38-1a-503.  Relation back and priority of liens.

(1)  A construction lien relates back to, and takes effect as of, the time of the first preliminary notice filing.

contract signature

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Terms Used In Utah Code 38-1a-503

  • Claimant: means a person entitled to claim a preconstruction or construction lien. See Utah Code 38-1a-102
  • Construction lien: means a lien under this chapter for construction work. See Utah Code 38-1a-102
  • Construction project: means an improvement that is constructed pursuant to an original contract. See Utah Code 38-1a-102
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • First preliminary notice filing: means a preliminary notice that:
(a) is the earliest preliminary notice filed on a construction project for which the preliminary notice is filed;
(b) is filed on a construction project that, at the time the preliminary notice is filed, has not reached final completion; and
(c) is not canceled under Section 38-1a-307. See Utah Code 38-1a-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
    • (2) 

    (a)  Subject to Subsection (2)(b), a construction lien has priority over:

    (i)  any lien, mortgage, or other encumbrance that attaches after the first preliminary notice filing; and

    (ii)  any lien, mortgage, or other encumbrance of which the claimant had no notice and which was unrecorded at the time of the first preliminary notice filing.

    (b)  A recorded mortgage or trust deed that secures a construction loan attaches immediately before the first preliminary notice filing for the construction project if each claimant that has a preliminary notice on file on the construction project before the mortgage or trust deed was recorded receives full payment for all construction work the claimant performed before the mortgage or trust deed was recorded, regardless of whether the claimant receives full payment before or after the day on which the mortgage or trust deed is recorded.

    Amended by Chapter 293, 2014 General Session

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