- September 10, 2003
- All Issuing Offices in Utah
- Judgment Lien Amendment effective July 1, 2002
This Bulletin supplements Bulletin UT000018 in light of recent statutory changes, which amends U.C.A. §78-22-1.5 relating to Judgments recorded in the Registry of Judgments.
JUDGMENTS AFFECTING REAL PROPERTY
In 2002, the Utah Legislature attempted to address problems arising from the failure of the Registry of Judgments to achieve the desired results of effectively standardizing the filing and record system of the consolidated court system. H.B. 305 (Judgment Lien Amendment) was enacted with an effective date of
State agencies are exempt from requirement that judgments must be recorded with the county recorder for a lien against real property to be created.
COMPANY POLICY: If a Judgment recorded after
If a Judgment is entered between
Either party to an action affecting the title to, or the right of possession of, real property may record a Notice of Lis Pendens with the recorder of the county in which the property or some part thereof is situated. U.C.A. §78-40-2. A lis pendens is effective from the time of filing such notice for record and gives notice to all interested parties of a possible interest in the property. Since a lis pendens is not a lien, the Judgment Lien Amendment does not apply to a Notice of Lis Pendens.
COMPANY POLICY. If a Lis Pendens appears in the record, the examiner must continue to look at the underlying court file to determine the exact nature of the interest in property. After determining the nature of the underlying action, the examiner must also obtain a termination of the action or Stipulation. Do not rely solely on a Release of a Lis Pendens. Contract your local underwriter if you have questions regarding additional requirements or removal of any lis pendens effecting title to property.
DIVORCE DECREES AND EQUITABLE ORDERS
COMPANY POLICY: If you are aware of a pending divorce of an owner, always review the divorce and, where necessary, require a release or deed from the other spouse to remove such record interest or lien as may be provided for in the Decree. It is helpful if such deeds or releases contain recitals referring to the applicable provisions of the divorce decree. A lien created by such a divorce decree should be considered to be a lien without a termination or self-releasing date. In the event that such an interest or lien is not being removed, a proper exception should be made in Schedule B.
IF YOU HAVE ANY QUESTIONS REGARDING THE ISSUES RAISED BY THIS BULLETIN, PLEASE CONTACT YOUR LOCAL UNDERWRITING PERSONNEL.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.