2014 Lien Law Update
Posted on Apr. 21, 2014

The Utah Legislature almost annually modifies the preconstruction and construction lien laws (aka “mechanics’ liens”) in some fashion. 2014 was no exception, but there are few substantive changes.

House Bill 42, which will be effective May 14, 2014, amends Utah Code section 38-1a-503 and the priority of construction liens. Before, construction lenders desiring priority who recorded a mortgage or trust deed after work commenced would need to obtain withdrawals of those preliminary notices filed with the State Construction Registry prior to the recording. Lenders found this difficult, as some claimants either refused to withdraw their preliminary notices or could not be contacted. Under House Bill 42, construction lenders automatically gain priority over claimants with preliminary notices filed prior to the recording of the mortgage or trust deed if each claimant receives full payment for all construction work the claimant performed before the mortgage or trust deed was recorded. It does not matter if the claimant receives full payment before or after the day on which the mortgage or trust deed is recorded.

As always, consultation with a construction attorney is strongly encouraged for any lien filing or review of lien rights.

 

Construction Law
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About Adam

Adam
Attorney Adam T. Mow

Adam is a trusted resource for architects, engineers and other members of the construction industry in litigation, risk management, contract negotiations and mechanics’ liens. Adam is also a licensed architect and a past president of the Utah chapter of the American Institute of Architects. He has been elected by his peers to the Utah Legal Elite since 2009.

Awards and Recognition

AV Rating

Excellence in the Study of Architecture, American Institute of Architects Certificate of Merit, 1999

CALI Award for Excellence in Mediation and Advanced Negotiation, 2003

Community Mediator of the Year, Utah Dispute Resolution, 2007

Graduate of the Last Decade, Ball State University, 2008

Utah Business Magazine, Legal Elite, 2009-Present

Mountain States Rising Stars (Construction Litigation), 2009-Present