MECHANICS' LIEN RELEASE

State of Utah

Pursuant to Utah Code Ann. Title 38, Chapter 1a (Construction Liens)

TABLE OF CONTENTS

1. Full Release of Construction Lien
2. Partial Release of Construction Lien
3. Release by Alternate Security / Lien Release Bond
4. Demand for Release of Construction Lien
5. Petition to Discharge Construction Lien
6. Recording Instructions
7. Statutory Reference Table
8. Practitioner Notes

IMPORTANT UTAH TERMINOLOGY NOTE: Utah uses the term "construction lien" (not "mechanics' lien") under the 2012 recodification (Utah Code 38-1a). Utah also maintains a unique State Construction Registry (SCR) for preliminary notices and other filings. Practitioners must be familiar with both the county recording system and the SCR.

1. FULL RELEASE OF CONSTRUCTION LIEN

RELEASE AND SATISFACTION OF CONSTRUCTION LIEN
Pursuant to Utah Code Ann. 38-1a-802

Recording Requested By:
[________________________________]

When Recorded, Return To:
[________________________________]
[________________________________]
[________________________________]

Cross-Reference: Entry No. [________________________________], [________________________________] County Recorder

STATE OF UTAH
COUNTY OF [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

Lien Claimant Information:

Property Owner Information:

Property Description:

Original Lien Information:

Release Declaration:

The undersigned Lien Claimant, for and in consideration of the sum of $[________________________________] ("Release Amount"), receipt of which is hereby acknowledged, does hereby fully, finally, and unconditionally release, satisfy, and discharge the construction lien described above, recorded in the office of the County Recorder for [________________________________] County, Utah.

This release constitutes a complete satisfaction of all claims secured by the above-referenced construction lien, including all principal, interest, costs, and attorney's fees.

The Claimant warrants:

☐ The Claimant is the original lien claimant or authorized assignee
☐ Full payment of $[________________________________] has been received
☐ The lien has not been assigned, transferred, or encumbered
☐ No other person or entity has any interest in the lien claim
☐ The Claimant has authority to execute this release
☐ The Claimant will update any relevant filings in the State Construction Registry

IN WITNESS WHEREOF, the undersigned has executed this Release on [__/__/____].

LIEN CLAIMANT:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]
By: ______________________________
Name: [________________________________]
Title: [________________________________]

ACKNOWLEDGMENT

State of Utah
County of [________________________________]

On [__/__/____], personally appeared before me [________________________________], signer of the above instrument, who duly acknowledged to me that he/she executed the same.

Notary Public: ______________________________
Printed Name: [________________________________]
Residing at: [________________________________]
My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

2. PARTIAL RELEASE OF CONSTRUCTION LIEN

PARTIAL RELEASE OF CONSTRUCTION LIEN

Recording Requested By:
[________________________________]

When Recorded, Return To:
[________________________________]
[________________________________]

Cross-Reference: Entry No. [________________________________]

STATE OF UTAH
COUNTY OF [________________________________]

Lien Claimant: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________], Utah

Original Lien Information:

Partial Release Declaration:

The undersigned Lien Claimant, in consideration of partial payment of $[________________________________], receipt of which is hereby acknowledged, does hereby partially release and discharge a portion of the construction lien described above.

Lien Reduction Summary:

The remaining lien of $[________________________________] continues to encumber the property.

Reason for Partial Release:

☐ Partial payment received for completed work
☐ Resolution of disputed portion
☐ Release of specific parcel(s)
☐ Court-ordered partial release
☐ Other: [________________________________]

IN WITNESS WHEREOF, the undersigned has executed this Partial Release on [__/__/____].

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]

ACKNOWLEDGMENT

State of Utah
County of [________________________________]

On [__/__/____], personally appeared before me [________________________________], who acknowledged the execution of this instrument.

Notary Public: ______________________________
My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

3. RELEASE BY ALTERNATE SECURITY / LIEN RELEASE BOND

Notice of Release of Lien and Substitution of Alternate Security

Pursuant to Utah Code Ann. 38-1a-804

NOTICE OF RELEASE OF CONSTRUCTION LIEN AND SUBSTITUTION OF ALTERNATE SECURITY

Recording Requested By:
[________________________________]

When Recorded, Return To:
[________________________________]
[________________________________]

Cross-Reference: Entry No. [________________________________] (Original Lien)

STATE OF UTAH
COUNTY OF [________________________________]

TO: [________________________________] (Lien Claimant)
FROM: [________________________________] (Owner/Interested Party)

NOTICE is hereby given pursuant to Utah Code Ann. 38-1a-804 that the undersigned has filed alternate security to release the construction lien described below from the real property:

Construction Lien Being Released:

Property Being Released:

Alternate Security Provided:

☐ Surety bond in the amount of $[________________________________]
☐ Cash deposit in the amount of $[________________________________]
☐ Other security approved by the court: [________________________________]

Bond Amount Calculation (Per Utah Code Ann. 38-1a-804):

EFFECT OF THIS NOTICE:

Upon filing of this notice and the alternate security with the County Recorder, the real property described above is released from the construction lien. The lien claimant's rights transfer to the alternate security.

