Arizona Certificate of Satisfaction of Stop Notice Claim or Notice to Withhold Funds

State:
Multi-State
Control #:
US-01040BG
Format:
Word; 
Rich Text
Instant download

Description

The right to execute and deliver a stop notice or a notice to withhold funds is a remedy closely related to a mechanic's lien. When a stop notice or a notice to withhold funds is received by an individual or a firm holding the construction funds for a project, the individual or firm must withhold from its disbursements sufficient money to satisfy the stop notice claim. In this form, the claimant is informing the appropriate court clerk that he has settled the claim and is authorizing the court clerk to discharge of record the Stop Notice.


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

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.)

In Arizona, liens must be filed within 120 days from the completion of the project as a whole. However, if a notice of completion was filed, the deadline is shortened to 60 days from the date such notice was filed.

The 20-day preliminary notice in Arizona is sent to the owner and/or construction lender if a project is financed by a loan, as well as to the original contractor, in the case of subcontractors, to notify them of the contractor, subcontractor, or supplier's right to enforce a lien claim in case of full or partial non- ...

If you are not paid, you can both record a lien and serve a ?stop notice.? Arizona's stop notice law gives contractors, subs and suppliers a second collection remedy: a demand that the owner or construction lender immediately withhold amounts out of the undisbursed construction funds to satisfy the claim.

A Stop payment notice, is a verified written notice signed by the claimant which formally notifies the property owner that the claimant has not been paid for their labor, services, equipments, or materials provided to the construction project.

A notice of completion is a document that an Arizona project owner or higher-tier contractor can file to mark the end of a construction project. The filing party needs to wait until the project is absolutely complete and then file the notice of completion with the county clerk governing the project's address.

In Arizona, a lien is effective for 6 months from the date of filing. Within that timeframe, the claimant must initiate an action to enforce a mechanics lien. Within 5 days of filing suit, a lis pendens notice must be filed. This deadline can not be extended.

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.

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Arizona Certificate of Satisfaction of Stop Notice Claim or Notice to Withhold Funds