Utah mechanics lien guide

Utah Mechanics Lien Guide

If contractors and suppliers are not compensated for their work on a construction project in Utah, they have the option to file a mechanics lien as a means to ensure payment. A mechanics lien grants the unpaid party a security interest in the property.

At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Utah Mechanics Lien and state-specific rules and regulations.

This page details the regulations, prerequisites, and deadlines to file a mechanic’s lien in Utah.

Utah mechanics lien

Key Takeaways

  • Broad Eligibility: A wide range of project participants, including contractors, subcontractors, and design professionals, can file mechanics liens in Utah, providing strong protection for securing payment.
  • Strict Deadlines: Adhering to specific filing deadlines for pre-construction and Utah construction liens is crucial for maintaining lien validity.
  • Legal Specifics: Understanding Utah’s legal requirements for lien waivers and the prohibition against waiving lien rights through contracts is essential for effective lien management.

Who Can File a Utah Mechanics Lien?

In Utah, a broad range of project participants, including contractors, subcontractors, and suppliers of labor, materials, and equipment (such as equipment lessors), are eligible for mechanics lien rights. These rights also cover certain pre-construction services like planning, design, and surveying. Unlike in some other states, even suppliers to suppliers in Utah can claim mechanics lien protection, provided the materials can be traced back to the specific project, and all notice requirements are met.

It is important to note that Utah recognizes two distinct types of liens based on the timing of the services provided: a Pre-Construction Lien and a Construction Lien. Additionally, entities that provide services to or in connection with the property but do not enhance its value or condition cannot avail themselves of mechanics lien rights.

When Is the Deadline to File a Utah Mechanics Lien?

The timeframe for filing a mechanics lien Utah varies based on the type of lien.

Parties seeking a Pre-Construction Lien for services rendered during the pre-construction phase must file a Notice of Pre-Construction Lien within 90 days after they complete their pre-construction services.

For those claiming a Construction Lien related to construction work, the Notice of Construction Lien must be filed within 90 days following the filing of a Notice of Completion or within 180 days after the completion of the original contract if no Notice of Completion is filed. There is some ambiguity about the validity of a Construction Lien filed after 180 days from the contract’s completion but within 90 days after a Notice of Completion is filed.

Where Should I File and Record My Utah Mechanics Lien?

mechanics lien utah

Utah mechanics lien claims must be recorded at the county recorder’s office where the construction project is physically located to be considered valid. Each county has its own specific rules and requirements for recording.

To assist you, we have compiled a list of all the county offices in Utah that handle the recording of mechanics lien claims here:

Can I Include Attorney’s Fees, Collection Costs, or Other Amounts in the Lien Total?

No, in Utah, the amount of a mechanics lien claim is restricted to the reasonable value of the labor and/or materials provided to improve the property. This limitation excludes other amounts like indirect or consequential damages. While lien claimants are entitled to recover reasonable attorney’s fees, costs, and interest, these can only be obtained through a successful foreclosure action and cannot be included as part of the lien.

Additionally, recent legislative changes in Utah have updated the mechanics lien law, particularly concerning unauthorized and excessive lien claims for preconstruction and construction projects. Anyone who records a lien that excessively claims more than the amount owed commits a class B misdemeanor and may be liable to pay twice the excess amount claimed or the actual damages incurred by the owner, original contractor, or subcontractor, whichever is greater.

The legislation also includes specific arbitration provisions for parties involved in residential projects who have agreed to arbitration and are disputing an excessive lien amount.

Is a Legal Property Description Required in the Utah Lien?

In Utah, both Pre-Construction Liens and Construction Liens necessitate a “description of the property, sufficient for identification.” This requirement generally means that the description should be clear enough to allow someone familiar with the area to locate and distinguish the property with reasonable certainty, excluding other properties.

When dealing with large parcels of land or properties with multiple buildings, the claimant must specify the exact location or identify the specific building the claim pertains to.

What Are the Rules for Lien Waivers?

notice of lien utah

Utah law requires that all parties involved in a construction project use specific lien waiver forms as defined by legislation. This requirement makes Utah one of only eleven states with such a mandate. If a contractor or owner requests the use of a lien waiver form that deviates from the statutory standard, that waiver will be considered invalid, potentially leading to legal issues for the contractor.

Additionally, Utah state law prohibits contractors and suppliers from waiving their right to file a mechanics lien through any contractual agreement.

Is a Utah Preliminary Notice Necessary?

Yes. For Pre-Construction Liens: All parties involved in providing pre-construction services must file a Notice of Preconstruction Services.

For Construction Liens: All parties must issue a preliminary notice before any lien claim can be considered valid. This notice typically needs to be given within 20 days of initially providing labor and/or materials to a construction project, and it must be filed through the State Construction Registry (SCR).

When Should a Utah Preliminary Notice Be Sent?

For Pre-Construction Liens: The preliminary notice, known as the Notice of Preconstruction Services, must be filed no later than 20 days after the commencement of preconstruction services.

For Construction Liens: The preliminary notice should be filed within 20 days from the start of the claimant’s provision of labor and/or materials to the project. However, this notice will not be valid if filed more than 10 days following a Notice of Completion.

