Disclaimer: The information on this webpage is NOT the same as legal advice. SunRay Construction Solutions, LLC is not an attorney or a law firm. We recommend that you consult with an attorney.
What is a Stop Notice?
A Stop Notice is another mechanism for subcontractors in some states to seek payment for their work on construction projects. It can be used instead of, or in addition to, a Mechanics Lien.
The main difference between a Mechanics Lien and a Stop Notice is that the lien is secured against the property, ‘trapping’ it from being sold or transferred until your bill is paid. On the other hand, the notice has no affect on the property – instead, it ‘traps’ the funds on the project. As soon as a notice is received, the project owner or financer must withhold sufficient money to pay your claim. So until you are paid, payments to other parties are frozen.
Who needs to send one?
You can choose to send a Stop Notice if you are a contractor or supplier on a public or private construction project and have not been paid for your work. The notice can be used as an alternative to – or in support of – a Mechanics Lien.
These notices are available in a minority of states, so you should only file one if your state has a Stop Notice statute. The notices are mostly used in California, Mississippi and Arizona, but are also available in Alaska and Washington. For full details relevant to your state, check your state requirements.
How to send a Stop Notice?
Stop Notices are generally sent and not filed anywhere. They are usually sent to the owner of a property, the prime contractor, or the company that is financing the project.
Different states have different requirements for how the notice must be sent, what it must include, and who must receive it. You also need to keep meticulous records of when the document was sent and received as it will not be recorded anywhere.
Preparing and sending a notice can be a complex and lengthy process, and small mistakes can make the difference between getting paid or not.
SunRay Construction Notices does the legwork for you, so sending a notice couldn’t be easier. Simply fill in a Stop Notice form and we’ll do the rest for you.
- Researching the property owner and the property description
- Recording the lien with the County Recorder
- Serving the filed lien to intended parties
- Our System allows you to Track YOUR deadlines
- Retaining records of all notices on our database for easy future access
New to Sunray? Get a free proposal now! Call us or fill in the form below and one of our notice specialists will contact you within 1 hour.
Is a Stop Notice necessary?
Stop Notices can only be used in a minority of states. If your state does not accept them, you will be wasting your time and money in sending one.
In the states where they are accepted, a notice can be a useful mechanism to help you get paid for your work as it places a freeze on the project funds until your payment is made.
If you intend to send a notice, it will be most effective if you send it as soon as possible, so that you can trap funds while they are still available. If you send the notice once payments have been made down the contracting chain, chances are there will be no funds left to trap, so the notice will be useless.
However, if sent in good time, a Stop Notice makes the property owner accountable for your debt, and can ensure this is paid before any other money is spent on the project.