May 13th, 2021

How Mechanic’s Liens Work in California

As a contractor, it’s important to be educated on the lien laws in your state to ensure that your lien rights are protected and that you are getting paid for your work. It’s especially important when you run into a situation where you aren’t getting paid on a project and have to take it to the next level of a mechanic’s lien. Here are some important deadlines to be aware of.

 

20 DAYS

You MUST file a prelien within 20 days of issuing supplies or starting work.

Just like when you are filing a lien for privately-owned property, you need to issue a preliminary notice in order to issue a stop notice. 

90 DAYS

You have 90 days to file lien claims after the completion of the project. 

Unless a recorded notice of completion has been filed. You also have 90 days to act on your lien.  If this deadline is passed, the contractor may not be able to enforce their lien rights and may be required to remove the lien. If the contractor and the property owner agree, the deadline can be extended up to a year.

60 DAYS

You have 60 days after filing a suit to serve the property owner. Once the property owner has been served, the contractor then has 60 days to provide legal documentation of service to the court.

30-60 DAYS

When a Notice of Completion is filed, the due dates are shortened. 60 days for general contractors and 30 days for subcontractors and suppliers. Additionally, project completion is marked by 60 days in which no work has been performed. 

 

 

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lien waivers in california
December 17th, 2024

The Ultimate Guide to Lien Waivers for Construction Professionals in California

lien waivers in california

Construction professionals are skilled at juggling subcontractors and suppliers, but what happens if one of these teams does not receive payment? The answer is that they may file a mechanic’s lien, inhibiting the owner from selling without distributing the proceeds accordingly. The process can turn into a convoluted mess. 

A lien waiver acts as payment protection and provides peace of mind for all parties involved in a transaction. Here is why your business needs to implement lien waivers as a standard practice and how you can leverage them to streamline your processes. 

What is a Lien Waiver?

A lien waiver is a legal document that acknowledges receipt of payment and waives the right to file a mechanic’s lien on the property. Mechanic’s liens are typically filed when construction professionals or suppliers are not paid for their work or materials. These liens prevent property owners from selling or refinancing until the lien is resolved.

In contrast, a lien waiver serves as a receipt of payment, protecting property owners from future lien claims and ensuring that contractors and suppliers are paid for their work.

Why Use Lien Waivers in California?

Properly executed lien waivers offer numerous benefits, such as protection for all parties. Property owners are protected from mechanic’s liens, while contractors and suppliers have assurance of payment.

Additionally, lien wavers can offer a streamlined payment process by simplifying financial transactions and providing transparency, reducing disputes and delays.

In turn, this leads to increased trust with clients, contractors, and lenders, who are reassured that all parties involved are working in good faith.

Types of Lien Waivers in California

California law mandates the use of specific, unaltered lien waiver forms as outlined in the California Civil Code. These statutory forms ensure consistency and protect all parties from disputes. 

There are four types of lien waivers used in California:

  1. Conditional Waiver and Release Upon Progress Payment
    • Used when a payment is promised but not yet received.
    • This waiver becomes effective only when the payment is processed.
  2. Unconditional Waiver and Release Upon Progress Payment
    • Used when a contractor or supplier confirms they have received a progress payment.
    • This waiver is effective immediately upon signing.
  3. Conditional Waiver and Release Upon Final Payment
    • Used when the claimant is awaiting final payment.
    • It becomes binding only when the final payment is received.
  4. Unconditional Waiver and Release Upon Final Payment
    • Used when the final payment has been received and acknowledged.
    • This waiver takes effect immediately upon signing.

The strict use of these statutory forms is non-negotiable in California. Any modifications to these forms can render them invalid, jeopardizing the protections they offer.

Unique Aspects of Lien Waivers in California

Each state has its own rules and requirements when it comes to mechanic’s liens and lien waivers, so it’s important to research the specific rules for your state. In California, the lien waiver process has these specific requirements:

  • Statutory Forms Only: The state requires the use of the lien waiver forms outlined in the Civil Code. Altering or adding language to these forms is not allowed and could void the waiver.
  • No Advance Waiver of Lien Rights: Contractors and suppliers cannot waive their lien rights through contract clauses before work begins. Lien rights can only be waived through the execution of one of the statutory forms after payment is made.
  • No Notarization Required: Unlike some states, California does not require lien waivers to be notarized. In fact, notarization could invalidate the waiver.
  • Preliminary 20-Day Notice Requirement: Most contractors, subcontractors, and suppliers must serve a Preliminary 20-Day Notice to preserve their lien rights. This notice ensures the right to file a mechanic’s lien if payment issues arise later.

