What is a Lien in Utah?
According to Title 38 of the Utah legislature, a lien is a legal claim filed by a creditor or lender to use a debtor's assets as collateral. The collateral works to ensure that creditors can still be reimbursed via the property even if a debtor cannot pay back loans.
Some liens are specific, meaning that the assets to be seized if a default occurs are explicitly named. Other liens, called general liens, can cover any assets that belong to the debtor. If creditors don't receive compensation, a lien gives them the right to take legal ownership of the assets. Liens can result from unpaid taxes, unpaid wages, and even lawsuits. There are liens that parties can enter into voluntarily, and liens can only be enforced following a judicial order issued by Utah courts.
Are Liens Public in Utah
Yes, liens are public records in Utah, with their information accessible to the general public as per the state's Government Records Access and Management Act (GRAMA). However, certain information may be exempt from public disclosure, such as trade secrets and details that could compromise personal privacy. Public liens remain accessible as long as they are active.
Once a lien is satisfied or released in Utah, it ceases to be public information. The lienholder is responsible for filing a release of lien with the appropriate county recorder's office, effectively removing the lien from the public record and terminating any legal claims on the associated property.
Types of Lien in Utah
In Utah, a Lien is defined in Utah Code Annotated Title 47 Chapter 4 Lien Section 1-401. Liens may be voluntary or involuntary depending on whether they arise from contractual arrangements, by operation of law, or court order. Liens are also divided into two categories - mortgages and non-mortgage. A mortgage is a lien accompanied with interest in the property. In contrast, a non-mortgage lien gives someone other than the owner of the property certain rights to it without giving them any ownership interest in it (See Title 58, Chapter 3).
How Do I Check for Liens in Utah?
Liens must be recorded with the County Recorder's Office to take precedence over any other claims against that piece of property. This is done by filing Liens, Liability & Assessment Notices (Form FIR 163) and publishing Liabilities (Form FIR 164) in a local newspaper.
The best way to find out there is a Lien on a property in Utah is to contact the local County Recorder's office and inquire about their information on the property of interest.
The recorder's office will provide requestors with liability, Liens, and Assessment Notices, and property maps if applicable.
If Liens are already filed on the property, it is best to contact the companies listed on them before closing on the property or making any changes to it. Requestors may also consider consulting an attorney before proceeding forward to avoid potential legal issues later on down the road.
Free Lien Search in Utah
Interested persons can search for a lien for free in Utah by contacting the local County Recorder's Office for information about Liens filed on that specific piece of real estate or visit their website.
What is a Property Lien in Utah?
In Utah, a property lien occurs when a creditor places a legal claim on a debtor's property due to unpaid debts. Most liens can be considered property liens because every type allows the application to a property. Whether it is a tax lien, mortgage lien, mechanic's lien, or judgment lien, the collateral assets can always be property. Property liens can be beneficial for many, so it is possible for parties to enter into a property lien voluntarily. This is the case with most mortgage agreements or situations where a debtor wants to assure a lender that the debt can be repaid. Organizations, courts, and other entities can place involuntary liens on the property without the property owner's consent.
How Do You Know if a Property Has a Lien in Utah?
Interested persons may find out about a lien on a Utah property by querying the concerned parties. For one, the property owner should have information regarding a lien on their property since they either agree to it, or received a notice about it. However, this may not always be the case since there are many reasons that a property could have a lien on it. Liens can be placed through the court system, private businesses, and sometimes even the government. Liens can result from past-due tolls, income tax debt, and civil damages, including personal injury lawsuits and breach of contract suits. Liens place a claim on real estate to protect an interest or secure payment for services rendered. Essentially, the type of lien in question will determine the process required for uncovering it.
Most liens are filed in the county clerk's office or the clerk of courts in the judicial district where the lien was established. In the case of a federal tax lien, requestors may query the federal department of revenue or search online using local and nationwide record repositories.
Property Lien Search by Address in Utah
Generally, a property lien search in Utah can be done at the County recorder's Office where the property is located. Most times, requesters can check liens on a property by address online or in person at the Office. For instance, the Summit County Recorder’s Office has a Document Search tool where a records seeker can find what liens are on a property located in the county. Alternatively, requestors can visit the Summit County Recorder’s Office to conduct property lien searches by address at:
Summit County Recorder’s Office
60 N. Main
P.O. Box 128
Coalville, UT 84017
Phone: (435) 336-3238
Fax: (435) 608-4487
Individuals who want to find liens on a property can also contact title companies to perform the search for them. A requester who opts to check liens on property via a title company might be able to find other liens or encumbrances affecting a property that will not be found in the Recorder's records.
Free Property Lien Search by Address
An Individual who wants to find liens on a property for free by using the property's address can do so at any county recorder's office. For instance, a person can check liens on a property by using the property’s address at the Uintah County Recorder’s office. This search typically comes at no cost and can be done online or in person at:
Uintah County Recorder’s office
147 E MAIN
VERNAL, UT 84078
Phone: (435) 781-5398
What is a Tax Lien in Utah?
