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.