The most vital thing to know is that a lien notice is not a lien. It is a notice that your contractors can legally file a lien to safeguard their work invested in your property. Contractors are required to provide a lien notice any time they carry out work that upgrades a property while receiving payment when the project is finished.
A Contractor’s Investment in Their Work
When a contractor does work on your property, they are investing value into that property. They are investing both labor and materials into improvements on your property that aren’t easily “un-improved”. Paving, for instance, is something that becomes integrated into your property. Your contractors carry out the paving work using their materials and then receive payment when the project is complete.
Your contractors defend their work and do not necessitate payment until a high-quality job is finished. Nevertheless, if the property owner decides to breach the contract causing unpaid contractors, the quality they have added to the property grants them the right to file a lien. They are unable to take back the work or materials if the contract is invalid.
What are Lien Notices, And Why Am I Receiving Them?
What are lien notices? Lien notices, also referred to as a twenty-day Preliminary Notice or simply Preliminary Notice, is a required step in documentation that is filed through the County Clerk-Recorder’s Office by a contractor or material supplier. This informs a property owner, project financier, direct contractor, or other involved parties that they are undertaking a project and have the right to file a Mechanic’s Lien if they do not get paid.
File the Preliminary Notices twenty days from the initial supply of labor or materials. The lien notice informs you who can put a lien on your property so you can plan and develop a strategy accordingly.
Some states require prelims to safeguard the contractor’s right to Lien. It also informs all parties involved in the project (owners, tenants, etc.) concerning the progressing work.
Lien Notices Are There to Safeguard and Inform You
What this definition breaks into are an arrangement of mutual safeguarding. Contractors are unable to file liens toward you unless they issue a Preliminary Notice within twenty days of work starting. Therefore, contractors that are not adhering to their state’s regulations also cannot file liens toward you.
However, the lien notice that has been served to you represents your right to be informed. Since the law enables contractors to file liens for unpaid labor, they are required to inform the property owners that declining to pay them might put them at risk of getting a lien put on them.
If the Contract Is Adhered To, There Is No Risk
A lien notice is part of handling business in a civilized and faithful manner. Providing that the contractor and owner of the property satisfy the agreement as intended, there is no risk. It is simply a requirement that serves to safeguard each of the parties from risks that can come from scenarios in which the parties do not appropriately adhere to agreements.
Simply put, a lien notice is not a lien. It is a civility notice of possible risk that enables both contractors and property owners to bypass an undesirable result following you working together.
Dar Liens Offers Lien Processing and Filing in Arizona
Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.
