closing
Reinvestment Fee (Utah)
A reinvestment fee is a charge many Utah community associations impose when a home transfers. For covenants recorded on or after March 16, 2010, it may not exceed 0.5% of the property's value (0.25% for qualifying low-amenity associations under covenants recorded on or after May 6, 2026), except in large master-planned developments. A notice must be recorded, and no fee may be collected on involuntary, court-ordered, family, or death transfers. Separately, HOA payoff information fees are capped at $50.
- Exam tip
- The 0.5% reinvestment-fee cap and the $50 payoff-fee cap are the numbers most likely tested; '1%' is a tempting distractor.
- Example
- A $450,000 townhome under 2015 CC&Rs can be charged a reinvestment fee of no more than $2,250.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23