Pre-lien Notice / Notice to Owner

PRE-LIEN NOTICE / NOTICE TO OWNER

(Tennessee Construction Projects – Tenn. Mechanics’ & Materialmen’s Lien Law)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Pre-Lien Notice / Notice to Owner
Effective Date: [DATE OF SIGNING/SERVICE]

A. Claimant: [FULL LEGAL NAME OF CLAIMANT], a [ENTITY TYPE & STATE]
Address: [STREET, CITY, STATE, ZIP]
Phone / Email: [PHONE / EMAIL]

B. Owner: [FULL LEGAL NAME OF RECORD OWNER]
Address: [STREET, CITY, STATE, ZIP]

C. Prime Contractor (if any): [FULL LEGAL NAME]
Address: [STREET, CITY, STATE, ZIP]

Recitals

1. Owner owns the real property located at [PROPERTY ADDRESS OR LEGAL DESCRIPTION] (“Property”).
2. Claimant has furnished or will furnish labor, services, materials, and/or equipment (“Work”) for improvements to the Property pursuant to an agreement with [CONTRACTING PARTY] dated [DATE].
3. Pursuant to Tennessee mechanics’ and materialmen’s lien law, Claimant is required to provide timely written notice to Owner (and, where applicable, the Prime Contractor) in order to preserve lien rights.

Jurisdiction: State of Tennessee

2. DEFINITIONS

(Alphabetical; capitalized terms used throughout this Notice)

“Claim Amount” – The unpaid portion of the Contract Price that is presently due and owing to Claimant for Work performed through the Date of Notice.
“Contract Price” – The total price or estimated value for the Work as agreed between Claimant and its Contracting Party.
“Lien Law” – Tennessee statutory provisions governing mechanics’ and materialmen’s liens (currently Tenn. Code Ann. Title 66, Chapter 11).
“Notice” – This Pre-Lien Notice / Notice to Owner, including all attachments, exhibits, and certificates of service.
“Property” – The real property identified in Section 1 above.

3. OPERATIVE PROVISIONS

3.1 Statutory Notice Statement
Claimant hereby gives formal notice that it has furnished or will furnish Work in connection with the improvement of the Property and may claim a lien against the Property to secure payment of the Claim Amount, all in accordance with the Lien Law.

3.2 Claim Information
a. First Date Work Furnished: [MM/DD/YYYY]
b. Last Date Work Furnished (if known): [MM/DD/YYYY]
c. Contract Price (estimated or fixed): $[AMOUNT]
d. Claim Amount (unpaid to date): $[AMOUNT]
e. General Description of Work: [BRIEF DESCRIPTION]

3.3 Timing Compliance
This Notice is being served within ninety (90) days after the last day of the month in which Claimant last furnished Work (or within any shorter statutory period applicable to residential property), thereby satisfying the timing requirements of the Lien Law.

3.4 Service of Notice
Simultaneously with execution, Claimant shall serve this Notice by one or more of the following statutorily-authorized methods:
a. Certified or registered U.S. Mail, return receipt requested;
b. Commercial overnight courier requiring a signed receipt; or
c. Personal delivery, evidenced by an affidavit of the individual effecting service.

4. REPRESENTATIONS & WARRANTIES

4.1 Claimant represents and warrants that:
a. The information contained in this Notice is true, correct, and complete to the best of Claimant’s knowledge and belief;
b. Claimant has furnished, or is contractually obligated to furnish, the Work described herein; and
c. Claimant has not been fully paid for such Work.

4.2 Survival
The representations and warranties herein shall survive the service of this Notice and any subsequent lien-filing or enforcement action.

5. COVENANTS & RESTRICTIONS

5.1 Ongoing Cooperation
Claimant covenants to provide reasonable additional documentation substantiating the Claim Amount within [X] business days of any written request by Owner.

5.2 Notice of Payment
Owner shall promptly notify Claimant in writing upon full satisfaction of the Claim Amount, whereupon Claimant shall deliver a written release of lien rights to Owner within [X] business days.

6. DEFAULT & REMEDIES

6.1 Event of Default
Failure by Owner to ensure timely payment of the Claim Amount constitutes an Event of Default.

6.2 Remedies
Upon an Event of Default, Claimant may, without further notice:
a. Record and/or file a formal mechanics’ lien against the Property in the appropriate county register of deeds;
b. Commence suit to enforce the lien, including foreclosure of the Property to satisfy the Claim Amount, interest, costs, and reasonable attorney fees as permitted by the Lien Law; and
c. Pursue any other remedies available at law or in equity.

6.3 Cure Period
[OPTIONAL] Owner shall have [15] calendar days from receipt of this Notice to cure the default by paying the Claim Amount in full.

7. RISK ALLOCATION

7.1 Limitation of Liability
Claimant’s total liability arising out of or related to the Work shall not exceed the lesser of (a) the Contract Price or (b) the value of Work actually performed and accepted as of the date of any claim (“Liability Cap”), except to the extent caused by Claimant’s gross negligence or willful misconduct.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Notice and any dispute arising hereunder shall be governed by the laws of the State of Tennessee, without regard to its conflict-of-laws rules.

8.2 Forum Selection
Any action to enforce or interpret lien rights shall be brought exclusively in the state courts of [COUNTY OF PROPERTY], Tennessee.

8.3 Arbitration & Jury Trial
Arbitration is not applicable, and no jury-trial waiver is provided herein. Injunctive relief sought for lien enforcement is expressly preserved.

9. GENERAL PROVISIONS

9.1 Amendments and Waivers
No amendment or waiver of any provision of this Notice shall be effective unless set forth in a written instrument executed by Claimant.

9.2 Assignment
Claimant may assign its rights under this Notice and any resulting lien only with the prior written consent of Owner, except that Claimant may freely assign such rights to a lender or factor for financing purposes.

9.3 Severability
If any provision of this Notice is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.4 Entire Agreement
This Notice constitutes the entire notice required under the Lien Law and supersedes any prior oral or written communications regarding the subject matter hereof.

9.5 Electronic Signatures
Electronic signatures and PDF counterparts shall be deemed original and enforceable for all purposes.

10. EXECUTION BLOCK

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

CLAIMANT:
______________________________________
Name: [NAME, TITLE]
For: [CLAIMANT ENTITY NAME]

STATE OF ____________ )
COUNTY OF __________ )

Acknowledged before me on ______________, 20____ by ____________________________, the [TITLE] of [CLAIMANT], who is personally known to me or produced satisfactory identification.

______________________________________
Notary Public
My commission expires: _____________

CERTIFICATE OF SERVICE

I certify that on __________________, 20____, a true and correct copy of this Pre-Lien Notice / Notice to Owner was served upon the following parties in accordance with Tennessee Lien Law requirements:

1. Owner – [NAME & ADDRESS] – [SERVICE METHOD]
2. Prime Contractor – [NAME & ADDRESS] – [SERVICE METHOD] (if applicable)

______________________________________
[PRINTED NAME]
Title: [TITLE] for Claimant