Construction and Collection Attorney

blog on construction, bond claims, mechanic's liens, collection issues, construction claims, change orders, commercial litigation. Focus on Utah law

Tuesday, November 13, 2007

Notice to the Owner of the Property

Utah Code section 38-1-9 states that the Notice of Lien filed with the county recorder will serve as notice to all persons that a lien has been claimed. Utah Code Ann. § 38-1-9 (Lexis 2005). This notice is deemed to be effective as of the date of the filing whether it gives actual notice of the lien or not.

This notice is effective even against the owner of the property. However, Utah Code section 38-1-7 states that:
(3) (a) Within 30 days after filing the notice of lien, the lien claimant shall deliver or mail by certified mail to 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, the copy of the claim may be mailed to the last-known address of the record owner, using the names and addresses appearing on the last completed real property assessment rolls of the county where the affected property is located.
(c) Failure to deliver or mail the notice of lien to the reputed owner or record owner precludes the lien claimant from an award of costs and attorneys’ fees against the reputed owner or record owner in an action to enforce the lien. Id. § 7(3).

While the validity of the lien is not affected by failure to comply with this section, there is a substantial loss of opportunity connected with failure to furnish the owner a copy of the notice of lien. That is to say, the claimant will have to absorb its own attorney’s fees and costs, even if the claimant successfully prosecutes the claim.

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