How to File a Mechanics Lien in Arizona

How to File a

Mechanics Lien in

Arizona

A STEP-BY-STEP GUIDE

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TABLE OF CONTENTS ...................................................................................................................... 2

INTRODUCTION TO THE MECHANICS LIEN ............................................................................ 3

MECHANICS LIEN RIGHTS: THE BASICS .................................................................................... 4

What Is a Mechanics Lien? ................................................................................................... 4

How do Mechanics Liens Work? ........................................................................................ 5

What Is the Lien Process? .................................................................................................... 6

Lien Waivers ............................................................................................................................ 9

5 Things to Know to Secure Lien Rights ........................................................................... 12

STEP 1: WHO CAN FILE A LIEN IN ARIZONA ............................................................................ 14

STEP 2: NOTICE REQUIREMENTS IN ARIZONA ....................................................................... 15

Why Send a Arizona Preliminary Noce? .......................................................................... 15

Am I Required to Send a Preliminary Noce? .................................................................. 15

Preliminary Noce Requirements in Arizona .................................................................... 16

STEP 3: THE ARIZONA MECHANICS LIEN ................................................................................. 18

When to File a Mechanics Lien ........................................................................................... 18

Draing a Mechanics Lien .................................................................................................... 18

Filing the Mechanics Lien ..................................................................................................... 19

Common Mechanics Lien Mistakes .................................................................................... 21

STEP 4: WHAT TO DO AFTER FILING A LIEN ............................................................................ 23

What to Do If You Get Paid ................................................................................................. 23

What to Do If You Don’t Get Paid ...................................................................................... 23

ABOUT ZLIEN ..................................................................................................................................... 24

Table of Contents

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In the construcon industry, nancial risk is unavoidable. Unl a project is completed and all payments

have been made, someone is in a precarious nancial situaon. Most of this risk is borne by pares

furnishing labor and/or materials on credit, such as contractors, material suppliers, equipment

lessors, and other hired pares. While property owners, lenders, and other pares at the top of the

contracng chain face the risk of incomplete or unsasfactory work, they tend to have the upper hand

over “sub-er” pares, because whoever has the money has the power.

The mechanics lien was devised to combat this imbalance of power and provide sub-er pares with

leverage on private projects. While the ideas at the root of this concept can be traced to the Roman

Empire, the modern mechanics lien was introduced to America by Thomas Jeerson in 1791 to

encourage builders to take on projects with the assurance that they would be compensated when work

is provided on credit.

Lien rights - the right to le a mechanics lien - exist in all 50 states, but rules vary widely from one

state to the next and requirements must be met in order to secure this right. This guide provides a

streamlined, straighorward overview of lien rights and the lien process in Arizona so you can avoid

nancial risk and secure payment on all projects.

Introducon to the Mechanics Lien

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What Is a Mechanics Lien?

A mechanics lien is a security interest in the tle of a property that can be claimed by an unpaid

parcipant on a construcon project. The security interest in the improved property serves as collateral

unl the lien claimant is paid; and if the lien claimant is not paid, he or she can enforce the claim by

foreclosing on the property and claiming payment from the proceeds of the property’s sale.

Mechanics liens can be used on private (residenal or commercial) projects. A bond claim serves

a parallel funcon on public (federal, state, county, or city) projects. Bond claims are disnct from

mechanics liens because it is impossible to claim an interest in a property owned by the government.

Instead, parcipants on public projects have the right to le a claim against the surety bond, which is

a sum of money reserved to protect against problems such as project disrupons or failure to meet

contract specicaons. An interest in the surety serves as collateral on public projects whereas an

interest in the property is claimed on private projects.

Mechanics Lien Rights THE BASICS

WHAT IS A MECHANICS LIEN?

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Mechanics Lien Rights THE BASICS

HOW DO MECHANICS LIENS WORK?

LIENS ESCALATE THE SITUATION AND PRIORITIZE YOUR DEBT

Filing a mechanics lien escalates your collecon eorts and shows the other pares on the project

that you’re serious about geng paid and aren’t afraid to take legal acon. This priorizes your invoice

above others and helps you get paid faster.

LIENS ENCUMBER THE PROPERTY

A mechanics lien aaches to the tle of the project property. Anyone who buys or accepts the

property aer a lien has been recorded takes on responsibility for the claim. In pracce, this means

that the property will not be sold, renanced, or transferred unl the claim of lien has been removed.

LIENS CAPTURE THE ATTENTION OF THE PEOPLE WITH THE MONEY

Filing a mechanics lien will get the aenon of the pares in power posions such as the property

owner and the project lender (if there is one). Lenders don’t want liens led on the project property

because liens interfere with the lender’s interest in the property. Property owners want to avoid liens

because they encumber the property, prevenng sale, renancing, or transfer.

