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Can we file a mechanics lien when it turns out to be the tenant that signed our work auth?

We find three scenarios that keep coming up. 1st when it is a single family home and we assume it is the owner. When when we file the Preliminary notice we find out that the person who signed the documents is not the owner. 2nd when there are multiple units but it is a condo type scenario and we think we are dealing with the owner of the property 3rd when the tenant called us out and we know we are working for the tenant or it is obvious it is an apartment complex. If we have completed the Preliminary Notice with in the 20 days of starting the job and no one steps up to pay the bill can we file the mechanics lien and will it more than likely go through? Thank you

1 reply

Mar 2, 2020

Generally, when hired by a tenant, rather than the property owner, mechanics lien rights won't arise against the owner's interest unless there's some additional involvement from the owner. For example, if an owner required their tenant to improve the property, then it's possible that the owner's interest would be lienable. However, if a tenant has decided to undertake an improvement all on their own, then the owner's interest would likely not be lienable. Still, even if lien rights against the owner aren't available, it may be possible to place a lien on the tenant's interest in the property (i.e. their lease). Further discussion on there, here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement? In looking at Utah's mechanics lien statute, it doesn't seem like there's anything in the statute that points toward a claimant being able to lien the owner's interest for a project where the owner hasn't authorized the work being done. So, it may make sense to assume that the general rule, described above, will apply. As for work on condominium units, that operates a bit differently from ordinary tenant or apartment jobs. Generally, condominiums are owned individually. Meaning, each unit itself is specifically owned by someone - often the resident. This differs from apartments where one party owns the whole building and the residents lease the units. So, when hired by a condominium owner, lien rights should exist against a condominium unit just like any other project when hired directly by the owner of that property.

Additional Utah mechanics lien resources

For more information on how best to utilize Utah mechanics liens, these resources should be valuable: - Utah Mechanics Lien Guide and FAQs - How to File a Mechanics Lien in Utah – Step by Step Guide Walkthrough

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