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Mechanic's liens in Utah.(CONSTRUCTION CORNER)(Law overview)

Business Credit

| May 01, 2006 | Robinson, Jason H.; Mow, Adam T. | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

In Utah, a mechanic's lien is an involuntary encumbrance against the title to real property. This encumbrance serves as security for a debt incurred while improving the encumbered property. Thus, the right to file a mechanic's lien arises when a person or company furnishes labor, materials, equipment and/or certain professional services that improve the property.

Perhaps the best way to illustrate how Utah's mechanic's lien law works is by hypothetical example. Suppose Contractor agrees to build a building for Owner. The building is satisfactorily completed, but Owner does not pay Contractor in full. During the construction period, and for a limited time ...

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Source: HighBeam Research, Mechanic's liens in Utah.(CONSTRUCTION CORNER)(Law overview)

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