<?xml version="1.0" encoding="ISO-8859-1"?><section number="38-11-107"><histories><history>Amended by Chapter <modchap sess="2012GS">278</modchap>, 2012 General Session</history><modyear>2012</modyear></histories><catchline>Restrictions upon maintaining a lien against residence or owner's interest in the residence.</catchline><subsection number="38-11-107(1)"><subsection number="38-11-107(1)(a)">
A person qualified to file a lien upon an owner-occupied residence and the real property associated with that residence under <xref depth="1" refnumber="38-1a" start="1">Chapter 1a, Preconstruction and Construction Liens</xref>, who provides qualified services under an agreement, other than directly with the owner, is barred from maintaining a lien upon that residence and real property or recovering a judgment in any civil action against the owner or the owner-occupied residence to recover money owed for qualified services provided by that person if:<subsection number="38-11-107(1)(a)(i)">
an owner meets the conditions described in Subsections <xref depth="4" refnumber="38-11-204(4)(a)" start="0">38-11-204(4)(a)</xref> and <xref depth="4" refnumber="38-11-204(4)(b)" start="0">(b)</xref>; or</subsection><subsection number="38-11-107(1)(a)(ii)"><subsection number="38-11-107(1)(a)(ii)(A)">
a subsequent owner purchases a residence from an owner;</subsection><subsection number="38-11-107(1)(a)(ii)(B)">
the subsequent owner who purchased the residence under Subsection <xref depth="4" refnumber="38-11-107(1)(a)(ii)(A)" start="0">(1)(a)(ii)(A)</xref> occupies the residence as a primary or secondary residence within 180 days from the date of transfer or the residence is occupied by the subsequent owner's tenant or lessee as a primary or secondary residence within 180 days from the date of transfer; and</subsection><subsection number="38-11-107(1)(a)(ii)(C)">
the owner from whom the subsequent owner purchased the residence met the conditions described in Subsections <xref depth="4" refnumber="38-11-204(4)(a)" start="0">38-11-204(4)(a)</xref> and <xref depth="4" refnumber="38-11-204(4)(b)" start="0">(b)</xref>.</subsection></subsection></subsection><subsection number="38-11-107(1)(b)"><subsection number="38-11-107(1)(b)(i)">
As used in this Subsection <xref depth="4" refnumber="38-11-107(1)(b)" start="0">(1)(b)</xref>:
<subsection number="38-11-107(1)(b)(i)(A)">
"Contract residence":<subsection number="38-11-107(1)(b)(i)(A)(I)">
means the owner-occupied residence for which a subcontractor provides service, labor, or materials; and</subsection><subsection number="38-11-107(1)(b)(i)(A)(II)">
includes the real property associated with that owner-occupied residence.</subsection></subsection><subsection number="38-11-107(1)(b)(i)(B)">
"General contract" means an oral or written contract between an owner and an original contractor for providing service, labor, or materials for construction on an owner-occupied residence.</subsection><subsection number="38-11-107(1)(b)(i)(C)">
"Subcontractor" means a person who provides service, labor, or materials for construction on an owner-occupied residence under an agreement other than directly with the owner.</subsection></subsection><subsection number="38-11-107(1)(b)(ii)">
A subcontractor qualified to file a lien upon a contract residence under <xref depth="1" refnumber="38-1a" start="1">Chapter 1a, Preconstruction and Construction Liens</xref>, is barred from maintaining a lien upon that contract residence or from recovering a judgment in a civil action against the owner, the contract residence, or, as provided in Subsection <xref depth="4" refnumber="38-11-107(1)(b)(iii)" start="0">(1)(b)(iii)</xref>, a subsequent owner to recover for service, labor, or materials provided by the subcontractor:
<subsection number="38-11-107(1)(b)(ii)(A)">
if the amount of the general contract under which the subcontractor provides service, labor, or materials totals no more than $5,000; and</subsection><subsection number="38-11-107(1)(b)(ii)(B)">
whether or not the original contractor is licensed under <xref depth="1" refnumber="58-55" start="0">Title 58, Chapter 55, Utah Construction Trades Licensing Act</xref>.</subsection></subsection><subsection number="38-11-107(1)(b)(iii)">
A subsequent owner is protected under Subsection <xref depth="4" refnumber="38-11-107(1)(b)(ii)" start="0">(1)(b)(ii)</xref> to the same extent as an owner if:
<subsection number="38-11-107(1)(b)(iii)(A)">
the subsequent owner purchases the contract residence from the owner; and</subsection><subsection number="38-11-107(1)(b)(iii)(B)"><subsection number="38-11-107(1)(b)(iii)(B)(I)">
the subsequent owner occupies the residence as a primary or secondary residence within 180 days after the date of transfer; or</subsection><subsection number="38-11-107(1)(b)(iii)(B)(II)">
the subsequent owner's tenant or lessee occupies the residence as a primary or secondary residence within 180 days after the date of the transfer.</subsection></subsection></subsection></subsection></subsection><subsection number="38-11-107(2)">
If a residence is constructed under conditions that do not meet all of the provisions of Subsection <xref depth="4" refnumber="38-11-107(1)(a)" start="0">(1)(a)</xref> or <xref depth="4" refnumber="38-11-107(1)(b)" start="0">(b)</xref>, that residence and the real property associated with that residence as provided in Section <xref depth="3" refnumber="38-1a-302" start="0">38-1a-302</xref> is subject to any lien as provided in Section <xref depth="3" refnumber="38-1a-301" start="0">38-1a-301</xref>.</subsection><subsection number="38-11-107(3)">
A lien claimant who files a preconstruction or construction lien under <xref depth="1" refnumber="38-1a" start="1">Chapter 1a, Preconstruction and Construction Liens</xref>, or a foreclosure action upon an owner-occupied residence is not liable for costs and attorney fees under Sections <xref depth="3" refnumber="38-1a-706" start="0">38-1a-706</xref> and <xref depth="3" refnumber="38-1a-707" start="0">38-1a-707</xref> or for any damages arising from a civil action related to the lien filing or foreclosure action if the lien claimant removes the lien within 15 days from the date the owner obtains a certificate of compliance and mails a copy of the certificate of compliance by certified mail to the lien claimant at the address provided for by Subsection <xref depth="4" refnumber="38-1a-502(2)(e)" start="0">38-1a-502(2)(e)</xref>.  The 15-day period begins accruing from the date postmarked on the certificate of compliance sent to the lien claimant.</subsection></section>