How Do Mechanics Liens Work?

A mechanics lien is an incredibly powerful tool available to construcon industry parcipants. Filing

a mechanics liens puts enormous pressure on top-of-chain pares and opens them up to exposure.

Here’s how mechanics liens work to get the payment process rolling.

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Mechanics Lien Rights THE BASICS

WHAT IS THE LIEN PROCESS?

What Is the Lien Process?

The mechanics lien process starts well before you have a payment problem. Foresight is imperave to

securing your invoices. Most construcon parcipants know that mechanics liens exist to protect their

right to payment, but many do not realize that a lien is not a standalone document. It is essenal to

understand the other pieces of the process in order to secure payment and protect lien rights.

In most cases, preliminary documents must be sent before a mechanics lien is led in order to protect

the right to le a lien. Oen documents must be sent preempvely, long before a payment problem

actually arises.

Shiing one’s perspecve from reacve (dealing with issues as they occur) to proacve (taking

preempve measures to protect lien rights before problems arise) is generally the best way to secure

payment on all projects.

Send

Preliminary Noce

Send

Noce of Intent

File a

Mechanics Lien

Enforce or Release

the Lien

The Lien Process

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Mechanics Lien Rights THE BASICS

WHAT IS THE LIEN PROCESS?

1. Send Preliminary Noce

The rst step to securing the right to le a lien is sending preliminary noce. Most states, including

Arizona, require lien claimants to send preliminary noce, and failing to send this noce or sending it

late can invalidate or limit lien rights.

Preliminary noces exist to protect top-of-chain pares from unexpected liens. For example, if a

material supplier on a project was hired by a subcontractor, the owner and general contractor likely

don’t know of the material supplier’s involvement. By sending preliminary noce, the supplier alerts the

top-of-chain pares of his involvement on the project and lets them know how much he expects to be

paid.

Even when preliminary noce is not required, it is a good idea to

send one anyway. Sending preliminary noce priorizes your invoice

by enabling transparency and clear communicaon and promong

good business relaonships, in addion to providing numerous

other benets.

Some states have specic names

for their preliminary noce, such

as Noce to Owner or Noce

of Furnishing. These documents

are also somemes referred to as

“pre-liens”.

Preliminary noce required

Preliminary Noce NOT required

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Mechanics Lien Rights THE BASICS

WHAT IS THE LIEN PROCESS?

2. Send Noce of Intent to Lien

Noce of intent to lien is like a preliminary noce 2.0. This noce is the nal warning before a

mechanics lien is actually led. Somemes the threat of a lien is enough to iniate the payment

process because, generally, property owners and project lenders desperately want to avoid having a

lien led on the project property.

Sending noce of intent is only required in 9 states (Arkansas, Colorado, Conneccut, Louisiana,

Missouri, North Dakota, Pennsylvania, Wisconsin, and Wyoming), but sending this noce even when it

is not required oen sparks payment because top-of-chain pares want to avoid a lien.

3. File Mechanics Lien

Filing a mechanics lien is the climax of the mechanics lien process. When ling a mechanics lien, it is

important to meet all requirements and deadlines so as to ensure its validity.

Liens are recorded at the county level. In most states, this means at the county recorder’s or county

clerk’s oce. Typically there is a ling fee. For specic informaon on ling a lien in Arizona, connue

to “Step 3: The Arizona Mechanics Lien” secon of this guide.

4. Release or Enforce Mechanics Lien

WHAT TO DO IF YOU GET PAID

If you are paid aer ling a mechanics lien, the next step is to release the lien or let the lien expire.

Some states require that liens are released within a certain meframe.

WHAT TO DO IF YOU DON’T GET PAID

If you remain unpaid even aer ling a mechanics lien, the next step is to enforce the lien in court.

Best pracce is to engage an aorney who specializes in construcon law to le a foreclosure lawsuit

against the improved property. Generally enforcement acon must be taken within a specied

meframe or the claimant loses the ability to enforce the lien in court.

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Mechanics Lien Rights THE BASICS

LIEN WAIVERS

Lien Waivers

To electronically create and exchange secure, statutorily-compliant lien waivers craed by expert

construcon aorneys, visit www.waiverexchange.com. This tool can be by all construcon pares

ranging from subcontractors and suppliers to owners and lenders.

What is a Lien Waiver

A lien waiver is a document from a contractor, subcontractor, material supplier, equipment lessor or

other party (a potenal lien claimant) to the construcon project stang that they waive future lien

rights against the property improved to the extent set forth in the waiver. This is supposed to work like

a receipt, if a party gets paid $100k, that party waives $100k in lien rights.

