What happens if there is no Notice of Completion filed by the Owner?

When a Notice of Completion is not filed by the Owner, the legal timeframe for filing a mechanics lien is typically affected. In this scenario, the correct outcome is that the lien period remains at 90 days for all parties involved.

The rationale behind this is that the absence of a Notice of Completion does not shorten the timeframe for lien claims, but it also does not extend it for the general contractor. In many jurisdictions, if a Notice of Completion is not filed, the countdown for the lien notice begins automatically, allowing 90 days for the original contractor to file a lien claim to secure payment for work performed. Subcontractors and material suppliers generally have different timelines resulting from other legal stipulations, but they will also be constrained to the prevailing rule when no notice has been recorded.

Other options do not accurately reflect the consequences of not filing a Notice of Completion. The lien period does not universally extend to 120 days or apply differently just to subcontractors; instead, the standard timeframe remains as established by law unless specifically modified by a jurisdiction’s regulations. Additionally, the contractor is not required to stop work simply due to the absence of a Notice of Completion; they may continue their work, albeit with the awareness that the lien period remains in effect.