In the Mechanics of the lien, Initial Notice (also known as Notice to Owner, Notice of Material to Owner, Notice of Furnishing, Contractor/Subcontractor Notice to Owner, and others) is notification sent by general contractor, subcontractor, materialsmen, equipment lessors or other parties for construction projects not to create mechanical lien but rather to assign the right to apply for Mechanical Lien in case of inability to pay. The difference is important. If the Initial Notice is sent but the claimant's claim is paid, the Introduction Notice has no further legal effect. However, if the charge is not paid, the plaintiff can now apply for a Mechanical Lien on the owner's property. Most states do not permit mechanical property submissions without a claimant who can prove they first sent the Initial Notice.
Video Preliminary Notice
Initial Notice Requirements
In the United States, about forty states now require that some form of Initial Notice be sent to the owner and/or general contractor of a construction project to protect the rights of the lien. In states that require early notifications, some variables may affect the Initial Notice requirement. These factors include the type of contract (whether the lien claimant is contracted directly with the owner or with a third party such as a general contractor), the contract value (some initial notification is required only when the contract is above a certain dollar amount), and the project type (sometimes rules specifically applicable to the construction of condominiums and other buildings with many owners).
Some countries require Introduction Notifications to contain certain languages. This information is generally specified in the country's lien law. If the Preliminary Notice does not contain the exact information and words required by law, such notice may be invalid which may result in the seizure of the liens. Most of the Initial Notification forms can be obtained from websites that provide free resources, and some computer programs exist to handle the process nationally.
While some states do not have the Initial Notices requirement at all and others require only a Preliminary Notice from certain parties, it is generally helpful for all parties to submit a preliminary notice. In addition to protecting the rights of the lien, the Initial Notice ensures that the parties at the top of the payment chain are made aware of who is working for them in a project.
Maps Preliminary Notice
Deadline
Deadlines for sending initial notifications vary by state. Generally notification is required to be sent in the number of days specified from the date of work or material first assigned to a project. Some states (Texas, Louisiana, and Tennessee) require that Initial Notices be sent monthly that payment is not received. Other states (Nevada and Colorado) requires the lien claimant to send more than one type of Early Notification.
In certain cases, send the Initial Results Initial Notice in a foreclosure of liens. However, some states receive a late Preliminary Notice. For example, California requires that the California 20-Day Initial Notice be sent within 20 days of the first grant of labor and/or material on the project to fully protect the rights of the lien. If the notice is sent late, it will apply to work done after the filing date and work done within 20 days before until the date of delivery but will not apply to any work performed before 20 days before delivery.
How to Send Initial Notice
Most states determine acceptable shipping methods in their lien laws. For example, the Texas lien law states: "If a notice is sent by registered or certified mail, the deposit or notice in the US mail in the required form is compliance with the notice requirements."
Often, states require Initial Notices to be sent by registered or certified mail, sometimes with a requested return receipt.
References
Source of the article : Wikipedia
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