R156-38a-108. Notification of Rights under Title 38, Chapter 11

  A notice in substantially the following form shall prominently appear in an easy-to-read type style and size in every contract between an original contractor and homeowner and in every notice of intent to hold and claim lien filed under Section 38-1a-502 against a homeowner or against an owner-occupied residence:

  "X. PROTECTION AGAINST LIENS AND CIVIL ACTION. Notice is hereby provided in accordance with Section 38-11-108 of the Utah Code that under Utah law an "owner" may be protected against liens being maintained against an "owner-occupied residence" and from other civil action being maintained to recover monies owed for "qualified services" performed or provided by suppliers and subcontractors as a part of this contract, if either section (1) or (2) is met:

  (1)(a) the owner entered into a written contract with an original contractor, a factory built housing retailer, or a real estate developer;

  (b) the original contractor was properly licensed or exempt from licensure under Title 58, Chapter 55, Utah Construction Trades Licensing Act at the time the contract was executed; and

  (c) the owner paid in full the contracting entity in accordance with the written contract and any written or oral amendments to the contract; or

  (2) the amount of the general contract between the owner and the original contractor totals no more than $5,000."

  (3) An owner who can establish compliance with either section (1) or (2) may perfect the owner's protection by applying for a Certificate of Compliance with the Division of Occupational and Professional Licensing. The application is available at www.dopl.utah.gov/rlrf.