UtahS.B. 1962026 General SessionSenateWALLET

Wrongful Lien Act Amendments

Sponsored By: Don L. Ipson (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Caps and votes for HOA reinvestment fees

Beginning May 6, 2026, an HOA may impose a reinvestment fee only if the declaration or a covenant allows it and a majority of voting interests approve. After approval, the board sets any amount only as the declaration allows and after giving required notice. For covenants recorded on or after March 16, 2010, the fee may not exceed 0.5% of the property’s value, unless the home is in a large master planned development. A separate notice with specific content must be recorded in every county with affected property. The fee cannot apply to involuntary or court‑ordered transfers, transfers to close family (within three degrees) with proof, transfers at death, or most transfers by a bank; in bank transfers, only direct costs up to $250 may be charged. Later covenants cannot burden property already covered, and rights cannot be sold to outsiders; they may be pledged as loan collateral, but the lender must release them when the loan is paid. The continuation‑notice filing rules do not apply to reinvestment fee covenants.

HOA transfer charges must be cost-based

Beginning May 6, 2026, any HOA transfer fee imposed on or after May 7, 2025 is void unless the HOA uses it only to pay expenses related to that transfer. This keeps closing charges tied to actual costs.

Transfer-fee covenants void and title relief

The law voids any transfer‑fee covenant recorded on or after March 16, 2010. Pre‑2010 covenants are not enforceable after May 31, 2010 unless a required county notice was recorded. Holders had to file a continuation notice by May 31, 2024, refile every three years in May, and update payee info within 30 days, with written approval by holders of a majority interest. If they miss these steps, payment cannot be required to sell and the obligation is void. Beginning May 6, 2026, recording a notice that re‑creates a non‑enforceable transfer fee is a wrongful lien if a prior foreclosure wiped it out, a required notice was missing, or a termination was recorded. You may ask a court to clear your title and, if you win, recover costs and reasonable attorney fees.

Who counts as a public official

Beginning May 6, 2026, the law defines who counts as a public official under this chapter. It includes legislators, judges, police, corrections officers, some executive officials, and their immediate family members.

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Sponsors & Cosponsors

Sponsor

  • Don L. Ipson

    Republican • Senate

Cosponsors

  • R. Neil Walter

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 180 • No: 1

House vote 3/6/2026

House/ passed 3rd reading

Yes: 68 • No: 1

Senate vote 3/6/2026

Senate/ concurs with House amendment

Yes: 27 • No: 0

House vote 3/2/2026

House Comm - Favorable Recommendation

Yes: 10 • No: 0

House vote 3/2/2026

House Comm - Substitute Recommendation

Yes: 10 • No: 0

Senate vote 2/25/2026

Senate/ passed 3rd reading

Yes: 27 • No: 0

Senate vote 2/24/2026

Senate/ passed 2nd reading

Yes: 23 • No: 0

House vote 2/12/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 0

House vote 2/12/2026

Senate Comm - Amendment Recommendation

Yes: 5 • No: 0

House vote 2/12/2026

Senate Comm - Substitute Recommendation

Yes: 5 • No: 0

Actions Timeline

  1. Governor Signed

    3/23/2026
  2. Senate/ to Governor

    3/11/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/11/2026Senate
  4. Senate/ enrolled bill to Printing

    3/10/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/10/2026
  6. Draft of Enrolled Bill Prepared

    3/10/2026
  7. Bill Received from Senate for Enrolling

    3/10/2026
  8. Senate/ signed by President/ sent for enrolling

    3/6/2026Senate
  9. Senate/ received from House

    3/6/2026Senate
  10. House/ to Senate

    3/6/2026House
  11. House/ signed by Speaker/ returned to Senate

    3/6/2026House
  12. House/ received from Senate

    3/6/2026House
  13. Senate/ to House

    3/6/2026Senate
  14. Senate/ concurs with House amendment

    3/6/2026Senate
  15. Senate/ placed on Concurrence Calendar

    3/6/2026Senate
  16. Senate/ received from House

    3/6/2026Senate
  17. House/ to Senate

    3/6/2026House
  18. House/ passed 3rd reading

    3/6/2026House
  19. House/ 3rd reading

    3/6/2026House
  20. House/ Rules to 3rd Reading Calendar

    3/5/2026House
  21. House/ 3rd Reading Calendar to Rules

    3/3/2026House
  22. House/ 2nd reading

    3/3/2026House
  23. House/ comm rpt/ substituted

    3/3/2026House
  24. House Comm - Favorable Recommendation

    3/2/2026
  25. House Comm - Substitute Recommendation

    3/2/2026

Bill Text

  • Enrolled

    3/10/2026

  • Substitute #2

    2/27/2026

  • Amended 2/13/2026 10:02:633

    2/13/2026

  • Substitute #1

    2/3/2026

  • Introduced

    1/26/2026

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