SB0196S02 (Substitute)
Wrongful Lien Act Amendments
Introduction
Jan 26
Senate Rules
Senate Committee
Feb 12
Senate 2nd Reading
Feb 24
Senate 3rd Reading
Feb 25
House Rules
Mar 3
House Committee
Mar 2
House Floor Vote
Mar 6
Senate Concurrence
Mar 6
Governor Signed
Mar 23
This bill amends provisions related to wrongful liens.
This bill:
AI-generated summary. We recommend consulting the bill text for important decisions.
Utah law already bans most "transfer fee covenants" — agreements that require a fee to be paid every time a property changes hands — but some older covenants recorded before 2010 were allowed to continue if the holder filed proper notices. This bill expands the legal definition of a "wrongful lien" to include transfer fee covenant notices that were recorded when the underlying covenant was already unenforceable — for example, because a mortgage with higher priority was foreclosed, because the required notice was never properly filed, or because the covenant had already been terminated. If a transfer fee covenant notice qualifies as a wrongful lien under this expanded definition, that notice is legally invalid. The bill also clarifies that county recorders are not responsible for determining whether such a notice is a wrongful lien. Homeowners who may have had an unenforceable transfer fee covenant improperly recorded against their property gain a clearer legal path to challenge it, potentially freeing them from fees that should never have applied to their home sale.
Current version: SB0196S02 (Substitute)
Introduction
Jan 26
Senate Rules
Senate Committee
Feb 12
Senate 2nd Reading
Feb 24
Senate 3rd Reading
Feb 25
House Rules
Mar 3
House Committee
Mar 2
House Floor Vote
Mar 6
Senate Concurrence
Mar 6
Governor Signed
Mar 23
IntroductionJan 26
Senate Rules
Senate CommitteeFeb 12
Senate 2nd ReadingFeb 24
Senate 3rd ReadingFeb 25
House RulesMar 3
House CommitteeMar 2
House Floor VoteMar 6
Senate ConcurrenceMar 6
Governor SignedMar 23
This bill amends provisions related to wrongful liens.
This bill:
AI-generated summary. We recommend consulting the bill text for important decisions.
Utah law already bans most "transfer fee covenants" — agreements that require a fee to be paid every time a property changes hands — but some older covenants recorded before 2010 were allowed to continue if the holder filed proper notices. This bill expands the legal definition of a "wrongful lien" to include transfer fee covenant notices that were recorded when the underlying covenant was already unenforceable — for example, because a mortgage with higher priority was foreclosed, because the required notice was never properly filed, or because the covenant had already been terminated. If a transfer fee covenant notice qualifies as a wrongful lien under this expanded definition, that notice is legally invalid. The bill also clarifies that county recorders are not responsible for determining whether such a notice is a wrongful lien. Homeowners who may have had an unenforceable transfer fee covenant improperly recorded against their property gain a clearer legal path to challenge it, potentially freeing them from fees that should never have applied to their home sale.
Motion: Favorable Recommendation
Motion: Favorable Recommendation
Governor Signed
Lieutenant Governor's office for filing
Senate/ to Governor
Executive Branch - Governor
Senate/ received enrolled bill from Printing
Senate Secretary
Senate/ enrolled bill to Printing
Senate Secretary
Enrolled Bill Returned to House or Senate
Senate Secretary
Last updated Mar 26, 2026, 9:44 PM