Monday, July 9, 2012

The Importance of Arizona Preliminary Notices

 A Preliminary 20-day Notice (pre-lien) is required by Arizona law to be sent by every person (including the general contractor) who furnishes labor, professional services, or materials to preserve their lien rights.  The Notice must be given no later than 20 days after the claimant has first furnished labor or materials to fully protect the lien claimant. The Preliminary 20-day Notice must be given to the Owner, the General Contractor, the Construction Lender (if any), and the party with whom you have contracted.  Arizona provides protection up to 120% of the amount noted in the original notice to a lien claimant who underestimates his labor and/or materials provided to the project.

It is better to send a late Preliminary 20-Day Notice than not at all.  The failure to provide a Preliminary 20-day Notice invalidates a mechanic’s lien in Arizona. A lien claimant who fails to provide a timely Preliminary 20-day Notice may provide the notice at a later date.  However, you will only retain lien rights for materials and/or labor furnished within the 20 days preceding the late notice, and the labor and/or materials provided thereafter.

The Preliminary 20-day Notice must be delivered by at least registered or certified mail, with the sender obtaining a certificate of mailing, receipt of registration, or receipt of certification.

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