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Can I write my own mechanic Lien with the service provider?

Can I write the terms of the mechanic lien? Example A contractor has agreed to put in the improvements for residential lots on my land and not get paid till a home is built and closed. I would like to put in the Lien No interest No due date before 15 years.

1 reply

Dec 4, 2019

I think there may be a little confusion here about how mechanics liens operate, and how they're different from lien claims made voluntarily. Mechanics liens are an involuntary security interest, and mechanics lien rights arise automatically - regardless of whether an owner agrees. And, because mechanics liens arise out of statute and not out of any agreement, a claimant or an owner can't set the terms of the lien. If you're looking to create a lien against the property as the result of an agreement with the owner, that'd be done separately from any mechanics lien requirements. And, an owner and their contractor could probably draw up the documentation for such a lien themselves - though, there may be certain associated requirements, so it'd be wise to have that done through an attorney.

Deadline for Utah mechanics liens and limitation on lien amounts

In Utah, a mechanics lien claimant can file their lien claim within 90 days of the filing of a Notice of Completion. If no Notice of Completion is filed, the deadline is 180 days from the completion of the project. Once that lien is filed, there's another deadline to consider - the lien enforcement deadline. Utah mechanics lien claimants will have 180 days from the date when their lien was filed to file a lawsuit to enforce their lien claim. Otherwise, the lien will expire and will no longer be enforceable. Finally, regarding interest - mechanics liens may not include interest amounts. Rather, they're limited to the amount that's owed for the work that's been performed. Due to the very short timeframes involved in the Utah mechanics lien process, and due to the fact that interest cannot be included in Utah mechanics lien claims, mechanics liens are not a very practical financing mechanism. They're better used as they're intended - for construction payment disputes.

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