What happens when a propery is sold after a NTO but prior to a lien?

4 days ago

What happens if a property is sold after you submit a NTO? Do you get notified of the new owner? Do you still have lien rights?

Senior Legal Associate Levelset
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Generally, as long as a Notice to Owner was properly sent to the correct parties, the sale of that same property later on won’t block lien rights or impede the effectiveness of a Notice to Owner that’s already been sent. This makes since with mechanics liens attaching to the project property, itself, and not to any individual or business. Levelset discusses that idea in this article: I’m on a Construction Project and the Property Was Sold. What Happens to my Lien Rights?

A party sending a Notice to Owner won’t necessarily be notified of the property being sold – but, often, word will get around on the job site if a sale takes place. Though, it’s possible that an old Notice of Commencement might get released via Notice of Termination if there’s a new owner of the property – and, a party who’s sent a Notice to Owner would be entitled to receive that Notice of Termination, which could serve as heads up the property was sold.

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