Best Practices for Using Lien Waivers in California

To maximize the benefits of lien waivers in your construction business, follow these best practices:

  1. Use the Statutory Forms: Always use the lien waiver forms required by California law. Keep copies readily available to avoid unnecessary delays.
  2. Establish Clear Processes: Designate a team member to manage lien waivers, ensuring they are requested, reviewed, and authorized promptly. Having a dedicated process reduces errors and streamlines operations.
  3. Automate with Technology: Use software tailored to the construction industry to automate the preparation and distribution of lien waivers. Automation ensures compliance with California’s requirements and makes document management more efficient.

Streamline Your Business with Titan

At Titan, we help construction professionals secure their lien rights and get paid faster. From serving Preliminary Notices to filing Lien Claims, we provide tools and expertise to simplify your operations and protect your payments.

Ready to take control of your lien waivers? Explore our services or sign up today to get started!

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Construction Lien
November 11th, 2024

How to Put a Construction Lien on a Property

Construction Lien

Contractors have a unique business structure that can make collecting payments difficult. Unlike an expensive car that can be repossessed by the lender, contractors install materials and invest their time into a property without a guarantee of payment. 

If a property owner refuses to pay up at the conclusion of a contract, a construction lien may be a great option to secure your pay.

This guide will give you the basics on what a construction lien is, why you might need one, and a quick step-by-step plan to protect yourself from defaulted payments. 

 

What is a Construction Lien?

Before we dive into the mechanics of how to put a lien on a property, understanding what all it entails is crucial. A construction lien, sometimes called a mechanics lien, gives contractors a stake in a property if their bill is not paid promptly (or at all). 

Suppose you worked on an owner-occupied residence in Arizona and you had a contract with the owner to install new cabinets for their kitchen remodel. When the bill comes around and the property owner refuses to pay, you can file a construction lien to offset your cost for the work. That means that you may gain a stake in the property until a time when the bill is paid in full. 

 

Why Put a Construction Lien on a Property?

Chances are that contractors would rather be paid in cash for their hard work on a property rather than gain a stake in the home or business they worked on. The problem is that reclaiming money as a contractor can be complex. You may not be able to take back the work and materials you have already invested in the project. 

A construction lien exists to give contractors some security in the event that someone defaults on their payment. 

The person who owns the property with the construction lien is unable to sell or refinance until that lien has cleared. They may be able to use proceeds from the sale to pay off the lien, ensuring that every contractor has a fair chance at getting the money they are owed at some point. 

 

Steps to Put a Construction Lien on a Property

In an ideal world, you will never need to file a construction lien with your clients. However, being left without recourse should a client refuse to pay can be devastating to your business, so it’s best to understand how to put a construction lien on the property. 

Here are the four steps to follow :

  1. Preliminary Notice

While the rules differ from state to state, filing a preliminary notice is typically the first step. You may also hear this called a prelien. States that require preliminary notices may also have strict timeframe and mailing requirements. It may be best to send notices when you have a signed contract. Also, sending via USPS certified with a return receipt can ensure the mailing goes smoothly.

In short, this notice makes the property owners and all other parties up the payment chain aware of the work to be performed and/or the materials provided. The preliminary notice may be packaged under a different name, depending on the state. 

However, the message is the same: it outlines your right to secure a future lien if the project goes without payment. We recommend sending a preliminary notice for every project!

  1. Notice of Intent

While a preliminary notice puts the property owner on alert that you have the right to file a lien in the future, a notice or letter of intent is a stronger message. Some states require a notice of intent to be served prior to filing a lien. It tells the property owner that you are on the path to filing the lien because they have not rendered payment. In many cases, this notice of intent is all it takes to get a property owner to cough up the cash for your services. 

