Arizona Work Stop Notice

Stop Notices in Arizona

In addition to recording a mechanic's lien, a stop notice is another way to recover the money you are owed on a construction project. A stop notice is a written and verified notice, sent to the owner or construction lender that instructs them to withhold payment of the amounts not yet disbursed in order to satisfy the unpaid claim. AZ REV. STAT. 33-1051(4).

Any person entitled to record a claim of lien, other than the original contractor, may give the owner or lender a stop notice. AZ REV. STAT. 33-1054. However, stop notices are only available on private jobs. AZ REV. STAT. 33-1053. If someone is entitled to give a stop notice and fails to serve it within thirty days after a written demand from the owner, he or she forfeits the right to any stop notice on the work described in the demand. Id. Unlike mechanic's liens, a stop notice is not invalid if the form is defective, as long as it is sufficient to substantially inform the owner of the information required. AZ REV. STAT. 33-1052. There are harsh penalties for falsifying a stop notice. Any person who willfully gives a false stop notice or bonded stop notice or includes in the notice any labor, professional services, materials, machinery, fixtures or tools not furnished for the property described in that notice forfeits all right to participate in the pro rata distribution of monies, forfeits all right to any lien, and is subject to additional penalties provided by statute. AZ REV. STAT. 33-1061.

The stop notice must contain all of the following:

1. a description of the labor, professional services, materials, machinery, fixtures or tools furnished or agreed to be furnished by the claimant;
2. the name of the person to or for whom the labor, professional services, materials, machinery, fixtures or tools were furnished or agreed to be furnished;
3. the amount in value of the labor, professional services, materials, machinery, fixtures or tools already furnished and the total amount agreed to be furnished;
4. the amount, if any, of payment received by the claimant for the labor, professional services, materials, machinery, fixtures or tools furnished or agreed to be furnished; and 5) the name and address of the claimant. 33-1051(4).

If a stop notice has been served, an action against the owner or lender may be commenced at any time after ten days from the date of the service of the stop notice. AZ REV. STAT. 33-1063(A). The action expires after three months after the period for filing a claim of lien could be filed, unless the parties stipulate in writing to an extension of time. Id.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of an attorney. If you have any question about serving a stop notice in Arizona, please contact an attorney.