Frequently Asked Questions

What is a preliminary notice?

The general purpose of a 20-day preliminary notice is to inform the property owner, lender and other interested parties that you are providing labor or materials for a project and that you are retaining your right to a lien in the event that you are not paid.

When should a preliminary notice be sent out?

A 20-day preliminary notice should be sent out within 20 days of starting the job or delivery of materials. If it is send during a job then it will only cover the past 20 days or work and any work done after the date is was sent. (PLEASE NOTE: Titan Lien Services requires a minimum 7 business day lead time in order to comply with this requirement. Please send your requests at the beginning of the job).

Who has lien rights?

Mechanic's liens were designed for licensed contractors, material suppliers and professionals (ie Engineers and Architects). However if a preliminary notice is not sent- you forfeit your lien rights. Only those who properly complete lien documents, including a Preliminary Twenty-Day Lien Notice, may claim a lien. In addition, a subcontractor or supplier to a sub-subcontractor (i.e., a third-tier subcontractor), as well as contractors not licensed to perform the work, may not be entitled to a lien. See A.R.S. 33-981(B) & (C). Please contact us to discuss a particular project or you may want to consult an attorney.

Does everyone who sends a 20-day notice have lien rights?

It depends on the circumstances and the job. Please contact us to discuss particular projects.be advised that we do not practice law and can not give legal advise. However we can explain and discuss different options you may have or you may contact an attorney for legal advice.

We finished our job and now we need to get paid. What should we do?

Did you send a 20-day notice? If so, then let's review some information and see where you should go from there. If you did not send a 20-day notice-- then you probably forfeited your lien rights and you may have to take different or legal steps to get paid.

What are the deadlines for filing a Mechanics Lien?

Mechanics liens must be filed within 120 days from the completion of the project. They can be filed prior to a project reaching completion and anytime before the 120 days deadline. However if a Notice of Completion is filed, then the timeframe for filing the lien is changed to 60 days. Be advised that anyone who sent a 20-day notice should receive a copy of the Notice of Completion. Please review Arizona Revised Statutes 33-993

Time Frames to Follow

Construction Law, according to Arizona Revised Statutes 33-981(D), provides a time frame in which contractors and sub-contractors can retain their lien lights. If this time frame is not followed.a contractor/sub-contractor will forfeit said lien rights.

When a job is started, a contractor/sub-contractor has 20 days to give notice that he is working on a job. This notice must be sent with proof of mailing to the owner of the property, the general contractor (if a sub is mailing notice), and the lender involved (if any). The notice states that in the event that the contractor/sub-contractor is not paid, he has retained the right to place a mechanic.s lien on the property. In the event that it is a government job.then the contractor/sub-contractor would have rights to any bond or in-house monies. Although some bonds give as much time as 90 days to send notice, there are others that require notice to be sent within the first 20 days. It is wise to always mail 20 day preliminary notices when a job begins.

If a notice is not mailed within 20 days of when work has begun, then the contractor/subcontractor must mail the notice and it will retain his lien rights on the past 20 days. (Example: ABC Contracting begins work on September 1st and finishes on September 30th. They mail the 20 day Preliminary Notice on Sept 28th. Technically they only have lien rights for the work and materials that were provided from the 9th through the 28th and through to the finish on the 30th. Anything that was provided as far as labor, materials etc. from the 1st through the 8th is not retained under the lien law. They should have mailed the 20 day Preliminary notice when they began their job.)

A Lien must be filed and recorded within 120 days of completion of the job, or if a notice of completion has been recorded, then within 60 days after recording such notice.

Once a lien is filed, a lis pendens must be filed within 6 months. Failure to timely record the lis pendens and file the complaint to foreclose the lien renders the lien null and void. Meaning, a lien will "expire" within 6 months if further action to foreclose on the property is not taken.

20 day Preliminary Notice
Must be sent within 20 days of the start (first day) of the job. (This means when you begin work)

Lien
Must be filed and recorded within 120 days after the entire job is complete. Or within 60 days if NOC has been recorded

Lis Pendens (ie Pending Litigation) Or An Action To Forclose Must be recorded within 6 months of lien being filed Or else Lien is Null and Void! (Consult an attorney for this process)

Please remember and follow these time frames. Doing so will retain and protect your lien rights. We can send all notices on your behalf, however you must notify us within the correct amount of time. If you have any questions regarding this information, please call us 480-380-3434. We will be happy to answer any questions that may arise.

Useful Links

The information provided in this news letter is taken and interpreted by Titan Lien Services from the Arizona Revised Statutes. Titan Lien Services is not responsible for miscommunication or typing errors. You hereby are advised to examine the Arizona Revised Statutes 33.992 and others pertaining to mechanic lien rights. They can be found at http://www.azleg.state.az.us/

Disclaimer:
Titan Lien Services, Inc is not in the business of providing legal advice. We are available to discuss lien laws and offer legal document preparer services in the form of Mechanic's liens and other related services.