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House approves stronger penalties and expedited process for wrongfully filed liens
Summary
House Bill 96 passed to create an expedited process to remove wrongful liens, give county recorders initial rejection authority, and add penalties for malicious filings. Sponsors cited costly private liens and urged protections for homeowners; the House approved the bill (66–0).
SALT LAKE CITY — The Utah House on Feb. 19 approved House Bill 96, which tightens protections against wrongfully filed liens on real property by creating an expedited removal process, allowing county recorders an initial screening role, and increasing penalties for malicious or fraudulent filings.
Representative Swallow, the sponsor, described common-law and malicious lien filings that have harmed property owners and said the bill provides an expedited path to clear wrongful liens and penalties for those who file them without legal basis. “One of the most important rights that we have is the right to purchase and own property,” Swallow said on the floor, arguing for tools to defend title and reduce litigation costs.
Under the bill as described on the floor, a person whose lien is rejected by the county recorder would have an expedited right to seek court resolution; recorders would be able to reject filings they reasonably believe to be wrongful based on criteria in the bill’s definition section. The bill establishes a 20-day corrective period for filers to cure defects or face misdemeanor penalties.
Supporters recounted local examples of abusive or frivolous lien filings and told the House that the measure would save homeowners time and expense. The county recorder who appeared in committee described frightening stories of inappropriate liens; the bill’s sponsors said the proposal strikes a balance by giving an initial administrative check while preserving rapid judicial review for rejected filers.
The House adopted technical amendments and voted to pass the bill; the House recorded the final passage and forwarded the bill to the Senate for consideration (66 yes, 0 no). The bill’s supporters recommended follow-up language and guidance for recorders and county offices to implement screening and expedited-court procedures.
Next steps include Senate consideration and coordination with county recorders on operational procedures if the bill becomes law.
