Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Every person, except as set forth in AZ ST § 33-1002 and AZ ST § 33-1003, who labors or provides services, materials, machinery, or tools in construction, alteration, or repair of building/improvement (includes surveyors; architects considered agents of owner). AZ ST § 33-981 DEADLINE TO PERFECT Lien must be filed: • Within 120 days after completion of improvement/alteration; or • If notice of completion recorded, within 60 days of recordation of notice of completion Completion is defined as 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. The total lien period varies depending on how completion is determined. AZ ST § 33-993 BROKEN PRIORITY Once perfected, lien date relates back to when the labor was performed or the material furnished. All liens relate back to the date the first work done/material furnished. “Commencement” is work/materials being furnished to the property so it is apparent to one inspecting the property that construction/repair has commenced. Exceptions to relation-back priority: • DOT given as security for a loan made by a construction lender as defined in AZ ST § 33- 992.01 (A) if said DOT recorded within 10 days of commencement • DOTs that mechanic/materialman has actual or constructive notice of when work commenced AZ ST § 33-992 DURATION OF LIEN A lien will expire 6 months after recordation unless notice of lis pendency filed within said time. AZ ST § 33-998 CONTENTS OF LIEN (1) Written notice under oath; (2) legal description of land; (3) name of owner and person by whom lienor was employed/to whom equipment was furnished; (4) statement of terms, time, and conditions of contract/copy of the contract; (5) statement of lienor’s demands; (5) date of completion; (6) statement of date that preliminary twenty (20) day notice per AZ ST § 33-992.01 (A) was given (with copy of same attached). Strict compliance required. Williams v. A. J. Bayless Markets, Inc., 476 P.2d 869, 874 (Ariz. App. 1st Div. 1970). AZ ST § 33-993 ARIZONA ARIZONA – 505 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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