Keep in mind that not all states require a notice of intent. Still, it is advisable to issue one because it may resolve the issue without having to move forward on a construction lien. 

  1. File the Lien

If the previous two stages were unable to produce the payment, you will need to move full steam ahead with the plan to file the lien. 

If you have lien rights and you have served all required documents to all required parties properly, you may want to consider preparing and filing a Claim of Lien to be recorded in the county where the improved property is located. Gather your contracts, all notices sent, open invoices, and any signed waivers, then refer to a lien processing company or construction attorney to help you determine if you have lien rights

  1. Enforce the Lien

At this stage, you already have a lien in place on the property that prevents them from selling it without issuing the payment due for your services. A construction lien can be enforced, forcing the property owner to foreclose on the property at hand. While extreme and inconvenient, it may be the only way to secure the money you have yet to be paid. It is best to contact a Construction Attorney who can help you determine your next steps after a lien has been filed.

Once you get to the point of going to court to force the foreclosure, you may be surprised how many property owners will offer up payment rather than letting their interest in the property fold. It may require some upfront effort, but is necessary to prevent doing pro bono work. 

 

Manage Your Construction Liens From Start to Finish

Are you ready to protect your business and secure payment for the hard work and special skills you bring to the table? 

At Titan Lien Services, we’re here to help you protect your lien rights from start to finish. Our team can send preliminary notices, Notice of Intent to Lien, and Lien Claims in several states on behalf of your business, plus let you manage everything from one user-friendly customer portal. We have the expertise to get things done accurately and efficiently!

Explore our services or sign up today to get started.

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What Can You Expect From Titan? Hear from Our Valued Customers
August 14th, 2023

What Can You Expect From Titan? Hear from Our Valued Customers

What Can You Expect From Titan? Hear from Our Valued Customers

Finding a lien service that checks all your boxes can be challenging, especially when your day is already so busy. But at Titan Lien Services, our promise is to make the process of protecting your work simple and painless. We offer a variety of services to meet your project needs in addition to superior customer service, user-friendly tools, and industry expertise. 

We take great pride in our work, but don’t just take our word for it! Here are some firsthand accounts from two of our valued customers, Hillari Tischler with Kelco Contracting LLC and Margaret Rainey with Doan Restoration of Arizona.

 

Top-Notch Customer Service

When it comes to support, we’re there for you. Hillari appreciates that she always feels “supported and heard” when working with us. Margaret agreed, saying, “Every time I have a question, I call or email and Titan helps me out.” At Titan, you’re never alone.

We also believe in proactive communication – it’s just part of the Titan difference. Margaret, a seasoned veteran with 15 years of experience and countless pre-lien services under her belt, had this to say: “This is the first [service] that has been so on top of things. You email me, you call me if there’s an issue, and you’ve worked with me on things.” 

 

User-friendly Portal, Designed with You in Mind

We always strive for that balance of functionality and ease of use, and our brand new customer portal was designed with your business’s needs in mind. 

With exciting new features like an advanced search feature, more convenient communication options, and streamlined project organization, it’s easy to use and will save you time and money. Access everything you need in one central location, including communication details, updates, and files. When you’re ready to request a new lien or amendment, it only takes a few clicks from the portal.

“I really do like the new one,” Margaret said about the new portal. “It’s more user-friendly. I’ve used several different ones before and this one’s really easy.” 

 

Comprehensive Protection for Jobs

Both Hillari and Margaret have reaped the benefits of our protective measures. When clients, especially insurance companies, delay or default on payment, our pre-liens offer crucial leverage. Margaret said, “Having my pre-liens in place, I use that for my leverage to get paid.”

Hillari says our 20-day notices have ticked all her boxes for job protection. Margaret praised our prelien services in Arizona and Michigan, sharing, “Titan does pre-lien for me … and when needed, Titan has also filed the liens for me. It’s been a really easy process, which I appreciate.”

We’re here to make your job as smooth and frictionless as possible!

 

Peace of Mind with Titan Lien Services

You and your team commit a lot of time, effort, and expertise to each project – and you deserve to rest easy knowing you’ll get paid for your work. 

