Pre-lien Notice / Notice to Owner

DELAWARE NOTICE TO OWNER / PRE-LIEN NOTICE

(25 Del. C. Ch. 27 – Mechanics’ Liens)

TABLE OF CONTENTS

1. Document Header ............................................... 2
2. Recitals ...................................................... 2
3. Definitions ................................................... 2
4. Operative Provisions .......................................... 3
5. Representations & Warranties .................................. 4
6. Covenants ..................................................... 4
7. Default & Remedies ............................................ 4
8. Risk Allocation ............................................... 5
9. Dispute Resolution ............................................ 5
10. General Provisions ........................................... 5
11. Execution Block .............................................. 6
12. Attachment A – Statutory Form Notice Language ................ 7
13. Attachment B – Proof of Service Affidavit (Optional) ......... 8

1. DOCUMENT HEADER

Notice Title: DELAWARE NOTICE TO OWNER / PRE-LIEN NOTICE
Effective Date: [EFFECTIVE DATE]
Claimant (Sender): [LEGAL NAME OF CONTRACTOR/SUBCONTRACTOR/SUPPLIER]
Owner (Recipient): [LEGAL NAME OF PROPERTY OWNER(S)]
Prime Contractor (if Claimant is not the Prime): [PRIME CONTRACTOR NAME]
Project: “[PROJECT NAME / BRIEF DESCRIPTION]”
Project Location: [STREET ADDRESS, CITY, COUNTY, DE ZIP] – see full legal description below
Governing Law: State of Delaware Mechanics’ Lien Law (25 Del. C. Ch. 27)
Forum Selection: Exclusive jurisdiction in the courts of the State of Delaware

2. RECITALS

A. Owner owns or has legal title to the real property commonly known as “[PROJECT ADDRESS]” and more fully described in Section 3.

B. Claimant has entered into (or contemplates entering into) an agreement (the “Contract”) to furnish labor, services, equipment, and/or materials for improvement of the Project.

C. Pursuant to 25 Del. C. § 2702(b), a contractor that contracts for the erection, construction, alteration, or repair of any 1- or 2-family residential dwelling must provide the Owner with the prescribed “Notice to Owner” before furnishing labor or materials.

D. This Notice is delivered in satisfaction of the statutory requirements and to preserve Claimant’s potential mechanics’ lien rights.

3. DEFINITIONS

“Claimant” The person or business entity issuing this Notice and claiming mechanics’ lien rights.

“Contract” The written or oral agreement between Claimant and Owner (or Claimant and the Prime Contractor, as applicable) for the performance of Work on the Project.

“Owner” The record owner(s) or reputed owner(s) of the Property.

“Property” The real property on which the Project is located, legally described as:
[INSERT FULL LEGAL DESCRIPTION OR ATTACH EXHIBIT]

“Project” The construction, alteration, or repair work being performed on the Property.

“Work” All labor, services, equipment, and materials furnished or to be furnished by Claimant to the Project.

4. OPERATIVE PROVISIONS

4.1 Statutory Notice.
 (a) Claimant hereby provides Owner with the statutory “Notice to Owner” attached hereto as Attachment A and incorporated by reference.
 (b) Owner is advised that persons or companies furnishing labor or materials to the Project may have enforceable lien rights on the Property if they are not paid.

4.2 Timing Compliance.
 This Notice is being furnished to Owner (i) prior to commencement of Work by Claimant on the Project, or (ii) within the earliest practicable time thereafter, but in every event before the delivery of any materials on site, in strict conformity with 25 Del. C. § 2702(b).

4.3 Method of Service.
 This Notice shall be deemed served upon the earliest to occur of:
 (i) Personal delivery to Owner (or Owner’s authorized agent) with written acknowledgment of receipt;
 (ii) Deposit with any nationally recognized overnight courier with next-business-day delivery prepaid; or
 (iii) Certified mail, return-receipt requested, postage prepaid, addressed to Owner’s last known address on record with the county recorder.

4.4 Preservation of Lien Rights.
 The giving of this Notice is a condition precedent to Claimant’s right to file and prosecute a mechanics’ lien against the Property under Delaware law. Failure of Owner to receive this Notice does not invalidate the lien of a claimant who has complied with the statutory service requirements.

5. REPRESENTATIONS & WARRANTIES

5.1 Authority. Claimant represents that the individual executing this Notice is duly authorized to do so and that, to the best of Claimant’s knowledge, the information contained herein is true, correct, and complete in all material respects.

5.2 No Waiver. Nothing contained in this Notice shall be construed as a waiver or release of any lien rights, payment claims, or contractual remedies that Claimant may possess under applicable law.

