Mechanic's Lien

When a contractor, subcontractor, laborer, or material supplier improves a property and does not get paid, Arizona law gives them a way to secure that payment: recording a mechanic's lien (state law calls it a mechanics' and materialmen's lien) against the property in the county where it sits. The lien clouds the title, which means the owner usually cannot sell or refinance cleanly until it is paid or released.

Under A.R.S. 33-981, the right to a lien covers labor, professional services, materials, machinery, and fixtures used to build or improve real property. The claim attaches to the land and the structure, not just to the person who owed the money. That is the part owners miss. You can pay your general contractor in full and still face a lien from a framing sub or a lumber yard the contractor never paid.

For example, a homeowner in Cave Creek hires a builder for a $600,000 custom home. The builder pays most trades but stiffs the electrical sub. That sub can record a mechanic's lien on the finished house for its unpaid balance, even though the owner already paid the builder.

Arizona builds in a warning system. Most subs and suppliers must serve a preliminary twenty day notice under A.R.S. 33-992.01 early in the job. That notice is not a lien. It is a heads-up that the sender has lien rights, and it tells the owner who is on the project. The defenses against a surprise lien are simple in concept: collect a signed lien waiver from each trade as you release each draw, and confirm the notices and waivers match before the final payment goes out.