A construction law attorney can be helpful when it comes time to file a construction lien. Especially since the process to file a lien can be confusing and difficult. With the help of an attorney, you will be able to understand construction liens and the process.
First, what is a construction lien? The definition of a construction lien is a claim that is made by a contractor who has worked on a construction project, but has not been paid.
Construction Lien Laws in Arizona
The laws surrounding construction liens vary from state to state. Under Arizona state law, all liens must have a 20-day preliminary notice. The notice must be detailed and include the estimated amount owed. A mandatory notice is sent by the contractor to establish the right to file a lien. If after the notice, the bill is paid, then there is no further action needed and no need to file a lien.
Requirements to File a Lien in Arizona
To file a lien, there must be a valid contract between two parties. The contract must include detailed information such as the estimate of costs. If there is no contract in place, it is going to be a lot harder to file a lien. Any contractor, subcontractor or any other professionals who have worked on a construction project can file a lien if they have not received payment. To prevent a lien being filed against you, simply just pay your invoice on time.
Enforcing Liens in Arizona
When it comes to enforcing liens, you will most likely have to foreclose on the property and you usually only have 6 months from the date recorded on the lien to do so. If you fail to foreclose on the property in this amount of time, the lien expires. To initiate a lien in the state of Arizona, a Lis Pendens notice, which is a document that is recorded with the county recorder, must be recorded within 5 days of filing the lien. The Lis Pendens document is a public notice that a certain property is subject to litigation, which might affect the ownership of the property.
Deadlines to Keep in Mind
In Arizona, a notice of completion is filed after the construction project is completed. This document can shorten the filing deadline for a lien. All parties involved must sign the notice of completion. The document needs to be served to all parties involved within 15 days of filing. When the notice of completion is filed, then the deadline to pay off the debt is 60 days. If the document has not been filed, then the deadline to pay the bill is 120 days.
Benefits of Working MKC Law Firm
The team at MKC Law Firm understands the complicated process of filing a construction lien. Working with an Arizona construction attorney can help offer legal advice and can help with recording, perfecting and enforcing liens. MKC Law Firm will receive and review all documents needed to file a lien such as preliminary notice requirements, timetables, stop work notices and lien foreclosures. We may be known as the lien experts, but the experienced construction law attorneys at MKC Law Firm can also help with other issues regarding construction projects. From drafting and reviewing contracts to payment disputes, MKC Law Firm has the skills to legally represent you in all construction law cases.