Alabama Notice of Contest of Lien

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Multi-State
Control #:
US-01050BG
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Word; 
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Description

This form is a sample of a notice contesting a lien that has been recorded in the office of the appropriate county official.This form is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

Once the lien has arisen, it will continue until the liability for the amount assessed is satisfied, released or becomes unenforceable by reason of lapse of time (i.e. 10 years from the date the lien is filed) (Code Sections 40-1-2, 40-29-20, and 49-29-21).

Alabama law provides for two types of liens: an ?unpaid balance? and a ?full price? lien. An unpaid balance lien extends only to the amount of any unpaid balance due the contractor by the owner or proprietor. In contrast, a full-price lien allows the furnisher of materials to have a lien for the full price thereof.

Notice Of Intent. All lien claimants, except an original contractor must give notice prior to filing a verified statement of lien. The notice must be given in writing to the owner stating that a lien is claimed, setting forth the amount and the subject of the lien, and the person or entity from whom it is owning.

Only a handful of states have a Notice of Intent to Lien (NOI) requirement, and Alabama is one of them. An Alabama NOI, also referred to as a Notice of Unpaid Balance, is required by all claimants who didn't contract directly with the owner prior to filling a Statement of Lien.

How does a creditor go about getting a judgment lien in Alabama? To attach the lien, the creditor registers the judgment with the office of probate court in any Alabama county where the debtor owns property now or may own property in the future.

The Alabama Release of Lien Form is used to cancel a lien that has already been filed. It's most often used to release a lien claim after a lien claimant receives payment. Alabama law requires that a lien cancellation is filed within 30 days after the lien is satisfied.

Notice to Owner (Unpaid Balance): Required to be sent to the Owner before filing a Statement of Lien. This notice only applies to the amount still owed by the Owner to the Contractor on the job at the time the notice is delivered. Generally a lien must be filed within 4 months of last delivery.

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Alabama Notice of Contest of Lien