Utah 2026 General Session Status: Enacted 2 R cosponsors

SB 196 — Wrongful Lien Act Amendments

Last action — Governor Signed

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 26, 2026. Enacted.

Signed by Governor Spencer Cox (Republican) on March 23, 2026.

Prognosis

Advancing 54% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

328 added · 325 removed

Plain-language change summary

The recent amendment to SB 196 clarifies that if a notice of a transfer fee covenant is deemed a wrongful lien, it will be considered invalid. This change simplifies the language by removing references to "reinvestment fee covenants," focusing solely on transfer fees. This matters because it protects property owners from potentially unjust financial claims and ensures that any wrongful liens can be easily contested. Overall, the amendment strengthens property rights by providing clearer guidelines on what constitutes an invalid lien.

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SB0196S02 compared with SB0196 {Omitted text} shows text that was in SB0196 but was omitted in SB0196S02 inserted text shows text that was not in SB0196 but was inserted into SB0196S02 DISCLAIMER:
Enrolled Copy S.B.
This document is provided to assist you in your comparison of the two bills.
196 Wrongful Lien Act Amendments GENERAL SESSION STATE OF UTAH Chief Sponsor:
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Therefore, you need to read the actual bills.
This automatically generated document could contain inaccuracies caused by:
limitations of the compare program;
bad input data;
or other causes.
Wrongful Lien Act Amendments GENERAL SESSION STATE OF UTAH Chief Sponsor:
Ipson House Sponsor:R.
Ipson House Sponsor:
R.
▸ provides that if a {reinvestment fee covenant or } notice of transfer fee covenant is a wrongful lien, the {reinvestment fee covenant or } notice of transfer fee covenant is invalid;
▸ provides that if a notice of transfer fee covenant is a wrongful lien, the notice of transfer fee covenant is invalid;
{and} ▸ provides that a county recorder is not required to determine whether a notice of transfer fee covenant is a wrongful lien under certain circumstances;
▸ provides that a county recorder is not required to determine whether a notice of transfer fee covenant is a wrongful lien under certain circumstances;
S B None 1 Utah Code Sections Affected:
None Utah Code Sections Affected:
9 SB0196 compared with SB0196S02 AMENDS:
AMENDS:
38-9-102 , as last amended by Laws of Utah 2025, First Special Session, Chapter 15 57-1-46 , as last amended by Laws of Utah 2025, Chapter 226 57-1-47 , as enacted by Laws of Utah 2024, Chapter 431 Be it enacted by the Legislature of the state of Utah:
38-9-102, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 57-1-46, as last amended by Laws of Utah 2025, Chapter 226 57-1-47, as enacted by Laws of Utah 2024, Chapter 431 Be it enacted by the Legislature of the state of Utah:
38-9-102.
38-9-102 .
(1) "Affected person" means:
S.B.
196 Enrolled Copy (1) "Affected person" means:
- 2 - SB0196 compared with SB0196S02 (7) "Political subdivision" means a county, city, town, school district, special improvement or taxing district, special district, special service district, or other governmental subdivision or public corporation.
(7) "Political subdivision" means a county, city, town, school district, special improvement or taxing district, special district, special service district, or other governmental subdivision or public corporation.
(v) corrections officer;
- 2 - Enrolled Copy S.B.
196 (v) corrections officer;
(10) (a) "Record interest holder" means a person who holds or possesses a present, lawful property interest in real property, including an owner, titleholder, mortgagee, trustee, or beneficial owner, and whose name and interest in that real property appears in the county recorder's records for the county in which the property is located.
(10)(a) "Record interest holder" means a person who holds or possesses a present, lawful property interest in real property, including an owner, titleholder, mortgagee, trustee, or beneficial owner, and whose name and interest in that real property appears in the county recorder's records for the county in which the property is located.
- 3 - SB0196 compared with SB0196S02 (b) "Record interest holder" includes [any] a grantor in the chain of the title in real property.
(b) "Record interest holder" includes [any] a grantor in the chain of the title in real property.
(12) (a) "Wrongful lien" means [any] a document that purports to create a lien, notice of interest, or encumbrance on an owner's interest in [certain ]real property and at the time [it] the document is recorded is not:
(12)(a) "Wrongful lien" means [any] a document that purports to create a lien, notice of interest, or encumbrance on an owner's interest in [certain ]real property and at the time [it] the document is recorded is not:
(b) "Wrongful lien" includes:
- 3 - S.B.
196 Enrolled Copy (b) "Wrongful lien" includes:
or (ii) a document that purports to be a notice of transfer fee covenant described in Subsection {57-1-46(6) (a) } 57-1-46(7) or Section 57-1-47 or a document that purports to create, continue, or reestablish a transfer fee covenant as a lien or encumbrance on an owner's interest in real property, if at the time the document was recorded the transfer fee covenant was not enforceable due to the:
or (ii) a document that purports to be a notice of transfer fee covenant described in Subsection 57-1-46(7) or Section 57-1-47 or a document that purports to create, continue, or reestablish a transfer fee covenant as a lien or encumbrance on an owner's interest in real property, if at the time the document was recorded the transfer fee covenant was not enforceable due to the:
(B) {document not being recorded in accordance with } absence of a previously recorded notice of transfer fee covenant required by Subsection {57-1-46(6) } 57-1-46(7) or Section 57-1-47;
(B) absence of a previously recorded notice of transfer fee covenant required by Subsection 57-1-46(7) or Section 57-1-47;
57-1-46.
57-1-46 .
- 4 - SB0196 compared with SB0196S02 (ii) providing, establishing, creating, or managing a facility, activity, service, or program for the benefit of property owners, tenants, common areas, the burdened property, or property governed by the common interest association;
(ii) providing, establishing, creating, or managing a facility, activity, service, or program for the benefit of property owners, tenants, common areas, the burdened property, or property governed by the common interest association;
or (B) a person acting on behalf of the common interest association.
or - 4 - Enrolled Copy S.B.
196 (B) a person acting on behalf of the common interest association.
(f) (i) "Common interest association" means:
(f)(i) "Common interest association" means:
