Home>Levelset Community>Legal Help>If I failed to provide a pre-construction lien notice for a residential project in Arkansas such that I cannot place a lien on the improved property, are my rights to sue affected?

If I failed to provide a pre-construction lien notice for a residential project in Arkansas such that I cannot place a lien on the improved property, are my rights to sue affected?

My company usually does work in apartment buildings and is not required to provide pre-construction notices. However, we are currently owed money by a real estate agent for work done at a single-family home that is for sale. She has stopped answering our calls and emails. I think I have determined that we waived our lien rights because we failed to provide her pre-construction notice, as required by A.C.A. 18-44-115. Does this in any way affect my right to sue the real estate agent for applicable causes of action?

1 reply

Nov 3, 2017

A failure to deliver a required preliminary notice, by itself, only impacts the ability to later file an enforceable mechanics lien. Other rights, including other causes of action for which a party may bring suit, are unaffected. This generally includes causes of action related to breach of contract, or otherwise related to getting paid for the work done to improve the property.

Note, though, that "a residential contractor who fails to give the notice required by this subsection is guilty of a violation pursuant to § 5-1-108 and upon pleading guilty or nolo contendere to or being found guilty of failing to give the notice required by this subsection shall be punished by a fine not exceeding one thousand dollars ($1,000)."

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