Understanding Construction Liens

A construction lien (also called a mechanic’s lien) is a powerful tool for contractors, subcontractors, and suppliers in Utah who haven’t been paid for their work. This legal right allows them to seek payment by placing a claim against the property they worked on. While few lien claims result in a forced sale of property, the threat of a lien is often enough to secure payment. However, strict rules must be followed, or lien rights can be lost.

The Five Key Steps to a Utah Construction Lien

1. File a Preliminary Notice

  • File a preliminary notice online with the Utah State Construction Registry.

  • This step notifies everyone of a potential lien claim.

  • Must be filed within 20 days of starting work. If filed late, the lien only covers work done 5 days after filing.

  • Skipping this step often means losing the right to a lien.

2. Record a Notice of Construction Lien

  • File a notice of construction lien with the county recorder where the work was performed.

  • Timing is crucial: file within 180 days after final completion of the original contract, or within 90 days after a notice of completion is filed—whichever comes first.

  • Missing this deadline forfeits the lien claim.

3. File a Foreclosure Lawsuit and Record a Lis Pendens

  • If not paid, file a foreclosure lawsuit in court and record a lis pendens (a notice of pending legal action) with the county recorder within 180 days of recording the lien.

  • The lis pendens warns potential buyers that the property is subject to a lien.

  • Failure to meet this deadline results in loss of lien rights.

4. Prevail in the Lien Foreclosure Lawsuit

  • To enforce the lien, win the lawsuit in court. This process can be lengthy and costly.

  • If successful, the court allows the sale of the property to pay the debt.

  • The winner is usually entitled to attorney fees and interest.

5. Sell the Property

  • After a court order, the property is sold (like a mortgage foreclosure), subject to the right of redemption.

  • If the sale doesn’t cover the debt, the claimant may seek payment from the party who hired them through a breach-of-contract claim, often included in the lawsuit.

Important Reminders

  • Each step has strict deadlines and requirements. Missing any step can mean losing your lien rights.

  • Construction lien laws are complex and every situation is unique. Consulting a construction lien attorney is strongly recommended.

Need Help?

If you’re dealing with a construction lien—whether enforcing or defending—legal guidance can help you navigate the process and protect your rights.

Sign up for our free newsletter.
Table of content
Related articles