Blog Layout

Utah Real Estate: Property Boundary Disputes

By Benjamin T. Beasley

Ben Beasley is a partner at the law firm of Freeman Lovell. His practice is focused on business, finance, and real estate law. He received his juris doctor degree from Harvard Law School. 

Contact Ben at benjamin.beasley@freemanlovell.com.

Utah real estate use and ownership are often in transition, and as properties change owners and use, neighboring property owners may disagree as to the location of boundaries between parcels, what easements exist and how they work, and how roadways are set up. Items that may have been used as de facto boundaries, such as fence lines, creeks, canals, or even grass types, often don’t follow the property boundaries set out in deeds and surveys filed with county records.​


Because of this, boundary disputes are common in Utah. Without good legal assistance, these disagreements often escalate quickly and lead to unnecessary conflicts and litigation. These issues can be made more problematic due to the unusual nature of property descriptions, as it is difficult to clearly understand metes and bounds descriptions and visualize how the written language in a document matches the reality on the ground.


Often, lot owners do not pay attention to the legal documents filed with the county until the property is sold, passed down to heirs, or the use of the land is changed. Agricultural land may be subdivided to create a neighborhood of homes, or existing residential homes may be remodeled or replaced for commercial use. Changes in ownership or use typically require a review of the property by the new owner, a lender, a developer, or the local zoning office, and this can bring to light issues that were not known, sometimes for decades. Unexpectedly, adjoining property owners may have competing claims for a piece of property. 


Whether a fence line, boundary marker, driveway, or other items must be moved or changed depends on the facts of the case. Further, a developer may be required to comply with local laws and codes, such as setback requirements, roadways, easements, and access. Legal doctrines such as adverse possession and boundary by agreement may affect who currently has rights, and can even change the legal ownership of the land to be different from that set forth in recorded documents. 


Reviewing Your Property Rights 


Rights to real estate in Utah normally arise via documents recorded with the country recorder for the county in which the property in located, and those are the first place to start when questions arise. A property owner is granted rights by a deed, normally a warranty deed, a special warranty deed, or a quit claim deed. The rights to real estate go through the chain of deeds back through time to the original land grant, normally by the government. In Utah, many of these grants were done in the 1800s, although governmental land grants and sales still take place today. A property owner with questions should first pull his or her deed(s) from the county recorder and review the rights and property granted. Metes and bounds are tricky, but in more recent developments, a legal description may be to a plat map. 


A plat map is a recorded survey map of the parcel(s), such as a subdivision map showing all of the parcels in the subdivision. This should be on file with the county recorder, and it sets forth many of the rights and restrictions for the plats that it shows. A close reading of a plat map often shows the metes and bounds of the parcels, utility easements, public and private roadways, restrictions on the use of the property (such as for residential purposes only), rights of way, and other rights and restrictions of the property. 


One key type of documentation to be aware of is an easement. These can be in plat maps or deeds or can be their own document. An easement gives another party a right to use the property in some way, such as giving a utility company the right to place utility lines or pipes on the property or giving a neighbor the right to use a driveway to cross the land and access their property. Many different types of easements exist, and their specific obligations and rights are normally set forth in the recorded document.  

 

Other documents exist that may affect property rights. A good title company can help provide these documents and ensure that the property rights and obligations are clear, while a good surveyor can create a depiction showing where the recorded property lines are. Review of the documentation, with perhaps title and survey information, as well as pertinent legal doctrines and issues, can help resolve boundary disagreements and problems of all types.​


Enlist a Utah Real Estate Attorney


​Our deep knowledge of Utah real estate law can help you with all aspects of your real estate needs. Whether you are seeking to buy, sell, develop, or research real property in Utah, or have a dispute with another person or entity, we are available to discuss your options and answer your questions at an initial free, thirty-minute consultation. Call us at (801) 477-6838 for a free consultation. You can also email Ben at benjamin.beasley@freemanlovell.com, fill out a contact form below, or set up an appointment to meet at our offices. We look forward to helping you.