With Titan, peace of mind comes as standard. Margaret told us how reassuring it is to have pre-liens in place: “I know I’m protected and it helps me. It is especially comforting for our owner, who knows that I do it on every job above $1,000. He knows we’ll be paid then.”

We couldn’t be prouder to share these stories with you. They encapsulate everything we’re about – comprehensive protection, a user-friendly platform, and unwavering customer support. Whether you’re dealing with slow pay or default, or just want that peace of mind, Titan is here for you. Give us a call or send an email, or register your account now. We’re ready to help!

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Updates to Customer Portal
June 28th, 2023

3 Exciting Updates to Titan’s Customer Portal

Updates to Customer Portal

Every company needs a refresh at some point to streamline their offering and improve the service provided to their customers. Titan Lien Services strives to create the best customer experience possible, and our new and upgraded customer portal has some excellent features that you will fall in love with. From streamlining searches to being more user-friendly, you will find everything you need in our new portal. 

What did we add to the portal to make it better than ever? Take a look at some of these features to see how our upgrades might benefit you. 

 

New Search Feature 

One of the best new features of the customer portal update is the introduction of a new search function with advanced filtering capabilities. It allows you to find the information you need quickly, saving valuable time. After all, the old adage is that time is money, and now you can save more of both. 

Not to mention, the new interface is extremely intuitive and user-friendly. You should be able to navigate all of your existing projects with ease. This means that you will spend less time searching and more time actually doing the work that keeps the lights on. 

This new feature has several advanced filters that you can set in the “advanced search” mode. To name a few, you can now search by looking for: 

  • Customer or job name
  • General contractor or sub-contractor
  • Owner
  • Lender
  • Job reference number
  • Job ID range

Another great feature is the ability to do an audit based on the date range for submitted pre-liens. During the dates selected, you will see a list of all the pre-liens submitted for that time period. It gives you a rich resource to see how you are doing in a quick snapshot, allowing you to then filter data by date, status, and more. 

Once you have the data where you want it, you can also download it into an Excel spreadsheet, allowing you to manipulate the numbers however you want to or need to. 

 

Streamline Communication and Organization

Is there anything worse than having to spend precious time digging through the endless minutiae and paperwork just to find the one document that you need? Titan’s new customer portal allows you access to clear documentation for everything all in one central location. You can access every aspect liens and pre-liens related to a project: communication, updates, and files. 

The best part is that everything is in one convenient location – no need to dig through your email inbox or search all over your computer. 

From the portal, you also can access a lien request link instead of having to call our office. Our new customer portal allows you to request liens, request amendments, draw waivers, and create a full letter of intent without ever having to leave your computer.  

The result is that you can save time and headache when it comes to searching for the documents or taking the next actions you need to manage your liens smoothly. 

 

Cash Flow Solutions with Billd

Waiting for project payments can put significant strain on your cash flow, so we partnered with Billd to make your working capital more accessible than ever before. Billd is the premier provider of financial solutions, uniquely tailored to the specific industry needs of commercial subcontractors. 

What can you do with Billd on your side? 

  • Secure need-it-now funds: When you need money for materials and labor, Billd is here to help. They offer extended terms on materials for up to 120 days and up to 100% advances on approved pay apps (minus a small purchase fee). 
  • Project-based lines of credit: Increase access to capital without compromising other financial resources with new project-based lines of credit. 
  • Consultations: You can meet with Billd’s knowledgeable team of construction industry experts to strategize how to maximize your value from Billd.

The benefit of all these perks is that you can minimize cash flow constraints while planning for the current and future needs of your business.

The best part is that Billd solutions are easily accessible directly from your customer portal. Click on the button that says “Improve Your Cash Flow Today!” at the top of your screen to be connected with a Billd representative. From there, you can submit a commitment-free application and upload all requests without ever leaving your account. 

Manage Your Lien Rights with Ease

Keeping your business safe should be easy, and Titan’s new customer portal makes it easier than ever to protect your rights by streamlining the process to ensure that you get paid for your time and expertise. From pre-liens to mechanics liens, Titan does the heavy lifting so that you can get to work faster, knowing you will get paid.

If you are ready to start streamlining your business with an easy to use and intuitive customer portal, reach out to Titan today to learn more about how we can help your business get to work!

