Preliminary Lien Notice Form
Chasing payment for your work and materials can be a pain. Our preliminary lien notice will make sure that you have the right to file a mechanics lien in case things go wrong.
What You Should Know Before Using Our Notice to Owner Form
To protect yourself with a mechanics lien, sending out a preliminary lien notice is often the most important first step. It announces to the property owner that you are working on his or her real estate (and therefore he or she is responsible for making sure that you are paid).
If you skip this prelien notice, you may very well lose the right to file a Mechanics Lien Form later on, crippling your chances of recovering any wayward payments. To add salt to the wound, you are also giving up other valuable payment collection options such as the right to file a Stop Notice or stake a claim against the payment bond.
The whos and whens of dealing with a preliminary notice form are pretty straightforward: Once you begin supplying any labor, material or services, you should mail the notice within 20 days. (that's why we also call it a 20 day preliminary notice). If you deliver it late, the amount of lien that you can claim later on will be reduced.
In over 40 states, it's a must for people who are not dealing directly with the property owners to send a preliminary lien notice (subcontractors and suppliers, we are talking about you here). In California CA, it's even against the law not to file it. For general contractors, it depends largely on the state laws where the project is being carried out.
Although some people call it a notice to owner, in some states you will also have to mail this notice to the main contractor and even lender as well. Time to read up on the state laws again.
*Make sure this free pre lien form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
20 Day Preliminary Lien Notice
To Owner (or Reputed Owner):
Name: _________________________
Address:
___________________________________________________________________________
To Original Contractor (or Reputed Original Contractor):
Name: _________________________
Address:
___________________________________________________________________________
To Construction Lender (or Reputed Construction Lender):
Name: _________________________
Address:
___________________________________________________________________________
1. Person/Entity furnishing the labor, services, equipment or materials (use name of license holder):
Name: _________________________
Address:
___________________________________________________________________________
2. Description of the labor, services, equipment and/or materials furnished or to be furnished:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. Estimate of the total price for the above described labor, services, equipment and/or materials: $ _______________
4. Date that Claimant first provided the above described labor, services, equipment and/or materials: _______________
5. Person/Entity who contracted for the purchase of the above described labor, services, equipment and/or materials:
Name: _________________________
Address:
___________________________________________________________________________
6. Description of job site sufficient for identification:
___________________________________________________________________________
___________________________________________________________________________
NOTICE TO PROPERTY OWNER
If bills are not paid in full for the labor, services, equipment, or materials furnished or to be furnished, a mechanics’ lien leading to the loss, through court foreclosure proceedings, of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full. You may wish to protect yourself against this consequence by:
1. Requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor.
2. Requiring your contractor to furnish a receipt to establish that you paid the contractor in full and recording no later than 30 days from receipt of this preliminary notice an affidavit that you paid the contractor in full.
3. Or any other method or device that is appropriate under the circumstances.
Other than residential homeowners of dwellings containing fewer than five units, private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 20-day lien notice in accordance with Section 3097 of the Civil Code that a Notice of Completion or Notice of Cessation has been recorded within 10 days of its recordation. Notice shall be by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing. Failure to notify will extend the deadlines to record a lien.
PROOF OF SERVICE
On this date _______________, the undersigned served this preliminary lien notice to by:
[ ] Personally delivering a copy to:
Name: _________________________
Address:
___________________________________________________________________________
[ ] First class certified or registered mail, postage prepaid, return receipt requested and addressed to:
Name: _________________________
Address:
___________________________________________________________________________
I declare under penalty of perjury under the laws of the state of ____________________ that the foregoing is true and correct.
Signature: _________________________
Date: _______________