In Utah, tax liens are judgments filed by the state Tax Commission due to refusing or not paying outstanding taxes. Courts place these liens on the party's property. The court can seize or foreclose on the property if the balance is not paid. If the party objects to paying the debtor are unable to the balance, the tax commission will not have to take action. If a party did not file a lien but made a payment agreement with the commission, the court may then file a lien to secure the payments. The Internal Revenue Service (IRS) handles unpaid federal taxes.
Parties have options for removing a tax lien from their accounts. The most common way is to pay the total debt back, including any interest or fees accumulated. The agency will withdraw the lean once payment is made. Parties also have the option of arguing to the Tax Commission or IRS that issuing the lien was an error. As liens are public documents, removing a lien from one's account does not erase the record.
Tax Lien Lookup in Utah
A tax lien is a judgment filed by the Utah State Tax Commission against a taxpayer's property when they have unpaid property taxes. Tax liens are public records in Utah. Hence, an interested person can find information regarding tax liens at local and state agencies that maintain land records.
A record seeker can conduct a tax lien lookup at local County Recorder's offices. Alternatively, they can conduct a tax lien lookup at the Utah Courts. The Court partners with the Utah State Tax Commission to allow members of the public access tax lien case information via zip files that can be downloaded on their website.
What is a Mortgage Lien in Utah?
A Utah mortgage lien is a voluntary lien entered into when someone wishes to purchase a home. Mortgages are managed by mortgage companies in the state, which is federally regulated. Mortgages make it possible for individuals to eventually take ownership of a house if it is impossible for them to pay in full. Mortgages involve monthly payments plus interest until the home is entirely compensated. If a party defaults on or does not pay mortgage payments, the mortgage company can legally seize the house.
What is a Mechanics Lien in Utah?
Utah mechanic's liens, or construction liens, assure servicemen providing services regarding construction and renovation of their payment following a contract. Anyone who works in designing, building, reconstruction, and home improvement projects and companies that provide materials for the project, can file a construction lien. Eligible parties include architects, engineers, contractors, subcontractors, and suppliers.
What is a UCC Lien?
Utah Uniform Commercial Code (UCC) is a collection of federal laws and regulations adapted to each state to regulate commercial transactions. Commercial transactions are business dealings involving purchasing products or services, leasing or services or goods, funds transfers, bank deposits, and more. UCC exists to govern and help solve any payment issues resulting from commercial transactions. UCC liens occur when a business owner acquires a loan for their business. The creditor then files a lien on the business as collateral if the owner defaults or cannot pay back the loan.
Lenders can find and print standard UCC-1 forms and mail or submit them to The Utah Division of Corporations & Commercial Code. Each filing has a fee of $12.00 per page. Lenders can pay for the filing in-person, by mail, or by fax at:
160 East 300 South
P.O. Box 146705
Salt Lake City UT
Phone: (84) 114-6705
Fax: (801) 530-6438
How to Conduct a UCC Lien Search
A Utah resident can search for a UCC lien at the State Division of Corporations and Commercial Code. The Division has an online platform where individuals can search for UCC liens but must log in with their Utah IDs.
Alternatively, individuals can request certified and uncertified copies of UCC filings to access lien information. Requests can be by Phone: (for uncertified copies only), by email, by mail, or in person at:
Department of Commerce
Division of Corporations & Commercial Code
UCC Division
160 East 300 South, 2nd floor,
P.O. Box 146705,
Salt Lake City, UT 84114-6705
Email: corpucc@utah.gov
Fax: (801) 530-6438
Copies of UCC records cost between $.30 per page and $12.00 per certified file number or debtor name. Payments can be made via various methods depending on the mode of request. For instance, fax or email requests can pay by visa, American Express, or MasterCard, while in-person requestors can pay by cash, money order, check, MasterCard, Visa, or American Express.
What is a Judgment Lien?
A Utah judgment lien is a direct result of a civil lawsuit. Lawsuits that lead to liens are civil and often involve a party breaching contractual agreements. The other party can take the case to court and sue the party who violated a contract. If the court rules in the plaintiff's favor, the court places a judgment lien on the defendant's assets. The debtor is ordered to reimburse an agreed-upon amount to the lender. If they cannot pay the amount as agreed, the plaintiff will have legal rights to take ownership of the property named in the lien. Companies, houses, real estate, automobiles, and furniture are all at risk of being lost in a judgment lien.
What is a Federal Tax Lien
Per IRC § 6321, a federal tax lien is when the Internal Revenue Service (IRS) claims a property, including real estate, personal property, and financial assets, because the taxpayer has unpaid property taxes. Before a federal tax lien can be attached to a property, the IRS must have
- Assessed the tax per IRC § 6201
- Sent the taxpayer a Notice and Demand for Payment which explains how much the taxpayer owes within 60 days after assessment per IRC § 6303
- Then the IRS seizes the assets to pay taxes if the taxpayer does not pay the tax debt in full within a stipulated time. The IRS does this by filing a Notice of Federal Tax Lien to notify creditors that the government has a legal right to the property.
