Do you have to remove the lien after six months, even if the customer refuses to pay the contract amount?
1 reply
Nov 15, 2019
Enforcement deadline for Arizona mechanics liens
An Arizona mechanics lien is only valid for 6 months after the lien claim is filed. If a foreclosure (also known as an enforcement) action is not initiated within this 6-month time frame, the lien will expire and no longer be enforceable.
Keep in mind that enforcing a mechanics lien is a full lawsuit requiring an attorney, and costing time and money. But, the prevailing party may be awarded attorney's fees and court costs. Claimant's may want to consider the amount of the claim, and ask themselves whether foreclosing on the mechanics lien is worth it.
Sending a Notice of Intent to Foreclose
If the deadline has yet to pass, there is one more optional step claimants can take to try and induce payment. This is known as a Notice of Intent to Foreclose. This notice, when sent to the property owner, can be considered as a final warning shot. It will inform the owner that the claimant is both willing and able to enforce their lien rights if they are not paid within a certain period of time. This is usually enough leverage to convince the release of payment.
Removal of a mechanics lien after the enforcement deadline has passed
If the lien claim has been satisfied (i.e., paid) or has expired. It is typically the responsibility of the lien holder to remove the claim. This is normally done within 20 days of the satisfaction or expiration of the claim, and is usually initiated by a written demand by the owner to remove the lien. The full details can be found in Arizona Code §33-1006.
For more information check out our Step-by-Step Guide to Filing an Arizona Mechanics Lien.