Arkansas Notice to Owner

The Notice to Owner by Claimant under Ark. Code Sec. 18-44-115 is a preliminary notice that must be delivered to the owner prior to commencing construction under a contract.

The notice states that contractors, subcontractors, suppliers, and other parties supplying labor, services, materials, or fixtures for the improvement of real property under a contract with the owner are entitled to a lien against the property if not paid in full for their services. It also states that the owner is entitled to ask the contractor for a list of all suppliers and service providers under the contract, the receipt of which allows the owner to determine that all materials, labor, fixtures, and services have been paid for. Without delivering this notice, a potential claimant forfeits its right to file a lien against the property.

Typically, this notice is made part of the contract. However, when the owner does not reside in the same county or state as the property under contract, the claimant can record the notice in the property records of the circuit court clerk's office where the subject property is located (Ark. Code Sec. 18-44-116).

The document should contain the address of the property and the date of signing and comply with the standardized document form act, codified at Ark. Code Sec. 14-15-402.

The notice is signed by the owner as evidence that he or she has received the notice from the potential claimant. Arkansas law does not require the notice to be notarized. The contractor also signs the notice certifying that the owner has received the notice and that the owner or owner's agent's signature appears on the notice.

This notice is not required if the contractor supplies a bond or if the transaction is a direct sale to the property owner (as in, the property owner orders materials or services from the lien claimant) (18-44-115(a)(8)).

Consult a lawyer with questions about preliminary lien notices or mechanic's liens in the State of Arkansas.