LienItNow Stop Notice FAQs
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What is a stop notice? A Stop Notice can be filed on both public and private projects, and is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. What does a stop notice actually do? A Stop Notice, or a notice to withhold funds, is sent to the owner or company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid. Usually, the funder will stop payment until the non-payment issue is resolved. What needs to be done to file a stop notice? Stop notices generally need to be sent to the person or company that that funds the project, the project owner, the prime or general contractor, and the person with whom you have a contract. In some States, you may need to file the Stop Notice with the court or the county clerk. What does LienItNow do after I order a Stop Notice, and what do I need to do? Stop notices generally need to be sent to the person or company that that funds the project, the project owner, the prime or general contractor, and the person with whom you have a contract. In some States, you may need to file the Stop Notice with the court or the county clerk. Need more information? Stop Notices sometimes need to be preceded by a notice of delivery of materials or a notice of commencement. Some States have given specific statutory framework to Stop Notices, adding bite to their bark. To find out more information on what is required to file a stop notice, visit our State FAQ section. |