In the construction industry, a mechanics lien is a valuable tool to secure payment for the work you’ve performed on a property when experiencing slow pay, short pay, or no pay situations.
However, it’s essential to understand the mechanics lien laws in your state to ensure your rights are protected.
Filing a mechanics lien can be a tricky process with multiple steps, and each state has its own set of rules and regulations. Failing to adhere to your project’s specific state and county requirements could result in the loss of your lien rights.
In this post, we’ll discuss Arizona’s mechanics lien laws and what you need to know to protect your rights.
To get a mechanics lien started, send us a message or call us at 800-366-5660.
Arizona Lien Law
In order to secure your rights to file a lien in Arizona, you first need to send a 20-day preliminary notice. This means that the prelim must be sent within 20 days of starting the project.
If you sent a preliminary notice at the start of the project, you’ll have the right to file a mechanics lien if you’re a contractor, subcontractor, or supplier who provided labor, materials, or services to the property and haven’t been paid.
You will have to prove this by presenting a copy of the contract or agreement for the work performed or materials supplied with the mechanics lien.
Filing a Mechanics Lien in Arizona
The first step to filing a mechanics lien is to record a Notice and Claim of Lien within 60 days after the property owner has recorded a Notice of Completion. If a notice has not been recorded, however, you will have 120 days after the completion of the project to record the claim.
Once your lien claim form has been properly filled out and notarized, you will have to file it at the Arizona county recorder’s office where the property being liened is located.
Please note that Arizona requires a Certified Legal Document Preparer to sign the mechanics lien before it can be filed. At CNS, we have the most on-staff Certified Legal Document Preparers of any lien service provider in the nation. We do this to ensure our customers’ mechanics liens are always handled timely and properly.
After your mechanics lien claim has been successfully filed, you’ll need to serve a copy of the lien claim to the property owner “within a reasonable time thereafter.”
Enforcing a Mechanics Lien in Arizona
Oftentimes, the action of filing a lien will be enough to prompt payment from the owner or parties responsible. However, if a fair amount of time goes by without payment, you can take legal action by enforcing your lien claim to secure payment, also known as foreclosing.
The action to foreclose a mechanics lien must be commenced within 6 months after recording the claim of lien.
Protect Your Arizona Lien Rights with CNS
Mechanics liens are often the final line of defense for securing payment you are owed. Because of that, it’s critical you understand Arizona’s lien laws to ensure your mechanics lien rights are protected.
Unfortunately, filing a mechanics lien can be both challenging and time-consuming.
At CNS, we have been helping construction businesses with mechanics liens and other notices for over 38 years. We have the knowledge and resources to save you valuable time and help you avoid common mechanics lien mistakes that could jeopardize your payment.
Contact us today to file a mechanics lien or get a 20-day preliminary notice started.
Prefer to call? You can reach us at 800-366-5660.
Disclaimer: CNS is not an attorney, and if you need legal advice, please contact one.