UNDERWRITING Q&A: How do I clear a recorded Notice of Interest as a Requirement on my PR?

A.  Notices of Interest were originally designed to put parties dealing with real property on notice of a claim to the property by a party who might not appear in the chain of title, such as a purchaser buying through an unrecorded installment land contract or a tenant with a right to purchase the property under an unrecorded lease. In a lot of cases the Notice of Interest is cleared by the party who recorded the Notice coming into title to the property.  To be valid, the Notice of Interest must include the legal description of the property and must state the nature of the claim against the property.  For Notices of Interest recorded after May 5, 2008, the Utah Wrongful Lien Act, U.C.A. 38-9-101, et seq., provides a remedy for property owners who feel that a Notice of Interest has been wrongfully recorded against their property.  A certified copy of a court order extinguishing the Notice of Interest can be recorded to clear it.  Unfortunately, there is no specific statute of limitation that extinguishes a Notice of Interest.  The age of the Notice of Interest will certainly be taken into consideration.  Other statutes of limitation may be considered, such as the statute of limitation to bring an action to enforce a contract. 

Always feel free to consult your FNTI underwriting counsel for questions involving a Notice of Interest.