6. COVENANTS

6.1 Duty to Notify of Disputes. Owner shall promptly notify Claimant in writing of any documented dispute regarding the amount or quality of Work furnished.

6.2 Duty to Furnish Information. Upon written request, Owner shall provide Claimant with the name and address of any lender, surety, or other party holding an interest in the Property that could affect Claimant’s lien rights.

7. DEFAULT & REMEDIES

7.1 Events of Default. Each of the following shall constitute an “Event of Default”:
 (a) Owner’s failure to pay any undisputed sums when due under the Contract; or
 (b) Owner’s breach of any covenant set forth in Section 6.

7.2 Remedies. Upon an Event of Default, Claimant may, in addition to any contractual remedies, pursue the following statutory remedies:
 (i) File a verified statement of claim (mechanics’ lien) in the Superior Court of the county where the Property is situated within the time period prescribed by 25 Del. C. § 2711;
 (ii) Commence an action to foreclose the lien and cause the Property to be sold to satisfy unpaid amounts; and
 (iii) Recover court costs, interest, and reasonable attorneys’ fees as permitted by statute or contract.

8. RISK ALLOCATION

8.1 Limitation of Liability. To the fullest extent permitted by law and except for willful misconduct or fraud, Claimant’s aggregate liability to Owner arising out of or relating to this Notice shall not exceed the total value of Work actually performed or furnished by Claimant at the time a claim arises.

9. DISPUTE RESOLUTION

9.1 Governing Law. This Notice and any disputes arising hereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware without regard to its conflict-of-laws provisions.

9.2 Forum Selection. The parties irrevocably submit to the exclusive jurisdiction of the state courts located in the county where the Property lies for any action relating to this Notice or enforcement of any mechanics’ lien.

9.3 Injunctive Relief. Nothing in this Section shall limit Claimant’s right to seek equitable relief, including but not limited to an injunction to compel compliance with statutory requirements or preserve lien rights.

10. GENERAL PROVISIONS

10.1 Amendment; Waiver. No amendment of this Notice shall be effective unless in writing and signed by Claimant. No waiver of any right shall be effective unless in writing and shall not be deemed a waiver of any future breach.

10.2 Severability. If any provision of this Notice is held unenforceable, the remaining provisions shall remain in full force and effect, and such unenforceable provision shall be reformed to the limited extent necessary to render it valid.

10.3 Counterparts; Electronic Signatures. This Notice may be executed in multiple counterparts and delivered electronically (including PDF and electronic signature platforms), each of which shall be deemed an original and all of which together shall constitute one instrument.

11. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned Claimant has executed and delivered this Delaware Notice to Owner / Pre-Lien Notice effective as of the date first written above.

12. ATTACHMENT A – STATUTORY FORM NOTICE LANGUAGE

(25 Del. C. § 2702(b))

“NOTICE TO OWNER

Persons or companies furnishing labor or materials for the improvement of property may have lien rights on the property if they are not paid. Those entitled to lien rights include contractors, subcontractors, material suppliers, and laborers. If a lien is filed against your property, it may be subject to sale to satisfy the lien.

To protect yourself, you should:
• Recognize that certain persons or companies supplying labor or materials have lien rights on your property;
• Make sure payments are made to the contractor and that the contractor, in turn, pays subcontractors and suppliers; and
• Obtain lien waivers from the contractor and from subcontractors and suppliers as each payment is made.

FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIALS TWICE.”

13. ATTACHMENT B – PROOF OF SERVICE AFFIDAVIT (OPTIONAL BUT RECOMMENDED)

State of Delaware
County of ☐

BEFORE ME, the undersigned Notary Public, personally appeared [AFFIANT NAME], who, being duly sworn, deposes and says:

1. I am over eighteen (18) years of age and competent to testify to the matters set forth herein.
2. I am employed by or otherwise authorized to serve notices on behalf of [CLAIMANT].
3. On [DATE OF SERVICE], I served the foregoing Delaware Notice to Owner / Pre-Lien Notice, together with all attachments, upon [OWNER NAME] by:
 ☐ Personal delivery to [NAME], an authorized representative of Owner, who acknowledged receipt;
 ☐ Certified mail, return-receipt requested (Postal Article No. ☐); or
 ☐ Overnight courier (Tracking No. ☐).

4. Attached hereto is the signed receipt / delivery confirmation evidencing service.

I declare under penalty of perjury under the laws of the State of Delaware that the foregoing is true and correct.

__________________________________
[AFFIANT SIGNATURE]
[AFFIANT PRINTED NAME]
Date: _____________________________

Subscribed and sworn to before me on ___________________, 20____.

__________________________________
Notary Public
My Commission Expires: ___________________