Lien waivers exist to protect top-of-chain pares from double payment, for example, paying a hired

party and also having a lien led against the improved property. When lien waivers are exchanged

properly, everybody is protected, and the payment process is fair.

The following 12 states provide specic, statutorily-required lien waiver forms. It is essenal to use the

correct form otherwise the lien waiver is invalid.

For more informaon about lien waivers, check out The Ulmate Guide to Lien Waivers or download

Lien Waivers: A Best Pracces Guide.

California

Florida*

Georgia

*Florida does not require that pares use the statutory lien waiver, but it oers the waiver as a safe opon, and seems to prohibit pares

from requiring a non-statutory form.

Michigan

Mississippi

Missouri

Texas

Utah

Wyoming

Arizona Massachuses Nevada

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Mechanics Lien Rights THE BASICS

LIEN WAIVERS

2 Types of Lien Waiver

CONDITIONAL LIEN WAIVERS

A condional lien waiver works to waive the signor’s lien rights condioned upon the occurrence of

some other event (generally actual receipt of payment). The lien waiver, therefore, can be signed by the

hired party prior to payment (which protects the paying party from double payment), but is ineecve

unl payment is received (which protects the signing party from waiving lien rights unl they are paid).

This type of waiver is immediately eecve when the payment is made. Condional lien waivers are

generally the safest type of waiver because both pares are protected.

There are two types of condional waiver: those for paral payment and those for nal payment. A

condional waiver for paral or progress payment should be used when further payments are expected

on a project, whereas a condional waiver for nal payment should be used when all work has been

completed and no further payments are expected.

UNCONDITIONAL LIEN WAIVERS

Uncondional lien waivers go into eect as soon as they are signed. This can be dangerous for

subcontractors, suppliers, and other sub-er pares because lien rights are waived upon signature

even if payment has not been made. For this reason, it is best pracce for sub-er pares never to

sign an uncondional lien waiver unless payment has been received (this means wait to sign unl the

money is in the bank, because lien rights are gone even if the check bounces!)

Like condional waivers, there are two types of uncondional lien waiver: those for paral payment

and those for nal payment. An uncondional waiver for paral or progress payment should be used

when a specic payment has been received but further payments are expected on a project. An

uncondional waiver for nal payment should be used when all work has been completed and the nal

expected payment for a project has been received.

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Mechanics Lien Rights THE BASICS

LIEN WAIVERS

Lien Waiver Best Pracces

FOR PARTIES SIGNING A LIEN WAIVER

If the party making payment requests that a hired party sign a lien waiver, there are a few things to

look out for. First, it is a bad idea to sign an uncondional lien waiver unless payment has actually been

received. Second, be sure that the lien waiver is accurate and not waiving anything other than lien

rights.

It is a good idea for sub-er pares to send a signed condional lien waiver with every invoice.

Condional lien waivers don’t go into eect unl payment is actually received, so there is no risk of

waiving lien rights prematurely. Sending a signed waiver priorizes your invoice.

For more ps on lien waivers for sub-er pares, read Signing a Lien Waiver? Here’s What to Keep in

Mind. To create, sign, and send a lien waiver online, click here.

FOR PARTIES REQUESTING A LIEN WAIVER

It is a good idea for pares making payment to request lien waivers from hired pares on every project

to avoid double payment. When requesng a lien waiver, it is important to know the state in which the

project is located. Is it one of the 12 states with statutorily-required lien waiver forms? It is also a good

idea to know who is working for you (and who is working for them) so lien waivers can be requested

from every party with lien rights.

For more ps on lien waivers for top-of-chain pares, read Requesng a Lien Waiver? Here’s What to

Keep in Mind. To create a lien waiver and request signature online, click here.

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Mechanics Lien Rights THE BASICS

5 THINGS TO KNOW TO SECURE LIEN RIGHTS

5 Things to Know to Secure Lien Rights

It is essenal to know certain pieces of project informaon to successfully secure lien rights. It is best

pracce to collect the following informaon at the start of a project to make the process of sending

preliminary documents and ling a lien (if necessary) smooth and easy. Chasing down contacts as a

document deadline approaches is no fun.

Project Address

Geng the project address seems obvious, but somemes it can be more dicult than it sounds.

Somemes projects don’t have a specic address, in which case it’s a good idea to get as much

informaon as possible, such as cross-streets, parcel numbers or the legal property descripon. Some

counes even require that documents contain a legal property descripon.

A mechanics lien in Arizona must include a legal property descripon to be valid. See this arcle: Is A

Legal Property Descripon Required for an Arizona Mechanics Lien?

