57-8-10. Contents of declaration. (Effective until May 13, 2014)
(1) Prior to the conveyance of any unit in a condominium
project, a declaration shall be recorded that contains the covenants,
conditions, and restrictions relating to the project that shall be enforceable equitable
servitudes, where reasonable, and which shall run with the land. Unless
otherwise provided, these servitudes may be enforced by any unit owner and his
successors in interest.
(2) (a) For every condominium project:
(i) The declaration shall include a
description of the land or interests in real property included within the
project.
(ii) The declaration shall contain a
description of any buildings, which states the number of storeys and basements,
the number of units, the principal materials of which the building is or is to
be constructed, and a description of all other significant improvements
contained or to be contained in the project.
(iii) The declaration shall contain the
unit number of each unit, the square footage of each unit, and any other
description or information necessary to properly identify each unit.
(iv) The declaration shall describe the
common areas and facilities of the project.
(v) The declaration shall describe any
limited common areas and facilities and shall state to which units the use of
the common areas and facilities is reserved.
(b) Any shutters,
awnings, window boxes, doorsteps, porches, balconies, patios, or other
apparatus intended to serve a single unit, but located outside the boundaries
of the unit, shall constitute a limited common area and facility appertaining
to that unit exclusively, whether or not the declaration makes such a
provision.
(c) The
condominium plat recorded with the declaration may provide or supplement the information
required under Subsections (2)(a) and (b).
(d) (i) The
declaration shall include the percentage or fraction of undivided interest in
the common areas and facilities appurtenant to each unit and its owner for all
purposes, including voting, derived and allocated in accordance with Subsection (2).
(ii) If any use restrictions are to
apply, the declaration shall state the purposes for which the units are
intended and restricted as to use.
(iii) (A) The declaration shall include the
name of a person to receive service of process on behalf of the project, in the
cases provided by this chapter, together with the residence or place of
business of that person.
(B) The person described in
Subsection (2)(d)(iii)(A) shall be a resident of, or shall maintain a place of
business within, this state.
(iv) The declaration shall describe the method
by which it may be amended consistent with this chapter.
(v) Any further matters in connection
with the property may be included in the declaration, which the person or
persons executing the declaration may consider desirable consistent with this
chapter.
(vi) The declaration shall contain a
statement of intention that this chapter applies to the property.
(e) The initial
recorded declaration shall include:
(i) an appointment of a trustee who
qualifies under Subsection 57-1-21(1)
(a)(i) or (iv); and
(ii) the following statement: "The
declarant hereby conveys and warrants pursuant to U.C.A. Sections 57-1-20 and 57-8-45 to (name
of trustee), with power of sale, the unit and all improvements to the unit for
the purpose of securing payment of assessments under the terms of the
declaration."
(3) (a) If the
condominium project contains any convertible land:
(i) The declaration shall contain a legal
description by metes and bounds of each area of convertible land within the
condominium project.
(ii) The declaration shall state the
maximum number of units that may be created within each area of convertible
land.
(iii) (A) The declaration shall state,
with respect to each area of convertible land, the maximum percentage of the
aggregate land and floor area of all units that may be created and the use of
which will not or may not be restricted exclusively to residential purposes.
(B) The statements described
in Subsection (3)(a)(iii)(A) need not be supplied if none of the units on other
portions of the land within the project are restricted exclusively to
residential use.
(iv) The declaration shall state the
extent to which any structure erected on any convertible land will be
compatible with structures on other portions of the land within the condominium
project in terms of quality of construction, the principal materials to be
used, and architectural style.
(v) The declaration shall describe all
other improvements that may be made on each area of convertible land within the
condominium project.
(vi) The declaration shall state that any
units created within each area of convertible land will be substantially
identical to the units on other portions of the land within the project or it
shall describe in detail what other type of units may be created.
(vii) The declaration shall describe the
declarant's reserved right, if any, to create limited common areas and
facilities within any convertible land in terms of the types, sizes, and
maximum number of the limited common areas within each convertible land.
(b) The
condominium plat recorded with the declaration may provide or supplement the
information required under Subsection (3)(a).
(4) If the condominium is an expandable condominium project:
(a) (i) (A) The
declaration shall contain an explicit reservation of an option to expand the
project.
(B) The declaration shall
include a statement of any limitations on the option to expand, including a
statement as to whether the consent of any unit owners shall be required and, a
statement as to the method by which consent shall be ascertained, or a
statement that there are no such limitations.
(ii) The declaration shall include a time
limit, not exceeding seven years from the date of the recording of the
declaration, upon which the option to expand the condominium project shall
expire, together with a statement of any circumstances which will terminate the
option prior to expiration of the specified time limits.
