A contractor files a preliminary 20-day notice on January 15th for work that began on January 10th. The preliminary notice was delivered to the owner on January 18th. Under A.R.S. 33-981, is this notice valid for lien purposes?
Correct Answer
D) Yes, because it was filed within 20 days of commencement
Under Arizona lien law, the preliminary notice must be served within 20 days of first furnishing labor or materials. Since work began January 10th and notice was served January 18th (8 days later), it meets the requirement.
Why This Is the Correct Answer
Under A.R.S. 33-981, the preliminary 20-day notice must be served within 20 days of first furnishing labor or materials to be valid for lien purposes. Work began January 10th and the notice was delivered to the owner on January 18th, which is only 8 days after commencement. Since 8 days is well within the 20-day requirement, the notice is valid. The timing of filing versus delivery is irrelevant as long as delivery occurs within the statutory timeframe.
Why the Other Options Are Wrong
Option A: No, because it was not served on the owner within 20 days of commencement
This is incorrect because the notice was served within 20 days of commencement. Work began January 10th and notice was delivered January 18th, which is only 8 days later, well within the required 20-day period under A.R.S. 33-981.
Option B: Yes, because the notice was filed before delivery to the owner
This is incorrect because the validity of the preliminary notice depends on when it's delivered to the owner, not when it's filed. The filing date is irrelevant to meeting the 20-day service requirement under Arizona lien law.
Option C: No, because work had already commenced before filing
This is incorrect because there's no requirement that the preliminary notice be filed before work commences. Arizona law only requires that the notice be served within 20 days of first furnishing labor or materials, regardless of when filing occurs.
Memory Technique
Remember '20 Days to Deliver' - the preliminary notice must be DELIVERED to the owner within 20 days of starting work, not just filed. Think 'Delivery Deadline = 20 Days'.
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