UT Underwriting Summary

Search/Exam

• Minimum Search Requirements -- Reasonable Search and that has made a determination of insurability to title under sound underwriting principles. Utah Code Ann. § 31A-20-110.– Marketable Title Act is 40 years
• Evidence of the title search must be retained for no less than 15 years after the policy has been issued.
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches --
• Foreclosure Checklist --
• Special Searches Required (Code, HOA, Utilities)? --
• Survey Requirements --
• UPL Hot Button Issues --

UPL

• title agent issuing a title insurance policy may perform escrow related matters including the closing, disbursement, recording, and preparation of documents or other matters relating to escrow. See Utah Code Ann. § 31A-23a-406, See also Utah Insurance Department, Bulletin 2007-05.
• A person licensed to practice law in Utah is exempt from being licensed and is not subject to the requirements contained in Utah Code Ann. § 31-23a-204 if the attorney issues 12 or less policies in any 12 month period. The attorney, however, must maintain a separate trust account. See Utah Code Ann. § 31A-23a-204(7) and (8).

Vesting

Recognizes Joint Tenancy and Tenancy in common

• subsequent to May 5, 1997 any ownership interest granted to two people who are designated as husband and wife ”is presumed to be a joint tenancy interest with rights of survivorship. 57-1-5(1)(a)
• joint tenancy may be established between two or more people. But not with a corporation; a trustee of a trust; or a partnership. or between multiple entities and organizations.
• Specific Phrasing Required for Joint Tenancies
  • Use of words "joint tenancy" or "with rights of survivorship" or "and to the survivor of them" or words of similar import means a joint tenancy.
  • Use of words "tenancy in common" or "with no rights of survivorship" or "undivided interest" or words of similar import declare a tenancy in common.
  • Use of words "and/or" in the context of an ownership interest declare a tenancy in common unless accompanied by joint tenancy language described in Subsection (2)(a), which creates a joint tenancy.
• Unities
  • May create joint tenancy by direct transfer without use of a Straw man 57-1-5(3)
  • Conveyance of joint property severs tenancy and converts joint tenancy into a tenancy in common. If more than one one joint tenant remains after a joint tenant severs a joint tenancy, the remaining joint tenants continue to hold their interest in joint tenancy
• Statute recognizes conveyance into Tenancy by Entireties and Community Property as creating joint tenancy. 57-1-5(7) & (8)
• Utah allows termination of joint tenancy, tenancy by entirety (recognized as joint tenancy), term of years, life estate or conditional interests by recorded affidavit. 57-1-5.1. Specific form of affidavit required for terminations as the result of death.
• After acquired title, other than by quit claim deed, passes automatically upon acquisition of title. 57-1-10

Witness Requirements

No witnesses required. A certificate of acknowledgement, proof of execution, jurat or other notarial certificate that is signed and certified by the officer taking the acknowledgment entitles the document to be recorded. Utah Code Ann. § 57-3-103.

Spousal Joinder Requirements/Homestead

• A non-title spouse does not have to join in the execution of a deed or security instrument, unless a homestead declaration has been recorded pursuant to Utah Code Ann. § 78-23-4

Instrument Requirements

Statutory suggested forms

• Warranty Deed
• Special Warranty Deed
• Quit Claim Deed
• Mortgage
• Trust deeds are governed by 57-1-20 through 57-1-36:
• Reconveyance when done by title agent after payment
• Partial Reconveyance

Who May Serve As Trustee On Deed Of Trust

• Deed of trust is the customary security instrument. Mortgages permitted but not common.
• A trustee must be
  • an active member of the Utah State Bar who maintains a place within the state
  • a bank, savings and loan association, savings bank, industrial bank, credit union,
  • an insurance company authorized to do business and actually doing business in Utah,
  • a corporation authorized to conduct a trust business and actually conducting a trust business in Utah or
  • a title insurance company or agency that holds a certificate of authority or license Under Title 31A of the Utah Insurance Code that has a bona fide office in the state and is actually doing business in the state. See Utah Code Ann. § 57-1-21.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 8 years
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens --
• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- lien must be filed w/i 90 days after a "valid" Ntc of Compl./180 days if "invalid" or no Ntc. Of Compl. / Action to foreclose must be commenced in 180 days after filing lien U.C.38-1a-502 & 38-1a-701
• Financing Statements --
• Mortgages --
• HOA Liens --
• Condominium assessments --
• Child Support Liens –

Odd Stuff

• A Utah policy must be issued by a title insurance producer who is a resident of Utah through a bona fide branch office in Utah under the direction and control of the title insurer that pays all the expenses of the branch office or through a subsidiary title insurer authorized to do business in Utah. See Utah Code Ann. § 31A-14-211.
• Utah has specific requirements for title insurance producers to be licensed, maintain bonds and to pay to certain reserve funds. See Utah Code Ann. § 31A-23a-204.
• A person licensed to practice law in Utah is exempt from being licensed and is not subject to the requirements contained in Utah Code Ann. § 31-23a-204 if the attorney issues 12 or less policies in any 12 month period. The attorney, however, must maintain a separate trust account. See Utah Code Ann. § 31A-23a-204(7) and (8).
• Only the title agent issuing a title insurance policy may perform escrow related matters including the closing, disbursement, recording, and preparation of documents or other matters relating to escrow. See Utah Code Ann. § 31A-23a-406, See also Utah Insurance Department, Bulletin 2007-05.
• It is customary to charge a cancellation fee for a cancelled commitment. The charge for a cancelled commitment is established by each title agent.
• Reconveyance by Insurer:
  • A title insurer or agent may reconvey a trust deed or release a mortgage if the obligation secured by trust deed or mortgage has been fully paid by the insurer or agent or if the insurer or agent has satisfactory evidence of the full payment of the obligation secured by the deed of trust or mortgage. See Utah Code Ann. § 57-1-40.
  • The title insurer or agent must deliver a notice of intent to release or reconvey to the beneficiary, mortgagee or servicer together with a copy of the proposed reconveyance or release. The contents of the notice are described in Utah Code Ann. § 57-1-40(4).
  • 60 day objection period after notice of intent to release or reconvey, The contents of the reconveyance of the deed of trust or the release of mortgage in Utah Code Ann. § 57-1-40(4).
• Usury – The parties to a lawful contract may agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action that is the subject of their contract. Utah Code Ann. § 15-1-1