or occupancy; and
(ii)
(A)
shown on a recorded subdivision plat; or
(B)
the boundaries of which are described in a recorded governing document; or
(b)
(i)
a unit in a condominium association if the condominium association is a part of a development; or
(ii)
a unit in a real estate cooperative if the real estate cooperative is part of a development. See Utah Code 57-8a-102
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
real estate: means any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land. See Utah Code 57-1-1
(a)
Except as provided in Section 57-8a-105, an association has a lien on a lot for:
(i)
an assessment;
(ii)
except as provided in the declaration, fees, charges, and costs associated with collecting an unpaid assessment, including:
(A)
court costs and reasonable attorney fees;
(B)
late charges;
(C)
interest; and
(D)
any other amount that the association is entitled to recover under the declaration, this chapter, or an administrative or judicial decision; and
(iii)
a fine that the association imposes against a lot owner in accordance with Section 57-8a-208, if:
(A)
the time for appeal described in Subsection 57-8a-208(5) has expired and the lot owner did not file an appeal; or
(B)
the lot owner timely filed an appeal under Subsection 57-8a-208(5) and the district court issued a final order upholding a fine imposed under Subsection 57-8a-208(1).
(b)
The recording of a declaration constitutes record notice and perfection of a lien described in Subsection (1)(a).
(2)
If an assessment is payable in installments, a lien described in Subsection (1)(a)(i) is for the full amount of the assessment from the time the first installment is due, unless the association otherwise provides in a notice of assessment.
(3)
An unpaid assessment or fine accrues interest at the rate provided:
in the declaration, if the declaration provides for a different interest rate.
(4)
A lien under this section has priority over each other lien and encumbrance on a lot except:
(a)
a lien or encumbrance recorded before the declaration is recorded;
(b)
a first or second security interest on the lot secured by a mortgage or trust deed that is recorded before a recorded notice of lien by or on behalf of the association; or
(c)
a lien for real estate taxes or other governmental assessments or charges against the lot.
(5)
A lien under this section is not subject to 5.
(6)
Unless the declaration provides otherwise, if two or more associations have liens for assessments on the same lot, the liens have equal priority, regardless of when the liens are created.