5 Essential Things to Know About Utah Mechanics Liens

  1. Broad Lien Rights for Contractors and Suppliers: In Utah, contractors, subcontractors, and other project participants, including equipment lessors and design professionals, possess mechanics lien rights. This is applicable if they have provided services or materials that improve a property. Even suppliers to suppliers can assert lien rights, provided the materials can be traced back to the specific project.
  2. Types of Liens: Utah recognizes two primary types of mechanics liens: preconstruction liens and construction liens. The type of lien to file depends on the timing of the services provided.
  3. Filing Deadlines Differ Between Lien Types:
    • Preconstruction services providers, such as architects, must file a Notice of Preconstruction Lien within 90 days from the last provision of their services or materials.
    • For construction services, a Notice of Construction Lien must be filed within 90 days from the last service date or within 180 days following the completion of the original contract. If a Notice of Completion is filed, the deadline is 90 days after its filing. There’s some debate over the validity of a construction lien filed after the 180-day period but within 90 days of a Notice of Completion.
  4. Preliminary Notice Requirements: All lien claimants must file a preliminary notice at the State Construction Registry.
    • For a preconstruction lien, a Notice of Preconstruction Services must be filed within 20 days of starting preconstruction work.
    • The preliminary notice should be sent for construction liens within 20 days of beginning labor or material provision.
    • Note: No preliminary notice can be filed later than 10 days after a Notice of Completion. Missing the 20-day deadline for a preconstruction lien results in losing lien rights. For construction liens, rights begin 5 days before the notice date if filed late.
  5. Recording and Notifying the Property Owner: Both lien types must be recorded at the county recorder’s office where the property is situated. After recording, the claimant has 30 days to notify the property owner via certified mail, ensuring receipt.

Additional Considerations:

  • Bankruptcy Impact: Action must be taken on a lien within 180 days of filing. If the property owner declares bankruptcy, this window reduces to 90 days. Additionally, a lis pendens must be recorded at the county where the lien was filed to maintain the claimant’s legal standing.

Understanding these elements ensures compliance with Utah’s specific legal framework for mechanics liens, protecting the rights of those involved in construction and preconstruction activities.

How Do I File a Mechanics Lien in Utah?

utah mechanics lien law

Filing a mechanics lien in Utah is a critical step for construction professionals seeking payment for their services. This guide provides a detailed walkthrough of the process, ensuring compliance with Utah mechanics lien law.

Step 1: Choosing the Right Type of Mechanics Lien

Utah recognizes two types of mechanics liens: Construction Services Liens and Preconstruction Services Liens. The appropriate lien depends on the timing of the services provided. Construction liens are typically filed for labor and materials provided during the construction phase, while preconstruction liens cover planning and design services provided before construction starts.

Step 2: Preparing Your Utah Lien Claim

Preparation is key to ensuring your lien is valid. Start by obtaining the correct Utah mechanics lien form, which is critical as it must meet specific information and formatting requirements to be valid.

Key Components of the Lien Form:

Claimant Information: Include full name and address. If filing on behalf of a company, including the company’s registered name.

Property Owner Information: This may require research if not readily available. Include all potential owners or tenants involved.

Hiring Party: Detail the name and address of your direct client.

Property Description: A simple address may not suffice; a more detailed legal description is often required.

Labor & Materials Provided: Provide a summary of the services and materials supplied.

Dates of Furnishing: Note the start and completion dates of service.

Lien Amount: Reflect only the reasonable value of services/materials provided.

Lien Recovery Notice: Specific language is required for owner-occupied residential properties.

Signature & Notarization: The lien must be signed in the presence of a notary.

Step 3: Filing Your Utah Mechanics Lien

The timing and location of filing your lien are crucial. For construction liens, the deadline is 180 days after completing your contract or 90 days following a Notice of Completion by the property owner. Preconstruction liens must be filed within 90 days after the last provided service.

Where to File: File at the county recorder’s office where the property is located. Be familiar with specific county requirements and fees.

How to File: In-Person or Mail: Bring or send multiple copies for filing.

Electronic Filing: Some counties may offer this option for convenience.

Step 4: Serve Notice to the Property Owner

Once filed, a copy of the lien must be delivered to the property owner within 30 days. This can be done personally or by mail. Proper notice ensures you can recover costs and attorney fees if enforcement becomes necessary.

What to Do Next?

Enforcement Action: If payment is not received, you may need to initiate legal action within 180 days of filing the lien.

Release the Claim: Once paid, promptly release the lien to avoid penalties.

Enforcement Tips: Consider sending a Notice of Intent to Foreclose to encourage payment before taking legal action. This step often motivates settlement before reaching court.

Release Protocol: Upon payment, promptly file a Utah Mechanics Lien Release Form, especially if requested by the property owner. Delays can lead to fines and liability for damages.

This guide aims to streamline your mechanics’ lien process in Utah, ensuring you take all necessary steps to secure and enforce your payment rights effectively.

Get in Touch

Navigating the complexities of mechanics liens in Utah can be a daunting task for contractors and suppliers. Ensuring timely payment for services rendered on construction projects requires a deep understanding of Utah construction lien law, deadlines, and filing procedures.

At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.

We would love to work with you and help you lower your risk and get paid fast!

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