Deeds.com Real Estate Deeds
Deeds.com Account
Sign In

Washington Mechanics Lien Notice to Construction Lender

Washington Mechanics Lien Notice to Construction Lender Information

Getting a Construction Lender to Withhold Funds

As part of the construction lien process, you might find it useful to send a notice to the construction lender ordering the lender to withhold distribution of funds from the loan proceeds until you are paid. This is another potential weapon in the lien claimant's arsenal. In some states, this notice is called as a "stop notice" because it instructions the lender to stop payment. The notice can be used as a first step or as an alternative to securing a mechanic's lien.

Any potential lien claimant who has not received a payment within five days after the date required by their contract, invoice, employee benefit plan agreement, or purchase order may give a notice to a construction lender within thirty-five days of the date required for payment of the contract, invoice, employee benefit plan agreement, or purchase order. See R.C.W. 60.04.221(1).

The notice must be signed by the potential lien claimant or some person authorized to act on his or her behalf. R.C.W. 60.04.221(2). The notice must be provided in writing to the lender at the office administering the construction financing, along with a copy given to the owner and the appropriate prime contractor. R.C.W. 60.04.221(3).

Two methods can be used to serve the notice: (1) mailing the notice by certified or registered mail to the lender, owner, and appropriate prime contractor; or (2) delivering or serving the notice personally and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the lender, owner, and appropriate prime contractor, or an affidavit of service. Id.

The notice must include the following information: (1) the name of the person, firm, trustee, or corporation filing the notice, (2) the name of the prime contractor, common law agent, or construction agent ordering the same, (3) a common or street address of the real property being improved or the legal description of the real property, and (4) the name, business address, and telephone number of the lien claimant. R.C.W. 60.04.221(4).

After the lender receives a copy of the notice, the lender must then withhold from the next and subsequent draws the amount claimed to be due as stated in the notice. R.C.W. 60.04.221(5). Alternatively, the lender may obtain from the prime contractor or borrower a payment bond for the benefit of the potential lien claimant in an amount sufficient to cover the amount stated in the potential lien claimant's notice. Id. The lender is obligated to withhold amounts only to the extent that sufficient interim or construction financing funds remain undisbursed as of the date the lender receives the notice. Id.

Once the notice is received by the lender, sums that are withheld shall not be disbursed by the lender, except by the written agreement of the potential lien claimant, owner, and prime contractor, or court order. R.C.W. 60.04.221(6).

If the lender fails to abide by the terms of the notice, then the mortgage, deed of trust, or other encumbrance securing the lender will be made secondary to the lien of the potential lien claimant to the extent of the interim or construction financing wrongfully disbursed, but in no event more than the amount stated in the notice plus costs as fixed by the court, including reasonable attorneys' fees. R.C.W. 60.04.221(7).

Use caution in drafting the notice to the lender and ensure the form is accurate. If there are mistakes, any potential lien claimant will be liable for any loss, cost, or expense, including reasonable attorneys' fees and statutory costs, to a party injured thereby arising out of any unjust, excessive, or premature notice that is filed. R.C.W. 60.04.221(8).

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 questions about the notice to lender document or any other issues related to liens, please consult with a Washington attorney.

Deeds.com Washington Mechanics Lien Notice to Construction Lender Forms Have Been Updated as Recently as Friday August 5, 2022

4.8 out of 5 (3619 Reviews)

What others like you are saying:


Robert P. said: Easy to use. Documents as stated.

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!


gene h. said: Had used website while working as Land Rep for major oil company (retired 2.5 years ago). Recently had need to do some online research and went back to Deeds.com to find needed documents. Same as before, website provides a great service at a great price.

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!


Mary S. said: Wonderful!! So easy to locate the file you need and printing is a snap!! Thank you so much for this service! I will definitely be sharing your site!!

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!


MARY LACEY M. said: Excellent service! From setting up an account to successfully recording, the instructions were clear and easy to follow. I am very pleased to have this service available, and favorably impressed by our current Maricopa County Recorder for pursuing its availability. Thank you.

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!


Ronald S. said: fantastic forms, great service!

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!


KELLY P. said: That was easy!!

Reply from Staff: Thank you!


Deeds.com Real Estate Deeds

Use of Deeds.com Legal Forms. On our Site we make available for use self-help "fill in the blank" forms. If you use a form on our Site, you explicitly agree to our Terms of Use. You understand and agree that your purchase and/or use of a form document is neither legal advice nor the practice of law, and that each form and any applicable instructions or guidance is not customized to your particular needs, not guaranteed or warranted to be current, up to date, or accurate.

NO WARRANTY. Do It Yourself Legal Forms available on our Website are not guaranteed to be usable, correct, up to date, or fit for any legal purpose. Use of any Do It Yourself Legal Form from our website is done so AT YOUR OWN RISK.

If you use any Do It Yourself Legal Form available on Deeds.com, you agree that: TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT WILL WE BE LIABLE FOR DAMAGES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, LOST PROFITS OR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES) ARISING OUT OF OR IN CONNECTION WITH THE LEGAL FORMS OR FOR ANY INFORMATION OR SERVICES PROVIDED TO YOU THROUGH THE DEEDS.COM WEBSITE. TO THE EXTENT THE FOREGOING LIMITATION OF LIABILITY IS PROHIBITED, OUR SOLE OBLIGATION TO YOU FOR DAMAGES WILL BE LIMITED TO $100.00.

Nothing on this website should be considered a substitute for the advice of an attorney.

© DEEDS.COM INC. 1997 - 2022 ALL RIGHTS RESERVED | (330) 606-0119 | P.O. Box 5264, Fairlawn, OH 44334