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Subcontractor Lien Rights

Can a subcontractor that supplied materials to an owner occupied residential project place a lien on the home with out a written contract with the homeowner or with out a written contract with the general contractor if they file a 20 day prelim notice?

1 reply

Mar 11, 2019

The majority of states do not require a written contract in order to give rise to lien rights, but Arizona is very restrictive with respect to lien rights on owner-occupied residential projects.

In Arizona, only parties who have a written contract with the owner-occupant may file a lien against an owner-occupied residential project. So, not only is a written contract a prerequisite to valid lien rights against an owner-occupied dwelling in Arizona, that written contract must be directly with the property owner.

In cases where no applicable lien rights exist, there are generally other ways to go about getting what is owned. A lawsuit can be filed against the non-paying party pursuant to a few causes of action, such as breach of contract or unjust enrichment, among others. Additionally, Arizona has prompt payment requirements that mandate the time period in which payment is supposed to be made throughout the payment chain.

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