{"id":904320,"date":"2025-05-06T14:57:32","date_gmt":"2025-05-06T20:57:32","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904320"},"modified":"2025-05-06T14:57:34","modified_gmt":"2025-05-06T20:57:34","slug":"mechanics-lien-contracting-community-associations","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-contracting-community-associations\/","title":{"rendered":"Contracting For Community Associations: Mechanic’s Liens"},"content":{"rendered":"\n

Johnathan Ebertshauser | CHBD Law<\/a><\/p>\n\n\n\n

When\u00a0community associations\u00a0engage a contractor to perform construction within the development, the contract between the association and the vendor will often reference the contractor\u2019s right to record a lien against the\u00a0association\u2019s\u00a0property.\u00a0 This is generally referred to as a\u00a0\u201cMechanic\u2019s Lien<\/a>\u201d and is governed by A.R.S. \u00a7 33-981 et seq.\u00a0 The\u00a0Mechanic\u2019s Lien gives the contractor, or sub-contractors, architects, builders, etc., the right to secure the reasonable value of labor and materials furnished on a project through the potential\u00a0foreclosure of the property that is the subject of the lien.\u00a0 With regard to a\u00a0community\u00a0association, that is generally the Common Area or the Common Elements.<\/p>\n\n\n\n

Foreclosure of a lien against association property can have significant impacts on the operations of the\u00a0community.\u00a0 Accordingly,\u00a0associations\u00a0need to understand what these contract provisions entail and take special care to review their contracts to evaluate whether it is appropriate to negotiate the removal of the\u00a0Mechanic\u2019s Lien clause from the contract.\u00a0 In the event that the parties are unable to agree to the removal of the\u00a0Mechanic\u2019s Lien, and a\u00a0Mechanic\u2019s Lien is advanced against the association, we suggest that the association take steps to confirm whether the contractor has satisfied its s initial obligations to perfect that lien.\u00a0 Errors in the accuracy of the information on the lien documents and failure to adhere to all statutory deadlines\u00a0for\u00a0notices and filings may invalidate the lien.\u00a0\u00a0KEEP IN MIND: Only contractors holding a valid certificate of registration in Arizona are permitted to file a lien against the property.\u00a0\u00a0<\/strong>Accordingly, the association can verify the registration status through the Arizona Registrar of Contractors (AZ ROC) at\u00a0https:\/\/roc.az.gov\/<\/a><\/p>\n\n\n\n

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  1. Notice of Intent to Lien (A.R.S.\u00a0<\/strong>\u00a7<\/strong>\u00a033-992.01):<\/strong>\n