In states like Arkansas, potential lien claimants are required to notify property owners about their intention to record a mechanics lien. This notification document served on property owners is more commonly known as Notice of Intent to Lien.
An Arkansas Notice of Intent to Lien is a mandatory pre-lien notice. Serving this notice not only ensures that you are adhering to Arkansas mechanics lien rules, but it can also potentially save you from having to go through the mechanics lien process altogether.
Notifying a property owner before you file a mechanics lien can prompt them to settle their outstanding debt. Property owners could be wary about having to deal with a mechanics lien. If they know that you are about to record an Arkansas mechanics lien against them, they will most likely find ways to get you your payment.
This detailed guide walks you through the procedure for serving a valid Arkansas Notice of Intent to Lien.
Who must serve a Notice of Intent to Lien in Arkansas?
All lien claimants in Arkansas are required to first serve on the property owner a Notice of Intent to Lien before they record a mechanics lien. This rule is strictly enforced in the state, so you better be sure that you serve this notice before you go on to file an Arkansas mechanics lien.
Note that this is an additional pre-lien notice and is different from the Arkansas Pre-Construction Notice to Owner and the Arkansas Notice to Owner and Contractor. The rules and requirements for the Notice of Intent to Lien are different from those for serving the said Arkansas preliminary notices.
When do you serve an Arkansas Notice of Intent to Lien?
Serve your Arkansas Notice of Intent to Lien at least 10 days prior to recording a mechanics lien. This deadline is why the Notice of Intent to Lien in Arkansas is also sometimes referred to as 10-Day Notice.
What happens if you fail to serve an Arkansas Notice of Intent to Lien?
You will not be able to file and enforce a valid Arkansas mechanics lien without a Notice of Intent to Lien.
When you record an Arkansas Notice to Lien, you are required to include a sworn statement saying that you complied with all applicable notice provisions. If you do not serve a valid Notice of Intent to Lien, you will not be able to swear upon such a statement and will therefore be prohibited from filing a valid mechanics lien.
How to file an Arkansas Notice of Intent to Lien
1. Prepare the Arkansas Notice of Intent to Lien form
The Arkansas Notice of Intent to Lien form needs to contain two important pieces of information: 1) the amount that is due and, 2) the party from whom this amount is due. You should also include a statement categorically saying that you intend to file an Arkansas mechanics lien if the stated amount is not paid.
For completion, you may also include the following information:
- Your name and address
- The name and address of the property owner
- The address of the property in question
2. Serve the Notice of Intent to Lien on the property owner
When your Arkansas Notice of Intent to Lien is ready, you should serve it on the property owner. The following service methods are valid:
- personal delivery
- certified mail with return receipt requested
- via an officer authorized by law to serve process in a civil action
If you are serving the notice via personal delivery, be sure to get the property owner to sign an acknowledgment of receipt. It is best practice to keep all mailing documents so you have proof that you have served the Notice of Intent to Lien.
Remember that you must serve the Arkansas Notice of Intent to Lien 10 days prior to filing a mechanics lien. The period for filing a mechanics lien in Arkansas is within the 120 days following the date of last providing services in a project. Your Notice of Intent to Lien must therefore be served no later than 10 days before this deadline.
Also keep in mind that certain construction participants are also required to serve other types of pre-lien notices. Parties working on residential projects must familiarize themselves with the Pre-Construction Notice to Owner, while those working on commercial projects must learn about the Notice to Owner and Contractor.
Best practices for serving an Arkansas Notice of Intent to Lien
1. Keep tabs of all preliminary notice requirements in Arkansas
Certain parties have to serve an Arkansas preliminary notice prior to serving a Notice of Intent to Lien. A subcontractor for a commercial project, for example, is required to serve a Notice to Owner and Contractor and a Notice of Intent to Lien before they can file a valid mechanics lien. You have to make sure that you know what preliminary notice requirements and deadlines apply to you so you can successfully preserve your lien rights.
2. Serve the Notice of Intent to Lien way before the deadline
The Notice of Intent to Lien is essentially a 10-day notice to the property owner before you record a mechanics lien. Filing a mechanics lien in Arkansas must be done within 120 days of your last day of work, so you have to make sure that you serve the 10-day notice before this 120-day period elapses. Better yet, serve the Notice of Intent to Lien early so you do not risk losing your lien rights for the project.
3. Do not forget to record a mechanics lien if needed
All pre-lien notices are not the same as the Arkansas mechanics lien. If payment delays and disputes come up, you should still file a mechanics lien to ensure that you have a better chance of recovering your payment from your delinquent client.
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