(iii) The declaration shall contain a
legal description by metes and bounds of all land that may be added to the
condominium project, which is known as additional land.
(iv) The declaration shall state:
(A) if any of the additional
land is added to the condominium project, whether all of it or any particular
portion of it must be added;
(B) any limitations as to
what portions may be added; or
(C) a statement that there
are no such limitations.
(v) The declaration shall include a
statement as to whether portions of the additional land may be added to the
condominium project at different times, together with any limitations fixing
the boundaries of those portions by legal descriptions setting forth the metes
and bounds of these lands and regulating the order in which they may be added
to the condominium project.
(vi) The declaration shall include a
statement of any limitations as to the locations of any improvements that may
be made on any portions of the additional land added to the condominium
project, or a statement that no assurances are made in that regard.
(vii) The declaration shall state the
maximum number of units that may be created on the additional land. If portions
of the additional land may be added to the condominium project and the
boundaries of those portions are fixed in accordance with Subsection (4)(a)(v),
the declaration shall also state the maximum number of units that may be
created on each portion added to the condominium project. If portions of the
additional land may be added to the condominium project and the boundaries of
those portions are not fixed in accordance with Subsection (4)(a)(v), then the
declaration shall also state the maximum number of units per acre that may be
created on any portion added to the condominium project.
(viii) With respect to the additional
land and to any portion of it that may be added to the condominium project, the
declaration shall state the maximum percentage of the aggregate land and floor
area of all units that may be created on it, the use of which will not or may
not be restricted exclusively to residential purposes. However, these
statements need not be supplied if none of the units on the land originally
within the project are restricted exclusively to residential use.
(ix) The declaration shall state the
extent to which any structures erected on any portion of the additional land
added to the condominium project will be compatible with structures on the land
originally within the project in terms of quality of construction, the
principal materials to be used, and architectural style. The declaration may
also state that no assurances are made in those regards.
(x) The declaration shall describe all
other improvements that will be made on any portion of the additional land
added to the condominium project, or it shall contain a statement of any
limitations as to what other improvements may be made on it. The declaration
may also state that no assurances are made in that regard.
(xi) The declaration shall contain a
statement that any units created on any portion of the additional land added to
the condominium project will be substantially identical to the units on the
land originally within the project, or a statement of any limitations as to
what types of units may be created on it. The declaration may also contain a
statement that no assurances are made in that regard.
(xii) The declaration shall describe the
declarant's reserved right, if any, to create limited common areas and
facilities within any portion of the additional land added to the condominium
project, in terms of the types, sizes, and maximum number of limited common
areas within each portion. The declaration may also state that no assurances
are made in those regards.
(b) The
condominium plat recorded with the declaration may provide or supplement the
information required under Subsections (4)(a)(iii) through (a)(vi) and (a)(ix)
through (a)(xii).
(5) If the condominium project is a contractible
condominium:
(a) (i) The declaration shall contain an explicit reservation
of an option to contract the condominium project.
(ii) The
declaration shall contain a statement of any limitations on the option to
contract, including a statement as to whether the consent of any unit owners
shall be required, and if so, a statement as to the method by which this
consent shall be ascertained. The declaration may also contain a statement that there are no such limitations.
(iii) The
declaration shall state the time limit, not exceeding seven years from the
recording of the declaration, upon which the option to contract the condominium
project shall expire, together with a statement of any circumstances which will
terminate this option prior to expiration of the specified time limit.
(b) (i) The declaration shall include a legal
description by metes and bounds of all land that may be withdrawn from the
condominium project, which is known as withdrawable land.
(ii) The
declaration shall include a statement as to whether portions of the
withdrawable land may be withdrawn from the condominium project at different
times, together with any limitations fixing the boundaries of those portions by
legal descriptions setting forth the metes and bounds and regulating the order
in which they may be withdrawn from the condominium project.
(iii) The
declaration shall include a legal description by metes and bounds of all of the
land within the condominium project to which the option to contract the project
does not extend.
(c) The condominium plat recorded with the declaration
may provide or supplement the information required under Subsection (5)(b).
(6) (a) If the condominium project is a leasehold
condominium, then with respect to any ground lease or other leases the
expiration or termination of which will or may terminate or contract the
condominium project:
(i) The
declaration shall include recording information enabling the location of each
lease in the official records of the county recorder.
(ii) The
declaration shall include the date upon which each lease is due to expire.
(iii) The
declaration shall state whether any land or improvements will be owned by the
unit owners in fee simple. If there is to be fee simple ownership, the
declaration shall include:
(A)
a description of the land or improvements, including without limitation, a
legal description by metes and bounds of the land; or
(B)
a statement of any rights the unit owners have to remove these improvements
within a reasonable time after the expiration or termination of the lease or
leases involved, or a statement that they shall have no such rights.
