Massachusetts 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

Preliminary Notices allow you to track who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice to maintain their right to file a lien. If they don't provide you with the notice, they lose their lien rights.

If you're a California property owner, you may need or want to purchase a mechanics lien bond to ?bond off? (clear) a mechanics lien that gives the claimant a security interest in your property. The required amount of the bond (its ?penal sum?) is 125% of the mechanics lien amount.

The stop work notice must be served personally or by certified mail on the contractor and the director of the department which let the contract for the state of California, or the public disbursing officer responsible to make payments under the contract, or with the body by whom the contract was awarded.

A bonded stop payment notice refers to a stop payment notice that is accompanied by a bond issued by a surety in the amount equal to 125% of the amount of the claim.

?Stop work notice? means notice given under this article by a direct contractor to an owner that the contractor will stop work if the amount owed the contractor is not paid within 10 days after notice is given.

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