How to file a property lien in utah
The property is sold in the same manner as a mortgage foreclosure , subject to the right of redemption. If the sale proceeds are insufficient to pay the lien claimant, the lien claimant may be out of luck. However, in addition to recovering from the sale proceeds of the property, the lien claimant can seek payment from the party who hired it through a breach-of-contract claim. Usually this secondary, alternative breach-of-contract claim is included in the lien foreclosure lawsuit. The above steps provide a basic overview of the construction lien process, but each lien claim is unique, and there are many laws and facts beyond this general explanation that each lien claimant should consider.
It is always wise to consult with a construction lien attorney. If you are enforcing or defending against a construction lien, I am happy to help. I offer a free consultation.
My direct dial is Joseph G. This author hasn't yet written their biography. The preconstruction lien in Utah applies to all types of services that are performed before actual construction begins, while the traditional construction lien — also officially known as the Mechanics Lien for Construction Services — applies to all work that is done during construction. A Utah mechanics lien must be filed for all claims that concern labor, materials, equipment, and other services that are furnished to the project during construction.
While the requirements for both preconstruction lien and traditional construction lien are pretty much the same, it is very important that you choose to record the correct type of lien. Recording the wrong lien may result in your claim to be nullified by the court.
If a payment deadline has passed and payment issues have come up, you are entitled to exercise your lien rights. Keep in mind that your right to file a mechanics lien is contingent on your filing of a preliminary notice, so do not ever skip the Step 1. If you are filing a mechanics lien against an owner-occupied residence, your mechanics lien must include the following statement:.
The application is available at www. Note that the statement above must be in substantially the same format and it must appear prominently in your Utah mechanics lien form. Failing to include such statements may nullify your lien claim. Yes, a Utah mechanics lien must be notarized and must come with an acknowledgement document or a notarial certification upon filing.
If your mechanics lien is Utah is not notarized, it is not entitled to be recorded in the office of the county recorder. There are two important dates to keep in mind in filing your Utah mechanics lien, and your deadline depends on whichever is the earlier of the two. The two possible deadlines are as follows:. Note that the day window starts when the Notice of Completion is filed in the SCR, and if you are registered as a participant in a certain project, you will receive a notification that this completion notice has been filed.
This means that the cost you will claim must be limited to construction-related amounts, be it for labor, materials or rentals. Also note that the amount stated in the original contract may be a good benchmark for determining the claimable amount, but this is not necessarily accurate. Changes and additional billable tasks may have occurred during the project. Use your best judgment to ensure that you are claiming a reasonable amount.
A judgment lien is one way to ensure that the person who won the judgment the creditor gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property.
So how do judgment liens work in Utah? Read on to understand the rules. In every state, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables.
To attach the lien, the creditor records the judgment in the office of the county recorder in any Utah county where the debtor owns property now or may own property in the future. A judgment lien in Utah will remain attached to the debtor's property even if the property changes hands for eight years. Keep in mind: In Utah, a creditor's ability to collect under a judgment lien will be affected by a number of factors -- including a fixed amount of value that won't be touchable if the property is the debtor's primary residence called a homestead exemption , other liens that may be in place, and any foreclosure or bankruptcy proceedings.
If things get complicated, you may want to talk with an experienced Utah bankruptcy and debt attorney to help you sort out any lien issues. If you want to go right to the source and look up Utah laws on judgment liens -- maybe you're a party to a judgment, or you're just researching potential encumbrances on property -- the relevant statute s can be found at Utah Code Ann.
Sections 78B to , 78A This section will help you find the right form, and get it ready for filing. Have no fear, we have you covered. Under Utah law, a construction services lien must contain the following information. Failure to provide all the required info or making a mistake when filling in the form can result in an invalid and unenforceable lien.
This means your full name and address. If you are filing on behalf of a company, be sure to include the full, registered business name. This section is seemingly simple but can get complicated rather quickly. To further complicate matters, there may be more than one owner put down both. The work may have been commissioned by a tenant add owner and tenant info.
So when in doubt, put as much information as you can. Fill out the name and address of the person who hired you to the construction project; i. All of the relevant information should be found in your contract documents.
If you were hired by the property owner, just repeat the same info in this section. If you can get the legal property description go for it. This is a pretty straightforward section. But be sure to provide enough information to identify what the lien claim is based on. Furnishing is merely providing labor or materials to the project. Be sure to fill out when the date you first started working on the project and the last.
Be careful with this one, exaggerating your lien amount can lead to some serious consequences. Do not include any collection costs, interest, or attorney fees. If the lien is against an owner-occupied, residential property there is specific notice language required which describes the steps the owner must take to remove the lien.
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