Project Type

The type of project you are working on can drascally change the requirements for documents and

deadlines, so be sure to learn this informaon at the start. Project types include : Private, Commercial,

State/County, or Federal. This might take a bit of thought because the project type is rarely stated in

the contract, instead a lien claimant must think about who is at the very top of the hiring chain. Keep

in mind that mechanics liens can only be led on private projects and bond claims are used on public

projects.

Your Role on the Project

Your role on the project may seem obvious, but it is not always as clear as it sounds. Some

states determine role by lumping project parcipants into commonly-known categories such as

“subcontractors” and “material suppliers,” but more oen your project role has to do with your posion

in the hiring chain.

Determining your role can be tricky. Were you hired directly by the property owner? Or by the general

contractor? Or were you hired by a subcontractor? Degree of separaon from top-of-chain pares

oen determines requirements for securing lien rights.

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Mechanics Lien Rights THE BASICS

5 THINGS TO KNOW TO SECURE LIEN RIGHTS

Hiring Party Info

Know your customers! Get their full name, accurate address, and role on the project right when they

sign a contract with you. If you can, try to get addional informaon from them on who hired them as

well and gather as many contacts as possible. For example, if you are a material supplier hired by a sub-

contractor, you may need the general contractor’s informaon when sending documents, depending

on your state and role on the project. It’s always smart to try and get all of that informaon at the very

beginning of the project.

Project Dates

In order to determine when you need to submit documents, you have to know when you started

and nished a job. Many states use “Date Labor/Materials First Delivered” for preliminary noces or

noces sent at the start of the project, and use “Date Labor/Materials Last Delivered” to determine any

claim deadlines. Denitely check out zlien’s state-by-state resources as some states ask for dierent

dates, like ‘Date of Substanal Compleon’, or can shorten the me period if a noce of compleon is

led

Want to download zlien’s project informaon sheet

to ensure you collect the correct informaon on your next job?

DOWNLOAD PDF

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Who Can File a Lien in Arizona Step 1

Step 1: Who Can File a Lien in Arizona?

You are qualied to le a mechanics lien in Arizona if you furnished labor, materials, professional

services, xtures, or tools, in the construcon, alteraon, repair, or improvement of any building, or

other structure pursuant to a contract with the owner, or with an agent of the owner.

Design professionals are protected by Arizona’s mechanics lien laws provided they have a wrien

contract with the property owner, or a wrien or oral contract with the architect who has a wrien

contract with the owner.

Only pares who have a wrien contract with an owner-occupant may le a lien against his dwelling.

Suppliers to suppliers are not qualied to le a mechanics lien in Arizona.

For more informaon about who can le a mechanics lien in Arizona, check out our Arizona frequently

asked quesons.

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Noce Requirements in Arizona Step 2

Step 2: Noce Requirements in Arizona

Preliminary Noce is required by most pares in Arizona. This document is oen referred to as

an Arizona Preliminary 20-Day Noce because it is due within 20 days of rst furnishing labor or

materials. Download a template here.

Noce of Intent is not required in Arizona, but it may be a good idea to send one anyway. For more

informaon, see the noce of intent secon earlier in this guide. Download a template here.

Why Send an Arizona Preliminary Noce?

First and foremost, sending preliminary noce is required for most construcon parcipants to secure

lien rights in Arizona. Failure to provide a preliminary noce to all required pares is fatal to mechanics

lien rights.

For a reminder on why preliminary noces are important, revisit the preliminary noce secon at the

beginning of this guide.

Am I Required to Send Preliminary Noce?

Arizona law requires that a Preliminary 20-day Noce be sent by every person who furnishes labor,

professional services, or materials for which a lien may be claimed as a necessary prerequisite for the

validity of the lien rights.

A person performing actual labor for wages is not required to serve noce.

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Noce Requirements in Arizona Step 2

Preliminary Noce Requirements in Arizona

The failure to provide a Preliminary 20-day Noce is fatal to a mechanics lien in Arizona.

DEADLINE TO DELIVER NOTICE IN ARIZONA

The noce must be given no later than 20 days aer the claimant has rst furnished labor or materials

to fully protect the lien claimant.

BETTER LATE THAN NEVER

A lien claimant who failed to provide a 20-day noce within 20 days of rst providing labor or

materials may provide the noce at a later date, but will only retain lien rights for materials and/

or labor furnished within the 20 days preceding the late noce, and the labor and/or materials

provided thereaer.

For example, if you send a preliminary noce on Day 25, you cannot le a lien for any labor or

materials provided on Days 1 through 5, but you are good to go from Day 6 to the end of the

project.

WHO MUST RECEIVE THE NOTICE

In Arizona , preliminary noce should be given to the owner, the general contractor, the construcon

lender (if any), and the party with whom you have contracted.

