How many times have you been in this situation: You owe money for a construction project and are considering filing a mechanic’s lien. But you know that after filing, a serious litigation process will begin, which will probably require the hiring of lawyers on both sides. You want to send the other party a message telling them that if it doesn’t get paid, more serious action will be taken. Well, there is a form that should be used in this situation. In my experience, this is a very popular shape, so much so that we want to make it available to the construction industry.
This form below alerts the owner that you will file a mechanic’s lien if payment is not made within 10 days. Hopefully it will establish a serious dialogue for settlement. Come up with your bottom line amount to settle and be prepared to offer it to the owner if he or she negotiates in good faith. Remember, the last thing an owner wants is a lien on their property: it jeopardizes title, disrupts their relationship with the construction borrower, and prevents refinancing or sale. This notice is worded in a non-threatening manner to take advantage of this situation, where the owner knows that you are required by law to file a lien within a certain period of time or you will lose your liens.
WHO CAN USE THIS FORM? All persons, whether general contractor, subcontractor or supplier.
HOW TO SERVE: There is no need to file this with the court or record it with the recorder’s office. It is simply delivered by mail.
WHO TO SERVE: If you are a general contractor, serve the owner and builder. If you are a subcontractor or supplier, serve the owner, general and construction borrower.
HOW TO SERVE: Although it is not required, due to its effectiveness it is recommended to be delivered by certified mail.
WHEN: Submit ten days before filing or registering the mechanic’s lien. Remember, it does not extend the time to file a mechanic’s lien.
NOTARIZATION? No.
COPIES: The original signed copies are served. Keep an extra copy for your records.
CERTIFICATE OF MAILING. Use a standard Proof of Service form. Sign this proof (it’s like a shipping certificate) and not the form so you have proof that it was mailed to the different people or entities.
MARGINS AND FONT. This is a Word document, so use the following margins for a good print: Top: 18 pt; Bottom: 22 pt; Left: 58 pt; Right: 58 pt. Type size is 12.
HOW TO USE? Cut and paste the form into a new Word document.
WHICH STATES?
Use this notice only in the following states: Alabama, Alaska, Arizona, Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and West Virginia.
As for California, you can use it until further notice. California is in the process of changing its mechanics’ liens, which require specific notice. Check out our website for that new form.
SAMPLE FORM STARTS HERE
NOTICE OF INTENTION TO SUBMIT A ENGINEER’S SUBJECT (General)
(This is not a mechanic’s lien, nor a reflection of a contractor’s credit)
____________________________________________________________________________________
By registered mail
TO OWNER:
_________________________________________________
(name(s))
________________________________________________
(address–no. and street)
________________________________________________
(address-city, state, zip code)
FROM GENERAL CONTRACTOR:
____________________________________________________________
(name(s))
____________________________________________________________
(address–no. and street)
____________________________________________________________
(address-city, state, zip code)
___________________________________________________________
(fax/telephone)
Please note that the undersigned lien claimant intends to file a mechanic’s lien against your property if monies due are not paid, as follows:
PROJECT NAME: __________________________________________________________________________________
PROPERTY SUBJECT TO SUBJECT (common address or other description):
____________________________________________________________________________________
(1) General description of construction services provided by Lien Claimant:
___________________________________________________________________________________
___________________________________________________________________________________
________________________________________________________________________________
(2) Amount Due: Through _________ (date) is $_____________ after credits only (total performed, with extras of $___________, less payments of $___________). Unpaid invoice(s) attached. The lawyer’s fees and court costs are also claimed.
The work described above was delivered to your property by the claimant at your request. If payment is not made within ten (10) days of receipt of this summons, claimant intends to file for a Mechanic’s Lien without further notice. If you have any questions or would like to make payment arrangements, please call immediately to discuss.
Dated: _____________
____________________________________________________________
(signature and title)
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