Utah Preliminary Notice

Introduction

Key Things to Know

1. 1

   The Utah clock is 20 days from the day on which the person commences providing construction work on the real property, and what you do inside it is file rather than serve. Section 38-1a-501(1)(a) directs the preliminary notice to the registry, not to the owner, the original contractor or the construction lender.

2. 2

   The registry is the State Construction Registry, which Section 38-1a-201 has the Division of Professional Licensing establish and maintain as a central repository for all required notices, overseen by the division with the assistance of a designated agent it contracts with.

3. 3

   Filing late does not end the matter but it is expensive twice over. Subsection (1)(c)(ii) bars a late filer from claiming a lien for construction work provided before the date that is five days after the preliminary notice is filed.

4. 4

   Subsection (1)(d) is the hardest cut-off and it is not a reduction: a preliminary notice has no effect if it is filed more than 10 days after the filing of a notice of completion under Section 38-1a-507 for that project. Watch the registry, not just your own calendar.

5. 5

   Seven items are mandatory under Subsection (1)(h), and the seventh is a choice of four project identifiers: the tax parcel identification number of each parcel, the entry number of a previously filed notice of construction loan, the entry number of a previously filed preliminary notice covering each parcel, or the entry number of the building permit.

6. 6

   The burden of proving substantial compliance is on the filer, with one clean safe harbor in Subsection (2)(b): a notice that links within the registry to the original contractor's preliminary notice for the same project, using that notice's entry number, IS substantial compliance.

7. 7

   One notice covers one construction project under Subsection (3)(a), and it is effective for all work you provide under a single original contract even across several supervisory subcontractors. Work under more than one original contract needs the requirements met for each.

Utah Requirements for Preliminary Notice

• Twenty Days From Commencing Construction Work

  Section 38-1a-501(1)(a) requires a person who desires to claim a construction lien to 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. The trigger is your own first day of construction work on that property.

• The Recipient Is the State Construction Registry, Not the Owner

  Nothing is mailed to the owner, the original contractor or the construction lender. Section 38-1a-201(1) has the Division of Professional Licensing establish and maintain the State Construction Registry as a central repository for all required notices, overseen by the division with the assistance of a designated agent. The registry notifies subscribing interested persons at up to three email addresses each.

• A Late Filing Costs the Past Plus Five Days

  Subsection (1)(c) permits a late filing, and Subsection (1)(c)(ii) then bars the late filer from claiming a construction lien for construction work provided to the project before the date that is five days after the preliminary notice is filed. Subsection (1)(e) is blunter for a claimant who never files: that person may not claim a construction lien.

• A Notice of Completion Can Void the Notice Entirely

  Subsection (1)(d) provides that a preliminary notice has no effect if it is filed more than 10 days after the filing of a notice of completion under section 38-1a-507 for that construction project. This is a nullity rather than a reduction, and it can close the window before the 20 days have run, so check the registry for a notice of completion as well as your own dates.

• Seven Mandatory Items, With a Four-Way Project Identifier

  Subsection (1)(h) requires the claimant's name, address, telephone number and email address; the name and address of the party that contracted with the claimant; the record or reputed owner's name; the original contractor's name; the project property address or a description of its location; the county; and one project identifier, being each parcel's tax parcel identification number, the entry number of a previously filed notice of construction loan, the entry number of a previously filed preliminary notice covering each parcel, or the building permit entry number.

• File Electronically or by Alternate Means, and Keep the Receipt

  Section 38-1a-201(1)(d) and (1)(e) require the registry to allow filing and review by way of an Internet website and to accommodate filing by alternate means, including United States mail, telefax, or another method the division provides by rule. Subsection (1)(g) requires printable electronic receipts evidencing the date, time and content of a filing. Under section 38-1a-501(4), an alternate-means filer must verify and correct wrong information before the period expires.

• The Filer Carries the Substantial Compliance Burden, With a Safe Harbor

  Section 38-1a-501(2)(a) puts the burden on the person filing to prove substantial compliance. Subsection (2)(b) supplies the safe harbor: a notice that links, within the registry, to a preliminary notice filed by an original contractor for the same project, using that notice's entry number, is substantial compliance. Subsection (2)(c) allows reasonable reliance on registry information from a previously filed notice of construction loan, preliminary notice or building permit for the owner, contractor, location, county and identifier items.

• Exemptions Live in the Government Project Section

  Section 38-1a-501 names no exempt class for private work: the duty falls on any person who desires to claim a construction lien. Section 38-1b-202(1)(a) excepts, on government projects, a person who has a contract with an owner or an owner-builder and a laborer compensated with wages, while Subsection (1)(b) withholds that exception from a temporary labor service company or organization, a professional employer company or organization, and any other entity that provides labor. Attorney review is available before relying on an exemption.