NOTICE TO OWNER* REGARDING MECHANIC'S LIEN LAW (*Applicable to Home Improvement and Swimming Pool Contracts Only) To: OWNER (Name) (Street Address) (City) From: CONTRACTOR (Name) (Street Address) (City) (Telephone) Re: PROPOSED WORK OF IMPROVEMENT (Description of Work to be Performed) (Location of Jobsite) NOTICE TO OWNER Under the Lien Laws of your state (varies from state to state) any contractor, subcontractor, laborer, supplier or other person who helps to improve your property, but is not paid for his or her work or supplies, has the right to enforce a claim against your property. This means that after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your contractor in full if the subcontractor, laborers or suppliers remain unpaid. To preserve their right to file a claim or lien against your property, certain claimants such as subcontractors or materials suppliers are required to provide you with documentation entitled ''Preliminary Notice.'' Original (or prime) contractors and laborers for wages do not have to provide this notice. A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien maximum time allowed for filing a claim or lien against your property is ninety (90) days after completion of the project). pay damages up to the amount of the bond. The payment and performance bond as well as a copy of the construction contract should be filed with the county recorder for your further protection. (2) Require that payments be made directly to subcontractors and suppliers through a joint control. Any joint control agreement should include the addendum approved by the Registers of Contractors. (3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. This will help to ensure that all persons due payment are actually paid. (4) After making payment on any completed phase of the project, and before making any further payments, require your contractor to provide you against with unconditional lien releases signed by each material supplier, subcontractor and laborer involved in that portion of the work for which payment was made. On projects involving improvements to a single family residence or a duplex owned by individuals, the persons signing these releases lose the right to file a claim against your property. In other types of construction this type of protection may still be important, but may not be as complete. TO PROTECT YOURSELF UNDER THIS OPTION YOU MUST BE CERTAIN THAT ALL MATERIAL SUPPLIERS, SUBCONTRACTORS AND LABORERS HAVE SIGNED. TO ENSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU MAY WISH TO TAKE ON OR MORE OF THE FOLLOWING STEPS: (1) Require that your contractor supply you with a payment and performance bond (not a license bond), which provides that the bonding company with either complete the project or Method of Serving Notice: Personal Service First Class Mail Certified mail Registered Mail First Class Mall with certificate of Mailing Date Acknowledgement Contractor or Contractors Agent (Sign Here) (Owner Sign Here) American LegalNet, Inc. www.FormsWorkFlow.com 2001 © American LegalNet, Inc.