Utah Code 57-8a-303. Notice of nonjudicial foreclosure — Limitations on nonjudicial foreclosure
Terms Used In Utah Code 57-8a-303
- 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- Common areas: means property that the association:
(5)(a) owns;(5)(b) maintains;(5)(c) repairs; or(5)(d) administers. See Utah Code 57-8a-102- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- 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- Judicial foreclosure: means a foreclosure of a lot:
(13)(a) for the nonpayment of an assessment;(13)(b) in the manner provided by law for the foreclosure of a mortgage on real property; and(13)(c) as provided in Part 3, Collection of Assessments. See Utah Code 57-8a-102- Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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- Nonjudicial foreclosure: means the sale of a lot:
(19)(a) for the nonpayment of an assessment;(19)(b) in the same manner as the sale of trust property under Sections57-1-19 through57-1-34 ; and(19)(c) as provided in Part 3, Collection of Assessments. See Utah Code 57-8a-102- Oversight: Committee review of the activities of a Federal agency or program.
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Utah Code: means the 1953 recodification of the Utah Code, as amended, unless the text expressly references a portion of the 1953 recodification of the Utah Code as it existed:
(42)(a) on the day on which the 1953 recodification of the Utah Code was enacted; or(42)(b)(42)(b)(i) after the day described in Subsection (42)(a); and(42)(b)(ii) before the most recent amendment to the referenced portion of the 1953 recodification of the Utah Code. See Utah Code 68-3-12.5- Writing: includes :
(48)(a) printing;(48)(b) handwriting; and(48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5(2) The notice under Subsection (1):(2)(a) shall:(2)(a)(i) notify the lot owner that the association intends to pursue nonjudicial foreclosure with respect to the owner’s lot to enforce the association’s lien for an unpaid assessment;(2)(a)(ii) notify the lot owner of the owner’s right to demand judicial foreclosure in the place of nonjudicial foreclosure;(2)(a)(iii) be in substantially the following form:“NOTICE OF NONJUDICIAL FORECLOSURE AND RIGHT TO DEMAND JUDICIAL FORECLOSURE
The (insert the name of the association), the association for the project in which your lot is located, intends to foreclose upon your lot and allocated interest in the common areas for delinquent assessments using a procedure that will not require it to file a lawsuit or involve a court. This procedure is governed by Utah Code, Sections 57-8a-303 and 57-8a-304, and is being followed in order to enforce the association’s lien against your lot and to collect the amount of an unpaid assessment against your lot, together with any applicable late fees and the costs, including attorney fees, associated with the foreclosure proceeding. This procedure cannot and will not be used to foreclose upon your lot for delinquent fines for a violation of the association’s governing documents. Alternatively, you have the right to demand that a foreclosure of your property for delinquent assessments be conducted in a lawsuit with the oversight of a judge. If you make this demand, the association may also include a claim for delinquent fines for a violation of the association’s governing documents. Additionally, if you make this demand and the association prevails in the lawsuit, the costs and attorney fees associated with the lawsuit will likely be significantly higher than if a lawsuit were not required, and you may be responsible for paying those costs and attorney fees. If you want to make this demand, you must state in writing that ‘I demand a judicial foreclosure proceeding upon my lot,’ or words substantially to that effect. You must send this written demand by first class and certified U.S. mail, return receipt requested, within 30 days after the day on which this notice was delivered to you. The address to which you must mail your demand is (insert the association’s address for receipt of a demand).”; and
(2)(a)(iv) be sent to the lot owner by certified mail, return receipt requested; and(2)(b) may be included with other association correspondence to the lot owner.(3) An association may not use a nonjudicial foreclosure to enforce a lien if:(3)(a) the association fails to provide notice in accordance with Subsection (1);(3)(b) the lot owner mails the association a written demand for judicial foreclosure:(3)(b)(i) by U.S. mail, certified with a return receipt requested;(3)(b)(ii) to the address stated in the association’s notice under Subsection (1); and(3)(b)(iii) within 30 days after the day on which the return receipt described in Subsection (2)(a)(iv) shows the association’s notice under Subsection (1) is delivered;(3)(c) the lien includes a fine described in Subsection 57-8a-301(1)(a)(iii); or(3)(d) unless the lien is on a time share estate as defined in Section 57-19-2, the lien does not include an assessment described in Subsection 57-8a-301(1)(a)(i) that is delinquent more than 180 days after the day on which the assessment is due. - association: means a corporation or other legal entity, any member of which: