Sending a preliminary notice in New Mexico is a strategic way to encourage faster payment on construction projects. This notice serves as an informational document usually provided to the property owner early in the project timeline. Understanding when a preliminary notice is required and ensuring accuracy in its details is crucial for compliance.
For those receiving these notices, it’s essential to understand their purpose and take the appropriate follow-up actions. Since preliminary notices involve intricate rules and regulations, navigating them can be challenging. Here’s a breakdown of the key requirements and guidelines for handling New Mexico preliminary notice effectively.
Key Takeaways
- When to Send a Preliminary Notice: In New Mexico, a preliminary notice must be sent within 60 days of first providing labor or materials on a project. If sent late, it only covers the 30 days immediately prior to the notice date.
- Who Must Send the Notice: A preliminary notice is required if the claimant does not have a direct contract with the property owner or general contractor, the claim exceeds $5,000, and the project is not a small residential property with fewer than 4 units.
- Delivery Methods: The preliminary notice can be sent by certified mail with a return receipt, fax with acknowledgment, or through personal delivery. New Mexico is unique in allowing faxed delivery for preliminary notices.
Do I Need to Send a New Mexico Preliminary Notice?
The requirement to send a preliminary notice in New Mexico depends on specific conditions.
A preliminary notice is mandatory if:
- The claimant does not have a direct contract with either the property owner or the general contractor;
- The claim exceeds $5,000; and
- The project involves a property that is not residential with fewer than four dwellings.
Parties who do not meet these criteria are not obligated to send a preliminary notice. However, they can opt to send a notice of intent to lien as a proactive measure to encourage payment.
When Do I Need to Send a New Mexico Preliminary Notice?
When a preliminary notice is required, it must be sent within 60 days from the date labor or materials are first provided to the project.
What If I Send the New Mexico Preliminary Notice Late?
If a required preliminary notice is sent more than 60 days after labor or materials are first provided, it will only cover work or materials supplied within the 30 days before the notice date.
How Should the New Mexico Preliminary Notice Be Sent?
When a preliminary notice is required, it can be delivered via certified mail with a return receipt, by fax with confirmation of receipt, or through personal delivery. New Mexico stands out for permitting the service of preliminary notices via fax with acknowledgment.
Do I Have to Send the New Mexico Preliminary Notice to Someone Other Than the Owner?
New Mexico preliminary notice doesn’t have to be sent to both the property owner and the general contractor—it can be provided to either party. While not mandatory, a lien claimant has the option to send the notice to both if preferred.
Is the New Mexico Preliminary Notice Requirement Met When Sent or Delivered?
In New Mexico, a notice is deemed delivered when sent via certified mail with a return receipt or when a faxed notice receives an acknowledgment.
Do I Need to Send a New Mexico Preliminary Notice on Public Projects?
Sending a preliminary notice New Mexico is not necessary to establish bond claim rights, though any party may choose to send one if they wish.
About New Mexico Preliminary Notices
New Mexico has strict and selective rules regarding preliminary notices, unlike many states that require such notices for a broad range of projects, including residential ones with fewer than four dwellings. In contrast, New Mexico limits the need for a preliminary notice to very specific circumstances.
A preliminary notice is necessary in New Mexico when:
- The claimant does not have a direct contract with the property owner or general contractor,
- The claim exceeds $5,000, and
- The project is not a residential property with fewer than four units.
For all other projects, no preliminary notice is required. This is a significant deviation from the approach taken by many states, as New Mexico specifically exempts smaller residential properties from the notice requirement. Essentially, preliminary notice is only mandatory for second-tier contractors or lower on larger commercial or multi-unit residential projects.
When the preliminary notice is required, it must be sent within 60 days of first providing labor or materials. In cases where the notice is submitted late, New Mexico has a unique provision: the notice only covers work or materials provided within 30 days before the notice, rather than retroactively covering the full period leading up to the late notice. This is different from other states, where the “look-back” period often matches the late submission window.
How to Send a Preliminary Notice in New Mexico
Why Send a Preliminary Notice? To secure your right to file a lien! New Mexico has specific rules about who must send a preliminary notice, so it’s crucial to follow them carefully.
Who Needs to Send a New Mexico Preliminary Notice, and To Whom? While it’s recommended that all parties involved send a preliminary notice, it is required to protect mechanics lien rights if these conditions apply:
- The claimant has no direct contract with the property owner or general contractor
- The claim exceeds $5,000
- The project is not a residential property with fewer than 4 units
In New Mexico, the notice must be sent to either the property owner or the general contractor. It’s not necessary to send it to both, but the claimant can choose to send it to both if preferred.
What’s Included in a New Mexico Preliminary Notice? New Mexico offers a standard preliminary notice form.
When Should I Send a Preliminary Notice in New Mexico? New Mexico’s rule is clear: preliminary notice must be sent within 60 days of first providing labor or materials on the project. If sent late, the notice will only apply to the 30 days immediately before it was issued. So, sending it on time could help extend lien rights by up to an extra 30 days.
Key Points to Remember:
- If sent by certified mail or return receipt, the requirement is considered met when sent.
- If sent via fax, it’s considered delivered once acknowledged.
How Do I Send a Preliminary Notice? You can send a New Mexico preliminary notice by certified mail, return receipt requested, fax with acknowledgment, or personal delivery.
Remember, New Mexico is the only state that allows faxed delivery for preliminary notices, so don’t attempt it elsewhere!
Get in Touch
Understanding the rules around sending a preliminary notice in New Mexico is essential for protecting lien rights on construction projects. By ensuring compliance with the specific requirements—such as timing, the parties involved, and delivery methods—claimants can secure their rights effectively. While sending a notice is not mandatory for all projects, when it is required, it must be delivered promptly and accurately. Following the correct procedures helps prevent delays and strengthens your position in case of payment disputes.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
