Arizona

Lien Waivers

Lien Waiver Summary

There are four statutory lien waiver forms:

i)Unconditional Waiver and Release on Final Payment

ii)Unconditional Waiver and Release on Progress Payment

iii)Conditional Waiver and Release on Final Payment

iv)Conditional Waiver and Release on Progress Payment. See A.R.S. §33-1008.

Waivers that do not substantially comply with the statutory forms prescribed by Section 33-1008 are ineffective and do not release lien rights.

Notices

Notice of Commencement (or similar like event)

Not Applicable.

Preliminary Lien Notifications

To preserve lien rights for all labor and materials furnished, lien claimants must serve a Preliminary 20-Day Notice within 20 days of commencing work on, or delivering materials to, a project. The form of notice is within the statute and must be served on:

• The owner or reputed owner
• The original contractor or reputed contractor
• The construction lender or reputed construction lender –and–
• The person with whom the claimant contracted.

A person performing actual labor for wages is not required to serve notice. See A.R.S. §33-992.01(B).

Preliminary 20-Day Notices should be addressed to the necessary recipients at their residence or business address and served via either (1) first-class mail with a certificate of mailing or (2) registered or certified mail with postage prepaid. See A.R.S. § 33-992.01(F). Preliminary 20-Day Notices are considered served when deposited in the mail.

Notice of Completion

In Arizona, a Notice of Completion is a written notice that an owner may record after completion to shorten the deadline for claimants to record liens to 60 days from recordation. “Completion” means the earliest of the following events:

1. Thirty days after final inspection and written final acceptance by the governmental body which issued the building permit for the building, structure or improvement.
2. Cessation of labor for a period of sixty consecutive days, except when such cessation of labor is due to a strike, shortage of materials or act of God.

To be operative, a Notice of Completion must:

1. Contain the information set forth in Ariz. Rev. Stat. § 33-993(E)
2. Substantially follow the form prescribed by Ariz. Rev. Stat. § 33-993(F)
3. Be recorded in the office of the county recorder in which the property or some part of the property is located –and–
4. Be mailed to the original contractor and all persons from whom the owner has received Preliminary 20-Day Notices by certified or registered mail (with postage) prepaid within 15 days of recording (The mailed copy of the Notice of Completion must also include a written statement of the date of recording and the recorder’s record location information.)

Notice of Completion – The contents of a Notice of Completion are required by Arizona statutes. A notice of completion must be signed and verified by the owner or its agent and must contain the following information:

1. The name and address of the owner.
2. The nature of the interest or estate of the owner.
3. The legal description of the jobsite and the street address. The validity of the notice is not affected by the fact that the street address recited is erroneous or that such street address is omitted.
4. The name of the original contractor, if any.
5. The names and addresses of any predecessors in interest if the property was transferred after the beginning of the work or improvement.
6. The nature of the improvements to the real property.

When Must it be Filed
Notice of completion must be filed as soon as the Certification of Occupancy is available. A delay in filing the Notice allows a larger filing window for mechanics liens. Arizona Mechanics Liens must be filed within 60 days of filing of Notice of Completion, or within 120 days after completion. Action to enforce lien must be filed within 6 months after recording lien. Generally, properly recorded mechanics liens automatically expire six months after they are recorded. See Ariz. Rev. Stat. § 33-998.