Arkansas

ARKANSAS

PRELIMINARY NOTICE 

For commercial builders, potential lienors must give 75 days notice from the time labor and materials were supplied to the property owner. Ark. Code Ann. § 18-44-115. An additional ten day notice is required prior to filing the lien of record. The ten day notice must state there is a claim, the amount due, and who owes the money, with service made by an officer authorized by law to serve process, by return-receipt, restricted delivery, or through third party guaranteed delivery service with proof of receipt. Ark. Code Ann. § 18-44-114. Note that residential projects are treated differently under Arkansas law.

CONTENTS OF PRELIMINARY NOTICE

For commercial projects, the Notice must indicate that contractor has not been paid, provide a general description of labor, service or materials furnished, the amount due, and the name of the person who first contracted for the purchase of labor, service or materials. The notice must also describe the property in a manner sufficient for identification. Specific language must be included as well, in all bold, capital letters. The statute requires delivery of notice by return-receipt requested with restricted delivery or by guaranteed commercial delivery service with proof of receipt. Ark. Code Ann. § 18-44-115. Note that residential builders should refer to Ark. Code Ann. § 18-44-114.

WHEN COMPLETION OCCURS

The 120-day period refers to the work or material delivery of the specific claimant, not the overall construction project. The “last work” means last day of substantial work. It is doubtful punch-list items would suffice.

TIME LIMIT FOR RECORDING MECHANICS LIEN

Lien must be filed with the clerk of the circuit court of the county in which the property is located within 120 days after the items were furnished or the work or labor was performed. Ark. Code Ann. § 18-44-117. The actual lien is referred to as a “statement of a court and must include an affidavit of account with description of property, a sworn statement indicating compliance with the statute, a copy of the 75-day and 10-day notices, and a just and true account of the demand due or owing providing for all credits. Ark. Code Ann. § 18-44-117. The process to collect attorney fees is addressed in Ark. Code Ann. § 18-44-128.

TIME LIMIT FOR ENFORCING MECHANICS LIEN

All actions under this subchapter shall be commenced within 15 months after filing the lien and prosecuted without unnecessary delay to final judgment. Ark. Code Ann. § 18-44-119.

FORECLOSURE OR DISMISSAL BY COURT

Lien will expire 15 months after the lien is filed, unless: (1) An action is instituted; and (2) A lis pendens is filed under Ark. Code Ann. § 16-59-101 et seq

https://www.arkleg.state.ar.us/Acts/CodeSectionsAmended?ddBienniumSession=2015%2F2015R