38-1-7 - Notice of claim -- Contents -- Recording -- Service on owner of property.
38-1-7. Notice of claim -- Contents -- Recording -- Service on owner of property.
(1) (a) (i) Except as modified in Section 38-1-27, a person claiming benefits under thischapter shall file for record with the county recorder of the county in which the property, or somepart of the property, is situated, a written notice to hold and claim a lien no later than:
(A) 180 days after the day on which occurs final completion of the original contract if nonotice of completion is filed under Section 38-1-33; or
(B) 90 days after the day on which a notice of completion is filed under Section 38-1-33but not later than the time frame established in Subsection (1)(a)(i)(A).
(ii) For purposes of this Subsection (1), final completion of the original contract, and forpurposes of Section 38-1-33, final completion of the project, means:
(A) if as a result of work performed under the original contract a permanent certificate ofoccupancy is required for the work, the date of issuance of a permanent certificate of occupancyby the local government entity having jurisdiction over the construction project;
(B) if no certificate of occupancy is required by the local government entity havingjurisdiction over the construction project, but as a result of the work performed under the originalcontract an inspection is required as per state-adopted building codes for the work, the date of thefinal inspection for the work by the local government entity having jurisdiction over theconstruction project;
(C) if with regard to work performed under the original contract no certificate ofoccupancy and no final inspection are required as per state-adopted building codes by the localgovernment entity having jurisdiction over the construction project, the date on which thereremains no substantial work to be completed to finish the work on the original contract; or
(D) if as a result of termination of the original contract prior to the completion of thework defined by the original contract, the compliance agency does not issue a certificate ofoccupancy or final inspection, the last date on which substantial work was performed under theoriginal contract.
(b) Notwithstanding Section 38-1-2, where a subcontractor performs substantial workafter the applicable dates established by Subsections (1)(a)(ii)(A) and (B), that subcontractor'ssubcontract shall be considered an original contract for the sole purpose of determining:
(i) the subcontractor's time frame to file a notice of intent to hold and claim a lien underthis Subsection (1); and
(ii) the original contractor's time frame to file a notice of intent to hold and claim a lienunder this Subsection (1) for that subcontractor's work.
(c) For purposes of this chapter, the term "substantial work" does not include:
(i) repair work; or
(ii) warranty work.
(d) Notwithstanding Subsection (1)(a)(ii)(C), final completion of the original contractdoes not occur if work remains to be completed for which the owner is holding payment toensure completion of that work.
(2) (a) The notice required by Subsection (1) shall contain a statement setting forth:
(i) the name of the reputed owner if known or, if not known, the name of the recordowner;
(ii) the name of the person:
(A) by whom the lien claimant was employed; or
(B) to whom the lien claimant furnished the equipment or material;
(iii) the time when:
(A) the first and last labor or service was performed; or
(B) the first and last equipment or material was furnished;
(iv) a description of the property, sufficient for identification;
(v) the name, current address, and current phone number of the lien claimant;
(vi) the amount of the lien claim;
(vii) the signature of the lien claimant or the lien claimant's authorized agent;
(viii) an acknowledgment or certificate as required under Title 57, Chapter 3, Recordingof Documents; and
(ix) if the lien is on an owner-occupied residence, as defined in Section 38-11-102, astatement describing what steps an owner, as defined in Section 38-11-102, may take to require alien claimant to remove the lien in accordance with Section 38-11-107.
(b) Substantial compliance with the requirements of this chapter is sufficient to hold andclaim a lien.
(3) (a) Within 30 days after filing the notice of lien, the lien claimant shall deliver or mailby certified mail a copy of the notice of lien to:
(i) the reputed owner of the real property; or
(ii) the record owner of the real property.
(b) If the record owner's current address is not readily available to the lien claimant, thecopy of the claim may be mailed to the last-known address of the record owner, using the namesand addresses appearing on the last completed real property assessment rolls of the county wherethe affected property is located.
(c) Failure to deliver or mail the notice of lien to the reputed owner or record ownerprecludes the lien claimant from an award of costs and attorneys' fees against the reputed owneror record owner in an action to enforce the lien.
(4) The Division of Occupational and Professional Licensing shall make rules governingthe form of the statement required under Subsection (2)(a)(ix).
Amended by Chapter 50, 2009 General Session