HB 503 Utah House · 2026 General Session

Real Estate Modifications

HB 503 modifies Utah's title insurance regulations by updating definitions and creating revenue-based capital requirements for companies with affiliated business arrangements. It defines "affiliated business" as title insurance revenue from referral relationships and sets increasing annual revenue thresholds (starting at 0.5% in 2020-2021 and rising to 4.5% by 2028-2029) that trigger capital reserve requirements. Title insurance companies must maintain sufficient capital - ranging from $50,000 to 5% of average annual revenue (capped at $150,000) - based on their revenue concentration from affiliated sources. This bill directly affects Utah-licensed title insurance companies, particularly those with referral-based business models, and takes effect May 6, 2026.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 5, 2026 Last action Mar 7, 2026

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What changed between versions

Introduced → Substitute #1 · 6 edits

MODERATE

The bill shifted from focusing on real estate escrow procedures and title insurance producer requirements to regulating affiliated business arrangements in title insurance. The new version introduces RESPA compliance frameworks based on revenue concentration, modifies definitions related to affiliated businesses, and establishes escalating capital requirements for title entities based on their revenue and affiliation status.

Scope change

The bill's scope changed from primarily governing escrow procedures and title insurance producer business practices to regulating affiliated business arrangements and RESPA compliance for title insurance entities.

SCOPE

Removed provisions related to attorney opinion letters, escrow deposit requirements, and specific escrow handling procedures that were in the original version.

Changed the bill's focus from escrow procedures to affiliated business arrangements and RESPA compliance, with provisions based on revenue concentration thresholds.

DEFINITION

Added new definitions including 'affiliated business', 'affiliated business arrangement', 'applicable percentage', 'associate', 'essential function', 'new or newly affiliated title entity', and 'title evidence'.

Modified the Utah Code sections affected from 31A-23a-406 to 31A-23a-1001 and 31A-23a-1003, changing the legal basis of the regulation.

REQUIREMENT

Introduced escalating capital and net worth requirements for title entities based on whether they are new affiliates or existing entities, with amounts increasing annually from 2020 through 2029.

TIMELINE

Removed the effective date provision that set the bill to take effect on May 6, 2026.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2026

Lower · Passed

House/ comm rpt/ sent to Rules [House Rules Committee]

lower

Mar 4, 2026

Lower · Passed

House Comm - Recommends Returned to Rules [House Judiciary Committee]

lower

Feb 19, 2026

Lower · Passed

House Comm - Held [House Judiciary Committee]

lower

Feb 12, 2026

Committee

House/ to standing committee [House Judiciary Committee]

lower

Feb 5, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 0 co-sponsors