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Notice of Intent to Lien
What Is a Notice of Intent to File a Lien?
A Notice of Intent to Lien Form is a formal document signed by the potential lienholder to the property owner to warn the latter about the former's intention to submit a Claim of Lien. Contractors and builders exercise their lien rights by filing documentation with state and local authorities to put a lien on motor vehicles, houses, apartments, and other valuable items they worked on.
Before this step is made, consider completing a Notice of Intent to Lien Form. It does not necessarily mean you will receive a payment within a few days, and most states do not have a legal requirement to notify the property owner or manager about the potential lien. However, this measure can be very effective - a Notice of Intent to Lien will remind the breaching party about their responsibility to pay you back - otherwise, their property, be it real estate or vehicle, will have an outstanding lien, which makes its future transfer almost impossible and confirms their debt officially.
A free Notice of Intent to Lien template can be downloaded through the link below.
How to File an Intent to Lien?
Before you file a Claim of Lien with local authorities to place the burden on the property in question, it is highly recommended to give the breaching party one last chance to redeem themselves and pay their debt. After all, it is better for them to avoid a lien on their belongings, so you are doing the property owner a favor by telling them about the upcoming lien. Here is how you prepare and send a Notice of Intent to File a Lien:
- Identify yourself and the party that owes you money for your services - a property owner or manager you have dealt with.
- Describe the property - add its location and specify the funds, labor, and materials you have provided during the construction of the project.
- Give the other party a deadline by which you will be expecting full payment - approximately two weeks after the Notice of Intent to Lien is delivered. You can include your bank account information so that they can send money to you without additional letters or calls.
- Warn the recipient that if you do not receive the payment for the services performed, you will be forced to submit a Claim of Lien.
- Sign the notice and offer the other party to contact you if they have any questions or issues.
- Send the document via certified mail to obtain a receipt that shows you informed the property owner about your intention to claim a lien. Once the letter is delivered, wait for 10-15 days for a reaction from the other party. If you do not get a response which means the recipient decided to ignore your notice or you got a letter or call with a request to wait some more time until you get your payment - you can file a Claim of Lien to secure your rights.
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