This bill amends provisions related to wrongful liens.
This bill:
AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.
Utah law already voids most "transfer fee covenants," which are agreements requiring a fee to be paid every time a property changes hands, though some older covenants recorded before 2010 could continue if the holder filed proper legal notices. This bill would expand the legal definition of a "wrongful lien" — a document improperly recorded against a property — to include transfer fee covenant notices filed when the underlying covenant was already unenforceable, such as when a higher-priority mortgage was foreclosed, the required notice was never properly filed, or the covenant had already been terminated or released. If a transfer fee covenant notice meets this new wrongful lien definition, the notice itself would be legally invalid. The bill also specifies that county recorders are not required to investigate or determine whether a given notice qualifies as a wrongful lien when accepting it for recording.
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, not yet reviewed by Better Utah staff. Please consult the bill text.
Utah law already voids most "transfer fee covenants," which are agreements requiring a fee to be paid every time a property changes hands, though some older covenants recorded before 2010 could continue if the holder filed proper legal notices. This bill would expand the legal definition of a "wrongful lien" — a document improperly recorded against a property — to include transfer fee covenant notices filed when the underlying covenant was already unenforceable, such as when a higher-priority mortgage was foreclosed, the required notice was never properly filed, or the covenant had already been terminated or released. If a transfer fee covenant notice meets this new wrongful lien definition, the notice itself would be legally invalid. The bill also specifies that county recorders are not required to investigate or determine whether a given notice qualifies as a wrongful lien when accepting it for recording.
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 Aug 29, 2026, 5:26 PM