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Do suppliers in AZ have lien rights on production lots?

ArizonaMechanics LienPreliminary Notice

We are a supplier in the state of AZ. We are supplying material to a subcontractor on the job. The job is for several production lots/common areas in a new housing development that are currently being built/owned by a developer or GC but will likely be sold to a home owner and/or HOA at a date in the future.

1 reply

Oct 6, 2017
Arizona imposes limits on the parties provided mechanics lien protection, only parties with a direct contract with the property owner can file a lien on an owner-occupied residential project, and suppliers to suppliers are prohibited from filing liens on any project.

Suppliers to a subcontractors are protected by the ability to file a lien (provided the associated requirements are met) on all projects other than owner-occupied residential projects. If a project is owned by an owner/developer where the GC owns the property, it would not be classified as an owner-occupied dwelling for the purposes of limiting supplier to subcontractor lien rights.

Note, however, that s supplier must deliver a 20-day preliminary notice (and may need to send another if the material supplied exceed the amount listed in the notice by more than 20%); and must file the lien within 120 days from the completion of the improvement, or 60 days from the filing of the notice of completion, whichever is first.

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