Ask the Legal Professionals, Phoenix Business Journal, April 27, 2012

Published on Fri, April 27, 2012

Q. I own a new office building. I paid my general contractor in full and receivedan unconditional waiver and release on final payment. Unfortunately, I didn’tclosely monitor the project, and did not insist that my contractor provide lien waiversfrom his subcontractors and suppliers in exchange for each payment. Several lienshave now been recorded against the property by unpaid subcontractors and suppliers.When do those lien claimants have to file suit to enforce their liens?

A. According to A.R.S. §33-998(A), in order to enforce a lien a lien claimant must file its lienforeclosure action within six months after the date the lien was recorded or the lien is nolonger enforceable. In addition to timely filing the lien foreclosureaction, each lien claimant must also record a Notice of Lis Pendenswith County Recorder within five days after their lien foreclosureaction is filed. The failure to do so can be fatal to the lien claim.

B&C: Ask the Legal Professionals-Phoenix Business Journal-April 27, 2012