Preliminary Lien Notice Research Is A Must
Sending a notice doesn't do you any good if it's sent to the wrong entities
When preparing your prelim, if you don't research the information as to who needs to be served the notice you could end up in trouble.
YOU are responsible for making sure that the right people get a copy
Very few, if any, states have a law that holds the general contractor or owner responsible for providing the correct information in regard to who needs to be notified that you're present.
Some states, such as California, provide in the code that the GC/DC has to provide the information if requested to but the law doesn't hold them responsible if they provide the wrong information.
Whether you get the info from them voluntarily or upon request, how can you be sure that the information is accurate?
The General Contractor Didn't Give Us The Correct Information For Our Preliminary Lien Notice
We were starting work on a dentist's office and I had the preliminary lien notice paperwork ready to go. My partner happened to run into someone on the project who introduced himself as the Owner; one of *five* owners!
No Excuses
The onus falls on the one serving the notice to make sure the correct entities get the notice.
If your GC/DC gives you the wrong info, typically you won't have any recourse against him.
We didn't have a list of five owners from the general contractor; they gave us a list with one owner name on it.
I started doing some research and found out that indeed there were five owners of the project, and none of them were the name the GC had given me.
The project actually ended up going south and because we had, inadvertently, found out that we had incorrect information we had been able to prelim every owner before the deadline.
We were one of the few subcontractors on the project who happened to have the correct parties prelim'd. The ones who didn't, didn't get paid.
There was no law requiring that the general give us the correct information for our preliminary lien notice.
Their claim was that they made a mistake when providing the information and who knows, maybe they did.
But we would still have lost our lien rights, and payment, even though it was the general's fault - because there was no law to protect us.
Research Property Records For Your Preliminary Liens
Research property records:
- Who owns the property and is there more than one owner
- Are there any lenders on the property
- What is the correct address/description of the property
By referring to the preliminary lien notice forms here, you'll know exactly what items you need to research.
There are places online where you can research property records to make sure you send your preliminary notices to *all* of the parties involved.
Start with the government entity that holds the property records for the area you're planning to work in. That might be a stand-alone county records office, the building planning office, the court building, maybe even a library in some smaller areas.
You can also research property records and title reports online, and run title searches online.
Just keep in mind that the amount of days you are given to file your preliminary lien notice is not a lot of time so you need to get your hands on the correct property information as quickly as possible.
Preliminary Lien Notice Research And An Unwelcome Surprise...
Once when I was researching the property records on a project we were working on, I found out that the owner of the project had filed a "notice of non-responsibility form" with the local county office.
Surprise!!
Usually,
that means that a tenant is having work done to the property that he is
renting/leasing and the owner of the property does not want any
financial responsibility.
By correctly processing a "notice of
non-responsibility" form, the owner is able to protect their property
from liens should the tenant (and/or the general contractor and/or
subcontractor) not pay the construction bill(s). Yikes!!
While
this doesn't really have anything to do with properly serving your
preliminary notice (since the Owner has absolved their responsibility)
it's still important information to have before you start work on a
project - before you even sign a contract if possible - because you'll
then be able to make an informed decision as to whether or not you want
to do the project.
Always research property records for every job
you are going to work on, and considering working on. If you don't
serve the preliminary notice to the correct parties, you could find
yourself without mechanic's lien rights.
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Preliminary Lien Notices / Pre-Liens Word and PDF versions
Construction-Business-Forms.com |
If you need any help or have any questions...
I know that many people (like myself) will process at least some of the preliminary liens themselves and it's got to be served to the right people, in the right manner, and done on time - or you could lose in the end.
If you're doing your own please do not hesitate to contact me with any questions you have. I have a few attorneys who will answer questions and I'll do my best to get an answer for you, as quickly as possible to keep you on track.
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Diane
PS: Below the comments is a list of all the articles in the Preliminary Liens Roundup...
Article Series: Preliminary Lien Law
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California 20-Day Preliminary Lien Notices
Construction-Business-Forms.com |
Preliminary Notices and Conflicting Addresses
If the address on the Grant Deed is
different than the address on the prelim information given to us by the
General Contractor, who do we send it to?
Nevada Notice of Right to Lien & Request for Notice of Completion
The Who, What, When, Where, Why, and How - not necessarily in that order :o)
The California Preliminary Notice Covers Up to 20 Days Back
Just because you missed the deadline doesn't mean that all is lost!
Preliminary Lien Notice Research
A preliminary lien notice won't do you any good if they don't go to the correct entities.
California preliminary notice, Supplier didn't do one...
Unfortunately, a prelim is required to file a lien, even if you're a supplier.
Arizona Preliminary Liens
Arizona requires preliminary liens prior to mechanic's liens.
General Contractor Was Paid But He Won't Pay Sub
What should you do? Do you still have lien rights?
California mechanic's lien laws, preliminary notices, and change orders
Do you have to do a preliminary notice for change orders?
California Preliminary Notice & Architectural Fees
I am an architect who is having difficulty with the final payment of fees...
When a Preliminary Lien Notice is Refused
Did someone refuse your preliminary lien notice?
Preliminary Liens When There's More Than One Location
The potential ramifications of using one preliminary notice for several locations when they're all under the same contract
|
California 20-Day Preliminary Lien Notice
Construction-Business-Forms.com |
Preliminary Notices and Dollar Amounts
Make sure the $ amount on the prelim is as accurate as possible
Preliminary Liens and Non-Responsibility
Why you should serve the owner with a prelim even if he posts a notice of non-responsibility
Preliminary Notices and Signatures
Can the signature on a preliminary notice be a copy/fax or must it be 'wet'/original?
Amending a Preliminary Lien Notice
Is it better to amend the notice, or issue a new one?
|
California 20-Day Preliminary Notices
Construction-Business-Forms.com |
Serving the Wrong Party
When working in Arizona be sure to timely serve the preliminary notice *to the correct parties* or there could be trouble
Getting 'Stiffed' on the Job
Preliminary liens can help save you from being 'stiffed' on the job!
Property Records are your Friend
Research property records when doing your preliminary notices
Outsourcing your Preliminary Liens
Thoughts about using a company that handles your preliminary notices for you
Preliminary Liens - a detailed, step-by-step outline
A detailed step-by-step explanation of how to process preliminary notices
Preliminary Liens
Tracking the paperwork, the proof of service, and the USPS documents for prelims
|
California 20-Day Preliminary Lien Notices
Construction-Business-Forms.com |
Preliminary Liens and Notifying the Correct Parties
Make sure your prelims go to the correct entities
Mishandling of, or Not Processing, Preliminary Liens
Mishandling of, or not processing, preliminary liens is one of the top 10 mistakes contractors make
At one time the California preliminary notice form was mandated by California to be titled "20-Day
Preliminary Notice Form" (exactly, word for word). The California mandate has since changed and
the form is now known as the "Preliminary Notice Form" (again, exactly, word for word). Make sure what your state requires and make sure your forms are valid.
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