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July 14th, 2022

Protect Yourself from Project Non-Payment with Preliens

As a construction contractor, non-payment for a job is a big risk. It could mean a massive loss in income–from labor and materials to your own wages. That’s why it’s important to take proactive steps to protect yourself. In fact, some states require it. 

The simplest, most effective way to legally avoid non-payment issues is by filing a prelien (aka Preliminary Construction Notice) for each of your projects.

Why Preliens?

On any construction project, submitting a prelien isn’t just a smart thing to do–it’s one of the very first steps you need to take. There are several reasons why that’s the case, but the most obvious benefit of preliens is the legal protection they offer.

To explain this in greater detail, let’s consider general contractor fees. The average cost for these services is about $4,000, but they can get as expensive as $58,000 or more. Filing a prelien can be as minimal as $25 and save you tens of thousands in the long run.

 

Benefits of a Prelien

Other benefits of preliens include:

  • Alert clients to the value of your work. Keeping track of expenses can be challenging for anyone, and preliens often state the estimated contract amount of your work and helps clients track all those contracted, the anticipated expenses and their scope of work. 
  • Make it easier to communicate with other parties involved in a project. A prelien can create lines of communication between your business, other general contractors, and clients.
  • Speed up the payment process. Preliens improve the chances that clients will pay you promptly, potentially allowing you to fund new projects more quickly. 

Tips For Creating a Prelien

When it’s time to submit a prelien, here are a few simple steps to follow:

  • Don’t wait too long to submit a prelien. Every state has specific prelien deadline requirements or no requirements at all. Instead of trying to keep track of each all 50 states requirements, it is a good practice to send a prelien on every job within the first week of your job or right after you have a signed agreement. There’s a good chance you’ll need to submit your prelien before a predetermined deadline–do your research to ensure you don’t miss that date.
  • Make sure you’re following the legal requirements in your area. There are many factors that go into each state’s lien law requirements. Make sure you are familiar with your state’s rules and any state where you are conducting business. Construction attorneys can help you with this if you need clarificaiton. 
  • Send your prelien to everyone up the payment chain. This may not be a requirement in all states, but it is a good practice to create transparency and let everyone know that has an interest in the project, what your role is. Make sure you include, your client, your client’s client, the Prime Contractor, Owner(s), and Lender(s).
  • Finally, make sure you mail the prelien based on that state’s requirements. Some states require that the prelien be sent via USPS Certified Mail with Return Receipt, USPS Certificate of Mailing, or no requirement. 

What To Look For In A Lien Service Provider

If you’re like most general contractors, you don’t have time to handle your own preliens on top of everything else. When that’s the case, you’ll need to work with a lien service provider–but not all companies in this industry are equally reliable. To find a lien service business that stands out from the crowd, look for companies that offer:

  • Reasonable prices. The whole point of filing a prelien is to save money, so you shouldn’t pass this task on to a company where the cost in unreasonable. Instead, search for businesses that deliver fair pricing and bulk discounts.
  • Simple billing. Paying your bills for lien services shouldn’t be as complicated as submitting the preliens in the first place. Ideally, your lien service provider will offer detailed monthly invoices with itemized charges, and autopay services.
  • A robust digital presence. Nowadays, doing business online isn’t just a convenience– it’s a way of life. Look for lien services providers that let you submit and track your documents through their website.
  • Educational benefits. Preliens can get complicated, but you shouldn’t let that stop you from learning more about them. Some of the most significant benefits a lien company can offer are educational resources like seminars on lien law or best practices for navigating the process. 

Secure Your Payment

Finding a lien service that delivers all these benefits and more was challenging–until now. Titan Lien Services specializes in preparing construction preliens and mailing them for you based on project state requirements. Their enrollment process is free and takes less than 5 minutes to complete. Sign up as a new Titan Lien Customer today. [https://titanlien.com/sign-up/] Then you will be ready to submit your prelien requests for all your open jobs. 

With Titan Lien Services as your partner, you are taking the first step in preserving any lien rights you may have. Worry less about collecting and more about building.

