Utah Mechanic's Lien Law and State Construction Registry

Are you familiar with the mechanic's lien laws in Utah and all of its changes? I took a continuing education class that was invaluable to me concerning these changes. We have encountered many instances where our local builders were not familiar with the new laws

Previously, the claimant had 180 days to record their lien, and then could pursue a Lis Pendens against the property. With the new laws that went into effect, there were many changes, and I will only list a summary of some of those changes. Further, more detailed information, and copies of forms, can be found at: http://scr.utah.gov/.

Below are brief and abbreviated sections of HB0136 Section 38-1-31 thru 38-1-33, which are in no way intended to summarize everything in those sections.

• When a building permit is issued, within 15 days, the government entity issuing the permit shall cause to be filed a Notice of Commencement for the project. If a building permit is not issued, the original contractor, owner of construction, lender, surety, or other interested party may file a Notice of Commencement with the designated agent, also within 15 days. After which...(The Notice of Commencement, essentially starts the clock ticking by 'taking away lien rights'.)
• Within 20 days after commencement of its own work or the commencement of furnishing materials or equipment to a construction project, a Preliminary Notice shall be filed. There are penalties if this is not done within the 20 day period. (The Preliminary Notice 'reinstates lien rights'. Therefore, if this notice is not filed, or not filed timely, the lien claimant may not be able to collect against their recorded liens; they will be left to pursue a civil judgment in a court of law.)
• The Preliminary Notice must be filed before a Notice of Lien may be filed with the County Recorder. Only one notice for each project by each 'person' is required.
• Upon final completion of a project, an owner of a construction project, original contractor, a lender that has provided financing, or a surety that has provided bonding may file a Notice of Completion.
• There is required verbiage that must be

"Failure to file a Preliminary Notice within the 20-day period required...precludes a subcontractor or supplier from filing any claim for compensation earned for performance of work or supply of materials or equipment furnished to the construction project before the expiration of five days after the filing of the Preliminary Notice, except as against the person with whom the subcontractor or supplier contracted."

The three hour class I took was offerred by the Utah Division of Occupational and Professional Licensing. For more information conerning their class, you can send an email to: scr@utah.gov. So far there has not been a charge for the class-they only have required advance registration.