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House passes HOA registration bill to standardize lien and contact information
Summary
A measure requiring homeowners associations to register with the state and limiting certain payoff fees passed the Utah House; sponsors said the registry helps ensure clear title and eases transactions while critics worried about practicality for small or dormant associations.
The Utah House passed House Bill 104 on Feb. 28 to require homeowners associations to register with the Department of Commerce to exercise lien rights and to limit fees for payoff information.
Representative Webb, sponsor of the bill, said the measure creates an online registry to collect contact information for all HOAs, limits payoff-information fees to $25 when included in a declaration, and establishes the recording-of-notice as the priority date for liens. He argued the change will help purchasers obtain clear title and will standardize a growing sector of property administration.
Representative Powell and others asked whether very small or inactive HOAs would be required to register; the sponsor confirmed registration is required for all associations seeking lien rights. Supporters argued the registry corrects a transparency problem for buyers and title companies. Opponents on the floor raised concerns about the practicality of registering every existing HOA but ultimately the House passed the bill 71-1 and it will proceed to the Senate.
