Monthly Archives: June 2016

State Registry – Preliminary Notices

A few states have implemented, or are in process of implementing, a State Registry for Mechanics or Construction Lien Related Notices. Utah now has the SCR (State Construction Registry), North Carolina has a Mechanics Lien Agent Office and New Jersey is soon to launch it’s own State Registra for similar documents.

These stand-alone agents are not to be confused with the County Recorder and the services provided by the Recorder’s Office. The concept of the new State Registry is to consolidate a central point for notices as they relate to the establishment of lien rights of those who participate in the construction industry. Many of these systems are similar in objectives but different in process.

To be safe, one who is determined to secure their lien rights while taking risk in the construction industry should make sure they are in complete compliance with the requirements of the State PrelimRegistries. However, doing so may often present a challenge. While the rules of compliance are quite comprehensive, the nature of the construction project is not always so cut and dry.

Wanting to be in compliance may be the easy part, while trying to comply could become subject to actions, or lack thereof, of the entity who must file the “Pilot” document before the preliminary notice or notice of furnishings may be filed. So what happens if the “Pilot” document (Notice of Commencement) is never filed? This is a sure dilemma for those who have already exposed their accounts receivables to the project and are flying without a seatbelt.

At the moment, most States leaning towards the Registry Strategy do not have the answer to these questions. However, if you speak with any attorney, most will say that you should do whatever you need to do to protect yourself. IE: keep records, time slips, get things signed for when you drop off supplies or complete processes. In addition, most attorneys agree that serving a Statutory or Non Statutory Preliminary Notice at the start of the job can only help defend your position should things on the job go south.

CRM has kept abreast of the development and implementation of these registries and understands the scope of their requirements for registering your preliminary notice. In addition to registering your preliminary notice, when possible. CRM also serves a hard copy of the preliminary notice by Certified Mail to all who are listed in the State Registry which may impact the advancement of your mechanics or construction lien.
To make sure your notices are executed for maximum protection of your lien rights, let CRM research, prepare, record with the Registry when available, and serve all of your preliminary notices and take the guesswork out of your job related, accounts receivables, protection tool.

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