Monday, July 9, 2012

Filing a Utah Mechanic's Lien

Know Your Utah Lien Laws Before Filing

Preliminary Notices: As is the case in most states, meeting preliminary lien requirements can determine the validity of you final lien document.  However, unlike most states, Utah requires that the preliminary notice be filed with the register of deeds.  This notice does not need to be filed by prime contractors.  It is a required step for lower tier claimants.  Luckily, Utah make it easy to complete this step.  Preliens, Bond Claims, and Liens can be filed statewide, instantly online.  Once filed, you can even scan a unique barcode with your smartphone to have the filed document emailed directly to you.

Lien Filing: The lien must be filed within 90 days of final completion.  Completion is defined as the day when no substantial work is unfinished, or when a certificate of occupancy is issued.

Action must be taken within 180 days after filing.  Once this deadline has passed, the lien will expire.

Bond Claims: Unfortunately Utah does not offer a public lien option.  The alternative is to file a bond claim. While there is no strict timeline for the filing of this document, it is best to begin the filing process as soon as possible.  In order to properly file a bond claim, all claimants must first file a preliminary notice.  This notice can be filed online and will secure your rights once you decide to file your claim.  Once the bond claim is filed, action must be taken within 90 days.

Knowing preliminary requirements can be the difference between filing an invalid document, and filing a valid lien.  Luckily Utah is one of the few states that streamlines this process by giving all potential claimants the ability to file anywhere at any time.

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