Filing Arizona Mechanic's Liens

A mechanic's lien is a type of property interest that interferes with the owner's rights of possession. In many ways, a lien is like a mortgage and allows the lienholder to foreclose or force a sale of the property to recover the money owed. Mechanic's liens are available in Arizona to every person who labors or furnishes professional services, materials, machinery, fixtures or tools in the construction, alteration or repair of any building, or other structure or improvement. AZ REV. STAT. 33-981(A).

To seek a mechanic's lien, you must comply with the statutory framework which includes first sending a 20-day preliminary notice not later than twenty days after the claimant has first furnished labor, professional services, materials, machinery, fixtures or tools to the jobsite. AZ REV. STAT. 33-992.01(C). If you have sent the required preliminary notice, you must file a Notice and Claim of Lien to record a mechanic's lien. AZ REV. STAT. 33-993(A). The time for recording the lien is measured either by the date of completion or date the owner sends a notice of completion document. Id. If the owner has not sent a notice of completion, the time for filing the lien is 120 days after completion. Id. "Completion" means the earliest of the following events: 1) Thirty days after final inspection and written final acceptance by the governmental body which issued the building permit for the building, structure or improvement; or 2) Cessation of labor for a period of sixty consecutive days, except when such cessation of labor is due to a strike, shortage of materials or act of God. AZ REV. STAT. 33-993(C).

If the owner has sent a notice of completion, the claimant must record the lien within 60 days, in the county where all or part of the property is located. 33-993(A). In either event, one copy must be recorded in the county recording office and another copy must be served on the owner (if he can be located within the county) within a reasonable time. Id.

The notice and claim of lien must be made under oath by the claimant or someone with knowledge of the facts and must contain: 1) The legal description of the lands and improvements to be charged with a lien; 2) The name of the owner or reputed owner of the property concerned, if known, and the name of the person by whom the lienor was employed or to whom he furnished materials; 3) A statement of the terms, time given and conditions of the contract, if it is oral, or a copy of the contract, if it is written; 4) A statement of the lienor's demand, after deducting just credits and offsets; 5) A statement of the date of completion of the building, structure or improvement, or any alteration or repair of such building, structure, or improvement; 6) A statement of the date the preliminary 20-day notice required by section 33-992.01 was given (a copy of such preliminary 20-day notice and the proof of mailing required by 33-992.02 must also be attached). Id.

The lien is only valid for 6 months unless an action to foreclose was filed before the expiration of the 6 months. AZ REV. STAT. 33-998(A).

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of an attorney. Please contact an Arizona attorney with any questions about filing a notice and claim of lien.

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