Stop Notice

Stop Notice

Postby djaehning » Tue Oct 15, 2013 4:31 am

When a stop notice is filed are all or just the amount of funds disputed withheld by the public official? Thanks.
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Re: Stop Notice

Postby usa4 » Thu Oct 17, 2013 1:45 am

Just the amount being disputed.
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Re: Stop Notice

Postby zwead » Mon Oct 21, 2013 6:43 pm

usa4 wrote:Just the amount being disputed.


how could they withhold just the disputed funds? seems if that was the case, then construction could just proceed as normal, and they would only have to worry about the stop notice at the very end (i.e. when the disputed amount is the only remaining funds).
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Re: Stop Notice

Postby usa4 » Fri Oct 25, 2013 7:25 am

@zwead A stop notice is similar to a mechanics lein but instead of putting a lein on the property it puts a claim on the construction funds that lets the lender know a dispute has arisen between a sub or material supplier and the general contractor. The lender then sets aside the funds in question to be paid for the claim.
A stop notice or mechanics lien does not stop construction but makes it more difficult for the owner to proceed with the loan or eventually selling the property with the thread of foreclosure.
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Re: Stop Notice

Postby zwead » Wed Oct 30, 2013 3:40 pm

usa4 wrote:@zwead A stop notice is similar to a mechanics lein but instead of putting a lein on the property it puts a claim on the construction funds that lets the lender know a dispute has arisen between a sub or material supplier and the general contractor. The lender then sets aside the funds in question to be paid for the claim.
A stop notice or mechanics lien does not stop construction but makes it more difficult for the owner to proceed with the loan or eventually selling the property with the thread of foreclosure.


Thanks. It seems to me that if you really need to get paid, then a bonded stop notice is the only way to go.
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