Sending an Oklahoma preliminary notice can help expedite payments on construction projects. This notice is usually sent to the property owner early in the project to provide essential information. When preparing preliminary notices in Oklahoma, it’s crucial to ensure all details are accurate, as the state has specific regulations that determine when such a notice is necessary.
If you receive a preliminary notice, it’s important to understand its contents and take appropriate action. Due to the complexity of Oklahoma’s rules and requirements, navigating this process can be challenging.
Here’s an overview of the key rules and guidelines for sending a preliminary notice in Oklahoma.
Key Takeaways
- Preliminary Notice Requirements: In Oklahoma, a preliminary notice must be sent by parties who do not have a direct contract with the property owner under certain conditions, such as when the claim exceeds $10,000 on non-residential projects or when the property is owner-occupied.
- Timely Submission: The preliminary notice must be delivered within 75 days from the last date labor or materials were provided. Failing to meet this deadline can invalidate the mechanics lien claim.
- Proof of Delivery: It’s recommended to send preliminary notices via certified mail to ensure proof of delivery. This step is crucial for protecting lien rights and ensuring payment is secured.
Do I Need to Send an Oklahoma Preliminary Notice on Private Projects?
It varies depending on the situation.
Preliminary notice must be sent by parties who did not contract directly with the property owner if one of the following applies:
- The property includes an owner-occupied dwelling.
- The claimant’s total claim exceeds $10,000 on a non-residential project.
Oklahoma defines a residential project (different from an owner-occupied dwelling) as a single or multi-family residence with up to four units, none of which are occupied. No notice is required for such a project.
If either of the two conditions applies, the lien claimant must send a preliminary notice to both the general contractor and the property owner.
While it’s unclear whether the general contractor must provide notice on owner-occupied properties, it’s a good idea to issue one as a precaution.
When Do I Need to Send an Oklahoma Preliminary Notice?
When a preliminary notice is necessary, it must be delivered before filing the lien statement, and within 75 days from the final date the claimant provided labor or materials to the project. Only one notice is needed per project, even if the claimant continues to supply labor or materials after the initial notice is sent.
What If I Send the Oklahoma Preliminary Notice Late?
If a preliminary notice is not provided within the 75-day timeframe, it can invalidate a mechanics lien claim in Oklahoma. Additionally, when filing a lien statement with the county clerk, the claimant must submit an affidavit confirming compliance with the preliminary notice rules. Providing false information in the affidavit is considered a misdemeanor, punishable by a fine of up to $5,000 and/or up to 30 days in jail.
How Should the Oklahoma Preliminary Notice Be Sent?
In Oklahoma, the preliminary notice must simply be “sent” to the general contractor and property owner. It is recommended to send the notice via certified mail for added security. The claimant should retain a copy of both the notice and the delivery affidavit to include with the lien statement.
Do I Have to Send the Oklahoma Preliminary Notice to Someone Other Than the Owner?
Indeed, the general contractor must also receive the preliminary notice.
Is the Oklahoma Preliminary Notice Requirement Met When Sent or Delivered?
The Oklahoma preliminary notice is deemed delivered once it is sent.
Do I Need to Send an Oklahoma Preliminary Notice on Public Projects?
No, Oklahoma does not mandate a preliminary notice to secure the right to file a bond claim, as long as the claimant qualifies for that protection. However, anyone can choose to send a notice if they wish.
About Oklahoma Preliminary Notice
Oklahoma follows a somewhat traditional approach to preliminary notices, but with some unique nuances. While generally required for all parties who do not have a direct contract with the property owner, there are certain exceptions and unclear situations.
Typically, participants in a construction project who haven’t contracted directly with the property owner must send a preliminary notice if one of the following conditions is met:
- The property has an owner-occupied residence; or
- The project is non-residential and the claim exceeds $10,000.
In these cases, the participant must send the notice to both the property owner and the general contractor. It’s unclear whether general contractors or direct contractors are obligated to send a preliminary notice to the property owner for owner-occupied projects, but it may be advisable as a precaution, especially in these scenarios.
An interesting twist in Oklahoma’s law is that residential projects which are not “owner-occupied” do not require a preliminary notice, even if the claim exceeds $10,000—something not typical in commercial projects. A residential project is defined as a single or multi-family dwelling with four or fewer units that is not occupied by the owner. Courts have ruled that if the owner temporarily vacates the property for repairs, it can still be considered owner-occupied.
