Stop-Notice - South Carolina

SOUTH CAROLINA NOTICE OF FURNISHING LABOR OR MATERIALS TO OWNER

Preserved file name: Stop-Notice

Important: South Carolina Code Chapter 5 does not create the lender-wide, claimant-enforced payment freeze that is often called a “stop notice” in other jurisdictions. This form is a written notice to the owner under S.C. Code Ann. § 29-5-40. It is not a recorded mechanics' lien, a lender directive, or a court order.

TABLE OF CONTENTS

1. Routing Check
2. Parties and Project
3. Notice to Owner
4. Optional Contractor Notice
5. Amount and Furnishing Detail
6. Delivery Record
7. Statutory Follow-Up
8. Acknowledgment of Receipt
9. Claimant Signature
10. Attachments

1. ROUTING CHECK

Complete before sending:

• ☐ Claimant furnished labor or material for improvement of the identified South Carolina real estate.
• ☐ Claimant was employed by or contracted with someone other than the Owner.
• ☐ The Owner's correct legal name and notice address have been confirmed.
• ☐ The person with whom Claimant contracted has been identified.
• ☐ The amount or value furnished is supported by contracts, invoices, tickets, time records, or similar evidence.
• ☐ If Claimant is a sub-subcontractor or supplier to a subcontractor, counsel has evaluated the separate contractor notice under § 29-5-20(B).
• ☐ Counsel checked whether a § 29-5-23 notice of project commencement was filed; without one, § 29-5-20(B) is inapplicable.
• ☐ The last-furnishing date and separate § 29-5-90 ninety-day service-and-filing deadline are calendared.

2. PARTIES AND PROJECT

Date of notice: [__/__/____]

Claimant: [CLAIMANT LEGAL NAME]

Address: [________________________________]

Email / telephone: [________________________________]

Person with whom Claimant contracted or by whom Claimant was employed: [________________________________]

Owner: [OWNER LEGAL NAME]

Owner notice address: [________________________________]

Prime contractor: [________________________________]

Project / improvement: [________________________________]

Property address: [________________________________]

Legal or parcel description sufficient to identify the property: [________________________________]

3. NOTICE TO OWNER

To the Owner identified above:

Claimant gives written notice under S.C. Code Ann. § 29-5-40 that Claimant has furnished or is furnishing the labor or materials described below for improvement of the identified real estate. The current amount or value furnished is $[AMOUNT], subject to documented credits and updates.

This notice invokes only the rights and limits supplied by South Carolina law. It does not demand that a lender, escrow agent, or title insurer freeze funds; modify a loan or construction contract; create a private default; or waive the separate service, filing, and enforcement steps required to perfect and enforce a mechanics' lien.

Under §§ 29-5-40 and 29-5-50, a qualifying claimant who gives the owner notice may obtain the statutory lien attachment and preference described there, subject to the ceiling based on the amount due by the Owner on the improvement contract.

4. OPTIONAL CONTRACTOR NOTICE

Use this section only if Claimant is a sub-subcontractor or supplier and a notice of project commencement was filed under § 29-5-23, so that § 29-5-20(B) applies. Send the required notice to the contractor, not merely to the Owner.

Contractor recipient: [________________________________]

Claimant gives notice of furnishing labor or materials and states:

• Claimant name: [________________________________]
• Person with whom Claimant contracted or by whom employed: [________________________________]
• Labor, services, or materials furnished: [________________________________]
• Specially fabricated materials and value, if any: [________________________________]
• Project description sufficient for identification: [________________________________]
• First furnishing date: [__/__/____]
• Last or scheduled last furnishing date: [__/__/____]
• Amount claimed due, if any: $[________________________________]

5. AMOUNT AND FURNISHING DETAIL

Total value furnished: $[________________________________]

Total payments and credits: $[________________________________]

Amount currently claimed: $[________________________________]

First furnishing date: [__/__/____]

Last furnishing date or work-in-progress status: [________________________________]

6. DELIVERY RECORD

A. Owner Notice Under § 29-5-40

Date sent / delivered: [__/__/____]

Method: ☐ Personal delivery ☐ Certified or registered mail ☐ Other attorney-approved method: [____]

Tracking / receipt / witness: [________________________________]

B. Contractor Notice Under § 29-5-20(B), If Used

Date sent: [__/__/____]

Method: ☐ Certified mail ☐ Registered mail

Tracking / receipt: [________________________________]

Attach copies of the signed notice, proof of delivery, and the documents supporting the amount or value furnished.

7. STATUTORY FOLLOW-UP

This notice alone does not perfect or enforce a mechanics' lien.

• Sworn lien statement: Under § 29-5-90, the claimant generally must serve the Owner and file the subscribed and sworn statement of account and property description within 90 days after ceasing labor or furnishing labor or materials.
• Enforcement: Under § 29-5-120(A), the claimant generally must commence the enforcement suit and file notice of pendency within six months after ceasing labor or furnishing.
• Forum: Section 29-5-140 ordinarily places the lien-enforcement petition in the Court of Common Pleas for the county where the building or structure is situated. Section 29-5-130 permits a magistrate petition when the claim does not exceed $100.
• Post-filing discharge security: Section 29-5-110 applies only after service and filing of the § 29-5-90 statement. It uses security equal to one and one-third times the amount claimed, filed in the same clerk or register-of-deeds office; it is not a private 150-percent bond delivered under this notice.

Calendar entries:

8. ACKNOWLEDGMENT OF RECEIPT

Receipt may be acknowledged without admitting the claim, amount, lien validity, or any duty beyond South Carolina law.

Owner / authorized recipient: [________________________________]

Signature: [________________________________]

Date received: [__/__/____]

Comments, if any: [________________________________]

9. CLAIMANT SIGNATURE

Claimant states that the factual entries in this notice are true to the best of Claimant's knowledge after reasonable review of the supporting records.

Claimant: [________________________________]

By: [________________________________]

Printed name / title: [________________________________]

Date: [__/__/____]

This § 29-5-40 owner notice is not the subscribed and sworn § 29-5-90 lien statement. Use the separate sworn filing required by § 29-5-90 if a lien will be perfected.

10. ATTACHMENTS

• ☐ Itemized account
• ☐ Contract, subcontract, purchase order, or work authorization
• ☐ Invoices, delivery tickets, time records, or equipment records
• ☐ Project or property description
• ☐ Credits and payment ledger
• ☐ Proof of owner-notice delivery
• ☐ Proof of contractor-notice delivery, if applicable
• ☐ Other: [________________________________]