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20 preliminary notice scam company

ArizonaPreliminary Notice

The plumber I hired had a mitigation specialist come to my house to assess water damage and I signed documents for them to run a claim through my home insurance. Within 48 hours they wanted to demo my kitchen and bathroom before my claim was approved. I emailed company and called stating I wanted their equipment removed from my house and no longer wanted them to work on my home. I received a 20 day preliminary notice. I am in AZ. What does this mean? Should I be concerned that they have a lien on my house? I asked for a detailed invoice, but have not received it. The preliminary notice states $3000 for equipment and materials. What do I do?

3 replies

Jan 12, 2022
A preliminary 20-day notice is just that - a notice. It is notice that a contractor MAY in the future assert a lien against the property identified in the notice. It is common for any contactor to send such a notice at the beginning of their work becuase the lien rights only attach for work performed within 20 days prior to the mailing of the notice. So if the contractor waits until the end of the project, it may be too late to send the notice to preserve their right to a lien. The point of the explanation above is to illustrate that just because you receive a preliminary 20-day notice does NOT mean you have a contractor that is going to record a lien in the future. It is the recording of a mechanic's lien that you should be concerned about, not the receipt of a preliminary 20-day notice, which has no affect on the property itself. Don't worry about a lien on the property until there is a demand for payment.
Jan 14, 2022
Joseph, What do I do if when if I signed an a mitigation authorization and the company left out the page that has the provisions and disclosures? This page was not presented and now that I have the complete authorization it is actually a contract that takes away all my rights, such as right to a jury, default fee stating if I cancel services they will take 30% of final insurance estimate, the right to cancel within the first 3 days? Please help? I
Jan 14, 2022
Ok to answer those questions I need a copy of the entire contract and probably have a call with you to ask a bunch of questions to understand what has happened. Just because those provisions are in there doesn't necessarily mean you can't terminate the contract. As a general rule, in a breach of contract case, the plaintiff can't penalize you for termination for an arbitrary amount like 30%. They generally are limited to their actual damages, which may be little or none if work has not started. But I need a lot more info. Why don't you email the contract to me: We can take it from there.

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