2 customers are months past due. And I already warned them.about a lien. Can i just send the lien letter instead of intent? And in a case where the house has been sold. Can i still.put a lien. It was like a flip house sort of thing.
Filing a mechanics lien after the project property is sold
Generally, mechanics lien rights run with the property that's been improved rather than with a particular person or company. Meaning, lien claimants will typically have the right to lien property they've improved even if the property is sold to a new owner during or immediately after the project. Of course, some states - including Utah - have laws on the books that complicate this situation a bit.
Further discussion here: What Happens If I Filed My Mechanics Lien After the Property Was Sold?
Utah and the Residential Lien Restriction and Lien Recovery Fund Act
Utah has some very confusing requirements regarding mechanics lien rights created by the Residence Lien Restriction and Lien Recovery Fund Act. On residential property when that property is occupied by the party who owns it, there are strict requirements regarding the ability to file an enforceable mechanics lien. But, in order for those requirements to come into play, the property must be occupied by the owner of that property.
Further, while the same protections may carry through to the purchaser of a property, those protections would only be available to the extent that they were available to the prior owner. So, if the prior owner didn't occupy the property, which is common among those who flip properties, then the Act seemingly wouldn't provide additional protection.
So, it would appear that Utah projects initiated by someone other than an owner who occupies the property may follow the general rule - that lien rights run with the land and may be applicable to purchasers.