Washington Notice by Contractor to Claimant of Dispute of Claimant's Claim Described in Stop Notice or Notice to Withhold Funds to Holder of Funds

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Control #:
US-01039BG
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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 contractor is informing the claimant that he is contesting complainant's claim and sending a copy of this notice to the holder of the constructions funds.


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

Bond Requirements and Online Application The California Stop Notice Release Bond states that the Claimant in the matter should receive judgement in any action brought on said Claim. The bond holder should pay said judgement and costs to Claimant in an amount not exceeding the sum specified in this undertaking.

A stop notice is a document given for the purpose of stopping, intercepting, or freezing funds that have not yet been paid on a construction project in an attempt to ensure payment.

A stop notice notifies either the prime contractor, property owner, or construction lender that payment is due and that they must withhold enough funds to pay your claim before payments continue to the general contractor. Failure to pay you could result in you stopping work or filing a bond claim.

Types of LienPossessory Lien.Equitable Lien.Maritime Lien.

A mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

A stop payment notice (commonly referred to as a stop notice) is a claimant's written demand to the party holding construction funds (usually the owner or construction lender) to withhold a specified amount from the moneys otherwise due to the general contractor on a construction project.

The Stop Notice procedures involve three basic steps:First: If you are not the general contractor, serving a preliminary 20-day notice;Second: Serving the Stop Notice; and.Third: Filing a lawsuit to enforce the Stop Notice.

In California and Washington, the laws against unlicensed contractors are very strict unlicensed contractors have no recovery rights whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all.

But in general, if you're a property owner: Anyone who works on your construction project or supplies building materials or equipment can file a lien if they don't get paid. It doesn't matter if they have a contract with you, or if they have ever met you.

How to File a Mechanic's Lien in Washington State Step-By-Step GuideStep 1: Determine if you have the right to file a lien.Step 2: Prepare the lien document.Step 3: File the lien.Step 4: Send notice of lien.Step 5: Secure payment.Step 6: Release the lien.

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Washington Notice by Contractor to Claimant of Dispute of Claimant's Claim Described in Stop Notice or Notice to Withhold Funds to Holder of Funds