A Notice of Termination must be sent to all parties who have filed a Notice of Contract, if the contract has been terminated prior to the filing or recording of a Notice of Substantial Completion. M.G.L. Ch. 254, 2(b). If the contract is terminated, the owner must execute and file or record a Notice of Termination in the registry of deeds for the county where the subject property is located. Id.

The Notice of Termination includes the dates of the contract, names of the owner and contractor, and a legal description of the subject property. Id.

A copy of the Notice, indicating the date of filing or recording, must be mailed by the owner, via certified mail with return receipt requested, to every person who has filed or recorded a Notice of Contract and to the contractor. Id. When the contractor receives the Notice of Termination from the owner, the contractor must in turn deliver a copy to every person who has entered into a written contract directly with the contractor or who has given the contractor a written Notice of Identification. Id.

The failure of the owner or contractor to give notice of the filing or recording of the Notice of Termination to any person entitled will not prejudice the rights of any third parties who have relied upon it in good faith and without actual knowledge of such failure of notice. Id.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice from an attorney. If you have questions about the Notice of Termination, or any other issues related to lien laws in Massachusetts, please consult with an attorney.

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