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The Lien Recovery Fund is a great source of payment for subcontractors and suppliers of construction materials on residential property. It is also a great source for homeowners that are forced to deal with mechanic’s liens.

Construction Material Supplier or Subcontractor Seeking Payment for Construction Services/Materials
The Lien Recovery Fund is a great source of payment for contractors and materials suppliers in Utah. If you contracted with someone other than the homeowner and that person is unable/unwilling to pay, then make sure you preserve your Lien Recovery Fund claim by commencing a lawsuit against the person/company that did not pay you (even if the person/company is out of business). If you are prevented from commencing the lawsuit because the person/company is in bankruptcy, then you can still make a claim. Absent bankruptcy, you must make sure the lawsuit is filed within the earlier of 180 days from the date you recorded a mechanic’s lien or 270 days from the date that the project was completed. A project is generally considered complete when the certificate of occupancy is issued.

Residential Property Owners Dealing with Mechanics Lien Claims
A property owner that can show that he/she entered into a written contract with a licensed contractor and paid that contractor in full for work done on a single family home or a duplex can generally obtain release of any mechanic’s lien recorded against the home by following the administrative process provided by the Residence Lien Restriction and Lien Recovery Fund.

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