Dec 02 2009
Protect Yourself as a Property Owner with a NTO
Sending a Notice to Owner secures your rights to lien a property. A NTO is generally used by anyone making improvements to a property that is not working directly for the owner. A Notice to Owner informs all parties involved that you are making improvements to the property. If you are not in privity with the owner, working directly with the owner, then you must send a Notice to Owner by certified mail within the 45 day from the first day you furnished labor and/or materials.
The following are scenarios in which a Notice to Owner will be needed to secure your lien rights.
- The Owner pays the General Contractor but the General Contractor does not pay you. Filing a NTO lets the owner know that you are working on the job and the Owner will then secure a release from the General Contractor for each progress payment ensuring that you get paid in a timely manner.
- The Owner doesn’t pay the General Contractor who then cannot pay you. Filing an NTO within the 45 days allowed ensures your right to Lien the job securing your receivables. Should you not be paid by the Owner at that point, you may then foreclose on the Lien compelling the Owner to sell his interest in the property at a judicial sale to satisfy his debt to you.
- Person who hires you claims to be the Owner but is actually a Leaseholder. Filing an NTO allows us to investigate who the true owner of the property is and then notifies them of your work on the property ensuring your lien rights and to make sure that the Leaseholder will pay your bill.
There are two additional deadlines that you must be aware of, 90 days for your liens and 1 year to foreclose on the lien. If you have not been paid you only have 90 days from the last day you were on the property to lien and only one year from the file date to enforce the claim of lien.
Sunray Construction Notices, Inc. is one of the foremost construction notice services companies throughout the