DRAFTING THE NOTICE

In Arizona, the preliminary noce must state an esmated total contract amount, a descripon of the

labor, and/or materials provided, the address of the property, the party who hired the claimant, and

idencaon of the property owner.

A lien claimant who underesmates the labor and/or materials he will provide to the project is

protected up to 120% of the amount contained in the original noce.

To download a blank Arizona noce template, click here. This form is also included in this guide. Want

zlien to do it for you? Click here to learn how.

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Noce Requirements in Arizona Step 2

DELIVERING THE NOTICE

The Preliminary 20-day Noce must be delivered by at least registered or cered mail, with the

sender obtaining a cercate of mailing, receipt of registraon, or receipt of cercaon. Arizona also

requires proof that the noce was given, either by acknowledgement of receipt by signature of person

receiving noce, or by “Adavit of Proof of Service” accompanied by the cercate of mailing or

receipt of cercaon or registraon if the person on whom the noce was served fails to complete an

acknowledgement within 30 days.

Proving that the preliminary noce was sent is very important. Consider this arcle about what to do

when the property owner refuses to acknowledge receipt of a noce.

WHAT TO DO IF THE NOTICE IS RETURNED

Unfortunately, it is not uncommon for mail to be lost or returned. Mail might be returned due to

problems with the address, or, in the case of cered and mail with return receipt requested, returned

because the recipient refuses delivery or was not present to sign for it (i.e. “unclaimed”).

Here’s what to do if a preliminary noce is returned:

1. KEEP EVIDENCE OF MAILING. You will later need to prove that you sent this noce. Keep

evidence of your aempt, including the evidence you have that connects the noce recipient to

the address where delivery was aempted.

2. PUT A COPY INTO REGULAR US MAIL. Preliminary noces must usually be sent by cered mail,

which can be refused or unclaimed. However, regular rst class mail pieces cannot be refused

or unclaimed. Take your returned noce, but it in a rst class envelope, and resend it. Keep

evidence of your rst class mailing to prove you took this extra step, it may be the evidence that

saves your lien claim.

3. POST A COPY OF THE NOTICE AT THE JOB SITE. This is easier for subcontractors than it is for

material suppliers. In 99.9% of cases, it is not a requirement, so don’t break your back trying to

do this.

For more informaon about why mail is returned and how to remedy the situaon, read What To Do If

Your Preliminary Noce Is Returned by USPS.

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The Arizona Mechanics Lien Step 3

Step 3: The Arizona Mechanics Lien

Filing a mechanics lien is the apex of the lien process. If a claimant remains unpaid aer sending noce,

the next step is to le a lien.

When to File A Mechanics Lien in Arizona

CLAIMANTS DIRECTLY CONTRACTED WITH THE OWNER

If a Noce of Compleon has been recorded on the project, a mechanics lien must be recorded within

60 days aer the Noce of Compleon was recorded.

Otherwise, a mechanics lien must be recorded within 120 days of compleon of the improvement. In

Arizona, the me to le a mechanics lien is triggered by the compleon of the improvement, not the

me an individual lien claimant last provided labor or materials to the project.

Draing the Mechanics Lien

Draing a mechanics lien requires careful aenon to detail. Including misinformaon can invalidate a

claim of lien.

WAYS TO PREPARE A MECHANICS LIEN

DO IT YOURSELF

The rst opon for draing a mechanics lien is to create a template from reading the Arizona

mechanics lien statute, or to download a blank Arizona mechanics lien template. To download

an blank Arizona mechanics lien template, click here. This form is included in this guide.

USE AN ATTORNEY

Many aorneys specialize in construcon laws and are familiar with ling liens. Engaging

an aorney familiar with the specic lien law of the state in which your project is located is

generally a safe, but expensive, method of handling lien claims.

USE A LIEN SERVICE PROVIDER

Companies exist to provide the service of ling liens for construcon companies.

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The Arizona Mechanics Lien Step 3

USE A LIEN MANAGEMENT SOFTWARE

Using a lien rights management plaorm like zlien is a cost-eecve way to accurately prepare

a statutorily-compliant mechanics lien. With zlien, all you have to do is provide project

informaon, and the soware does the rest: it ensures the lien meets state requirements, alerts

you of the ling deadline, lls out the form using the proper template, and correctly les the lien

for you. Click here to le a lien through zlien in 5 minutes.

WHAT TO INCLUDE IN AN ARIZONA MECHANICS LIEN

WHAT AMOUNT SHOULD BE CLAIMED IN THE LIEN

In Arizona, the lien amount is the disputed amount claimed by the lien claimant.

Arizona does not permit other fees or collecons costs to be included in a lien, however, if you

foreclose on the lien, the court may award the prevailing party the money paid for recording the

lien, aorney’s fees, and the necessary expenses incurred by the aorney, as costs. An Arizona

appeals court recently ruled upon the availability of aorney fees when enforcing a mechanics

lien claim.

