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pre lien notice

Arizona

as a building owner I received a pre lien for signs being installed on our building. The tenant has a dispute with the contractor. We the owner were not a party to the agreement. If the tenant does not pay, and contractor sues, are we the building owner included in the fight? thank you Jim

3 replies

May 18, 2021
While you aren't necessarily involved in the fight over non-payment and most likely aren't on the hook to make payment to the contractor, you will definitely be involved in an action to foreclose a mechanics' lien if it gets that far. A contractor that follows the statutory requirements for the enforcement of a mechanics lien can, if they are not paid, foreclose on their mechanics lien against the property into which their materials and labor are incorporated. This would result in the contractor taking title to the property. If a mechanic's lien is filed against your property, you will definitely want to immediately demand payment of the lien from the tenant. Depending on your lease agreement, the nonpayment of a contractor resulting in the recording of a mechanics lien against your property is likely a breach of the lease and will subject the tenant to damages and cure provisions. In the end, if the tenant does not settle the lien dispute with the contractor by paying the contractor, you will want to pay the contractor and seek reimbursement from the tenant.
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May 18, 2021

Scott,

 I appreciate your prompt answer. 

Thank you

Jim

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May 18, 2021
Good luck Jim!
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