| How
is a Notice of Commencement Terminated? |
Beginning
in 1991, an owner has been allowed to terminate a Notice
of Commencement by recording a sworn Notice of Termination
of the Notice of Commencement. Prior to recording the Notice
of Termination, the owner must serve a copy of the Notice
of Termination upon the contractor and every lienor who
has served a Notice To Owner, except for lienors who have
executed a waiver and release of lien upon final payment.
The recorded Notice of Termination must be accompanied by
the Contractor's Final Affidavit. The Notice of Termination
cannot be used unless the construction has been completed,
or construction has been terminated and all lienors have
been paid in full, or pro rata, as provided for under the
proper payments defense portions of the statutes, as described
more fully above. The Notice of Termination must state the
effective date of termination of construction, which date
can be no earlier than thirty (30) days after the notice
is recorded. There are many potential pitfalls involved
in the termination of a Notice of Commencement and such
action should not be undertaken without advice of competent
counsel.
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DISCLAIMER
AND CAUTION: THESE MATERIALS ARE PROVIDED FOR GENERAL INFORMATIONAL
PURPOSES ONLY AND ARE NOT INTENDED NOR SHOULD THEY BE CONSTRUED
AS LEGAL ADVICE AS TO ANY PARTICULAR SET OF FACTS OR CIRCUMSTANCES.
DUE TO THE COMPLEXITY OF THE CONSTRUCTION LIEN LAW STATUTES
AND THE CASES INTERPRETING AND APPLYING THE STATUTES, IT
IS RECOMMENDED THAT COMPETENT LEGAL COUNSEL BE CONSULTED
IN REGARD TO ANY QUESTIONS AS TO THE APPLICABILITY OF CONSTRUCTION
LIEN LAW TO ANY SET OF PARTICULAR FACTS.
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