MUST AN ARIZONA LIEN BE NOTARIZED?

Yes. A mechanics lien in Arizona must be notarized to be valid.

Filing the Mechanics Lien

If you choose to le a mechanics lien yourself, there is a lot of non-legal praccal know-how required

to get your mechanics lien document successfully recorded. Here is a list of the most important

praccal informaon you need. Dealing with these details can be avoided by using a third-party

provider or soware to le the lien.

Most lien ling rules are decided at the county level, so if there is any confusion, it’s a good idea to

check with the county recorder’s oce of the county in which the project is located.

Want zlien to do it for you? Click here to learn how.

zlien.com 20

The Arizona Mechanics Lien Step 3

WHERE TO FILE THE LIEN

Arizona liens should be led with the county recorder’s oce (not the clerk of court). “County clerk”

can be misleading. Some counes permit electronic ling.

Before mailing or hand-delivering a claim of lien, it is a good idea to conrm by phone that it is the

correct oce in which to record your mechanics lien. Find out the best mailing address, and keep in

mind that FedEx doesn’t deliver to P.O. boxes.

It’s also a good idea to conrm the hours of operaon of the county recording oce, especially if you

plan to record the lien in person or by using a courier.

FILING FEES

Filing fees vary from one county to the next. It is important to check with the county recorder to

determine how much it costs to record a lien.

It is also a good idea to ask to whom a check should be made out and whether out-of-state checks are

accepted, if applicable. Some counes only accept money orders or aorney checks.

KEEP A COPY OF THE DOCUMENT

Aer recording your mechanics lien, ask the recorder to return the original lien document. If they do

keep the original, ask if there is a fee to stamp the copy, and don’t forget to send a self-addressed,

stamped envelope so they’ll mail it back.

MUST IT BE SERVED AFTER IT IS FILED? TO WHOM, AND HOW?

Yes. Arizona law requires that a lien claimant make duplicate copies of his mechanics lien, record one

with the county recorded in the county in which the property is located, and “within a reasonable me

thereaer” serve the remaining copy on the property owner, if he can be found within the county.

“Serve” in this context means at least registered or cered mail, with the sender obtaining a cercate

of mailing, receipt of registraon, or receipt of cercaon.

More informaon here available at this arcle: When Must An Arizona Mechanics Lien Be Served on

the Owner.

zlien.com 21

The Arizona Mechanics Lien Step 3

UNEXPECTED COUNTY-SPECIFIC DETAILS

An unexpected requirement that varies by county is paper or margin size. Generally county recorders

won’t negate a mechanics lien because of incorrect margins, but it never hurts to ask. Most counes

just need 3″ at the top of the rst page of your document, just enough room for a stamp. Be wary

though, other counes need 2″ at the boom, or need a half page space on the rst page.

It’s also a good idea to ask if the county recorder les liens the day they are received or if there is a

backlog. Some counes can be two weeks, or even more, behind. If this is the case, it might be a good

idea to consider hiring a courier or rushing your document.

Common Mechanics Lien Mistakes

Because there are so many specic rules and requirements governing lien law, it is easy to make a

mistake, especially when preparing and recording a lien yourself. The following common mistakes are

easy to avoid if you are careful. For a more in-depth discussion of these mistakes, read These Common

Mistakes Can Invalidate Your Lien.

FAILING TO PROVIDE NOTICE

Failing to provide a required preliminary noce or noce of intent is a common reason for lien claims to

be invalidated.

MISSING DEADLINES

Failing to meet a mechanics lien deadline is usually fatal to a claim of lien. Even failing to send a

preliminary noce on me can cause you to lien rights. Be sure to familiarize yourself with the

deadlines of the project’s state before payment problems arise.

DETAILS, DETAILS, DETAILS

The smallest of things can make the biggest dierence with mechanics lien lings. Consider a

recent case where “A&L Construcon Corp.” was used instead of “A. & L. Construcon Corp.,” which

invalidated the claim. Make sure all informaon is enrely accurate.

zlien.com 22

PROPERTY DESCRIPTIONS

Simply providing the address of the project property is generally not sucient for idenfying a

property in a mechanics lien. A formal legal descripon is usually required.

For more informaon on legal property descripons, read How Do I Idenfy Property in a Mechanics

Lien?

BEING GREEDY

Don’t stu a mechanics lien with penales, interest, fees, ling fees, aorney fees, or otherwise. Sck

to the principle amount owed and only include other fees if they are explicitly permied by the state

lien statute.

