UT SB0196

Expands the definition of "wrongful lien" to include notices of transfer fee covenants that purport to create or continue a transfer fee covenant when the covenant is unenforceable due to foreclosure of a priority trust deed/mortgage, absence of required recorded notice, or existence of recorded termination documents

Declares that any notice of transfer fee covenant meeting the new wrongful lien definition is automatically invalid

Relieves county recorders from the obligation to determine whether a notice of transfer fee covenant constitutes a wrongful lien when processing recordings

Makes technical amendments to Utah Code Sections 38-9-102, 57-1-46, and 57-1-47, including replacing "of competent jurisdiction" with "with jurisdiction" and removing the word "certain" before references to real property

Takes effect on May 6, 2026