Pre-lien Notice / Notice to Owner

PRE-LIEN NOTICE / NOTICE TO OWNER

(South Carolina Mechanics’ Lien Law – S.C. Code Ann. § 29-5-10 et seq.)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
XI. Certificate of Service
XII. Exhibits

I. DOCUMENT HEADER

Effective Date: [MM/DD/YYYY]

Claimant (Sending Party): [LEGAL NAME] — a [STATE] [ENTITY TYPE] with principal place of business at [ADDRESS] (“Claimant”)

Owner (Primary Recipient): [LEGAL NAME] with address at [ADDRESS] (“Owner”)

Project: [PROJECT NAME / DESCRIPTION]

Property: [STREET ADDRESS] — see complete Legal Description attached hereto as Exhibit A (the “Property”)

Governing Law: State of South Carolina

II. DEFINITIONS

“Contract” means the written or oral agreement between Claimant and [CONTRACTING PARTY] dated [DATE] under which Claimant agreed to furnish Work for the Project.

“Last Furnishing Date” means the last date on which Claimant actually furnished labor, services, equipment, or materials to or for the Project, presently estimated as [MM/DD/YYYY].

“Lien Law” means the South Carolina Mechanics’ Lien Statute, S.C. Code Ann. § 29-5-10 et seq. (2023).

“Unpaid Balance” means USD $[AMOUNT] that remains due and owing to Claimant for Work furnished through the Last Furnishing Date.

“Work” means the labor, services, equipment, and/or materials furnished by Claimant as more fully described in Section III.2.

III. OPERATIVE PROVISIONS

1. Purpose of Notice
   This instrument constitutes Claimant’s formal written notice to Owner that the Unpaid Balance remains outstanding and that Claimant intends to assert all lien and collection rights available under the Lien Law if the Unpaid Balance is not satisfied within the statutory time frames.

2. Description of Work Furnished
   a. Nature of Work: [DESCRIBE — e.g., “Electrical rough-in and finish wiring”].
   b. First Furnishing Date: [MM/DD/YYYY].
   c. Last Furnishing Date: [MM/DD/YYYY].

3. Amount Due
   a. Original Contract Price: $[AMOUNT].
   b. Amount Paid to Date: $[AMOUNT].
   c. Unpaid Balance: $[AMOUNT] (exclusive of interest, attorney fees, and permissible costs).

4. Notice of Intent to Lien
   a. If Claimant does not receive full payment of the Unpaid Balance within [10–15] calendar days after Owner’s receipt of this Notice, Claimant will, without further notice, file a sworn Statement of Account (mechanics’ lien) pursuant to S.C. Code Ann. § 29-5-90 and may thereafter commence an action to enforce that lien.
   b. This Notice is not a waiver or release of lien rights.

5. Statutory Information Request
   Pursuant to the Lien Law, Claimant hereby requests (i) the current contract balance unpaid to the general contractor and (ii) a copy of any payment bond applicable to the Project within five (5) business days of receipt hereof.

IV. REPRESENTATIONS & WARRANTIES

1. Accuracy of Statement
   Claimant represents that, to the best of its knowledge and belief, all amounts stated herein are true, correct, and currently outstanding.

2. Good-Faith Effort
   Claimant warrants that it has made a good-faith effort to resolve the payment dispute prior to issuing this Notice.

3. Authority
   The individual signing this Notice on behalf of Claimant is duly authorized to do so.

V. COVENANTS & RESTRICTIONS

1. Owner’s Covenant to Respond
   Owner shall, within five (5) business days after receipt, furnish Claimant the information requested in Section III.5.

2. No Impairment
   Owner shall not disburse any further contract funds to the general contractor or any other party that would prejudice Claimant’s ability to be paid from sums otherwise due.

VI. DEFAULT & REMEDIES

1. Events of Default
   Failure by Owner to (a) pay the Unpaid Balance in full or (b) provide the requested statutory information within the period stated herein.

2. Remedies
   a. Recordation of a mechanics’ lien against the Property;
   b. Foreclosure of such lien in the county circuit court;
   c. Recovery of interest, court costs, and reasonable attorney fees as permitted by S.C. Code Ann. § 29-5-10 et seq.; and
   d. All other remedies available at law or in equity.

VII. RISK ALLOCATION

1. Limitation of Liability
   Claimant’s aggregate liability to Owner arising from or related to the Work, whether in contract, tort, or otherwise, shall not exceed the lesser of (i) the value of the Work actually performed by Claimant, or (ii) the amounts paid by Owner to Claimant as of the date of any claim.

2. Reservation of Rights
   Nothing herein limits Claimant’s ability to pursue the full Unpaid Balance, together with authorized interest and costs, through lien enforcement proceedings.

VIII. DISPUTE RESOLUTION

1. Governing Law
   This Notice and any dispute arising hereunder shall be governed by the laws of the State of South Carolina.

2. Forum Selection
   Exclusive venue shall lie in the state courts located in the county where the Property is situated.

3. Injunctive Relief
   Claimant reserves the right to seek injunctive or equitable relief, including but not limited to foreclosure of any perfected mechanics’ lien.

IX. GENERAL PROVISIONS

1. Entire Notice
   This document constitutes the entire notice required or permitted by the Lien Law with respect to the Work.

2. Amendment; Waiver
   No amendment or waiver of any provision of this Notice is effective unless in a writing signed by Claimant.

3. Severability
   Any provision held invalid or unenforceable shall be reformed to the minimum extent necessary; the balance remains in full force.

4. Counterparts; Electronic Signatures
   This Notice may be executed in counterparts, including by electronic signature, each of which is deemed an original.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, Claimant has caused this Pre-Lien Notice / Notice to Owner to be executed as of the Effective Date.

CLAIMANT:

____________________________________
[NAME], [TITLE]
[CLAIMANT LEGAL NAME]

STATE OF ____________ )
COUNTY OF ___________ ) ACKNOWLEDGMENT

Subscribed and sworn before me this ___ day of __________, 20___, by ____________________________ as ____________________ of [CLAIMANT LEGAL NAME].

____________________________________
Notary Public for ____________
My Commission Expires: ____________

XI. CERTIFICATE OF SERVICE

I, __________________________________, certify that on the ___ day of ____________, 20___, I served a true and correct copy of the foregoing Pre-Lien Notice / Notice to Owner upon the parties listed below by:

☐ Personal Delivery  ☐ Certified Mail, Return Receipt Requested
☐ Overnight Courier  ☐ Other (specify): ___________________________

1. Owner: [NAME & ADDRESS]
2. General Contractor (if any): [NAME & ADDRESS]
3. Surety (if any): [NAME & ADDRESS]

____________________________________
Signature of Person Effecting Service
Date: _______________________________

XII. EXHIBITS

Exhibit A – Legal Description of the Property
[INSERT OR ATTACH FULL LEGAL DESCRIPTION EXACTLY AS IT APPEARS IN THE DEED OR TITLE RECORDS]