Stop-Notice - New Mexico

STOP-NOTICE

Noncompulsory Post-Filing Owner-Retention Request — New Mexico

Important: This is not a statutory stop-payment notice, lien claim, pre-lien notice, lawsuit, injunction, or court order. NMSA 1978, § 48-2-12 permits an owner to withhold money from the contractor during a pending lien action in the circumstances stated by that section. It does not give a potential claimant a standalone right to freeze project funds by serving this letter.

1. Use Gate

Complete this request only after counsel confirms every checked item:

• ☐ A verified claim of lien has been recorded under NMSA 1978, § 48-2-6.
• ☐ A copy of the filed claim was sent or delivered to the owner or reputed owner, if known, within fifteen days after filing by a method permitted in § 48-2-6(B).
• ☐ An action or binding-arbitration proceeding to enforce the lien is pending.
• ☐ The proceeding began within two years after the lien was filed, as required by § 48-2-10.
• ☐ The requested withholding is from money otherwise due from the owner to the contractor against whom the lien claim is asserted.
• ☐ The lien was not asserted because the owner failed to pay that contractor for the work and materials at issue. Section 48-2-12 excludes withholding in that circumstance.
• ☐ Counsel confirmed whether the separate notice under § 48-2-2.1 applied and, if so, whether it was timely and sufficient.
• ☐ No court order, settlement, payment, release, or security deposit has already resolved or displaced the requested retention.

If any item cannot be confirmed, stop and obtain New Mexico counsel before sending this request.

2. Request

Date: [__/__/____]

By: [CERTIFIED MAIL / PERSONAL DELIVERY / EMAIL / OTHER AGREED METHOD]

To — Property Owner:

Name: [________________________________]
Address: [________________________________]
Email: [________________________________]

Copy to — Contractor:

Name: [________________________________]
Address: [________________________________]
Email: [________________________________]

From — Lien Claimant:

Name: [________________________________]
Address: [________________________________]
Telephone: [________________________________]
Email: [________________________________]

Project:

Project name: [________________________________]
Street address: [________________________________]
County: [________________________________], New Mexico
Property description or recorded lien reference: [________________________________]

Recorded Claim of Lien:

County-clerk instrument number: [________________________________]
Recording date: [__/__/____]
Recorded amount: $[________________________________]
Copy delivered to owner on: [__/__/____]
Delivery method: [________________________________]

Pending Enforcement Proceeding:

Court or arbitration forum: [________________________________]
Case or proceeding number: [________________________________]
Commencement date: [__/__/____]
Claimant: [________________________________]
Respondent(s): [________________________________]

Dear [OWNER NAME]:

The undersigned recorded the claim of lien identified above and has commenced the identified enforcement proceeding. Under NMSA 1978, § 48-2-12, during the pendency of the action an owner may withhold from the contractor the amount for which the lien is filed, unless the lien was asserted because of the owner's failure to pay the contractor for the work done and materials furnished.

The undersigned therefore requests—but does not represent that this letter compels—you to review the enclosed lien and proceeding papers with your counsel and determine whether to retain up to $[________________________________] from amounts otherwise due to [CONTRACTOR NAME] while the proceeding remains pending.

This request does not ask you to withhold more than the filed lien amount, place funds in an interest-bearing or segregated account, pay the claimant directly, concede the lien's validity or priority, or waive any defense. Those consequences do not arise merely from this letter.

Please send any response to:

[CLAIMANT OR COUNSEL NAME]
[ADDRESS]
[EMAIL]
[TELEPHONE]

Sincerely,

_________________________________
[CLAIMANT OR AUTHORIZED REPRESENTATIVE]

Printed name: [________________________________]
Title or capacity: [________________________________]
Date: [__/__/____]

3. Enclosures

• ☐ File-stamped copy of the verified claim of lien
• ☐ Proof that the filed claim was sent or delivered to the owner
• ☐ Filed complaint, arbitration demand, or other commencement record
• ☐ Docket sheet or forum receipt showing the proceeding is pending
• ☐ Contract and payment record supporting the claimed amount
• ☐ Applicable § 48-2-2.1 notice and delivery proof, if required
• ☐ Other: [________________________________]

4. Counsel Checklist

Lien Perfection

• ☐ Classify the claimant correctly. Under § 48-2-6(A), an original contractor generally has 120 days after completion of the contract to record; other claimants generally have 90 days after completion of the building, improvement, alteration, or repair.
• ☐ Confirm that the recorded claim contains the demand after credits and offsets, owner or reputed owner if known, hiring or furnishing party, contract terms and conditions, sufficient property description, and verification by oath required by § 48-2-6(A).
• ☐ Confirm compliance with the post-filing owner-copy requirement in § 48-2-6(B).

Separate Pre-Lien Notice

Section 48-2-2.1 does not apply to every claimant or project. Among its exclusions are claims on residential property containing four or fewer dwelling units, claims by an original contractor, and claims by a mechanic or materialman contracting directly with the original contractor. When the section applies to a claim over $5,000, it requires written notice of the right to claim a lien within sixty days after initial furnishing, using one of the delivery methods and recipients stated in the section. A late notice limits lien coverage as provided in § 48-2-2.1(E).

• ☐ Applicability analyzed
• ☐ Timing analyzed
• ☐ Statutory contents confirmed
• ☐ Delivery proof retained
• ☐ Any late-notice limitation reflected in the claimed amount

Pending Action and Withholding

• ☐ Confirm that the enforcement proceeding remains pending.
• ☐ Confirm the amount presently filed and disputed.
• ☐ Confirm that § 48-2-12's owner-nonpayment exception does not bar the requested withholding.
• ☐ Do not promise that the owner must withhold, that the claimant controls the funds, or that noncompliance creates independent damages, injunction, penalties, or attorney fees.
• ☐ Do not send this request to a construction lender as though § 48-2-12 imposed a lender withholding duty.

Resolution

• ☐ If the claim is paid or resolved, prepare and record an appropriate release.
• ☐ If an eligible owner or original contractor seeks cancellation through security, use the district-court procedure in § 48-2-9. The court determines the sufficient amount and approves the security type; the statute does not impose a fixed 125% bond.
• ☐ Calendar the two-year enforcement rule in § 48-2-10.
• ☐ Treat attorney fees, costs, and expenses under § 48-2-14 as relief in a dispute arising out of or relating to a lien action, not as an automatic charge created by this request.

5. Service Record

I certify only that I sent the foregoing noncompulsory request and listed enclosures as follows:

Owner recipient: [________________________________]
Address or email: [________________________________]
Method: [________________________________]
Date sent: [__/__/____]
Tracking or receipt: [________________________________]

Contractor copy recipient: [________________________________]
Address or email: [________________________________]
Method: [________________________________]
Date sent: [__/__/____]
Tracking or receipt: [________________________________]

Prepared by: [________________________________]
Signature: _________________________________
Date: [__/__/____]

Sources and References

• Current NMSA 1978, Chapter 48 — Liens and Mortgages
• NMSA 1978, §§ 48-2-2.1, 48-2-6, 48-2-9, 48-2-10, 48-2-12, and 48-2-14, read in the official current chapter compilation on August 10, 2026.