OVER-CONFIDENCE

Claimants oen make mistakes because they make assumpons based on “common knowledge” or

“past experiences”. This is dangerous and can be fatal to lien claims. Rather than trusng your memory

or advice from anyone other than an aorney, be sure to consult reliable sources, such as resources

complied by expert construcon aorneys. If there is ever any doubt, consult the lien law for your

state.

The Arizona Mechanics Lien Step 3

Make sure that you’re

eligible to le a lien.

Calculate deadlines

and send required

preliminary noces.

Calculate deadline

and le a lien if you

haven’t been paid.

Release or enforce the

lien.

Steps to Securing Payment with Lien Rights

Click here to download zlien’s deadline charts.

zlien.com 23

What to Do Aer Filing a Lien Step 4

Step 4: What to Do Aer Filing a Lien

What to Do If You Get Paid

In most cases, ling a mechanics lien will get you paid. However, geng paid isn’t the end of the

process. Arizona law requires that the lienholder shall release the lien within 20 days aer sasfacon,

or within 20 days of the owner-occupant’s wrien request if the lien was incorrectly led against the

dwelling of an owner occupant. Failure to grant the release subjects the lienholder to personal liability

of $1000 and liability for actual damages.

HOW TO RELEASE A LIEN

To release a lien, ll out an Arizona release of lien form and le it with the county recorder’s oce.

Click here to download an Arizona mechanics lien release form or use the form included in this guide.

Want zlien to do it for you? Visit app.zlien.com to release a lien in minutes.

What to Do If You Don’t Get Paid

If a lien claimant is not paid, they have three opons: enforce the lien in court, extend the lien, or let

the lien expire.

ENFORCE THE LIEN IN COURT

Arizona law requires that a mechanics lien be enforced within 6 months from the lien’s ling. If this

6-month period passes without an acon being led to enforce the lien, the lien expires. Arizona

requires both the ling of the foreclosure acon, and, within 5 days of ling suit, the recording of a lis

pendens.

EXTEND THE LIEN

The Arizona lien statute does not discuss lien extensions.

zlien.com 24

What to Do Aer Filing a Lien Step 4

LET THE LIEN EXPIRE

If the claimant remains unpaid and fails to extend the lien or enforce the lien in court within 90 days of

recording the claim of lien, the lien expires. In Arizona, claimants may be required to release (cancel) an

expired lien and have it removed from the record.

To learn how to release a lien, see the How to Release a Lien secon of this guide.

About zlien

zlien’s cloud-based plaorm makes lien rights easy, empowering a fair payment process for the

construcon industry. Construcon rms, contractors, suppliers, lenders, owners, and other project

stakeholders naonwide use zlien to eliminate the administrave headaches and legal guesswork

associated with lien waiver exchanges, preliminary noces, and mechanics lien compliance, enabling

them to minimize nancial risk and achieve a more seamless, transparent, and fair payment process.

Customers include thyssenkrupp Elevator Corporaon, Graybar Electric, TruTeam, USG Corporaon,

Belfor USA, and others ranging from Fortune 500 companies to local small businesses .

For more informaon about zlien, or a free demo of zlien’s lien management soware, visit zlien.com.

March 2017

SPEAK TO A ZLIEN EXPERT TODAY

Lien rights made easy.

(866) 720 - 5436 [email protected]

Want to Make Lien Rights Easy?

Thousands of contractors and suppliers use zlien to make the lien noce

process painless.

It’s easy. We do all of the work, and your lien noces get prepared and

mailed fast and on-me. It’s done fast, and it’s done accurately. You just

press a buon. Click the buon or give us a call to learn more.

Notice and Claim of Lien

(Mechanicʼs,MaterialmanʼsorProfessionalServices)

Claimant: (Name and Address)

Property Owner: (Name and Address)

Property:

The real property upon which the Project

was constructed is the following

described parcel(s) of land, and includes

any and all structures and improvements

located thereon, to which are to be

charged with this Lien (the "Subject

Property"):

Address:

Legal Description:

The Project Name and/or Reference Is:

Instrument Prepared By

And Recording Requested By:

Space Above For Recorder

s Use

The Claimant furnished labor, materials,

services, tools and/or equipment of the

following general description at the

Property (Services):

The party who hired the Claimant to

perform the Services at the Property is

(the“HiringParty”): (Name and Address)

Amount of Claim

After deducting just offsets and credits,

and accounting for all change orders, the

amount demanded in this lien by the

CLAIMANT is: $_________________

This amount shall accrue interest at the

rate of 10.00% per annum as per A.R.S.

§44-1201. Claimant shall be entitled to

the fees for preparing this Lien, and

foreclosing thereupon, as per A.R.S. §

33-995(E) and § 33- 998(B).