28 Dec, 2023
In a couple of months, a new rule will take effect, requiring all registered legal entities to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). We wanted to give you a heads up about the rule and give you as much information about what it means to you. What is the rule? The rule, which is called the Beneficial Ownership Information Reporting Requirements (BOI Rule), comes from the Corporate Transparency Act, which was passed by Congress in 2021. This law created the BOI Rule with FinCEN as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other deceitful ownership structures. Under this new law, FinCEN will permit Federal, State, and local officials to obtain ownership information for authorized activities related to national security, law enforcement, and intelligence. When does the rule take effect? And when do I have to submit a report? The BOI Rule takes effect on January 1, 2024 . If your company existed before January 1, 2024, you must file its initial beneficial ownership information report by January 1, 2025. If your company is formed or registered after January 1, 2024, you must file its initial beneficial ownership information report within 30 days after receiving actual or public notice that its creation or registration is effective. If any beneficial ownership information changes, you will have 30 days from the day of the change to file an updated or corrected report with FinCEN. What do I need to include in the report? The BOI Rule requires that all entities report information about the company, each individual with substantial control over the entity, and each beneficial owner. What information is required to report about the entity? Full legal name of your company and any DBAs names; Complete current street address for your company's principal place of business (P.O. boxes will not be accepted); The jurisdiction of formation or registration; and Tax identification: IRS tax identification number (TIN) and employer identification number (EIN). What information is required to report about the controlling individuals and beneficial owners? The individual's legal name; Individual's date of birth; Individual's residential address; and A unique identifying number from an acceptable identification document (such as an unexpired driver's license, passport, identification document issued by a State or local government or Indian tribe.) and the name of the issuing state or jurisdiction. Who is considered to have substantial control of the entity? Examples of an individual that exercises substantial control over the entity are: An individual is a senior officer (President, CEO, CFO, COO, Manager, or other office who performs a similar function); An individual has the authority to appoint or remove certain officers or a majority of directors of the reporting company; An individual is an important decision-maker for the company; or An individual has any other form of substantial control over the company. Who is considered a beneficial owner? A beneficial owner is an individual that owns or controls at least 25% of the entity’s ownership interests. This includes individuals that indirectly own or control 25% of the ownership interest. For example, if Joe is a 50% owner of Parent LLC, which in turn owns 50% of Subsidiary Corp, then Joe beneficially owns 25% of Subsidiary Corp (50% of 50% = 25%). What type of entities will be required to file a report with FinCEN? All domestically formed entities and foreign registered entities in the USA are required to file a report. Types of entities include corporations, limited liability companies, limited partnerships, general partnerships, and any other entity registered with a state Secretary of State or Division of Corporations or other similar office. There are some types of companies that are exempt from the reporting rule, and in general they are companies that already have to report beneficial ownership to another federal agency. The 23 exemptions listed by FinCEN are: Securities reporting issuer, Governmental authority, Bank, Credit union, Depository institution holding company, Money services business, Broker or dealer in securities, Securities exchange or clearing agency, Securities exchange or clearing agency, Other Exchange Act registered entity, Investment company or investment adviser, Venture capital fund adviser, Insurance company, State-licensed insurance producer, Commodity Exchange Act registered entity, Accounting firm, Public utility, Financial market utility, Pooled investment vehicle, Tax-exempt entity, Entity assisting a tax-exempt entity, Large operating company, Subsidiary of certain exempt entities, and Inactive entity. Now what do I do to comply with the BOI Rule? While you are not able to submit the beneficial ownership information report until January 1, 2024, you should use this time to gather information about your company, owners, and other entities now, so you can timely file your report. We added a small BOI Rule cheat sheet for you to keep and reference. Also, you can read FinCEN’s FAQ page about the BOI Rule https://www.fincen.gov/boi-faqs . Can you help me with my company’s report? Yes! We are happy to help prepare and file your company’s BOI Rule report with FinCEN. We can begin to gather and prepare the information for your filing right away and be ready once the BOI Rule takes effect January 1, 2024. To get started, please reach out to us. We also know that some situations can be complicated, so please feel free to ask us any questions regarding compliance with the beneficial ownership interest reporting requirements for your company.
By Josh Freeman 06 Apr, 2023
10-Point Checklist for a Successful and Compliant Reg D Private Securities Offering
By Patrick Stubblefield 15 Feb, 2023
The membership program represents a critical step forward in creating a more equitable and trustworthy NIL landscape for college athletes...
Share by: