Who can issue a demand letter prior to recording a lien?

A demand letter is a formal request for payment or action and is often a prerequisite before one party can file a lien against a property. In the context of construction projects, design professionals, such as architects and engineers, possess the right to issue a demand letter prior to filing a lien. This is due to their contractual relationships and the professional services they provide, which can result in unpaid fees or services rendered.

Design professionals often engage in contracts that allow them to assert their rights to payment through communication of a demand letter. This demand typically serves to notify the responsible party about the outstanding obligations and allows them an opportunity to fulfill those obligations before a lien, which is a legal claim against a property for unpaid debt, is recorded.

Other parties, such as subcontractors, owners, and general contractors, also have rights when it comes to liens, but their ability to issue demand letters and the specific legal conditions around that may vary based on statutory requirements and contractual terms. For example, while subcontractors can also issue demand letters, the context of this question emphasizes the roles of design professionals specifically in initiating the lien process with proper communication.