Will preliminary notices with the lender information as "request" protect general contractors' lien rights?
3 replies
Jul 8, 2020
Your question is not very clear. The form of preliminary 20-day notice is governed by statute. A.R.S. § 33-992.01. The boldface language contained in every form notice is required by statute. The 20-day notice must describe the labor/materials supplied; the address of the people furnishing labor/materials; the person that contracted for the labor and materials; and a legal description of the property.
The preliminary 20-day notice must be served upon the owner or reputed owner, original (general) contractor, construction lender and the person with whom the claimant has contracted to provide the labor, equipment, materials and supplies.
If your 20-day notice does not include that information and is not served on the people who need to be served, you may have a problem.
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Jul 8, 2020
Thanks Joseph, it is very unclear without context. This question was related to a Levelset form field and the question was asked of a Levelset associate. To clarify, does the requirement for lenders include mortgage holders outside of a construction lender? And if a client does not disclose a lender or mortgage holder, then how do avoid the problems you refer to.
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Jul 8, 2020
I understand. No the preliminary notice need only go to the construction lender. If the mortgage lender is advancing funds for construction, then they would get a notice. But a plain old mortgage lender does not get notice. Only those lenders providing money for construction.