- 5 - SB0196 compared with SB0196S02 (D) resort facilities;
(D) resort facilities;
and (B) articles of incorporation, bylaws, plats, charters, the nonprofit association's rules, and declarations of covenants, conditions, and restrictions.
and (B) articles of incorporation, bylaws, plats, charters, the nonprofit association's - 5 - S.B.
196 Enrolled Copy rules, and declarations of covenants, conditions, and restrictions.
and - 6 - SB0196 compared with SB0196S02 (ii) obligates a future buyer or seller of the real property to pay to a common interest association, upon and as a result of a transfer of the real property, a fee that is dedicated to benefitting the burdened property, including payment for:
and (ii) obligates a future buyer or seller of the real property to pay to a common interest association, upon and as a result of a transfer of the real property, a fee that is dedicated to benefitting the burdened property, including payment for:
and (C) to pay a fee upon and as a result of a transfer of the real property;
and - 6 - Enrolled Copy S.B.
196 (C) to pay a fee upon and as a result of a transfer of the real property;
Show all 60 changed rows (20 more)
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(3) (a) Except as provided in Subsection (3)(b), a reinvestment fee covenant may not be sold, assigned, or conveyed unless the sale, assignment, or conveyance is to a common interest association that was formed to benefit the burdened property.
(3)(a) Except as provided in Subsection (3)(b), a reinvestment fee covenant may not be sold, assigned, or conveyed unless the sale, assignment, or conveyance is to a common interest association that was formed to benefit the burdened property.
and - 7 - SB0196 compared with SB0196S02 (ii) the lender releases the collateral interest upon payment in full of all amounts that the common interest association owes to the lender under the credit facility.
and (ii) the lender releases the collateral interest upon payment in full of all amounts that the common interest association owes to the lender under the credit facility.
(6) (a) A reinvestment fee covenant recorded on or after March 16, 2010, is void and unenforceable unless a notice of reinvestment fee covenant{ or a notice of transfer fee covenant}, separate from the reinvestment fee covenant{ or transfer fee covenant}, is recorded in the office of the recorder of each county in which any of the burdened property is located.
(6)(a) A reinvestment fee covenant recorded on or after March 16, 2010, is void and unenforceable unless a notice of reinvestment fee covenant, separate from the reinvestment fee covenant, is recorded in the office of the recorder of each county in which any of the burdened property is located.
(v) state the duration of the reinvestment fee covenant;
- 7 - S.B.
196 Enrolled Copy (v) state the duration of the reinvestment fee covenant;
(7) (a) A reinvestment fee covenant or transfer fee covenant recorded before March 16, 2010, is not enforceable after May 31, 2010, unless:
(7)(a) A reinvestment fee covenant or transfer fee covenant recorded before March 16, 2010, is not enforceable after May 31, 2010, unless:
- 8 - SB0196 compared with SB0196S02 (i) a notice that is consistent with the notice described in Subsection (6) is recorded in the office of the recorder of each county in which any of the burdened property is located;
(i) a notice that is consistent with the notice described in Subsection (6) is recorded in the office of the recorder of each county in which any of the burdened property is located;
(c) (i) A recorded notice of reinvestment fee covenant or transfer fee covenant that substantially complies with the requirements of Subsection (7)(b) is valid and effective, unless the notice of transfer fee covenant is a wrongful lien as that term is defined in Section 38-9-102.
(c)(i) A recorded notice of reinvestment fee covenant or transfer fee covenant that substantially complies with the requirements of Subsection (7)(b) is valid and effective, unless the notice of transfer fee covenant is a wrongful lien as that term is defined in Section 38-9-102.
(e) An amendment to a notice under Subsection (7)(b) recorded after May 31, 2010, seeking to amend a notice under Subsection (7)(b) recorded before May 31, 2010, is not an enforceable amendment.
(e) An amendment to a notice under Subsection (7)(b) recorded after May 31, 2010, seeking to amend a notice under Subsection (7)(b) recorded before May 31, 2010, is - 8 - Enrolled Copy S.B.
196 not an enforceable amendment.
or - 9 - SB0196 compared with SB0196S02 (e) the transfer of burdened property by a financial institution, except to the extent that the reinvestment fee covenant requires the payment of a common interest association's costs directly related to the transfer of the burdened property, not to exceed $250.
or (e) the transfer of burdened property by a financial institution, except to the extent that the reinvestment fee covenant requires the payment of a common interest association's costs directly related to the transfer of the burdened property, not to exceed $250.
57-1-47.
57-1-47 .
Notice requirements for continuation of existing private transfer fee obligations.
Notice requirements for continuation of existing private transfer fee - 9 - S.B.
196 Enrolled Copy obligations.
(a) (i) file the notice described in this section on or before May 31, 2024;
(a)(i) file the notice described in this section on or before May 31, 2024;
- 10 - SB0196 compared with SB0196S02 (3) To be effective, a notice filed under this section shall be approved in writing by every person holding a majority of the beneficial interests in the private transfer fee obligation.
(3) To be effective, a notice filed under this section shall be approved in writing by every person holding a majority of the beneficial interests in the private transfer fee obligation.
(5) (a) A recorded notice of transfer fee covenant that complies with the requirements of this section is valid and effective, unless the notice of transfer fee covenant is a wrongful lien as that term is defined in Section 38-9-102.
(5)(a) A recorded notice of transfer fee covenant that complies with the requirements of this section is valid and effective, unless the notice of transfer fee covenant is a wrongful lien as that term is defined in Section 38-9-102.
(6) (a) A person that is no longer subject to a private transfer fee obligation may seek declaratory relief in court to address any encumbrance on real property owned by the person.
(6)(a) A person that is no longer subject to a private transfer fee obligation may seek declaratory relief in court to address any encumbrance on real property owned by the person.
Effective date.
2-27-26 3:12 PM - 11 -
- 10 -
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How this bill changes current law

