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What is the correct answer for Arizona 20 day Prelim Law

ArizonaPreliminary Notice

My company works on large single family subdivisions. There may be 500+ lots in a subdivision. Are we required to send individual 20 day prelims for each lot or may we send one prelim for each parcel/subdivision as long as we list the lot numbers, location and price? Each lot is priced the same. Each of my contracts cover the entire subdivision. Thank you for your help! Pam Hazen phazen7@gmail.com

4 replies

May 5, 2020
That depends on what you are doing. If you are delivering materials to the subdivision and you do not know where those materials ended up, or if you are working on subdivision improvements that are common to all parcels (sewer, roads) you can lien the entire subdivision and note in the lien that it is "pro rata". However, if you are a contractor performing work on a specific parcel, then you must identify what parcel you are liening. You cannot lien property that you did not improve.
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May 5, 2020
Thank you, Joseph for your help with my question. I'm still a little confused. Our company grades each lot for drainage and provides dumpsters and construction trash export. We work on every lot in a subdivision for a specific amount for each lot. Our contracts are written for the entire subdivision with x # of lots. We are paid in draws as the work is completed per lot. We will be improving (no materials left behind) each lot as they are release for production. May I provide the Builder 1 20-day prelim for the subdivision? Or do I have to prelim each lot? Thank you in advance. Pam
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May 5, 2020
Grading for drainage, you can lien the entire subdivision. It sounds like your deliver for dumpsters is the same to each and every parcel in the subdivision. If that is the case, you can just lien the subdivision since you have delivered to every lot. If you are only delivering to some lots and not others, you should probably put "pro rata" on the lien on the subdivision. Your last question was regarding the preliminary 20-day notice. The good news on that is that you can just identify the subdivision in the preliminary 20-day notice. No need to break down the individual lots. Property descriptions get much more important when you are actually liening the property. The 20-day notice just lets the owner know you are giving notice of your right to file a lien on the property in the future, so the specific property at that point (which has probably not even been sold to anyone) is not as important as when you are liening someone's house.
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May 5, 2020
Thank you! This information will be VERY helpful going forward. Thank you for helping save my company many hours or time and effort! Stay well... stay safe Pam
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