Utah legislation · 2026 General Session
Utah SB196: Wrongful Lien Act Amendments
Status: Signed into law, March 23, 2026
This bill amends provisions related to wrongful liens.
What the bill says
To amend a notice under Subsection (7)(b) recorded before May 31, 2010, is not an enforceable amendment. (8) A reinvestment fee covenant recorded on or after March 16, 2010, may not be enforced upon: (a) an involuntary transfer; (b) a transfer that results from a court order; (c) a bona fide transfer to a family member of the seller within three degrees of consanguinity who, before the transfer, provides adequate proof of consanguinity; (d) a transfer or change of interest due to death, whether provided in a will, trust, or decree of distribution; or (e) the transfer of burdened property by a.
From the enrolled text, March 10, 2026:
to amend a notice under Subsection (7)(b) recorded before May 31, 2010, is not an enforceable amendment. (8) A reinvestment fee covenant recorded on or after March 16, 2010, may not be enforced upon: (a) an involuntary transfer; (b) a transfer that results from a court order; (c) a bona fide transfer to a family member of the seller within three degrees of consanguinity who, before the transfer, provides adequate proof of consanguinity; (d) a transfer or change of interest due to death, whether provided in a will, trust, or decree of distribution; or (e) the transfer of burdened property by a financial institution, except to the extent that the reinvestment fee covenant requires the payment of a common interest association's costs directly related to the transfer of the burdened property, not to exceed $250. (9) An association transfer fee imposed on or after May 7, 2025, is void and unenforceable unless the association uses the fee only to pay expenses related to the transfer. (10) On or after May 7, 2025, an association may not impose a reinvestment fee unless: (a) imposing the reinvestment fee is authorized in the declaration or a reinvestment fee covenant; and (b) a majority of voting interests in the association, or a higher percentage if required in the organizational documents, approves the reinvestment fee. …