The best way to get rid of a federal tax lien is to pay the tax debt in full. When that is done, the IRS will release the lien within 30 days of payment. Per IRC § 6322, a federal tax lien remains on the property until the tax debt is satisfied or no longer enforceable because of lapses. Per IRC § 6502, a federal tax lien stays on a property for 10 years after a tax assessment.
Utah residents can request federal tax lien records at County Recorder’s Offices. For instance, federal tax lien records at Sevier County can be retrieved from the Recorder's office by phone at (435) 893-0410 or by submitting a Document Request Form in person or via email at:
Sevier County Recorder's Office
250 North Main Street
Richfield, UT 84701
Email: cbagley@sevier.utah.gov
What is a Lien Title?
A lien title is a legal claim a lienholder has to someone's property. The purpose of a title is to identify a property’s owner. If a person took out a loan to purchase a property and they have not yet completely paid back the loan, they do not own the property outright, and the lien title will note that. As such, The lien remains on the property's title until the loan is completely paid off. A title transfer cannot be successful when there is still a lien on the title of a property.
Where and How to Do a Title Search in Utah
Property titles are a matter of public records in Utah and where they can be found depends on the property being searched. For instance, real estate titles can be found at county Recorder's offices, while vehicle titles are available at the Department of Motor Vehicles.
Real estate property title search can be conducted in the Recorder’s office in the county the property is located. For instance, an inquirer can conduct a real property title search in Utah County online or in person at the Utah County Recorder's office located at:
Utah County Recorder's Office
100 East Center Street, Suite 1300
Provo, UT 84606
Phone: (801) 851-8179
A record seeker who wants to conduct a title search on a vehicle can do so at the Utah Division of Motor Vehicles (DMV). Call (801) 297-7780 or (800) 368-8824 to find out how to do a vehicle title search, or visit any of the DMV offices to make a request.
Voluntary Lien vs. Involuntary Lien in Utah?
Liens can either be involuntary or voluntary. Involuntary liens result from unpaid debts or breaches in contracts. Courts can place these liens on land or property without the debtor's consent, and the consequence of them can be foreclosure and liquidation of assets. Voluntary liens are agreements entered into knowingly by all parties. Property owners who want to take out loans or have debts paid back may consider filing for a voluntary lien. If the borrower cannot pay back lenders, the lenders have legal rights to the property named in the lien agreement.
How Creditors Collect Payment Through a Lien
In Utah, creditors can collect payments through a lien because of what they represent: money owed which can be secured through property liens.
The creditor (the liens holder) can place liens on properties and automobiles, the debtor's personal property (referred to as the 'debtor'). This is called a "simultaneous lien" because it exists in unison with other liens that may already be on the debtor's properties.
A creditor who has liens against their debtor's property may wish to foreclose on liens. This is called "subordination". For example, if a creditor has liens against the debtor's home, but the home is now in foreclosure, the creditor would want the liens subordinated because they are now subordinate to the liens of the trustee in foreclosure proceedings.
The liens will be subordinated if the liens holder files a lawsuit to have liens subordinated. If liens are not subordinated, they may become senior liens in foreclosure proceedings. In foreclosure proceedings, liens holders should file a lawsuit to keep these liens as junior liens. To get liens on the assets of the debtor, liens can be given through a written agreement between two parties.
If there is no written agreement, liens will have to be filed through a lawsuit.
How Do I Get a Lien Removed in Utah?
While the method for removing a lien varies depending on the type of lien in question, most Utah liens can be removed through a three-party agreement: the lienee makes an offer to the lienholder; they accept, and they send the payment (minus their fee) back. As with any claim on property, liens like this must be handled in writing and submitted with supporting payment documentation. The lienholder may accept payment by cash, certified check, or bank transfer of funds.
There is always the option to file suit over liens that are unjust; however, it is best to contact an attorney who specializes in this area.
The process for removing a lien in Utah can be summarized thus:
- The lienholder must file a lawsuit for foreclosure
- The trial is held where liens are foreclosed (removed)
- Property liens may be discharged within the same lawsuit by agreement of all parties, or liens can be removed outside of court through an Order to Remove a lien
- The courts will not remove liens without a proper petition and affidavit
How Long Does a Lien Stay on Your Property in Utah?
According to Utah state statutes, a judgment lien will remain on a debtor's property for up to eight years if it remains unpaid. However, after it elapses, the debtor will not be in the clear unless the creditor forgoes the opportunity to file for a renewal with the state courts.
How to Avoid a Lien in Utah
Being a "lien" state, Utah statutes allow creditors to place a lien on the property of debtors. Lienees can avoid a lien on a property in Utah by paying off the amount owed on your existing lien before transferring the title to a new property. Lien avoidance is essential as it ensures that your property is not encumbered and that no one can go after you for any outstanding debts or payments owed. Lien avoidance is done through what's called a "lien release".
