A residential contractor completes a $35,000 addition project. The contract was signed on January 15th, work began February 1st, and was completed March 30th. The homeowner paid in full on April 5th. Under Arizona lien law, when does the lien filing deadline expire?
Correct Answer
A) July 28th (120 days from completion)
Under A.R.S. 33-981, liens must be filed within 120 days of completion of work. Work completed March 30th + 120 days = July 28th.
Why This Is the Correct Answer
Under A.R.S. 33-981, a contractor must record a lien claim within 120 days after substantial completion of the work — not from the date of payment or contract signing. Work was completed March 30th; adding 120 days yields July 28th. The fact that the homeowner paid in full on April 5th is a red herring — payment does not reset or extend the lien deadline, and the countdown begins at completion of work.
Why the Other Options Are Wrong
Option B: August 4th (120 days from final payment)
August 4th is 120 days from April 5th (the payment date). Payment date is irrelevant under A.R.S. 33-981 — the clock starts at completion of work, not at final payment. Using the payment date as the trigger is a common and consequential misreading of the statute.
Option C: May 30th (120 days from completion)
May 30th is only 60 days from March 30th — not 120. This would result from confusing Arizona's 120-day rule with a 60-day rule (which applies in some other states). Arizona specifically allows 120 days from completion.
Option D: June 30th (120 days from completion)
June 30th is exactly 92 days from March 30th — not 120. This does not correspond to any recognized deadline under A.R.S. 33-981. It may result from miscounting or confusing with a 90-day rule from another state.
Memory Technique
Arizona = 120 days from completion. '120' → think of a 2-minute film reel at 1 frame per second (120 frames) rolling from the day work is done. The film ends when your lien rights expire. Payment doesn't reset the reel.
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