ALL PROJECTS EXCEPT OWNER-OCCUPIED 1- OR 2-FAMILY DWELLINGS:
Contractor, sub, and laborers, and suppliers of materials, machinery, fixtures or tools, to owner, general, 1st-tier sub, or other person having charge or control of the project or a portion of it. In addition, union fringe-benefit trust funds have lien rights, where trust funds were part of the consideration that the contractor agreed to pay for the services of labor and were part of the compensation owed to the employees. Per Schor, suppliers to suppliers and those supplying second tier subcontractors do not have lien rights. [Schor at §§4.02[D] and 4.03[B]; B. J. Cecil Trucking, Inc. v. Tiffany Const. Co, 597 P.2d 184 (Ariz. App. Div.1, 1979); Performance Funding, L.L.C. v. Arizona Pipe Trade Trust Funds, 203 Ariz. 21, 49 P.3d 293, (App. Div.1, 2002) review denied.] NOTE that if a contractor or provider of professional services is required to be licensed, but does not have a valid license, that person loses his or her lien rights. The court may, however, determine that the claimant has substantially complied with the registration requirement and allow the lien. [32-1153; Archicon, L.C. v. TPI Properties, LLC, Not Reported in P.3d, 2013 WL 1174059 (Ariz.App. Div. 1, 2013)] NOTE ALSO that an architect or other provider of professional services may have lien rights against the property even where no improvement is actually built. [Archicon, L.C. v. TPI Properties, LLC, Not Reported in P.3d, 2013 WL 1174059 (Ariz.App. Div. 1, 2013)] NOTE ALSO that where an unlicensed subcontractor supplies materials, and has a licensed contractor install them, the unlicensed subcontractor may recover the cost of the materials from the lien. An unlicensed subcontractor that does no installation work is exempt from registration requirements.
Additionally, for a provider of professional services to have lien rights, they must have an agreement with the owner, or with an architect, engineer or contractor who has such an agreement with the owner.
ALSO, no lien is allowed by anyone other than the general contractor where owner requires general contractor to provide a bond. No specific provisions as to how to claim against such a bond, other than adding the surety to the foreclosure suit. [33-1003]
NOTE that a lien for work or material requested by a tenant cannot be enforced against an owner unless the tenant acted as the owner’s agent. Where a lease requires a tenant to extensively remodel the property, and especially where the improvements must be made in accordance with plans and specifications approved by the owner, the tenant will be deemed to be the owner’s agent for lien purposes. [Wang Elec., Inc. v. Smoke Tree Resort, LLC, 283 P.3d 45 (Ariz.App. Div. 1, 2012)]
OWNER-OCCUPIED 1- OR 2-FAMILY DWELLINGS:
Only a claimant who has a written contract directly with the owner-occupant can have a lien. [33-981, 33-1002]. (In other words, only the general contractor with a written contract with the owner-occupant has lien rights on a single-family or two-family dwelling.) NOTE that where a person owns the unimproved property before construction, and has a house constructed on the property, with the intention of living in the house, that person will be an owner-occupant, even if they transfer ownership of the property into a trust prior to moving in. [Marco Crane & Rigging Co. v. Masaryk, 341 P.3d 490 (Ariz.App. Div.1, 2014)