Tuesday, November 11, 2014

Arizona's Mechanic Lien Guide

Liens filed on private property or on funds relating to a public project are known as Arizona Mechanic's Liens. When an Arizona mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.
Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Arizona mechanics lien. If a company supplies material to a material supplier, they are not eligible to file an Arizona mechanics lien claim. If the project involves an owner occupied one or two family residence, then only a party having a direct contract with the owner can file a lien.

Pre-notices are required to be served prior to filing an Arizona mechanics' lien claim.  Within 20 days of the commencement of work on the property, subcontractors and suppliers should provide written notice to the owner or the person having charge of the property that they are performing work on the property. This notice should also be provided to the construction lender and the general contractor. Only one notice is required unless the actual total price exceeds by 20 percent the estimated total price, at which point additional pre-notices are required (this is usually the result of change orders).

Prime contractors, subcontractors, materialmen and professionals must file a notice and claim for lien within the earlier of 120 days after completion, or within 60 days after the recording of the notice of completion.

For more information on Arizona Liens, please visit LienItNow.

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