Residence Lien Recovery

General Information

The Utah Residence Lien Restriction and Lien Recovery Fund Act protects homeowners from mechanics’ liens when they have paid their contractor in full and meet statutory requirements.

Established in 1994, the Act allows the Division of Professional Licensing (DOPL) to issue Certificates of Compliance that provide legal protection to qualifying homeowners. The Lien Recovery Fund also provides an alternate source of payment for eligible contractors, subcontractors, and suppliers when liens are voided by a homeowner’s certificate.

Homeowners

Homeowners may apply for a Certificate of Compliance through the Division of Professional Licensing (DOPL) to obtain protection from certain mechanics’ liens under the Utah Residence Lien Restriction and Lien Recovery Fund Act.

Eligibility requirements depend on the total value of your contract.

If your contract was more than $5,000, you must:

Have a written contract with a licensed contractor, real estate developer, or factory-built housing retailer.
Provide proof that you paid the contractor or other qualified party in full.
Occupy the residence as your primary or secondary residence within 180 days after construction is completed.

Review the complete eligibility requirements for exceptions and required documentation.

If your contract was $5,000 or less, you must:

Have an oral or written general contract totaling $5,000 or less.
Submit an undisputed Affidavit of Compliance.

To apply, visit the Forms tab for additional information, required documentation, the application, and instructions.

Lien Recovery Fund Status

The Utah Residence Lien Recovery Fund (LRF) was created in 1994 to provide payment to contractors, subcontractors, and suppliers when a homeowner was protected from a mechanic’s lien under the Utah Residence Lien Restriction and Lien Recovery Fund Act.

Historically, the fund was supported by fees paid by licensed contractors. In 2018, the Utah Legislature discontinued collection of these fees, ending the program’s source of funding. Because no additional funds have been collected since that time, the fund’s available balance has been exhausted.

The LRF is currently unable to pay new claims. Contractors, subcontractors, and suppliers must pursue other legal remedies to resolve payment disputes. Lien-related matters, including filing or enforcing a lien, are handled through county offices and the courts.

Please note that state agencies are not authorized to provide legal advice or assist with lien enforcement actions. DOPL staff cannot advise parties on how to file, collect, or enforce a lien.