Overview of Pre-Liens
A "Pre-Lien" is a document that is served by the "claimant" to notify all interested parties that he/she will provide labor and/or materials for a work of improvement to a property. The term claimant is broadly defined as anyone who furnishes equipment and materials or performs a work of improvement to a property. The term claimant includes, but is not limited to, contractors, subcontractors, laborers, architects, electricians, material suppliers, and equipment suppliers. A Pre-Lien is usually a prerequisite before filing a construction lien, stop notice, and bond claim.
A Pre-Lien is generally required when the claimant does not have a direct contract with the property owner. However, in certain states, all claimants must serve a Pre-Lien. There are very few situations where a claimant is exempt from filing a Pre-Lien. Exemptions vary from state to state. Without a properly served Pre-Lien, you may lose your lien rights and receive disciplinary actions from the Contractors Licensing Board.
The Pre-Lien is usually served to the property owner, general contractor, construction lender, and surety company as legal notification that a claimant will have the right to file a construction lien, serve a stop notice, and make a bond claim if he/she has not been paid for his/her labor and/or materials. Pre-Liens should be served on the interested parties within the time frame specified by your state laws. Pre-Liens usually can be served late, but late notices may limit your rights.
Preparing and serving a Pre-Lien can be time consuming and expensive. Preparing your own Pre-Lien notice can be difficult if you do not have adequate research tools to check for inconsistencies and to verify property ownership
My Legal Depot's staff has experience in researching, preparing, and filing thousands of legal documents. Let us research, prepare, and serve your Pre-Lien promptly and accurately at a fraction of the cost of an attorney.
Note: Pre-Liens are referred to as a “Preliminary 20-Day Notice” in the states of California and Arizona and “Notice of Right to Lien” in the state of Nevada. Click Here for more information about your state pre-lien laws.