57-1-33.1 - Reconveyance of a trust deed -- Erroneous reconveyance. - Utah Statutes

57-1-33.1. Reconveyance of a trust deed -- Erroneous reconveyance.
(1) (a) When an obligation secured by a trust deed has been satisfied, the trustee shall,upon written request by the beneficiary, reconvey the trust property.
(b) At the time the beneficiary requests a reconveyance under Subsection (1)(a), thebeneficiary shall deliver to the trustee or the trustee's successor in interest the trust deed and thenote or other evidence that the obligation securing the trust deed has been satisfied.
(2) The reconveyance under Subsection (1) may designate the grantee as "the person orpersons entitled thereto."
(3) If a reconveyance is erroneously recorded by a beneficiary, the effect of thereconveyance may be nullified and the trust deed reinstated by the recording of a correctiveaffidavit executed by the then current beneficiary describing the trust deed and setting forth thefact of the erroneous reconveyance. Upon the recording of a corrective affidavit or similarinstrument, the trust deed has the same priority as it did prior to the erroneous reconveyance. However, any lien or interest that was recorded or attached to the trust deed property between thetime of the recording of the erroneous reconveyance and the recording of the corrective affidavitor similar instrument has priority over the reinstated trust deed, unless the lien or interest wasrecorded or attached with actual knowledge that the trust deed had been reconveyed erroneously.

Amended by Chapter 236, 2001 General Session