Is our current lein valid?
UtahWe filed a mechanics lein in Utah through Levelset. We were told it is not valid because we did not file a pre-lein first before beginning construction. Is that true? There is still work that we are under contract to complete on the house. Can we release the existing lein, file a pre lein and then file the lein again since construction is not yet complete? Also, what is the time frame after filling a lein that you need to send a notice of foreclosure?
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Utah Law requires a preliminary notice (sometimes referred to a a pre-lien) as a pre-requisite to recording a coconstruction lien. See Utah Code 38-1a-501(a) ("A person who desires to claim a construction lien on real property shall file a preliminary notice with the registry no later than 20 days after the day on which the person commences providing construction work on the real property. ") A contractor who misses that deadline can still file a preliminary notice for future work; but it is not retroactive and will only apply for work performed 5 days after the (late) preliminary notice is filed. (See Utah Code 38-1a-501(a)).
Recording a lien without a preliminary notice can result in penalties to a contractor, especially if the owner asks that it be removed and the contractor fails to do so. You should discuss your options with an attorney.
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