Arizona Bond or Lien Claim, Private Work
Bond or Lien Claim Private Work
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Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.
Title of Document: Notice and Claim of Lien.
Scope: State of Arizona, Private Works.
Time Constraints: Special Notes: If you have served a preliminary notice upon the requested parties, they MUST send you a copy of the Notice of Completion within 5 days after recording possibility lose their rights to changes a lien claim.
Claims must be filed depending on the type of entity you represent:
Both Cases, Preliminary Notice: You must have served a Preliminary Notice on all required parties before you can establish lien rights in the State of Arizona. Failure to do so negates your lien rights. See the State of Arizona memo on Preliminary Notices, Private Works, for more information.
Both Cases, Notice of Filing Lien: You must file with the county recorder and serve upon the owners a Notice of Filing Lien document.
Contractors and Suppliers: If you have not been paid in full, you must record your Mechanic's Lien with the county recorder's office, and serve Stop Notices, if needed, within 120 days, inclusive, of the completion, or cessation, of your work of improvement or supplying of material or services for improvement if no Notice of Completion, or Notice of Cessation, has been filed. Serve a copy of said notice on the owners and if they exist, the general contractors, lenders and sureties, or, if a Notice of Completion, or Notice of Cessation, has been filed, you must file your documents within 120 days of the recording of the Notice of Completion or Cessation, whichever comes first.
Recent Court Requests: A client has reported to us that the filing of a mechanic’s lien form is not enough for a claim to stick in some Arizona locals. In addition to the filing of the Mechanic’s Lien the court is also requiring a copy of the preliminary notice, a copy of the billing statements involving the account, and any other documentation or correspondence relating to the matter to show an effort to collect the account without response from any of the parties. This will increase you likelihood of enforcing your mechanic’s lien.
Perfection: Mechanic's Lien: To perfect your Mechanic's Lien, you must file suit to foreclose the lien within 6 months of recording. A lis pendens should be filed at the same time.
Payment Bond Claims: Where a Payment Bond has been provided by a surety, after you have filed your Mechanic's Lien file suit against the sureties within the terms as stated in the bond.
All Cases, Service of Stop Notice: A Stop Notice may be served at any time within the period for recording your Mechanic's Lien, as noted above.
IMPORTANT: For a Stop Notice to be enforceable, it must be accompanied by a Bond for 1.25 times the amount of your claim, which you can obtain from your own construction surety. Stop Notices cannot be used on dwellings of owner-occupants. If the job Owner or Lender DEMAND that you serve them with a Stop Notice you must do so within 30 days of the date of the demand, or you forfeit the right to ANY Mechanic's Lien on the job. As with the Mechanic's Lien, a copy of your Preliminary Notice must also be included with the Stop Notice.
The usual remedy is to file to enforce all claims in one suit (see below, Procedures). In any case, we strongly recommend that you r attorney handle the enforcement actions to perfect your lien claims.
Information Requirements: Program information and information for Exhibits A-D, any additional costs as to legal fees, court costs and interest charges (don't pass these up. Estimate if necessary. In the case of Stop Notices and Bond Claims, the lenders or sureties will reserve only the amount for which you make claim.), the county of the state where the recording will be made and a copy of your original 20 Day Preliminary Notice.
Form Types: Notice of Filing Lien, Notice and Claim of Lien, Stop Notice, Exhibit's A-D, if needed, and Recorder's Letter.
Procedures: Prepare your documents using the required information. While you can file your Notice of Filing Lien and Notice and Claim of Lien immediately, if there is a lender or surety, serve copies of the Notice of Filing Lien upon the owners, general contractors, lenders and sureties first. Often this is enough to get immediate payment. If not, file your master copies of the Notice of Filing Lien and Notice and Claim of Lien serve copies via certified mail upon the owners, general contractors, lenders and sureties. At this point you are ready to file suit to enforce all of your claims in one action. A Stop Notice must include a copy of the Bond and a copy of the Preliminary Notice, and also sent via certified mail.
Special Requirements, Lien Releases: A Release of Bond or Lien Claim document must be issued within 120 days after your lien is satisfied.
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