What Is a Preliminary Lien Notice?
A preliminary lien notice is a document that notifies a homeowner and a general contractor that a person or company intends to file a lien on the owner’s property, his home. The person or company asserting a right to a lien is a lien claimant. A preliminary lien notice is usually required when a lien claimant does not have a direct contractual agreement with a homeowner. In these cases, lien claimants are usually sub-contractors or suppliers to a general contractor who is performing for the homeowner services such as building or remodeling a home. A lien, in this instance, operates as an encumbrance on the property, which means the homeowner will not be able to sell the home without clearing the lien and risks foreclosure of the home to satisfy payment of the debt.
