What Is a Notice of Intent to Lien?
A notice of intent to lien is a formal and legal notice that communicates a debt and the intent to file a mechanic’s lien. This notice protects contractors, suppliers, mechanics, and others involved in a project. A NOI can make resolving unpaid invoices, project disputes, or payment defaults easier.
This letter serves as the first preliminary step before filing a mechanic’s lien. The notice works similarly to a demand letter to express your intentions to pursue legal action.
Legal Templates’s notice of intent to lien template helps you draft your letter with an easy-to-use and customizable form. Using our template saves you time and money while protecting your right to payment with legally compliant documents.
State Requirements for Sending a Notice of Intent to Lien
The requirements for sending and writing an effective notice of intent to lien form vary depending on the state where you provided services or materials. Each state may need different information or require a different timeframe to allow for repayment.
For example, a notice of intent to lien is not required before filing a mechanic’s lien in Idaho. Meanwhile, California has a 20-day period for preliminary notices, meaning regardless of when you send the letter, you can only pursue payment for work performed within the 20 days before and any work performed after sending (Cal. Civ. Code § 8204).
Some states mandate that you send an NOI before you can file a mechanic’s lien. The following states require a notice of intent to lien before filing for a mechanic’s lien:
- Alabama
- Arkansas
- Colorado
- Connecticut
- Illinois
- Louisiana
- Maryland
- Missouri
- Nevada
- North Dakota
- Pennsylvania
- Wisconsin
- Wyoming
Our templates offer state-specific formats to save you time and provide valid notices to get you the payment you deserve. You can identify and add your state-required information to your document for greater protection and convenience.
How to Fill Out a Notice of Intent to Lien
Filling out a notice of intent to lien form allows you to specify the details and terms of the outstanding payments. The information provided by this notice expresses the parties involved, the amounts owed, and the next steps. You can create an effective notice of intent to lien in six steps.
1. Choose the Correct Form
When you send a notice of intent to lien, it’s important to choose the correct form for your scenario. Look for a state-specific template to ensure you meet local requirements and create a legally valid notice that will allow you to file for a lien if necessary. Note that you should file the notice according to the state in which your performed the work or provided the goods.
2. Provide Contact Information
Depending on the situation and which party owes you payments, you may address the notice to the property owner or the primary contractor. Ensure you add the proper contact information and address for these recipients. Also, add your name and contact information in the space for the notifying party information.
Our document editor guides you through the process and makes it easy for you to specify the notifying party and the property owner or primary contractor.
3. Describe the Provided Labor or Materials
It’s important to describe the reason for the notice, including the labor, materials, or services provided to the client. Include details such as where the project took place, how many people were involved, what work was done, and any parts, tools, or materials used. Also, include the project completion date for all work performed. This reinforces and details the reason for your charges to the client.
4. Specify the Amount Owed
Once you’ve detailed the provided services or goods, also add the exact remaining balance. You can provide the owner or contractor’s total remaining balance for all labor, material, and service charges according to the terms of the construction contract.
5. Express Your Intent to File a Lien
Ensure that your notice of intent includes a line about your intentions to file a mechanic’s lien if you do not receive the remainder of your payment. Note the address of the property that you intend to apply the lien on. Then, state the time allowance that the recipient has to provide payment, which may be 10 to 30 days depending on your state laws.
6. Finalize, Sign, and Send Your Notice of Intent to Lien
After you’ve added all relevant information, give your notice a final check to ensure the information is correct and compliant. Also, ensure you sign and date your letter and make copies for your records. Have the notice served to the recipient via certified mail or deliver it yourself.
What Happens After Sending the Notice of Intent to Lien?
After sending the notice of intent to lien, the next steps depend on the recipient’s response.
Oftentimes, the notice serves as enough motivation to get the intended parties to pay their remaining balance. If you receive your payment, there’s no further need to file for the actual lien. In this case, you can also file a lien waiver to ensure that no liens apply to the recipient’s property after you accept payment.
Creating a new payment plan agreement may also help you establish a payment plan and timeline if the property owner can’t pay the remaining balance in one lump sum.
If you still haven’t received your payment after sending the notice, you can proceed with filing for a mechanic’s lien. The lien acts as a claim on the recipient’s property and applies to their ownership title as a security interest to protect your payment. Typically, you must wait 10 to 30 days after sending the notice of intent before you can file for the mechanic’s lien. Check state laws for the required waiting period and requirements for applying a lien.
Sample Notice of Intent to Lien
Below is an example of a notice of intent to lien form so you can learn its format. When you’re ready, fill out your own using our notice of intent to lien form.
