<?xml version="1.0" encoding="ISO-8859-1"?><section number="38-1a-701"><histories><history>Renumbered and Amended by Chapter <modchap sess="2012GS">278</modchap>, 2012 General Session</history><modyear>2012</modyear></histories><catchline>Action to enforce lien -- Time for filing action -- Notice of pendency of action -- Action involving a residence.</catchline><subsection number="38-1a-701(1)">
As used in this section:
<subsection number="38-1a-701(1)(a)">
"Owner" has the same meaning as defined in Section <xref depth="3" refnumber="38-11-102" start="0">38-11-102</xref>.</subsection><subsection number="38-1a-701(1)(b)">
"Residence" has the same meaning as defined in Section <xref depth="3" refnumber="38-11-102" start="0">38-11-102</xref>.</subsection></subsection><subsection number="38-1a-701(2)">
In order to enforce a preconstruction lien or construction lien, a claimant shall file an action to enforce the lien:
<subsection number="38-1a-701(2)(a)">
except as provided in Subsection <xref depth="4" refnumber="38-1a-701(2)(b)" start="0">(2)(b)</xref>, within 180 days after the day on which the claimant files:<subsection number="38-1a-701(2)(a)(i)">
a notice of preconstruction lien under Section <xref depth="3" refnumber="38-1a-402" start="0">38-1a-402</xref>, for a preconstruction lien; or</subsection><subsection number="38-1a-701(2)(a)(ii)">
a notice of construction lien under Section <xref depth="3" refnumber="38-1a-502" start="0">38-1a-502</xref>, for a construction lien; or</subsection></subsection><subsection number="38-1a-701(2)(b)">
if an owner files for protection under the bankruptcy laws of the United States before the expiration of the 180-day period under Subsection <xref depth="4" refnumber="38-1a-701(2)(a)" start="0">(2)(a)</xref>, within 90 days after the automatic stay under the bankruptcy proceeding is lifted or expires.</subsection></subsection><subsection number="38-1a-701(3)"><subsection number="38-1a-701(3)(a)"><subsection number="38-1a-701(3)(a)(i)">
Within the time period provided in Subsection <xref depth="4" refnumber="38-1a-701(2)" start="0">(2)</xref> for filing an action, a claimant shall file for record with each applicable county recorder a notice of the pendency of the action, in the manner provided for actions affecting the title or right to possession of real property.</subsection><subsection number="38-1a-701(3)(a)(ii)">
If a claimant fails to file for record a notice of the pendency of the action, as required in Subsection <xref depth="4" refnumber="38-1a-701(3)(a)(i)" start="0">(3)(a)(i)</xref>, the preconstruction lien or construction lien, as applicable, is void, except as to persons who have been made parties to the action and persons having actual knowledge of the commencement of the action.</subsection></subsection><subsection number="38-1a-701(3)(b)">
The burden of proof is upon the claimant and those claiming under the claimant to show actual knowledge under Subsection <xref depth="4" refnumber="38-1a-701(3)(a)(ii)" start="0">(3)(a)(ii)</xref>.</subsection></subsection><subsection number="38-1a-701(4)"><subsection number="38-1a-701(4)(a)">
A preconstruction lien or construction lien is automatically and immediately void if an action to enforce the lien is not filed within the time required by this section.</subsection><subsection number="38-1a-701(4)(b)">
Notwithstanding Section <xref depth="3" refnumber="78B-2-111" start="0">78B-2-111</xref>, a court has no subject matter jurisdiction to adjudicate a preconstruction or construction lien that becomes void under Subsection <xref depth="4" refnumber="38-1a-701(4)(a)" start="0">(4)(a)</xref>.</subsection></subsection><subsection number="38-1a-701(5)">
This section may not be interpreted to impair or affect the right of any person to whom a debt may be due for any preconstruction service or construction work to maintain a personal action to recover the debt.</subsection><subsection number="38-1a-701(6)"><subsection number="38-1a-701(6)(a)">
If a claimant files an action to enforce a preconstruction or construction lien involving a residence, the claimant shall include with the service of the complaint on the owner of the residence:<subsection number="38-1a-701(6)(a)(i)">
instructions to the owner of the residence relating to the owner's rights under <xref depth="1" refnumber="38-11" start="0">Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act</xref>; and</subsection><subsection number="38-1a-701(6)(a)(ii)">
a form to enable the owner of the residence to specify the grounds upon which the owner may exercise available rights under <xref depth="1" refnumber="38-11" start="0">Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act</xref>.</subsection></subsection><subsection number="38-1a-701(6)(b)">
The instructions and form required by Subsection <xref depth="4" refnumber="38-1a-701(6)(a)" start="0">(6)(a)</xref> shall meet the requirements established by the division by rule.</subsection><subsection number="38-1a-701(6)(c)">
If a claimant fails to provide to the owner of the residence the instructions and form required by Subsection <xref depth="4" refnumber="38-1a-701(6)(a)" start="0">(6)(a)</xref>, the claimant is barred from maintaining or enforcing the preconstruction or construction lien upon the residence.</subsection><subsection number="38-1a-701(6)(d)">
A court shall stay an action to determine the rights and liabilities of an owner of a residence under this chapter, <xref depth="1" refnumber="38-11" start="0">Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act</xref>, and <xref depth="1" refnumber="14-2" start="0">Title 14, Chapter 2, Private Contracts</xref>, until after the owner is given a reasonable period of time to:<subsection number="38-1a-701(6)(d)(i)">
establish compliance with 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">(4)(b)</xref> through an informal proceeding, as set forth in <xref depth="1" refnumber="63G-4" start="0">Title 63G, Chapter 4, Administrative Procedures Act</xref>, commenced at the division within 30 days after the owner is served with summons in the foreclosure action; and</subsection><subsection number="38-1a-701(6)(d)(ii)">
obtain a certificate of compliance or denial of certificate of compliance, as defined in Section <xref depth="3" refnumber="38-11-102" start="0">38-11-102</xref>.</subsection></subsection><subsection number="38-1a-701(6)(e)">
An owner applying for a certificate of compliance under Subsection <xref depth="4" refnumber="38-1a-701(6)(d)" start="0">(6)(d)</xref> shall send by certified mail to all claimants:<subsection number="38-1a-701(6)(e)(i)">
a copy of the application for a certificate of compliance; and</subsection><subsection number="38-1a-701(6)(e)(ii)">
all materials filed in connection with the application.</subsection></subsection><subsection number="38-1a-701(6)(f)">
The division shall notify all claimants listed in an owner's application for a certificate of compliance under Subsection <xref depth="4" refnumber="38-1a-701(6)(d)" start="0">(6)(d)</xref> of the issuance or denial of a certificate of compliance.</subsection></subsection></section>
