If we are going to send a Preliminary Notice out for a job, do we need to file a NOC? Is this a requirement?
1 reply
Oct 19, 2018
In Ohio, a notice of commencement must be recorded "prior to the performance of any labor or work or the furnishing of any materials for an improvement on real property which may give rise to a mechanics’ lien." The notice of commencement is to be recorded in the office of the county recorder for each county in which the real property to be improved is located, and should be recorded by the owner, part owner, or lessee who contracts for the labor, work, or materials. The notice of commencement has specific language and information that must be included.
In addition to having the notice recorded, the owner is required to post the notice of commencement on the property (unless the improvement is the subject of a home purchase contract), and must provide a copy of the notice to parties requesting a copy.
The notice of commencement is important, because potential lien claimants are allowed to rely on the information contained within the notice of commencement, and if the information is wrong, the claimants may amend their lien claim and the owner "is liable for any loss of lien rights of a lien claimant and any actual expenses incurred by the lien claimant in maintaining lien rights, including attorney’s fees, if the loss and expenses incurred are a direct result of the lien claimant’s reliance on the incorrect information."
§ 1311.04 (d) - (f) provides the requirement that parties provide a copy of the notice of commencement to a requesting party within 10 days from the request.