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Home>Levelset Community>Legal Help>Can the contractor 1) lien a residence (verbal contract act) in AZ, 2) He is asking us to pay for materials that he will

Can the contractor 1) lien a residence (verbal contract act) in AZ, 2) He is asking us to pay for materials that he will

ArizonaConstruction ContractMechanics LienPayment DisputesRight to Lien

I purchased a home to renovate in Arizona. I live in my current house. I had a verbal contract with a licensed contractor to remove an unground pool and trees in, etc in the backyard and do grading. After agreeing to take out a large pine tree at the last minute he refused, he has likened the house but will not show us receipts to back up his charges to us (pass on to us)of fill dirt and delivery of dirt to the home. Can he lien a residence? Must he show us receipts for what he is charging us. Essentially doubling our costs of the job.

1 reply

Jun 18, 2020
Arizona contractors on owner-occupied residential projects must have a written contract in order to lien. If the owner resides in the dwelling before or during the construction, it will be considered owner-occupied. Plus, if the owner intends to move in within 30 days of the completion of the project, the project will also be considered owner-occupied. But, if the owner isn't residing in the residential project, and if the owner won't move in within 30 days of completion, the project generally won't be considered owner-occupied, and a written contract won't be necessary for lien rights to arise. As far as billing - it's typical (and customary) for a contractor to properly bill a project before opting to file a mechanics lien. And, that will usually include some basis for the price they're giving. However, the contractor generally won't necessarily need to be absolutely transparent about how their fee was calculated - especially if they're billing in accordance with the verbal agreement that was made. Still - the number shouldn't come out of nowhere. For more discussion on Arizona's mechanics lien rules: - Arizona Owner-Occupant Protection Clarified - Arizona Mechanics Lien Guide and FAQs

Arizona's preliminary notice rules may block the lien claim

In order for an AZ contractor to have the right to lien, that contractor must first send preliminary notice - generally right at the start of the job. That notice must include an estimated value for the work they're doing - and their lien claim must be within 30% of that value. If the value of the work changes by more than 30% without an amended preliminary notice, then they'll only be entitled to lien the original value. Plus, if the contractor didn't send a preliminary notice at all, then they won't be entitled to lien rights. More on Arizona preliminary notices here: - Arizona Preliminary Notice Guide and FAQs - Arizona's 30% Preliminary Notice Rule

Additional resources

Finally, it sounds like these articles will be valuable here, too: - I Just Received a Mechanics Lien Threat – What Should I Do Now? - A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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