Arizona Assignment of Lien by General Contractor

• Category: Liens - Construction - Mechanics
• State: Multi-State
• Control #: US-02836BG
• Format: Word; Rich Text

Description

This form is an example of an assignment of a mechanic's lien. By virtue of express statutes in most states, mechanics and materialmen (persons who furnish materials for the erection of houses or other buildings), are entitled to a lien or preference in the payment of debts out of the houses and buildings so erected and to the land on which they are erected. Arizona Assignment of Lien by General Contractor is a legal document used to transfer the rights and interest in a mechanic's lien from a general contractor to another party, typically a lender or subcontractor. This assignment effectively allows the general contractor to transfer their claim for unpaid services, materials, or labor to another entity. In Arizona, there are two main types of assignments of lien by a general contractor: 1. Voluntary Assignment: This type of assignment occurs when the general contractor willingly transfers their lien rights to another party, such as a bank or financial institution. The voluntary assignment of lien allows the general contractor to secure financing against their unpaid invoices or pending claims, providing them with immediate liquidity while shifting the risk to the assignee. 2. Involuntary Assignment: This occurs when a judgment is awarded against the general contractor in a lawsuit, and the court orders the assignment of the lien to the prevailing party. The judgment creditor typically seeks the assignment as a means to enforce the judgment and ensure their ability to recover the owed amounts. Keywords: Arizona Assignment of Lien, General Contractor, mechanic's lien, transfer rights, unpaid services, materials, labor, voluntary assignment, involuntary assignment, financing, liquidity, judgment, judgment creditor, enforce judgment, recover owed amounts.

Arizona Assignment of Lien by General Contractor is a legal document used to transfer the rights and interest in a mechanic's lien from a general contractor to another party, typically a lender or subcontractor. This assignment effectively allows the general contractor to transfer their claim for unpaid services, materials, or labor to another entity. In Arizona, there are two main types of assignments of lien by a general contractor: 1. Voluntary Assignment: This type of assignment occurs when the general contractor willingly transfers their lien rights to another party, such as a bank or financial institution. The voluntary assignment of lien allows the general contractor to secure financing against their unpaid invoices or pending claims, providing them with immediate liquidity while shifting the risk to the assignee. 2. Involuntary Assignment: This occurs when a judgment is awarded against the general contractor in a lawsuit, and the court orders the assignment of the lien to the prevailing party. The judgment creditor typically seeks the assignment as a means to enforce the judgment and ensure their ability to recover the owed amounts. Keywords: Arizona Assignment of Lien, General Contractor, mechanic's lien, transfer rights, unpaid services, materials, labor, voluntary assignment, involuntary assignment, financing, liquidity, judgment, judgment creditor, enforce judgment, recover owed amounts.