Notice of Intent and Its Legal Steps
By NotaryLive Staff
Published on 06/07/2024
KEY TAKEAWAYS
- Notice of Commencement and Notice of Intent are different – they aren't for the same purpose
- A Notice of Intent is a warning within the construction industry
- You can notarize this form efficiently online using NotaryLive
BEFORE YOU READ. . .
**Is NOI & NOC the same thing?:
No. An NOC is used at the start of a construction project to announce the beginning and end of the project whilst identifying the involved stakeholders/contractors.
Read more on Notice Of Commencement for more information.
Now, let's take a look at an NOI.
1. What Is A Notice of Intent?
A Notice of Intent is a warning within the construction industry – basically notifying property owners, prime contractors, or any other parties.
This can be due to a mechanics lien looming or any overdue payments.
Filing Mechanics Lien Form
A Mechanics Lien form is the official notice of intent in the mechanic's lien process.
This straightforward document serves as a last call before initial paperwork gets prepared if payments remain unpaid.
What about the letter of intent to sue?
If after a mechanics lien is filed and no one has yet paid, a letter of intent to sue comes to play.
This is a warning to the debtor that legal action will be taken if payment isn't received.
Possible consequences
If the requirements in a Notice of Intent (NOI) are not met, they can vary depending on the specifics outlined in the NOI.
A few general possibilities can be the following:
- Verbal/written warnings, suspension or demotion can occur
- Reduction in grade/pay or furlough
- Filing a mechanics lien for unresolved payment issues
2. How do they work in order?
These forms follow a specific sequence.
- Notice of Intent begins process giving the first warning to give payments.
- Mechanics Lien Form is filed in case initial payment wasn't resolved. This is a more formal document.
- Letter of Intent to Sue then comes into play, acting as the last warning – this indicates legal action is going to be taken if financial disagreement continues.
3. Notarization in the NOI Process
While the NOI itself doesn't require notarization, there is a specific document that must be – an affidavit of service of the NOI.
This document must be filed with the lien, that states the notice was served at least 10 days before the filing of the lien claim.
States that affidavit of service to be notarized
- Illinois
- Missouri
States that don't require notarization BUT:
**You must notarize an affidavit if you file a mechanics lien.
- Arkansas
- Colorado
- Pennsylvania
- Wisconsin
In other states, sending a Notice of Intent is not required to protect your lien rights.
4. NotaryLive as a Resource
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Updated Date: 12/21/2024