SERVICE REQUIREMENT: The party filing this notice must serve a copy of this notice, together with any attachments, upon the lien claimant within thirty (30) days of filing.

CLAIMANT ACTION REQUIRED:

If a suit to foreclose on the construction lien is pending at the time this notice is served, the claimant must add the alternate security as a party within ninety (90) days after receipt of this notice.

Date: [__/__/____]

______________________________
Owner/Interested Party
[________________________________]
[________________________________]

SURETY BOND -- ALTERNATE SECURITY FOR CONSTRUCTION LIEN RELEASE

Bond No.: [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

That [________________________________] ("Principal") and [________________________________] ("Surety"), a corporation authorized to transact surety business in the State of Utah, are held and firmly bound unto [________________________________] ("Obligee/Lien Claimant") in the penal sum of $[________________________________] (being 150% of the lien claim amount for claims of $25,000 or more), for the payment of which we bind ourselves jointly and severally.

CONDITION:

WHEREAS, the Obligee recorded a construction lien against property of the Principal as Entry No. [________________________________] in the [________________________________] County Recorder's office; and

WHEREAS, the Principal desires to release the property from said lien pursuant to Utah Code Ann. 38-1a-804;

NOW, THEREFORE, if the Principal shall pay any judgment entered in favor of the Obligee in any action to foreclose the construction lien, or if the Obligee fails to take required action within the statutory time periods, this bond shall be void; otherwise it remains in full force.

DISCHARGE OF SURETY: The surety is discharged from liability under this bond if one or more of the following occur:
1. The claimant fails to bring an action to foreclose within the time required by law;
2. The claimant fails to add the alternate security as a party within 90 days after receipt of notice;
3. Judgment is entered in favor of the Principal;
4. The bond amount is paid in satisfaction of a valid judgment.

Principal: ______________________________
Surety: ______________________________
Date: [__/__/____]

[SURETY SEAL]

4. DEMAND FOR RELEASE OF CONSTRUCTION LIEN

[Owner/Attorney Letterhead]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR RELEASE OF CONSTRUCTION LIEN
Property: [________________________________], [________________________________] County, Utah
Lien Entry No.: [________________________________]
Date of Recording: [__/__/____]

Dear [________________________________]:

This is a formal demand for the immediate release of the construction lien you recorded against the above-referenced property.

Basis for Demand:

☐ Full Payment Made. The Property Owner has paid the full amount claimed. The sum of $[________________________________] was paid on [__/__/____]. You are required to release the lien.

☐ Lien Has Expired Under Utah Code 38-1a-701. The lien claimant failed to commence a foreclosure action within 180 days after the filing of the notice of construction lien, as required by Utah Code 38-1a-701. The lien is void.

☐ Alternate Security Filed Under Utah Code 38-1a-804. The property owner has filed alternate security (lien release bond) releasing the property from the lien.

☐ Lien Was Improperly Filed. The notice of construction lien does not comply with Utah Code 38-1a-501 et seq. because: [________________________________]

☐ SCR Compliance Failure. The lien claimant failed to file a required preliminary notice with the State Construction Registry.

☐ Other Basis: [________________________________]

Demand:

Execute and record a release of the construction lien within ten (10) days of receipt of this letter.

Consequences of Failure:

If you fail to release the lien, the Property Owner will:

1. File a petition in the District Court to compel release;
2. File a lien release bond under Utah Code 38-1a-804;
3. Seek recovery of costs, attorney's fees, and damages; and
4. Pursue all other available remedies, including wrongful lien claims under Utah Code 38-9-1 et seq.

Sincerely,

______________________________
[________________________________]
Phone: [________________________________]

5. PETITION TO DISCHARGE CONSTRUCTION LIEN

IN THE DISTRICT COURT OF THE [________________________________] JUDICIAL DISTRICT
IN AND FOR [________________________________] COUNTY, STATE OF UTAH

PETITION TO DISCHARGE CONSTRUCTION LIEN

Petitioner, by and through undersigned counsel, petitions this Court as follows:

I. PARTIES

1. Petitioner is the owner of real property at [________________________________], [________________________________] County, Utah.

2. Respondent recorded a construction lien against Petitioner's property.

II. BACKGROUND

3. On [__/__/____], Respondent recorded a notice of construction lien as Entry No. [________________________________] in the [________________________________] County Recorder's office, claiming $[________________________________].

4. The lien should be discharged because:

☐ Full Payment. Petitioner paid Respondent in full ($[________________________________] on [__/__/____]).

☐ Expired Lien (Utah Code 38-1a-701). Respondent failed to commence foreclosure within 180 days of filing the notice of lien. The lien is void by operation of law.

