Thursday, January 3, 2008

Who can record a Mechanic's Lien in Utah?

There are many individuals and businesses in Utah that are performing services or furnishing materials or equipment for the improvement and construction of real property that are unaware of their lien rights. The purpose of today’s entry is to help clarify who has the right to record a mechanic’s lien in Utah.

It has long been understood that the purpose of Utah’s mechanic’s lien statute is to protect those who have added directly to the value of property by performing labor or furnishing materials upon it. See Stanton Transp. Co. v. Davis, 341 P.2d 207 (Utah 1959).

With regards to who may record a lien, Utah’s Mechanic’s Lien Act is fairly clear. Section three of the Mechanic’s Lien Act explains that the following individuals may record a mechanic’s lien:

Contractors, subcontractors, and all persons performing any services or furnishing or renting any materials or equipment used in the construction, alteration, or improvement of any building or structure or improvement to any premises in like manner.

Utah Code § 38-1-3.

Now, for purposes of the Mechanic’s Lien Act, a contractor is “a person who does work or furnishes materials by contract, express or implied, with the owner.” Utah Code § 38-1-2. Any other person doing work on the property or furnishing materials to the property is considered a subcontractor. See id. A corporation, limited liability company, or similar business entity providing services or furnishing materials within the meaning of Utah’s Mechanic’s Lien Act has lien rights similar to those of an individual. See Doane v. Clinton, 2 Utah 417 (Utah 1877).

The statute also provides that “licensed architects, engineers, and artisans who have furnished designs, plats, plans, maps, specifications, drawings, estimates of cost, surveys or superintendence, or who have rendered other like professional service, or bestowed labor shall have a lien” on the property benefiting from their services. Utah Code § 38-1-3. One additional note concerning the rights of architects to record a mechanic’s lien: a qualified architect may record a lien even if his plans are not brought to fruition. Zions First Nat’l Bank v. Carlson, 464 P. 2d 387 (Utah 1970).

Remember that your lien rights are time sensitive. They are subject to the deadlines provided in the Mechanic’s Lien Act. As a matter of good practice, you will want to act promptly to exercise your lien right in order to preserve it.

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