A residential contractor completed $45,000 in work and materials. The homeowner paid $35,000 but disputes the remaining $10,000. How long does the contractor have to file a mechanics lien after recording the notice of completion?
Correct Answer
C) 60 days
Under Arizona lien law, a contractor has 60 days after recording of notice of completion to file a mechanics lien.
Why This Is the Correct Answer
Under Arizona Revised Statutes §33-992, a contractor has exactly 60 days after the recording of a notice of completion to file a mechanics lien. This timeframe is specifically designed to balance the contractor's right to secure payment with the property owner's need for certainty about potential liens. The 60-day period begins when the notice of completion is officially recorded with the county recorder, not when the work is completed or when payment disputes arise.
Why the Other Options Are Wrong
Option A: 120 days
120 days is the timeframe for filing a mechanics lien when no notice of completion has been recorded. This longer period applies when the project concludes without formal completion documentation, but once a notice of completion is recorded, the shorter 60-day deadline takes precedence under Arizona law.
Option B: 30 days
30 days is too short and does not align with Arizona mechanics lien statutes. This timeframe might be confused with other construction-related deadlines, such as certain notice requirements, but it is not the correct period for filing a mechanics lien after notice of completion.
Option D: 90 days
90 days is not the correct timeframe under Arizona law for filing a mechanics lien after notice of completion. This period might be confused with other states' requirements or different types of construction claims, but Arizona specifically requires action within 60 days of the recorded notice of completion.
Memory Technique
Remember 'Sixty days to Secure' - when a notice of completion is recorded, you have exactly 60 days to file your mechanics lien in Arizona. Think of it as two months to take action.
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Calculate the maximum mechanics' lien amount a subcontractor can claim in Arizona if they were contracted for $25,000, completed $22,000 worth of work, but the general contractor only paid $15,000.
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