Page 6 - State Law Summary of Mechanic's Lien Law

Arizona AZ

What is the statutory authority? Is there a procedure to bond over the mechanic’s lien(s)?
A.R.S. § 18–44–101 to § 18–44–508 Yes. After perfection of a mechanic’s lien, an owner, including any person
who has a legal or equitable interest in the land that is subject to the lien,
What is the Attachment Date of the Mechanic’s Lien? a contractor, subcontractor, mortgagee or other lien creditor, either before or
Lien attaches as of the date construction or repair commences, A.R.S. § 18-44- after the commencement of an action to foreclose such lien, may cause to be
110(a)(1). recorded in the office of the county recorder, in the county in which the land is
located, a surety bond..., together with a power of attorney disclosing the authority
What constitutes visible commencement of construction? of the person executing the same on behalf of the surety. Once the bond is recorded,
The furnishing of labor or materials to the property which is apparent to any person the lien is removed from the property even if the lien claimant is not notified of the
inspecting the property that construction, alteration or repair of any building or bond or does not take further action on the bond. A.R.S. §33-1004(A).
other structure or improvement has commenced. A.R.S. § 33-992(B).
Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
What is the priority of the insured construction mortgage/ Yes.
deed of trust?
A mortgage or deed of trust securing a permanent loan recorded before labor
or furnishing materials to the property commences has priority over mechanic’s
liens. A.R.S. § 33-992(A).
Any mortgage or deed of trust that is given as security for a loan made by a
construction lender as defined in A.R.S. § 33-992.01, subsection A, paragraph 1,
has priority over a previously recorded mechanic’s lien if the lender records the
mortgage or deed of trust, as applicable, within ten days after either: (i) the
commencement of labor; or (ii) the first delivery of materials for the improvement.
A.R.S. § 33-992(A).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.
When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A mechanic’s lien must be filed with the county recorder for the county where the
real property is located within the earlier of: 120 days after completion of the project; or
60 days after the owner records a notice of completion with the county recorder.
A.R.S. § 33-993(A). Completion means 30 days after final inspection and written
acceptance by the governmental body which issued the building permit for the
building, structure or improvements. A.R.S. § 33-993(C)(1).

What is the period of enforcement of a filed mechanic’s lien?
A mechanic’s lien shall not continue for a longer period than six months from the
recording date of the notice and claim of lien unless the party claiming the lien:
(i) commences an action to foreclose the lien within that period; and (ii) records a
notice of pendency of action (also known as a lis pendens) with the county
recorder for the county where the real property is located.

A claimant enforces a mechanic’s lien by judicial foreclosure. The
claimant must record the notice of pendency within five days after filing the
foreclosure complaint. The claimant must satisfy both the six-month and five-day
deadlines.
Failure to commence a foreclosure action and file a notice of pendency within
the six-month period automatically extinguishes the unreleased lien.
A.R.S. § 33-998 and A.R.S. § 12-1191.

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