A Notice of Completion is a recorded document used to provide notice to potential lien claimants that the work of improvement on a property has ceased, which in turn prompts the claimants to file their liens within a shorter time period provided by the statute. In Arizona, lien claimants have 120 days to secure a lien after final completion, but filing a notice of completion limits that time to 60 days. AZ REV. STAT. 33-993(A).
In Arizona, "completion" is defined by the earliest occurrence of two events: 1) 30 days after final inspection and written final acceptance by the governmental body which issued the building permit for the building, structure or improvement; or 2) Cessation of labor for a period of sixty consecutive days, except when such cessation of labor is due to a strike, shortage of materials or act of God. AZ REV. STAT. 33-993(C). If no building permit is issued or if the governmental body that issued the building permit for the building, structure or improvement does not issue final inspections and written final acceptances, then "completion" means the last date on which any labor, materials, fixtures, or tools were furnished to the property. AZ REV. STAT. 33-993(D).
A notice of completion must be signed and verified by the owner or its agent and shall contain the following information: 1) The name and address of the owner; 2) The nature of the interest or estate of the owner; 3) The legal description of the jobsite and the street address (the validity of the notice is not affected if the street address is incorrect or omitted); 4). The name of the original contractor, if any; 5) The names and addresses of any predecessors in interest if the property was transferred after the beginning of the work or improvement; and 6) The nature of the improvements to the real property. AZ REV. STAT. 33-993(E).
In the case of multiple owners or co-owners (such as joint tenants, life tenants, or lessees) if the notice of completion signed by less than all the owners, it must state the names and addresses of all owners. AZ REV. STAT. 33-993(G). Similarly, the notice of completion must list the names and addresses of the transferor or transferors if it is signed by a successor in interest. Id.
Recording a Notice of Completion in Arizona
Record the notice of completion in the in the county recorder's office in the county where the property or some part of the property is located. AZ REV. STAT. 33-993(H). The county recorder then indexes the notice of completion under the same index classification where the mechanics' and materialmen's liens are recorded. Id.
Finally, the notice must be served within 15 days of recording by sending a copy certified or registered mail, postage prepaid along with a written statement of the date of recording and the county recorder's record location information to the original contractor as well as to anyone who has previously sent a preliminary 20-day notice. AZ REV. STAT. 33-993(I). If the notice is not served in accordance with the statute on a person who served a 20-day notice, that person still retains the right to secure a lien within 120 days as originally provided by the lien statute. Id.
This article is provided for informational purposes only and should not be relied on as the substitute for the advice of an attorney. If you have any questions about drafting or recording a notice of completion, please contact an Arizona attorney.
