Tuesday, May 22, 2012

Alabama Lien Requirements

Alabama has lien requirements dependent on your roll in a project.  A supplier should send a preliminary notice before delivering the supplies.  Otherwise, a preliminary notice is not required. 
Those who do not have a direct contract with the property owner are required to deliver a Notice of Unpaid Lien to the property owner before filing a mechanic's lien also known as an Unpaid Balance Lien.  This puts the owner on notice that a lien has been claimed, and requires that the owner withhold funds sufficient to satisfy that claim.  This notice should be sent soon after the last date of work was performed to prevent the owner from disbursing the funds to the prime contractor.  Once the owner disburses the funds, the claimant loses any rights to those funds.
There are 2 types of Alabama Mechanic's Liens - a Full Price Lien or an Unpaid Balance Lien.  Those who contracted directly with the owner, or material suppliers who sent preliminary notice before delivering supplies, will have a full price lien upon filing this document. Others will have an unpaid balance lien.  Whther it be a preliminary notice or a mechanic's lien, LienItNow.com can easily help you through this process.

No comments:

Post a Comment