Prior to 1994, Utah homeowners were sometimes left paying the same construction bills twice when their contractor would abscond with money given to them for payment to suppliers and subcontractors. In response to this problem, Utah passed the Lien Recovery Act to protect homeowners. This Act protects homeowners, assuming they follow certain requirements, from mechanical liens or civil judgments from anyone that provided services or materials for the construction of their home. In addition, the Act creates a lien recovery fund that reimburses parties that were precluded from obtaining a civil judgment or lien against the homeowner.
Understanding this Act and the lien recovery fund is important for any licensed contractor in the state. BTJD has an experienced construction litigation group that can help you understand the nuances and navigate the contours of the Act. We assist clients in receiving payment from the lien recovery fund, registering for the fund, and mitigating the effects for failing to comply with the Act. We understand the difficulties of the construction industry and our attorneys are focused on resolving our client’s disputes.