who’s allowed to lien a property ?

2 weeks ago

I am a subcontractor for a GC in the state of Az. A property management company hired GC to do service work orders on their properties ( water extraction, dry out, rebuilds etc..) I have proof that the GC has been paid, but he is making small payments to myself. He has a contract written with property management company but I do not have a contract . Terms were net 21 business days, accounts are now between 40-60 days past due. What rights do i have , can I file a notice of intent to lien with property management company ?

Attorney Jennings, Haug & Cunningham, LLP
5 reviews

Every person who furnishes labor, materials, machinery, fixtures or tools in the construction, alteration or repair of any structure or improvement has the right to lien the structure and improvement and the real property upon which it sits when the work was done at the insistence of the owner or its agents. However, the contractor must serve a preliminary 20-day notice of intent to lien the property before the contractor is allowed to record a lien. The contents of the 20-day notice must comply with the Arizona statute. If the work is done, then it is probably too late to serve a preliminary 20-day notice because the only work that can be secured by a lien is work that was done within the 20 days before the notice was served.

Even if you did not serve a preliminary 20-day notice and do not have lien rights, you can still sue the GC for breach of contract. A mechanic’s lien just means the money you are owed is secured by the property. IF you don’t have a lien, that does not mean you are not owed the money. The basis for your lawsuit, and the strength of your potential claim against the GC, will depend on the contract terms any issues the GC has with the work you performed. You may also have Prompt Pay Act remedies available to you.

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