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How to Explain a Pre-lien Upfront
June 7th, 2022

How to Explain a Pre-lien Upfront

How to Explain a Pre-lien Upfront

Sending pre-liens to clients is a crucial step in the construction process, with some states even requiring them. Here, you’ll find a complete overview of how to explain a pre-lien upfront to your valued customers.

What is a Pre-Lien?

Also known as a “preliminary notice,” a pre-lien is simply a notice sent by contractors or subcontractors at the start of a construction project. Though the exact requirements surrounding pre-liens vary by state law, you’ll generally send them to the property owner, general contractor, and other parties involved with the project.

When they are handled correctly, pre-liens can benefit everyone participating in the construction process. For property owners, pre-liens are an easy way to track the businesses working on a project and how much they’ll need to pay them. The same is true for general contractors, along with the added benefit of simplifying project security management. And subcontractors who make a point of sending pre-liens often find that they receive payment sooner rather than later.

Why a Pre-Lien is Crucial

Of course, there’s a bit more to these documents than the above description implies. Your pre-lien will also function as the first step in resolving any payment disputes that arise on a construction project.

When you send a pre-lien to other organizations involved in an upcoming job, you’re also securing your right to a mechanics lien down the line. Note that this doesn’t mean you’ll have to file a mechanics lien–n fact, doing so is relatively uncommon. Sending a pre-lien simply gives you the option to take that step if anything goes wrong.

While some states allow for late pre-liens after the usual deadline, it’s nearly impossible to file a mechanics lien without a pre-lien. If you do, the other party will easily be able to take you to court.

How to Approach Clients

There’s no arguing that pre-liens are essential, even if you’re working in a state where they aren’t legally required. Despite that, many companies find it difficult to file for a pre-lien – not due to legal red tape, but because they’re concerned about offending their clients. Unfortunately, that’s not an entirely unfounded concern. If you approach this topic the wrong way, your customers could think that you don’t trust them to pay you what they owe.

However, this shouldn’t be an issue when you know how to explain a pre-lien upfront. Follow these steps to secure your payments while keeping your clients happy:

  • Don’t wait to talk about pre-liens. Even when they aren’t put to use, pre-liens play a significant role in all kinds of construction projects. Given their importance, you shouldn’t put this discussion off until the last minute. Instead, tell your clients what pre-liens are and why they are essential as soon as possible.
  • Make sure you get in touch with the right people. A single discussion on the topic of pre-liens might not be enough. Figure out which of your clients’ departments and workers are likely to encounter pre-liens, and tell them what they need to know.
  • Be transparent about why these notices are essential. You don’t need to sugar-coat your discussion. Make it clear why you need pre-liens to protect your business. And explain that it’s a standard requirement across all the clients you work with.
  • Tell your customers how pre-liens can benefit them. Pre-liens don’t just help you, after all. Let your customers know how these notices can be in their best interest, too.

Make It Easy

The reality is, that getting on the same page with clients regarding pre-liens is just the first step. Then comes the process of actually sending pre-liens and other official documents. This can be highly complicated, even for seasoned construction professionals. That’s where Titan Lien Services comes in.

The team at Titan specializes in lien rights to help keep your business safe. They have a quick, free setup with great customer service, no annual fee, and have education about liens per state to help you better understand what you can expect. From pre-liens to mechanics liens, Titan does the heavy lifting so you can get to work faster knowing you’ll get paid.

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June 24th, 2021

Here’s How Project Completion is Defined in Arizona

Defining project completion might sound simple, however, in Arizona, you have a limited amount of time after project completion before their lien filing deadline approaches. So for contractors, it’s important to find out when project completion officially occurred when filing a mechanics lien. If you happen to miss this short window, you could lose your payment rights.

Here’s how project completion is defined in Arizona, and other factors that can impact it.

Deadlines

You must file your lien no later than 60 days after the notice of completion is recorded. You also have the option to file 120 days after “completion” if no Notice is recorded.

Project Completion Defined with No Notice

Project completion might seem straightforward, but actually pinpointing that final date can be complex. Completion is considered the day the general contract is complete, not the day your contract is complete.

