Mechanic’s Lien. A Contractor’s Guide to Get Paid

Sep 26, 2023

Picture this: you’re knee-deep in a construction gig in Arizona, working hard to get things done and investing in materials and the workforce. But here’s the kicker – you have not seen a dime for your hard work, and you’re scratching your head wondering what you could have done to avoid the uncertainty of deadbeat clients. In that case, understanding the process of filing a mechanic’s lien can help you protect your rights and improve the chances you get the compensation you deserve. In this guide, we will walk you through the process of filing a mechanic’s lien in Arizona and provide the necessary information you need to know. Let’s dive in!

What is a Mechanic’s Lien?

mechanic’s lien is a legal claim that allows contractors, subcontractors, suppliers, and other construction professionals to secure payment for work performed or materials supplied on a construction project. It provides a security interest in the property where the work was done, ensuring you have a legal right to be paid for your contributions before the property can be transferred or sold. It also serves as documentation of the agreement and work done. Additionally, it gives notice to anybody who would want to do a transaction with the property where the work is done.

In Arizona, mechanic’s liens can be filed by anyone who provides labor, materials, professional services, fixtures, or tools for the construction, alteration, repair, or improvement of a building or structure under a contract with the property owner or their agent. This process needs preparation in advance and requires the paperwork to be ready before you start signing a contract and start working.

To start, consider consulting an attorney. Attorney Marcos Garciaacosta can guide you through the specific requirements and help prepare all necessary documents accurately.

Mechanic's Lien with attorney Marcos

Steps to File a Mechanic’s Lien in Arizona

By following these steps, you can navigate the complexities of the mechanic’s lien process successfully and ensure that you are compensated for your work:

  • Step 1: Understand the deadlines and requirements: Arizona has strict and specific requirements for filing a mechanic’s lien. Familiarize yourself with these regulations to avoid missing crucial deadlines or making errors in the filing process. Check the rules about mechanic’s liens in your state.
  • Step 2: Document your work and payments: Keep thorough records of your work, materials provided, and payments received for the project. This documentation will serve as evidence to support your lien claim. Remember to have contracts in place detailing your working relationship.
  • Step 3: Serve preliminary notices: Before filing a mechanic’s lien, it is often necessary to serve preliminary notices to the property owner, general contractor, and other parties involved in the project. These notices inform them of your intent to file a lien if payment is not received. In Arizona, you must complete and submit this notice within 20 days of starting work on the project.
  • Step 4: Prepare the lien documents: After completing this preliminary step, if payment issues persist, you can move forward with filing an actual mechanic’s lien by submitting a Claim of Lien form within 120 days from the last day of work or the last day materials were supplied to the project. This document is filed with the County Recorder’s Office. This form should include detailed information about your work performed or materials provided, along with any outstanding payments due. Keeping track of the dates is essential to meet the filing deadline. Prepare the mechanic’s lien document according to Ariz. Rev. Stat. 33-993 requirements.
  • Step 5: File and serve the lien: After completing the necessary documentation, file the mechanic’s lien with the county recorder’s office in the county where the property is. Be sure to follow the correct filing procedures and pay the required fees. The lien can be served by certified mail with a return receipt or personally served on each party involved. Keep records of the service, as you may need to provide proof of this service later on. Upon filing your mechanic lien, it becomes part of public records and serves as notice that an outstanding debt is owed against that property. This notice puts pressure on property owners and general contractors as it may affect their ability to sell or refinance until the debt is settled.
  • Step 6: Enforce the lien: If payment still needs to be received after filing the lien, consult with a qualified attorney to explore your options for enforcing the lien. Actions may involve filing a lawsuit to foreclose the lien and recover the funds owed to you. Be aware of a six-month deadline to initiate a foreclosure action after filing the lien. Remember that even though you have time limits regarding the ability to foreclose on the property, you maintain your rights on the debt and can proceed in court if you are not paid.

Protecting Your Interests with Mechanic’s Liens in Arizona

While filing a mechanic’s lien can be done without legal representation, navigating the mechanic’s lien process in Arizona can be challenging, especially if you are unfamiliar with the legal requirements and procedures. Attorney Marcos Garciaacosta can provide the necessary guidance, document drafting, and support to protect your rights by filing a mechanic’s lien and increasing your chances of getting paid. Call us to schedule a free consultation at (480) 324-6378 or email us at [email protected].

Questions about your Case?

Schedule Your FREE 15-Min Consultation

What client have to say…