Utah Condo Due Diligence Checklist

Where Utah due diligence deserves the most attention

Legal Framework

Condominiums: Governed by the Utah Condominium Ownership Act, Utah Code Title 57, Chapter 8 (§§57-8-1 et seq.). It applies to any project where a declaration and record of survey map are recorded to create units and common areas/facilities. It governs reserves (§57-8-7.5), insurance (§57-8-43), records/meetings (§§57-8-17, 57-8-57), liens and foreclosure (§§57-8-44 through 57-8-49), and registration (§57-8-13.1).

Reserve Studies and Reserve Funding

Condominiums — §57-8-7.5: The management committee shall cause a reserve analysis to be conducted no less frequently than every 6 years, and review/update it no less frequently than every 3 years.; Planned communities — §57-8a-211: Same cadence (conduct ≥ every 6 years; review/update ≥ every 3 years), and the board must maintain a reserve fund separate from other association funds.; Study exists but funding is low / vetoed: The presence of a study makes underfunding *visible* — compare the study's recommended annual contribution to the actual budget line…

Structural Inspections and Building Safety

Utah has no statewide milestone/façade/balcony inspection mandate for condos (no analog to Florida SB-4D, California SB-326/SB-721, or NYC Local Law 11). Building safety is governed by the Utah State Construction Code (Title 15A), based on the 2021 International Building Code (IBC), enforced at construction/permit time by local building departments.

Insurance Requirements and Insurance-Market Risk

Property (master) policy: The association must carry blanket property insurance or guaranteed-replacement-cost coverage at 100% replacement cost on the physical structures (common areas and, depending on documents, unit structures).; Deductible allocation (notable Utah rule): A unit owner whose unit suffers damage in a covered loss is responsible for a share of the master-policy deductible equal to the "unit damage percentage" applied to the deductible.

Resale Disclosures and Buyer Cancellation Rights

Utah does not impose a single uniform "resale certificate" statute as detailed as some states, but it layers several disclosure duties:

Assessments, Special Assessments, and Borrowing

`special_assessment_pending` – Special assessment approved/proposed, not in current budget.; `reserve_veto_history` – Owners vetoed the reserve line item (links to future special-assessment risk).; `late_fee_exceeds_cap` – Late-fee policy exceeds HB 217 cap (greater of 10% or $50 + 1.5%/mo).; `transfer_or_reinvestment_fee` – Transfer/reinvestment fee present (verify HB 217 compliance/notice).