There are three main ways project completion can be defined with no notice. The first is when no labor has been completed on the project for 60 continuous days. Another option is 30 days after a Certificate of Occupancy is issued. However, if no certificate is issued or if it’s not followed up by a building inspection and final written acceptance, then the “last date of furnishing” is considered the completion date.

The last date of furnishing is the final day that any labor or materials were furnished to the project.

Completion Factors

  • Change Orders – A change order has the potential to push back the project completion date which as a result could extend your lien filing deadline.
  • Punch-List Additions – This typically isn’t a factor that impacts a completion date. Only significant additional work will have an effect on the completion date.
  • Warranty Work – Warranty-related tasks or punch-list additions (labor or materials) to correct work that did not conform to contract specifications is not considered when determining a completion date.

 

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June 17th, 2021

What is an Arizona Stop Notice?

What is an Arizona Stop Notice?

Did you know that mechanic’s liens aren’t the only method to solve your non-payment problem? We’ve partnered with Udall Shumway to bring you everything you need to know about Arizona Stop Notices. Let’s uncover some commonly asked questions.

How does a stop notice work? 

It’s pretty straightforward, if a contractor hasn’t been paid for a construction job, they have the option to file a stop notice with the lender or owner of the property. The goal of this is to get the owner or lender’s attention and create a sense of urgency for payment. A stop notice will halt the work of a construction project completely and disrupts the flow of any project funds.

Where can stop notices be used? 

Only four states allow stop notices, and Arizona happens to be one of them. Private projects are the only places that stop notices can be used. Any public projects or owner-occupied dwellings don’t make the cut.

Who can use them? 

Any person entitled to a mechanic’s lien, other than the original contractor, can issue a stop notice against the owner. (A.R.S. § 33-1054). Even the general contractor may issue a stop notice against the construction lender.* (A.R.S. § 33-1055)

*Stop notices are not effective against construction lenders unless bonded. (A.R.S. §§ 33-1055 & 1058). Lenders may ignore non-bonded stop notices.

Are there requirements for stop notices be used? 

Yes! In order to get a stop notice, a contractor had to have filed a preliminary notice first, similar to a mechanics lien. If the contractor never filed one, they sadly do not have the option to get a stop notice. So it’s important to make sure you cover your basis and file a preliminary notice for each and every project.

Stop notices are an effective way for Arizona contractors to protect themselves against non-payment if they’re unable to file a lien. Titan Lien Services can help you serve stop notices and send preliminary notices with ease. Contact Titan Lien Services for comprehensive stop notice support.

file arizona mechanics lien

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May 18th, 2021

Common Mechanic’s Lien Mistakes (And How to Avoid Them)

When it comes to filing your Mechanic’s Lien, it’s important to go through the process with little to no hiccups for all parties involved. Not only for the sake of meeting deadlines but also because those who review the documents are going through it with a fine-tooth comb, diligently looking for any mistakes you’ve made along the way.   Arming yourself with information on what to avoid when it comes to mechanic’s liens is crucial so you don’t invalidate your lien rights. Here are some things to consider: 

Do you fully understand your lien rights? 

Before you start any project, make sure you know exactly what your state requirements are to ensure your lien rights. There are several factors to consider, including if you need a valid contractor’s license, notice requirements and how they are served, and doing it all within the strict time frames set by each state.

Are there any incorrect forms with missing or inaccurate information?

Accurate property descriptions are essential, and this means more than just getting the address right. If you are unsure of an exact address, provide a parcel number or use an aerial map, to provide a visual of the property being improved. Ensure that all other information provided is accurate.

Are you filing on time? 

Liens must be filed before their deadline, otherwise you’ll lose lien rights. Refer to state statutes to know those deadlines or consult your legal counsel.

Did you send a prelien?  

In many states, contractors may be required to send a preliminary notice, notice to owners or notice to general contractors, notifying relevant parties of their involvement on the job. Some states have Intent to Lien requirements before filing a lien.

Are you using the true facts or others opinions?

It’s important to note that lien laws differ state to state, so be sure you are not working off what you “heard from another contractor,” who may be working under different state law.

Never go at it alone!

There’s no shortage of red tape in the lien filing process. A professional lien services firm can help you avoid these mistakes. The smartest move a contractor can make is to not go at it alone. 

 

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