A contractor discovers that a preliminary 20-day notice was not properly served on a commercial project in Arizona. The project owner owes $45,000 and the general contractor owes $28,000. What is the maximum amount the contractor can recover through a mechanics' lien?
Correct Answer
B) $0 - no lien rights without proper notice
Under A.R.S. 33-981, proper service of the preliminary 20-day notice is a prerequisite for lien rights. Without proper notice, no mechanics' lien can be filed.
Why This Is the Correct Answer
Under A.R.S. § 33-981, serving the preliminary 20-day notice is a jurisdictional prerequisite to establishing lien rights in Arizona. Without proper service, the subcontractor or material supplier has no lien rights whatsoever — regardless of the amounts owed. The preliminary notice is not optional; it is the foundation of the entire lien claim. Failure to properly serve it results in a complete forfeiture of lien rights.
Why the Other Options Are Wrong
Option A: $28,000 - limited to amount owed by general contractor
$28,000 incorrectly assumes the contractor retains some lien rights limited to what the GC owes. No lien rights exist at all without proper preliminary notice — the amount owed by the GC is irrelevant.
Option C: $45,000 - full amount owed by owner
$45,000 incorrectly assumes the contractor can lien for the full owner-owed amount. Even if the owner received value from the work, the contractor's failure to serve the preliminary notice eliminates all lien rights regardless of what the owner owes.
Option D: $73,000 - total of both amounts
$73,000 incorrectly totals both amounts and assumes complete lien rights. This would only be relevant if proper preliminary notice had been served and both amounts were within the allowable lien period.
Memory Technique
The preliminary 20-day notice is the KEY that unlocks the lien door. No key = no entry, no matter how much you're owed. Think: 'No notice, no lien — $0, every time.' This is a bright-line rule with no exceptions in Arizona.
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