38-1-11 - Enforcement -- Time for -- Lis pendens -- Action for debt not affected -- Instructions and form affidavit and motion.
38-1-11. Enforcement -- Time for -- Lis pendens -- Action for debt not affected --Instructions and form affidavit and motion.
(1) As used in this section:
(a) "Owner" is as defined in Section 38-11-102.
(b) "Residence" is as defined in Section 38-11-102.
(2) A lien claimant shall file an action to enforce the lien filed under this chapter:
(a) except as provided in Subsection (2)(b), within 180 days after the day on which thelien claimant filed a notice of claim under Section 38-1-7; or
(b) if an owner files for protection under the bankruptcy laws of the United States beforethe expiration of the 180-day period under Subsection (2)(a), within 90 days after the automaticstay under the bankruptcy proceeding is lifted or expires.
(3) (a) Within the time period provided for filing in Subsection (2) the lien claimant shallfile for record with the county recorder of each county in which the lien is recorded a notice ofthe pendency of the action, in the manner provided in actions affecting the title or right topossession of real property, or the lien shall be void, except as to persons who have been madeparties to the action and persons having actual knowledge of the commencement of the action.
(b) The burden of proof is upon the lien claimant and those claiming under the lienclaimant to show actual knowledge under Subsection (3)(a).
(4) (a) A lien filed under this chapter is automatically and immediately void if an actionto enforce the lien is not filed within the time required by this section.
(b) Notwithstanding Section 78B-2-111, a court has no subject matter jurisdiction toadjudicate a lien that becomes void under Subsection (4)(a).
(5) This section may not be interpreted to impair or affect the right of any person towhom a debt may be due for any work done or materials furnished to maintain a personal actionto recover the debt.
(6) (a) If a lien claimant files an action to enforce a lien filed under this chapter involvinga residence, the lien claimant shall include with the service of the complaint on the owner of theresidence:
(i) instructions to the owner of the residence relating to the owner's rights under Title 38,Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act; and
(ii) a form to enable the owner of the residence to specify the grounds upon which theowner may exercise available rights under Title 38, Chapter 11, Residence Lien Restriction andLien Recovery Fund Act.
(b) The instructions and form required by Subsection (6)(a) shall meet the requirementsestablished by rule by the Division of Occupational and Professional Licensing in accordancewith Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c) If a lien claimant fails to provide to the owner of the residence the instructions andform required by Subsection (6)(a), the lien claimant shall be barred from maintaining orenforcing the lien upon the residence.
(d) Judicial determination of the rights and liabilities of the owner of the residence underthis chapter and Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act,and Title 14, Chapter 2, Private Contracts, shall be stayed until after the owner is given areasonable period of time to establish compliance with Subsections 38-11-204(4)(a) and (4)(b)through an informal proceeding, as set forth in Title 63G, Chapter 4, Administrative ProceduresAct, commenced within 30 days of the owner being served summons in the foreclosure action, at
the Division of Occupational and Professional Licensing and obtain a certificate of compliance ordenial of certificate of compliance, as defined in Section 38-11-102.
(e) An owner applying for a certificate of compliance under Subsection (6)(d) shall sendby certified mail to all lien claimants:
(i) a copy of the application for a certificate of compliance; and
(ii) all materials filed in connection with the application.
(f) The Division of Occupational and Professional Licensing shall notify all lienclaimants listed in an owner's application for a certificate of compliance under Subsection (6)(d)of the issuance or denial of a certificate of compliance.
(7) The written notice requirement applies to liens filed on or after July 1, 2004.
Amended by Chapter 31, 2010 General Session