State Codes and Statutes

Statutes > Utah > Title-57 > Chapter-01 > 57-1-21-5

57-1-21.5. Trustees of trust deeds -- Duties -- Prohibited conduct -- Penalties.
(1) Except as provided in Subsection (2), the following duties of the trustee may not bedelegated:
(a) the preparation and execution of:
(i) the notice of default and election to sell;
(ii) the cancellation of notice of default and election to sell;
(iii) the notice of sale; and
(iv) the trustee's deed;
(b) the notification of foreclosure through publication, posting, and certified or registeredmail;
(c) the receiving and responding to requests for reinstatement or payoff requirements;and
(d) the handling of reinstatement or payoff funds.
(2) Nothing in this section is intended to prevent:
(a) the trustee from using clerical or office staff:
(i) that is under the trustee's direct and immediate supervision; and
(ii) to assist in the duties described in Subsection (1);
(b) the trustee from using the services of others for publication, posting, marketing, oradvertising the sale; or
(c) a beneficiary of a trust deed or the servicing agent of the beneficiary from directlyperforming the functions described in:
(i) Subsection (1)(c); or
(ii) Subsection (1)(d).
(3) The amendments in Laws of Utah 2002, Chapter 209, to Subsection (2) do not applyto a foreclosure if the notice of default related to the foreclosure was filed before May 6, 2002.
(4) (a) Except as provided in Subsection (4)(c), a trustee may not solicit or receive anyfee for referring business to a third party.
(b) Fees prohibited under Subsection (4)(a) include:
(i) a commission;
(ii) a referral based fee, including a fee for the referral of:
(A) title work;
(B) posting services; or
(C) publishing services; or
(iii) a fee similar to a fee described in Subsection (4)(b)(i) or (ii).
(c) Subsection (4)(a) does not apply to:
(i) fees received by a trustee for the trustee acting as co-legal counsel, if the trustee isotherwise permitted by law to receive fees as co-legal counsel; or
(ii) a nonpreferred participation in net profits based upon an ownership interest orfranchise relationship that is not otherwise prohibited by law.
(5) A trustee may not require the following to pay any costs that exceed the actual costsincurred by the trustee:
(a) a trustor reinstating or paying off a loan; or
(b) a beneficiary acquiring property through foreclosure.
(6) (a) A person that violates Subsection (4) or (5) is guilty of a class B misdemeanor.
(b) In addition to a person's liability under Subsection (6)(a), if a person violates

Subsection (4) or (5), that person is liable to the trustor for an amount equal to the greater of:
(i) the actual damages of the trustor as a result of the violation; or
(ii) $1,000.
(c) In an action brought under Subsection (6)(b), the party that does not prevail in theaction that is brought under Subsection (6)(b) shall pay the attorney fees of the prevailing party.

Amended by Chapter 250, 2008 General Session