☐ Failure to File Preliminary Notice. Respondent failed to file a preliminary notice with the State Construction Registry as required by Utah Code 38-1a-501.

☐ Alternate Security Filed. Petitioner filed a lien release bond under Utah Code 38-1a-804, releasing the property.

☐ Defective Lien. The notice of construction lien fails to comply with statutory requirements because: [________________________________]

☐ Wrongful Lien. The lien constitutes a wrongful lien under Utah Code 38-9-1 et seq. because: [________________________________]

III. LEGAL BASIS

5. Under Utah Code 38-1a-701, if a claimant fails to file an action to enforce a construction lien within 180 days, the lien is void, except as to any action already commenced.

6. Under Utah Code 38-9-1 et seq. (Wrongful Lien Act), a lien claimant who files a wrongful lien may be liable for damages, attorney's fees, and a statutory penalty.

IV. RELIEF REQUESTED

WHEREFORE, Petitioner requests:

(a) An order declaring the construction lien void and discharged;
(b) An order directing the County Recorder to cancel Entry No. [________________________________];
(c) Attorney's fees and costs;
(d) If applicable, damages and penalties under the Wrongful Lien Act;
(e) Such other relief as the Court deems just.

______________________________
Attorney for Petitioner
[________________________________]
Utah Bar No. [________________________________]
[________________________________]
Phone: [________________________________]

VERIFICATION

I, [________________________________], declare under penalty of perjury under the law of the State of Utah that the foregoing is true and correct.

Executed on [__/__/____] at [________________________________], Utah.

______________________________
Petitioner

6. RECORDING INSTRUCTIONS

Utah Construction Lien Release Recording Guide

Recording Office: County Recorder's Office

Utah has 29 counties. Construction lien releases are recorded with the County Recorder where the original lien was filed.

Major County Recorder Offices:

Recording Requirements:

☐ Original signed release document
☐ Notarized acknowledgment
☐ Recording fee (verify current amount with county recorder)
☐ Cross-reference to original lien Entry Number
☐ Property description consistent with original lien
☐ Tax parcel ID number
☐ Return address on the document

State Construction Registry (SCR) Considerations:

☐ If a preliminary notice was filed in the SCR, consider updating SCR records
☐ SCR website: https://scr.utah.gov
☐ SCR filings do not replace county recording requirements
☐ The notice of construction lien itself is recorded with the county recorder, not the SCR

Document Format Requirements:

• Paper size: 8.5" x 11"
• Margins: Minimum 1" on sides; 2" top margin on first page
• Ink: Black ink
• Font: Legible, minimum 10-point
• Must include a legal description or tax parcel ID
• Must cross-reference the original recording entry number

7. STATUTORY REFERENCE TABLE

Utah Construction Lien Statutes and Deadlines

Key Deadlines Summary

Bond Requirements Under Utah Code 38-1a-804

8. PRACTITIONER NOTES

Utah-Specific Considerations

2012 Recodification -- "Construction Lien" Terminology:
Utah recodified its mechanics' lien law in 2012 under Utah Code 38-1a. The law now uses "construction lien" instead of "mechanics' lien." All filings, releases, and court documents should use the current terminology.

State Construction Registry (SCR):
Utah's SCR is a unique statewide electronic filing system. While the notice of construction lien itself is recorded with the county recorder (not the SCR), the SCR is used for preliminary notices, notices of commencement, and other construction-related filings. Practitioners should verify whether SCR records need to be updated upon lien release.

180-Day Foreclosure Deadline:
The lien claimant must commence a foreclosure action within 180 days after filing the notice of construction lien. If no action is commenced, the lien is void by operation of law. This is one of the stricter deadlines nationally and is a common basis for discharge petitions.

Lien Release Bond (150% for Claims of $25,000+):
Utah requires a bond of 150% of the lien claim amount for claims of $25,000 or more. The bond is filed with the County Recorder, and the filer must serve the lien claimant within 30 days. Once filed, the property is immediately released, and the lien claimant's rights transfer to the bond.

Wrongful Lien Act (Utah Code 38-9-1 et seq.):
Utah has a separate Wrongful Lien Act that provides significant remedies for property owners burdened by invalid or fraudulent liens. A property owner may petition the district court for summary relief, and if the lien is found wrongful, the court may award actual damages, $3,000 or treble actual damages (whichever is greater), and attorney's fees.

29-County System:
Utah has 29 counties. Releases must be filed with the County Recorder in the county where the original lien was recorded. Salt Lake County and Utah County handle the majority of construction lien filings in the state.

Preliminary Notice Requirement:
Under Utah Code 38-1a-501, most construction lien claimants (other than the original contractor) must file a preliminary notice with the SCR. If this notice was not properly filed, the underlying lien may be invalid, which strengthens a property owner's discharge petition.

This template is provided for informational purposes only and does not constitute legal advice. Consult a qualified Utah attorney before use. Laws and procedures are subject to change; verify all statutory citations against current law.

Last Updated: 2026-03-05