Arizona Certificate of Satisfaction of Mechanic's or Construction Lien

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Multi-State
Control #:
US-01032BG
Format:
Word; 
Rich Text
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Description

A mechanic's (or construction) lien is a claim created by statute to secure priority of payment for labor performed or materials furnished in the making of improvements on real property. A mechanic's lien attaches to the land as well as improvements on the land. Mechanics' liens are purely statutory in origin, and a mechanic's lien may not exist unless it is expressly created by the terms of a statute. This form is a sample of a certificate of a lienholder that the debt secured by the release has been paid and stating that the lien should be marked discharged in the appropriate land records.


This form is a generic example that may be referred to when preparing such a form for your particular state. It 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

PREPARING THE ARIZONA MECHANICS LIEN Every mechanics lien typically must contain the owner's name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed.

Send the preliminary notice as first-class mail and with a certificate of mailing. All contractors are required to send a prelim, including general contractors (GCs). If your project's dollar value (as indicated on your pre-lien) increases 30% or more during the process, you might have to send another pre-lien.

A mechanics lien automatically expires six months after it is recorded. Any lawsuit to foreclose the lien must be filed within that period, and a lis pendens must be recorded within five days of filing. (See our article, "Arizona Mechanics Lien Foreclosure 101.)

The state of Arizona also requires the action to enforce a lien must be initiated within 6 months from when the lien was recorded. In Arizona, the lien expires if enforcement is not initiated within that 6 months requirement.

Preliminary notices help protect your right to payment when experiencing slow pay, short pay, or no pay situations and are a prerequisite to filing a mechanics lien.

Arizona Lien Law If you sent a preliminary notice at the start of the project, you'll have the right to file a mechanics lien if you're a contractor, subcontractor, or supplier who provided labor, materials, or services to the property and haven't been paid.

The first step to filing a mechanics lien is to record a Notice and Claim of Lien within 60 days after the property owner has recorded a Notice of Completion. If a notice has not been recorded, however, you will have 120 days after the completion of the project to record the claim.

NOTE that if a contractor or provider of professional services is required to be licensed, but does not have a valid license, that person loses his or her lien rights. The court may, however, determine that the claimant has substantially complied with the registration requirement and allow the lien.

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Arizona Certificate of Satisfaction of Mechanic's or Construction Lien