2006 Utah Code - 38-1-33 — Notice of completion.

     38-1-33.   Notice of completion.
     (1) (a) (i) Upon final completion of a construction project:
     (A) an owner of a construction project or an original contractor may file a notice of completion with the database; and
     (B) a lender that has provided financing for the construction project, a surety that has provided bonding for the construction project, or a title company issuing a policy on the construction project, may file a notice of completion.
     (ii) Final completion, for purposes of this Subsection (1), shall mean:
     (A) if as a result of work performed under the original contract a permanent certificate of occupancy is required for such work, the date of issuance of a permanent certificate of occupancy by the local government entity having jurisdiction over the construction project;
     (B) if no certificate of occupancy is required by the local government entity having jurisdiction over the construction project, but as a result of the work performed under the original contract an inspection is required for such work, the date of the final inspection for such work by the local government entity having jurisdiction over the construction project; or
     (C) if with regard to the work performed under the original contract no certificate of occupancy and no final inspection are required by the local government entity having jurisdiction over the construction project, the date on which there remains no substantial work to be completed to finish such work on the original contract.
     (b) Notwithstanding Section 38-1-2, where a subcontractor performs substantial work after the applicable dates established by Subsections (1)(a)(i) and (ii), that subcontractor's subcontract shall be considered an original contract for the sole purpose of determining:
     (i) the subcontractor's time frame to file a notice to hold and claim a lien under Subsection 38-1-7(1); and
     (ii) the original contractor's time frame to file a notice to hold and claim a lien under Subsection 38-1-7(1) for that subcontractor's work.
     (c) For purposes of this section, the term "substantial work" does not include:
     (i) repair work; or
     (ii) warranty work.
     (d) A notice of completion shall include:
     (i) the building permit number for the project, or the number assigned to the project by the designated agent;
     (ii) the name, address, and telephone number of the person filing the notice of completion;
     (iii) the name of the original contractor for the project;
     (iv) the address of the project or a description of the location of the project;
     (v) the date on which final completion is alleged to have occurred; and
     (vi) the method used to determine final completion.
     (e) Notwithstanding Subsection (1)(a)(ii), final completion of the original contract does not occur if work remains to be completed for which the owner is holding payment to ensure completion of the work.
     (f) (i) Unless a person indicates to the division or designated agent that the person does not wish to receive a notice under this section, electronic notification of the filing of a notice of completion or alternate notice as prescribed in Subsection (1)(a), shall be provided to:
     (A) each person that filed a notice of commencement for the project;

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     (B) each person that filed preliminary notice for the project; and
     (C) all interested persons who have requested notice for the project.
     (ii) A person to whom notice is required under Subsection (1)(f) is responsible for:
     (A) providing an e-mail address, mailing address, or telefax number to which a notice required by Subsection (1)(f) is to be sent; and
     (B) the accuracy of any e-mail address, mailing address, or telefax number to which notice is to be sent.
     (iii) The designated agent fulfills the notice requirement of Subsection (1)(f)(i) when it sends the notice to the e-mail address, mailing address, or telefax number provided to the designated agent, whether or not the notice is actually received.
     (iv) Upon the filing of a notice of completion, the time periods for filing preliminary notices stated in Section 38-1-27 are modified such that all preliminary notices shall be filed subsequent to the notice of completion and within ten days from the day on which the notice of completion is filed.
     (g) A subcontract that is considered an original contract for purposes of this section shall not create a requirement for an additional preliminary notice if a preliminary notice has already been given for the labor, service, equipment, and material furnished to the subcontractor who performs substantial work.
     (2) (a) If a construction project owner, original contractor, subcontractor, or other interested person believes that a notice of completion has been filed erroneously, that owner, original contractor, subcontractor, or other interested person can request from the person who filed the notice of completion evidence establishing the validity of the notice of completion.
     (b) Within ten days after the request described in Subsection (2)(a), the person that filed the notice of completion shall provide the requesting person proof that the notice of completion is valid.
     (c) If the person that filed the notice of completion does not provide proof of the validity of the notice of completion, that person shall immediately cancel the notice of completion from the database in any manner prescribed by the division pursuant to rule.
     (3) Notwithstanding Subsection 38-1-7(1)(a)(i), a person claiming benefits under this chapter shall file for record with the county recorder of the county in which the property, or some part of the property is situated, a written notice to hold and claim a lien within:
     (a) 90 days after the day on which a notice of completion is filed under this section; or
     (b) 180 days after the day on which occurs final completion, if no notice of completion is filed under this section.
     (4) A person filing a notice of completion by alternate filing is responsible for verifying and changing any incorrect information in the notice of completion before the expiration of the time period during which the notice is required to be filed.

Amended by Chapter 297, 2006 General Session