Additionally, Oklahoma introduces a unique rule: If a project participant requests, via certified mail, the name and last known address of the property owner from the general contractor, the contractor must provide that information within 5 days. Failure to do so means the participant is no longer required to send a preliminary notice.
How to Send Preliminary Notice in Oklahoma
In Oklahoma, preliminary notices play a crucial role in the Oklahoma mechanics lien process. These notices differ from those in other states, and understanding their requirements can help secure payment rights for contractors involved in construction projects in the state.
Overview of Oklahoma Preliminary Notices
Oklahoma requires two types of preliminary notices that are critical for contractors and suppliers to understand. These notices help protect the right to file a mechanics lien if needed. Failing to send the required notices can result in losing lien rights.
The two main notices are the “Notice to Owner” and the “Pre-Lien Notice.” Knowing when and how these notices need to be sent can prevent confusion and ensure lien rights are preserved.
Notice to Owner
The “Notice to Owner,” also known as a “Homeowner Notice,” is mandatory on owner-occupied residential projects. Any contractor, subcontractor, laborer, or material supplier seeking to secure mechanics lien rights must send this notice to the property owner.
Owner-Occupied Residential Projects
An owner-occupied residential project refers to a single-family or multi-family residence with four or fewer units, where the owner is living in the property during construction. The Oklahoma courts clarified in the 2004 case of Mel Stevenson & Associates, Inc. v. Giles that an owner temporarily vacating the residence for repairs still qualifies as “occupying” the property for the purpose of this notice.
How to Send the Notice to the Owner
Under Oklahoma law, the Notice to Owner must be delivered to the property owner, even by the general contractor. Unlike other preliminary notices, this notice informs the property owner about the potential for a lien if payment issues arise, even if the contractor has been paid in full. The notice must warn the owner that they could face double payments for the work or materials if a lien is filed.
A standard Notice to Owner should contain language such as:
“Notice to Owner: You are hereby notified that anyone providing labor or materials for the improvement of your property may file a lien if they are not paid, even if you’ve already paid the contractor in full. This could result in you paying twice for the same work or materials. To prevent this, you can ask your contractor for lien waivers from all workers and suppliers.”
Pre-Lien Notices Overview
The second type of preliminary notice in Oklahoma is the Pre-Lien Notice. This notice is not required at the start of the project but must be sent before filing a lien. It applies to parties who do not have a direct contract with the property owner.
When Pre-Lien Notices Are Necessary
A Pre-Lien Notice must be sent in two specific circumstances:
- When the project is owner-occupied residential property; or
- When the total claim amount exceeds $10,000 on non-residential projects.
Interestingly, residential projects that are not owner-occupied do not require a Pre-Lien Notice, even if the claim exceeds $10,000.
How to Complete an Oklahoma Pre-Lien Notice
The Oklahoma Pre-Lien Notice must be in writing and include:
- The statement that it’s a “Pre-Lien Notice”
- Claimant’s details
- Date the labor or materials were first provided
- Description of the labor and materials
- Information about the hiring party
- Legal description of the property
- Value of services provided or to be provided
Requesting Owner Information
A unique feature of Oklahoma’s law is the ability to request the property owner’s information from the general contractor. If the claimant doesn’t have this information, they can ask the contractor for it in writing. The contractor must respond within 5 days, or the claimant will be excused from sending the Pre-Lien Notice.
Delivering Pre-Lien Notices
Pre-Lien Notices must be sent before filing a lien, but no later than 75 days after the last date labor or materials were provided. Only one notice is required per project, even if services continue after the notice is sent.
The notice can be delivered personally, by certified mail (with return receipt), or even via email, as long as there is proof of delivery. Certified mail is often the best option for tracking.
Understanding Oklahoma preliminary notice requirements is vital for contractors and suppliers to preserve lien rights. These notices not only ensure you’re paid for your work but also foster communication and transparency. Be sure to follow all the rules carefully to avoid issues down the line. Even if not required, sending a preliminary notice can be a proactive measure to help secure your payment.
Get in Touch
Sending a preliminary notice in Oklahoma is a vital step for contractors and suppliers to secure their lien rights and ensure timely payments on construction projects. The requirements are specific, and failure to comply with them, such as missing the 75-day window, can result in losing lien rights.
By understanding when and how to send the Notice to Owner and Pre-Lien Notice Oklahoma, you can avoid complications and protect your interests. While these notices may not be mandatory in all cases, sending them as a precaution can provide added security for your work.
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.
