A preliminary notice, pre-lien notice, notice of furnishing, or notice to owner (also known as an “NTO”) is written notice to the owner of the property of your intention to file a lien on such property if payment is not received. Many states require some form of a preliminary notice before a Mechanics Lien can be filed.
Not every state requires the same form of preliminary notice or pre-lien notice. In some states, you can lose your right to lien by not filing a preliminary notice informing the property owner of your intention to collect upon completion.
In some states, there are stringent deadlines as to when a lien can be filed, while other states require no preliminary notice. There is strict statutory language that must be used when filing liens, bond claims, etc. This language varies from state to state and failure to comply with these explicit instructions can result in loss of lien privileges.
These differing preliminary notice requirements can confuse even the most experienced credit professional at times. Inaction can result in the loss of your money. Don’t lose your right to file a mechanic’s lien (or other lien instruments) by waiting any longer.
Submit an online claim form and let one of our lien specialists quickly determine if a preliminary notice is required and what steps you should take to protect your receivables or call us (800) 432-7799.