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I have asked the question below

Arizona

My question has to do with unpaid suppliers. If a contractor does not pay his subs or suppliers and is paid by the homeowner is there any further liability to the homeowner. I know in certain states this true. what about Arizona

2 replies

Dec 30, 2020
Probably not. That does not mean the homeowner can't be sued. Hopefully in exchange for the payment to the supplier's the homeowner obtained releases, because that would settle the issue. If no releases are signed, the homeowner still has a very good defense if there is a mechanic's lien or lawsuit filed by the suppliers.
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Dec 30, 2020

It depends. If the supplier secured their lien rights on the property, you may be at risk to pay the supplier invoices related to the property. Arizona is what is known as a "double jeopardy" state which means the property owner is is generally liable regardless if they have paid the contract in full. As the property owner, you can ask for lien waivers from your contractors suppliers. If there is a lien placed by a supplier, you will need to reach out to your contractor to get resolution. 

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