The Contract

The Claimant provided the Services to

the Property pursuant to a:

[____] Written Contract

[____] Oral Contract

For written contracts, the terms of the

same are available pursuant to a copy of

the contract which is attached to this lien

as Exhibit ____.

For oral contracts, the terms of the same

are described as follows:

Commencement Date:

Claimant first furnished the Services to

the Property on or around the following

date: ______________________

Completion Date:

The completion of the project occurred

on or about the following date:

______________________

Preliminary Notice Date:

A copy of the Preliminary Notice(s) and

the proof of its mailing is attached to this

lien claim as Exhibit ____, the Claimant

delivered the Preliminary Notice(s) as per

ARS § 32-922.01 on the following

date(s):

The CLAIMANT provides that at the request of the HIRING PARTY, it

providing the SERVICES to the PROPERTY, and that the AMOUNT OF

CLAIM is due and owing to the CLAIMANT in full, after providing all offsets

and just credits. The CLAIMANT demands a lien on the PROPERTY and all

improvements thereupon in the AMOUNT OF CLAIM. The CLAIMANT

provides this Notice of Claim of Lien to the County Recorderʼs office in

duplicate copies, the first to be recorded with the County, and the second

to be returned to the CLAIMANT to be served upon the Owner(s) or

Reputed Owner(s) as per statutory standards.

Signature of Claimant, and Verification

State of Arizona

County of _____________________________

I, ___________________, the undersigned, being of lawful age and being

first duly sworn upon oath, do state that I am the Claimant named herein,

or an authorized agent of the Claimant appointed for the purposes of

signing and filing this Notice of Claim of Lien, and that I have read the

foregoing Notice of Claim of Lien, know the contents thereof, and I have

been provided and thereby have knowledge of the facts, and certify that

based thereupon, upon my information and belief the foregoing is true and

correct, and that I believe them to be true.

_________________________________

Claimant

Signed by Authorized and Disclosed Agent

Print Name: _______________________

Dated: _______________________

Sworn to and subscribed before me, undersigned Notary Public in and for

the above listed State and County/Parish, on this

_______________________, by _______________________, who is known

to me, or satisfactorily proved to me, to be the person whose name is

subscribed to this document, and who acknowledged that he/she executed

this document in the capacity indicated for the principal named.

___________________________________

Notary Public

Notice To:

____________________________________

AddressWhereMaterialsDelivered(“Property”):

____________________________________

Certified Mail No: __________________________

NOTICE OF INTENT TO LIEN

THIS IS NOT A LIEN

Name and Mailing Address of Party Providing Notice

andSellingMaterials(“NoticingParty”):

____________________________________

Description of Services or Materials Provided:

____________________________________

TotalAmountOwedtoNotifyingParty(“Debt”):

______________________________

The notice is provided to inform you that the Notifying Party has provided the above-described materials and/or services

totheProperty,andthatpaymentfortheseservicesand/ormaterials,the“Debt,”isdueandowingtotheNotifyingParty.

This is a notice to you that the Notifying Party is owed the Debt, and that payment has not been made to the Notifying

Party on the Debt.

If payment is not made to the Notifying Party, a Claim of Lien, commonly referred to as a Mechanics Lien, will be filed

against the Property in ten (10) days after delivery of this notice as per Arizona Statutes.

__________________________

Agent for Noticing Party

Signed by ____________________________ Title

________________________________

20-DAY PRELIMINARY NOTICE

THIS IS NOT A LIEN. THIS NOTICE IS SENT AS PER ARIZONA REV. STAT. § 33922.01.

THIS NOTICE IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR,

SUBCONTRACTOR, SUPPLIER OR ANY OTHER PERSON.

NOTICE TO:

(Identify Name & Address of Party)

PROPERTY OWNER

_______________________________

PRIME CONTRACTOR

(If none, write none)

_______________________________

LENDER

(If none, write none)

_______________________________

Party who hired the Notifying Party

(“HIRING PARTY”)

_______________________________

This Preliminary Notice is being

completed by and sent by the

NOTICING PARTY:

_______________________________

YOU ARE HEREBY NOTIFIED THAT the NOTIFYING

PARTY has furnished or will be furnishing labor, professional

services, services, fixtures, machinery, tools, equipment, or

materials,ofthefollowinggeneraldescription(“Services”):

(Identify Work/Materials Provided by Claimant)

________________________________________________

Municipal Property Address where labor, services, equipment

or materials is furnishedorwillbefurnished(“Property”):

________________________________________________

AndtheProperty’sLegalDescriptionis:

________________________________________________

County of ______________

State of Arizona

An estimate of the total price of the Services furnished or to

be furnished is: $___________________________

IMPORTANT NOTICE INFORMATION APPEARS ON THE FOLLOWING PAGE

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March 2017

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