Brief Understanding on Issuance of Preliminary Notice

Every homeowner embarking on the home building or remodelling project would look forward to his or her dream home starting to take the desired shape. The result would be them anticipating an array of activities in the beginning. They would start with demolition of the house or building that needs to be remodelled. Secondly, they would await the arrival of subcontractors and materials for their remodelling work. They would start receiving certified letters requiring their signature from subcontractors and suppliers. The work Preliminary Notice in the beginning of the letter would startle most people. They may panic instantly on opening the letter. However, that should not be the case.

What is Preliminary Notice?

The Preliminary Notice has been deemed an instrument to alert the homeowner about the construction that would ensure payment of the services, materials provided and labour for home remodelling or construction project. You should click here for more information on the notice.

Purpose of preliminary notice

The major purpose of Preliminary Notice would be notifying the owner of the property in event of the party providing the Preliminary Notice have not been paid. The party would have the right to record a Mechanics Lien against the property of the owner. It would be pertinent to mention here that timeframe of the notice would be different in different states. In some states, the notice should be sent to the homeowner within twenty days the subcontractor would begin working on the project or in event of the supplier delivering the material. Most states would have less than twenty days to issue the notice. However, several states would have 90 to 120 days for issuing the notice.

Why is Preliminary Notice sent?

It would be pertinent to mention here that every subcontractor and supplier of material who would be furnishing labour, equipment, services or materials to the remodelling project without any direct contract with the owner of the project would be required to issue a Preliminary Notice to the owner of the property. It would be done to retain the lien rights. However, accuracy would be of great concern for valid Preliminary Notice. The notice should be served by registered or certified mail. In case of delivery in person, it should entail proper documentation and signatures with the Preliminary Notice. For more information on Preliminary Notice click here