Mechanics Lien Filing Package — Arizona

Mechanics Lien Filing Package (Arizona)

Quick-Reference Summary

WARNING: Recording a groundless lien is actionable under A.R.S. § 33-420; statutory damages of the greater of $5,000 or treble actual damages, plus attorneys' fees, apply.

Part A — Pre-Lien Notice

A-1. Preliminary Twenty-Day Notice

PRELIMINARY TWENTY-DAY NOTICE (PRECONSTRUCTION LIEN NOTICE)
(Required by A.R.S. § 33-992.01)

To: [OWNER OR REPUTED OWNER]
[OWNER ADDRESS]

To: [ORIGINAL CONTRACTOR]
[ADDRESS]

To: [CONSTRUCTION LENDER, if any]
[ADDRESS]

To: [PERSON WITH WHOM CLAIMANT CONTRACTED, if other than original contractor]
[ADDRESS]

You are hereby notified that [CLAIMANT NAME], whose address is [ADDRESS], has furnished or will furnish labor, professional services, materials, machinery, fixtures, or tools of the following general description: [DESCRIPTION], for the building, structure, or other work of improvement located at:

[PROPERTY DESCRIPTION / STREET ADDRESS, COUNTY, AZ]

The name of the person who contracted for purchase of those items is: [CONTRACTING PARTY].

An estimate of the total price of the labor, professional services, materials, machinery, fixtures, or tools furnished or to be furnished is $[____].

NOTICE TO PROPERTY OWNER

If bills are not paid in full for the labor, professional services, materials, machinery, fixtures, or tools furnished, or to be furnished, a mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property being improved may be placed against the property. You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a conditional waiver and release pursuant to A.R.S. § 33-1008 signed by the person or firm giving you this notice before you make payment to your contractor, (2) requiring that any payments your contractor makes to the person or firm giving you this notice be made by joint check (made payable to your contractor and the person or firm giving you this notice), or (3) upon making payment to your contractor obtaining a conditional waiver and release pursuant to A.R.S. § 33-1008 signed by the person or firm giving you this notice.

Signed: ________________________ [CLAIMANT, by SIGNER NAME, TITLE]

Retain proof of service (return receipts, certificates of mailing) for the lien claim package.

Part B — Claim of Mechanics Lien (Notice and Claim of Lien)

NOTICE AND CLAIM OF LIEN
(Pursuant to A.R.S. § 33-993)

STATEMENT OF CLAIMANT:

[CLAIMANT NAME], the undersigned, claims a lien upon the property described above for labor, professional services, materials, machinery, fixtures, or tools furnished for the improvement of said property, in the principal sum of $[____], together with interest from [__/__/____].

VERIFICATION (A.R.S. § 33-993)

State of Arizona ) ss. County of [____])

I, [NAME], being first duly sworn, depose and say: I am the Claimant (or the [agent/attorney] of the Claimant) named in the foregoing Notice and Claim of Lien; I have read the same and know the contents thereof; the matters stated therein are true to the best of my knowledge and belief; the lien claimant complied with A.R.S. § 33-992.01 (Preliminary Twenty-Day Notice), and a copy of that notice together with proof of service is attached.

Signed: ________________________ [NAME], [TITLE]

Subscribed and sworn to before me this [__] day of [____], 20[__].

Notary Public: ________________________ Commission Expires: [__/__/____]

Attach: (1) Preliminary Twenty-Day Notice; (2) Proof of service (certified mail receipts and return receipts, or certificate of mailing); (3) Legal description (Exhibit A). Record original with County Recorder.

Part C — Notice of Filing Lien Claim to Owner

[Date: __/__/____]

To: [OWNER NAME]
[OWNER ADDRESS]

Via Certified Mail, Return Receipt Requested

Re: Recording of Notice and Claim of Lien — [PROPERTY ADDRESS]

Dear [OWNER]:

Please take notice that on [__/__/____], the undersigned recorded a Notice and Claim of Lien against the above-described real property with the [____] County Recorder, at Recording No. [____], in the principal amount of $[____], pursuant to A.R.S. § 33-993.

A true and correct copy of the recorded Notice and Claim of Lien (with the Preliminary Twenty-Day Notice and proof of service attached as recorded) is enclosed.

This Notice is served upon you in compliance with A.R.S. § 33-993(B). If the amount claimed is not paid, the undersigned intends to commence an action to foreclose the lien within the six-month limitation period set by A.R.S. § 33-998.

Sincerely,

[CLAIMANT NAME], by [SIGNER NAME, TITLE]
[ADDRESS, PHONE, EMAIL]

Enclosure: Recorded Notice and Claim of Lien with attachments.

Part D — Suit to Foreclose

SUPERIOR COURT OF ARIZONA — [____] COUNTY

Case No.: [____]
COMPLAINT TO FORECLOSE MECHANICS' LIEN

Plaintiff [CLAIMANT], by counsel, alleges:

I. Parties, Jurisdiction, and Venue

1. Plaintiff is a [entity type] organized under the laws of [STATE] with its principal place of business at [ADDRESS], registered Arizona contractor License No. [____] (if applicable).
2. Defendant [OWNER] is the record owner of real property located at [PROPERTY ADDRESS], [____] County, Arizona, more particularly described on Exhibit A ("Property").
3. Defendant [ORIGINAL CONTRACTOR] was the original contractor for improvements to the Property.
4. Venue is proper under A.R.S. § 12-401 because the Property is situated in [____] County, and jurisdiction is proper under A.R.S. § 33-998.

