Each contractor, subcontractor and suppliers must provide a preliminary notice
The Preliminary Notice must be sent, certified mail, to the owner within 30 days after their first work of the person sending the notice. The Notice is consider to have been sent as soon as it is postmarked
The Notice must be sent to the record owner. The address for the owner must be provided to all subs and suppliers by the general contractor
Special Rules for Preliminary Notice
The general contractor is required to give the owners address and the legal description of the property to each sub and supplier.
Effect of Failure to Send
Failure to send the preliminary notice bars the lien right.
Owner required to send Notice of Substantial Completion to each person who sent the owner a preliminary notice
Each lien claimant must send a Notice of Intent to the Owner/owner's agent, 20 days before lien is filed
Who may file a lien?
Contractors, subcontractors, suppliers, but not suppliers of suppliers
What information must the lien contain?
- The name and address of the claimant.
- The amount claimed to be due and owing.
- The name and address of the record owner.
- An itemized list setting forth and describing materials delivered or work performed.
- The name of the person against whom the lien claim is made.
- The date when labor was last performed or services were last rendered or the date when the project was substantially completed.
- The legal description of the premises where the materials were furnished or upon which the work was performed.
- A copy of the contract, if available
- Verification of accuracy of the lien, the allegations, sworn to and acknowledged by the lien claimant or his agent
When must the lien be filed?
- Contractors, 150 days from the earlier of last work or substantial completion
- Subs and suppliers, 120 from the sub or suppliers last work
Where must the lien be sent?
Copy of the lien must be sent to the record owner within five (5) days after the lien is filed to the record owner or owner's agent
When a lien is "paid or satisfied", the claimant must file a satisfaction of the lien, and send a copy of the satisfaction to owner within five (5) days after filing. If a Satisfaction of Lien not filed within 30 days of payment, then the claimant may be liable if no release after 30 days from payment and of receipt of notice from owner by certified mail, or pay actual damages plus a civil penalty of the lesser of 0.01% or $100 per day
Foreclosure of the Lien
Suit to foreclose the lien must be filed within 180 days after the lien is recorded
Deadline for filing a lien may be extended if signed by the parties to the contract, and the owner, and if notarized and recoded within lien deadline; no more than double regular deadline
Notice of Right to Claim on Bond
60 days from first furnishing materials, subs and suppliers must sent the General Contractor a Notice of Right to Claim on the Bond
Contract with the owner is $50k or less; or if the Owner does not include commencement notice on jobsite and in the project specifications
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