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Is the owner off the hook?

I'm the material supplier for a private job in Alabama furnishing a subcontractor. I a notice to owner in advance of furnishing to obtain a full price lien. The law says the owner can avoid responsibility for a full price lien if it provided a notice before the material is used that it will not be responsible for the price of the material. Does this let them off the hook of a mechanics lien as well? There's no information provided that appears there is a tenant involved, as the owner is contracting this work done.

1 reply

May 4, 2020

Alabama is generally an unpaid balance state - so parties hired by someone other than the owner generally won't be able to file a mechanics lien if the owner has made full payment. There's an exception for material suppliers if the supplier sends a Notice to Owner Prior to Performance. If that document is properly sent, then a full price lien will typically be available. But, even if that notice is sent - an owner can still block a full price lien if they respond to the Notice to Owner by disclaiming responsibility (like with a written Notice of Nonresponsibility). So, if a material suppliers sends a Notice to Owner and then the owner provides a Notice of Nonresponsibility, then the supplier won't be entitled to a full price lien. But, regardless of any Notice to Owner/Notice of Nonresponsibility, an unpaid balance lien will still be on the table as long as other requirements and deadlines are followed. For more information on Alabama notices and mechanics lien claims, these resources will be useful: - Alabama Preliminary Notice Guide and FAQs - Alabama Mechanics Lien Guide and FAQs - Alabama Preliminary Notice Guide – All You Need to Know - Alabama Preliminary Notice Guide – All You Need to Know

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