contracts, automatically renewing (service)
Utah law requires two main things for a "service contract" to be able to automatically renew ("service contract" means a contract for service, maintenance, or repair: (i) in connection with real property; or (ii) that provides a benefit to the real property):
- Between 30 to 90 days (not more or less) before the deadline to terminate the contract, the person providing service under the contract must provide the HOA written notice that informs the HOA of the automatic renewal provision in the contract. That notice must be in writing and must be given personally, by certified mail, or prominently displayed on the first page of a monthly statement. This applies to regular "consumers," which the law specifically says includes HOAs, no matter when the contract was entered into (but only applies to contracts with a "business consumer" signed on or after July 1, 2011).
- A contract signed on or after July 1, 2011, with a renewal period of more than 12 months (e.g., 24 months, 5 years), must prominently display notice of the automatic renewal provision on the first page of the contract.
See Service Contracts Act, Utah Code Title 15, Chapter 10 (link below).
Statutes and Cases:
(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)