II. Facts

5. On [__/__/____], Plaintiff entered into a contract with [CONTRACTING PARTY] to furnish [DESCRIPTION] for the improvement of the Property in the amount of $[____].
6. Plaintiff first furnished labor, professional services, materials, machinery, fixtures, or tools on [__/__/____] and last furnished on [__/__/____].
7. On [__/__/____], within 20 days of first furnishing, Plaintiff served a Preliminary Twenty-Day Notice in compliance with A.R.S. § 33-992.01 on the Owner, Original Contractor, and Construction Lender.
8. The Property is [NOT an owner-occupied dwelling within the meaning of A.R.S. § 33-1003] / [an owner-occupied dwelling, but Plaintiff is the original contractor entitled to lien].
9. Plaintiff is owed a principal balance of $[____], plus interest.
10. On [__/__/____], within 120 days after completion of the improvement (and within 60 days of any recorded Notice of Completion), Plaintiff recorded a Notice and Claim of Lien with the [____] County Recorder at Recording No. [____].
11. Within five days of recording, Plaintiff served a copy of the recorded lien on the Owner pursuant to A.R.S. § 33-993(B).

III. Claim for Foreclosure (A.R.S. § 33-998)

12. Plaintiff incorporates the foregoing.
13. Plaintiff has perfected a valid mechanics' lien and is entitled to a judgment establishing and foreclosing the lien, with sale of the Property and application of proceeds to the lien debt of $[____], plus interest, costs, and attorneys' fees under A.R.S. § 33-998 and § 12-341.01 (if applicable).

IV. Claim for Breach of Contract (against [CONTRACTING PARTY])

14. Plaintiff incorporates the foregoing.
15. [CONTRACTING PARTY] breached the contract by failing to pay $[____] due and owing, causing direct damages in that amount.

V. Prayer for Relief

WHEREFORE, Plaintiff requests:

a. Judgment establishing the validity, priority, and amount of Plaintiff's mechanics' lien in the sum of $[____] plus interest from [__/__/____];
b. An order foreclosing the lien and directing sheriff's sale of the Property;
c. Judgment against [CONTRACTING PARTY] for breach of contract;
d. Reasonable attorneys' fees and costs under A.R.S. § 12-341.01 (contract) and § 33-998 (lien foreclosure);
e. Such other relief as the Court deems just.

[ATTORNEY NAME, AZ BAR NO.]
[FIRM, ADDRESS, PHONE, EMAIL]
Attorneys for Plaintiff
Date: [__/__/____]

Record Notice of Lis Pendens (A.R.S. § 12-1191; § 33-998) within five days of filing this Complaint.

Part E — Pre-Filing Checklist

☐ Confirm contractor license is current (A.R.S. § 32-1151); license required to enforce contract over $1,000
☐ Confirm property is NOT an owner-occupied dwelling barred by A.R.S. § 33-1003 (subs/suppliers)
☐ Confirm Preliminary Twenty-Day Notice served within 20 days of first furnishing (A.R.S. § 33-992.01)
☐ Retain proof of service (certified/registered mail receipts; certificate of mailing)
☐ Identify date of completion (or estimated completion) of improvement
☐ Confirm whether a Notice of Completion was recorded (60-day vs 120-day window)
☐ Calendar lien recording deadline: 120 days after completion (or 60 days from Notice of Completion)
☐ Confirm correct County Recorder office
☐ Title search confirming record owner, lender, and other lien claimants
☐ Compute claim amount; deduct payments, credits, retainage, and waived amounts
☐ Prepare Notice and Claim of Lien containing all items required by A.R.S. § 33-993(A)
☐ Attach copy of Preliminary Twenty-Day Notice and proof of service to lien claim
☐ Notarize claimant verification
☐ Record original with County Recorder; obtain Recording No.
☐ Serve copy of recorded lien on Owner within 5 days (A.R.S. § 33-993(B))
☐ Calendar 6-month foreclosure deadline (A.R.S. § 33-998)
☐ Prepare Complaint and Notice of Lis Pendens (record lis pendens within 5 days of filing)
☐ Confirm not exposed to A.R.S. § 33-420 (groundless lien) damages
☐ Confirm no valid lien waiver previously signed for the claimed work

Sources and References

• A.R.S. § 33-981 et seq. (Mechanics' and Materialmen's Liens): https://www.azleg.gov/arsDetail/?title=33
• A.R.S. § 33-992.01 (Preliminary Twenty-Day Notice): https://www.azleg.gov/ars/33/00992-01.htm
• A.R.S. § 33-993 (Procedure to perfect lien): https://www.azleg.gov/ars/33/00993.htm
• A.R.S. § 33-998 (Limitation on action): https://www.azleg.gov/ars/33/00998.htm
• A.R.S. § 33-1003 (Owner-occupied dwelling exemption): https://www.azleg.gov/ars/33/01003.htm
• A.R.S. § 33-420 (Groundless lien damages): https://www.azleg.gov/ars/33/00420.htm
• Arizona Registrar of Contractors: https://roc.az.gov/
• Arizona Judicial Branch — Superior Court: https://www.azcourts.gov/