Home>Levelset Community>Legal Help>Home is finaled and payment is due before punchlist is to be done per contract. Can i lien for no payment?

Home is finaled and payment is due before punchlist is to be done per contract. Can i lien for no payment?

Arizona

We are a small residential builder. A home was recently finaled and per our contract the homeowner is required to pay in full before a walkthrough or punch corrections are to be done. Owner is refusing to pay and is demanding we correct the items prior to payment. Can we lien them as they have taken occupancy and breached our agreement?

3 replies

May 14, 2020

If the homeowner is refusing to pay per the terms of your contract, and you have exhausted all other avenues, you have a right to file a lien. I don't have experience in Arizona, so make sure you check out Arizona's requirements for notices and documentation in order to file a lien. It wouldn't hurt to start with a notice of intent to lien first, as this may help convince the homeowner to pay before a lien is filed.

1 person found this helpful

Helpful

May 14, 2020

Thank you Dawn! Your response is truly appreciated!

Report Spam

May 20, 2020

First question is whether you complied with the lien statutes, particularly whether and when you sent your 20 day preliminary lien notice. If you do not or did not follow the statute strictly your lien rights are dead on arrival.

0 people found this helpful

Helpful