What is a notice to contractor or notice to owner?
If you have ever been confused about lien law, don't worry, we're here to help!
To understand what a notice to contractor or owner is, you must first know a little about construction lien law. It is basically a law designed to protect those who are working to enhance a property in some way who are not in direct privity (close relationship) with the owner. When sub-contractors, laborers, and suppliers of materials begin to work on a property, they may place a lien to ensure payment.
Now there is such thing as a notice of commencement. Before the work is begun, a notice of commencement must be filed by the owner at the clerk of the court where the property is located. Then a certified copy is posted at the job site. This is all valid for one year. A notice of commencement helps everybody know when the actual start date of a project was. (You know that it gets hard to remember!)
If the lienor does not have a direct contract with the owner (or contractor), they must file a notice to owner/contractor before they start working or within 45 days of commencement. A Notice to Contractor doesn't mean a lien has already been placed or filed against the property or that the contractor failed to pay the company who has given the notice. This just helps preserve the lien rights. All these notices make everybody happy and feel like they won't get cheated. See, so it's really very easy.