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Compared against the Utah Code as published AI-generated reading aid — verify against the official bill.

The bill modifies the definitions and treatment of wrongful liens in Utah law, particularly regarding notices of transfer fee covenants and their validity.

  • 38-9-102

    any → a

    The term 'any' in the definition of 'wrongful lien' is changed to 'a', which clarifies the language.

  • 38-9-102

    [ ]a document recorded in violation of Subsection 10-20-508(2)(d)[.] ; → a document recorded in violation of Subsection 10-20-508(2)(d);

    The definition of 'wrongful lien' includes clearer language by removing brackets and correcting punctuation.

  • 38-9-102

    includes: a document recorded in violation of Subsection 10-20-508(2)(d); or a document that purports to be a notice of transfer fee covenant described in Subsection 57-1-46(7) or Section 57-1-47 or a document that purports to create, continue, or reestablish a transfer fee covenant as a lien or encumbrance on an owner's interest in real property, if at the time the document was recorded the transfer fee covenant was not enforceable due to the: foreclosure of a trust deed or mortgage that has priority over the transfer fee covenant; absence of a previously recorded notice of transfer fee covenant required by Subsection 57-1-46(7) or Section 57-1-47; or existence of a recorded rescission, termination, release, waiver, or other document terminating the transfer fee covenant. → includes: (i) a document recorded in violation of Subsection 10-20-508(2)(d); or (ii) a document that purports to be a notice of transfer fee covenant described in Subsection 57-1-46(7) or Section 57-1-47 or a document that purports to create, continue, or reestablish a transfer fee covenant as a lien or encumbrance on an owner's interest in real property, if at the time the document was recorded the transfer fee covenant was not enforceable due to the: (A) foreclosure of a trust deed or mortgage that has priority over the transfer fee covenant; (B) absence of a previously recorded notice of transfer fee covenant required by Subsection 57-1-46(7) or Section 57-1-47; or (C) existence of a recorded rescission, termination, release, waiver, or other document terminating the transfer fee covenant.

