Page 48 - State Law Summary of Mechanic's Lien Law

Utah UT

What is the statutory authority? What is the period of enforcement of a filed mechanic’s lien?
U.C.A. 1953 § 38-1a-101 et. seq. A claimant must file an action to enforce a preconstruction lien or construction
lien within 180 days after the date on which the claimant files a notice of a
What is the Attachment Date of the Mechanic’s Lien? preconstruction lien under U.C.A. §38-1a-402 or a notice of construction lien under
Liens attach as of the date of the first preliminary notice filing by any claimant U.C.A. §38-1a-502.
with the Utah State Construction Registry. U.C.A. § 38-1a-503(1).
If the property owner files bankruptcy within the 180 day period, the lien claimant
What constitutes visible commencement of construction? has 90 days after the automatic stay in the bankruptcy is lifted or expires to file an
There is no visible commencement rule in Utah. action to enforce its lien. U.C.A. §38-1a-701(2)

What is the priority of the insured construction mortgage/ Is there a procedure to bond over the mechanic’s lien(s)?
deed of trust? Yes. The owner of any interest in a project property that is subject to a recorded
A permanent or construction loan recorded before the first preliminary notice is preconstruction or construction lien, or any original contractor or subcontractor
filed with the Registry has priority over mechanic’s liens. U.C.A.§ 38-1a-503(2)(a)(i). affected by the lien, who disputes the correctness or validity of the lien may submit
To preserve priority, after recording the mortgage or trust deed, the construction for recording a notice of release of lien and substitution of alternate security. See
lender must promptly file a notice of construction loan with the Registry. U.C.A. § U.C.A. § 38-1a-804 for specifics.
38-1a-601(1).
Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
If priority of the insured mortgage/deed of trust is lost, is there a Yes.
statutory procedure to regain priority?
Yes. With respect to deeds of trust, generally, a construction lien takes effect at the
time of the first preliminary notice. A trust deed, however, will have priority over
any preliminary notice and corresponding construction lien filed before the trust
deed if each claimant that has a preliminary notice on file for the construction
project before the mortgage or trust deed was recorded receives full payment
for all construction work the claimant performed before the mortgage or trust
deed was recorded, regardless of whether the claimant receives full payment
before or after the day on which the mortgage or trust deed is recorded. U.C.A.
§ 38-1a-503(b).

Thus, it is common practice for contractor(s) (i.e., claimant(s)) that have filed with
the Registry to be paid in full for all work they performed before the deed of trust
is recorded and for the title company and lender to obtain proof of payment and
lien waivers from said claimant(s) stating they were paid in full prior to recording
the deed of trust.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A person who desires to claim a construction lien on real property shall file a
preliminary notice with the Registry no later than 20 days after the day on which
the person commences providing construction work on the real property. U.C.A. §
38-1a-501(1)(a). See U.C.A. § 38-1a-501 for specifics.

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