Filling out the lien form is usually pretty quick, but getting the details right is what matters. This is a payment warning, so each section should match up with your records and accurately reflect the project.
1. Write the Date of the Letter
Write the date you sign the letter at the top of the form - that shows when you formally notified all the parties involved about the unpaid balance. It's also useful if the dispute later heads to a mechanics lien or other collection action.
2. Parties Receiving the Notice
Fill in the names and addresses of the reputed lender, property owner, and original or prime contractor.
3. Describe the Project
Add a brief description of the job that clearly spells out the work of improvement. Take a quick scan of the form to make sure the basic details are all correct:
• Project description and location.
• Names and addresses of all recipients.
• Dates that match up with your records.
The description should match the project referenced in your invoices and preliminary notice – make sure there's no discrepancy.
4. Preliminary Notice Information
Insert the date you sent your preliminary notice to show that you met the required notice obligations before sending the notice of intent to lien.
5. State the Amount Owed
Write the exact dollar amount of debt. Make sure this matches your billing records and doesn't include any unsupported charges.
6. Work Dates and Customer Information
Make a note of the date your company first started working on a project and the last date on which you provided any labour, materials, or services for the customer. Also, jot down the name of the person who hired you for the job.
Putting all this down on paper gives some vital context to your role in the project and helps explain to the customer why the bill still hasn't been paid and how long the issue has been outstanding.
7. Payment Deadline - A Warning To The Debtors
Pick a day by which you want to get paid. The deadline lets the debtor know they've got a certain amount of time left to sort out the problem before you have to take further action.
Before you decide on a deadline, check to see if your state requires any notice to be sent - if it does, leave a few days to get the notice out before the deadline expires for filing a lien.
8. Finalising The Notice
Once you've got all the info on the form complete, sign it with your company details and the name of the person who's signing it. Once the form is all done, send the notice off - preferably by certified mail and make sure you get a receipt for it, so you can prove when it was sent.