(iv) The
declaration shall include a statement of the rights the unit owners have to
extend or renew any of the leases or to redeem or purchase any of the
reversions, or a statement that they have no such rights.
(b) After the recording of the declaration, no lessor
who executed the declaration, and no successor in interest to this lessor, has
any right or power to terminate any part of the leasehold interest of any unit
owner who:
(i) makes
timely payment of his share of the rent to the persons designated in the
declaration for the receipt of the rent; and
(ii)
otherwise complies with all covenants which would entitle the lessor to
terminate the lease if they were violated.
(7) (a) If the condominium project contains time period
units, the declaration shall also contain the location of each condominium unit
in the calendar year. This information shall be set out in a fourth column of
the exhibit or schedule referred to in Subsection 57-8-7(2),
if the exhibit or schedule accompanies the declaration.
(b) The declaration shall also put timeshare owners on
notice that tax notices will be sent to the
management committee, not each timeshare owner.
(c) The time period units created with respect to any
given physical unit shall be such that the aggregate of the durations involved
constitute a full calendar year.
(8) (a) The declaration, bylaws, and condominium plat shall
be duly executed and acknowledged by all of the owners and any lessees of the
land which is made subject to this chapter.
(b) As used in Subsection (8)(a), "owners and
lessees" does not include, in their respective capacities, any mortgagee,
any trustee or beneficiary under a deed of trust, any other lien holder, any
person having an equitable interest under any contract for the sale or lease of
a condominium unit, or any lessee whose leasehold interest does not extend to
any portion of the common areas and facilities.
(9) (a) As used in this section, "rentals" or
"rental unit" means:
(i) a unit
owned by an individual not described in Subsection (9)(a)(ii) that is occupied
by someone while no unit owner occupies the unit as the unit owner's primary
residence; and
(ii) a
unit owned by an entity or trust, regardless of who occupies the unit.
(b) (i) Subject to Subsections (9)(c), (f), and (g),
an association of unit owners may:
(A)
create restrictions on the number and term of rentals in a condominium project;
or
(B)
prohibit rentals in the condominium project.
(ii) An
association of unit owners that creates a rental restriction or prohibition in
accordance with Subsection (9)(b)(i) shall create the rental restriction or
prohibition in a declaration or by amending the declaration.
(c) If an association of unit owners prohibits or
imposes restrictions on the number and term of rentals, the restrictions shall
include:
(i) a
provision that requires a condominium project to exempt from the rental
restrictions the following unit owner and the unit owner's unit:
(A)
a unit owner in the military for the period of the unit owner's deployment;
(B)
a unit occupied by a unit owner's parent, child, or sibling;
(C)
a unit owner whose employer has relocated the unit owner for no less than two
years; or
(D)
a unit owned by a trust or other entity created for estate planning purposes if
the trust or other estate planning entity was created for the estate of:
(I)
a current resident of the unit; or
(II)
the parent, child, or sibling of the current resident of the unit;
(ii) a
provision allowing a unit owner who has a rental in the condominium project
before the time the rental restriction described in Subsection (9)(b)(i) is
recorded with the county recorder of the county in which the condominium
project is located to continue renting until:
(A)
the unit owner occupies the unit; or
(B)
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 unit, occupies the unit; and
(iii) a
requirement that the association of unit owners create, by rule or resolution,
procedures to:
(A)
determine and track the number of rentals and units in the condominium project
subject to the provisions described in Subsections (9)(c)(i) and (ii); and
(B)
ensure consistent administration and enforcement of the rental restrictions.
(d) For purposes of Subsection (9)(c)(ii), a transfer
occurs when one or more of the following occur:
(i) the
conveyance, sale, or other transfer of a unit by deed;
(ii) the
granting of a life estate in the unit; or
(iii) if
the unit 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.
(e) This section does not limit or affect residency
age requirements for an association of unit owners that complies with the
requirements of the Housing for Older Persons Act, 42 U.S.C. Sec. 3607.
(f) A declaration or amendment to a declaration
recorded prior to transfer of the first unit from the initial declarant may
prohibit or restrict rentals without providing for the exceptions, provisions,
and procedures required under Subsection (9)(c).
(g) This section does not apply to:
(i) a
condominium project containing a time period unit as defined in Section 57-8-3;
(ii) any
other form of timeshare interest as defined in Section 57-19-2;
or
(iii) a
condominium project in which the initial declaration is recorded before May 12,
2009.
(h) Notwithstanding this section, an association of
unit owners may, upon unanimous approval by all unit owners, restrict or
prohibit rentals without an exception described in Subsection (9)(c).
Amended by Chapter 355, 2011 General Session