    The bill specifies the definitions of 'wrongful lien' to include more detailed criteria about the validity of transfer fee covenants.

  • 57-1-46

    A recorded notice of transfer fee covenant that complies with the requirements of this section is valid and effective, unless the notice of transfer fee covenant is a wrongful lien as that term is defined in Section 38-9-102. → A recorded notice of transfer fee covenant is invalid if it is a wrongful lien under Section 38-9-102.

    The validity of transfer fee covenants is explicitly tied to whether they are classified as wrongful liens.

  • 57-1-47

    A county recorder is not required to determine whether a notice of transfer fee covenant is a wrongful lien for purposes of this Subsection (5). → A county recorder is not required to determine whether a notice of transfer fee covenant is a wrongful lien under certain circumstances.

    The obligation of county recorders regarding the determination of wrongful liens connected to transfer fee covenants is clarified.

Amendments

1 amendment

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Action History

  1. Governor Signed

  2. Senate/ to Governor

  3. Senate/ received enrolled bill from Printing

  4. Senate/ enrolled bill to Printing

  5. Enrolled Bill Returned to House or Senate

  6. Draft of Enrolled Bill Prepared

  7. Bill Received from Senate for Enrolling

  8. Senate/ signed by President/ sent for enrolling

  9. Senate/ received from House

  10. House/ to Senate

  11. House/ signed by Speaker/ returned to Senate

  12. House/ received from Senate

  13. Senate/ to House

  14. Senate/ concurs with House amendment

  15. Senate/ placed on Concurrence Calendar

  16. Senate/ received from House

  17. House/ to Senate

  18. House/ passed 3rd reading

  19. House/ 3rd reading

  20. House/ Rules to 3rd Reading Calendar

  21. House/ 3rd Reading Calendar to Rules [House Rules Committee]

  22. House/ 2nd reading

  23. House/ comm rpt/ substituted [House Political Subdivisions Committee]

  24. House Comm - Favorable Recommendation [House Political Subdivisions Committee]

  25. House Comm - Substitute Recommendation [House Political Subdivisions Committee]

  26. LFA/ fiscal note publicly available for SB0196S02

  27. LFA/ fiscal note sent to sponsor for SB0196S02

  28. LFA/ bill sent to agencies for fiscal input for SB0196S02

  29. LFA/ bill assigned to staff for fiscal analysis for SB0196S02

  30. House/ to standing committee [House Political Subdivisions Committee]

  31. House/ 1st reading (Introduced)

  32. House/ received from Senate

  33. Senate/ to House

  34. Senate/ passed 3rd reading

  35. Senate/ 3rd reading

  36. Senate/ passed 2nd reading

  37. Senate/ 2nd reading

  38. Senate/ placed on 2nd Reading Calendar

  39. Senate/ comm rpt/ substituted/ amended [Senate Business and Labor Committee]

  40. Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]

  41. Senate Comm - Amendment Recommendation [Senate Business and Labor Committee]

  42. Senate Comm - Substitute Recommendation [Senate Business and Labor Committee]

  43. LFA/ fiscal note publicly available for SB0196S01

  44. LFA/ fiscal note sent to sponsor for SB0196S01

  45. Senate Comm - Not Considered [Senate Business and Labor Committee]

  46. LFA/ bill sent to agencies for fiscal input for SB0196S01

  47. LFA/ bill assigned to staff for fiscal analysis for SB0196S01

  48. Senate/ received fiscal note from Fiscal Analyst

  49. LFA/ fiscal note publicly available for SB0196

  50. Senate/ to standing committee [Senate Business and Labor Committee]

  51. LFA/ fiscal note sent to sponsor for SB0196

  52. Senate/ 1st reading (Introduced)

  53. Senate/ received bill from Legislative Research

  54. LFA/ bill sent to agencies for fiscal input for SB0196

  55. LFA/ bill assigned to staff for fiscal analysis for SB0196

  56. Numbered Bill Publicly Distributed

  57. Bill Numbered but not Distributed

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 102 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (102)

102 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

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Frequently asked questions

Who sponsors SB 196?
SB 196 is sponsored by R. Neil Walter (Republican) and Don L. Ipson (Republican).
What is the current status of SB 196?
This bill has been enacted into law. Introduced January 26, 2026. Enacted.
Where can I track SB 196?
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