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Preparing and filing the 
Notice of commencement

 

In order to protect the owner and mandate notice to the owner of potential lien claimants, the notice of commencement must be prepared and filed before the project commences.

The notice of commencement must be in affidavit form and include

  1. The legal description of the real property on which the improvement is to be made. for purposes of this division, a description sufficient to describe the real property for the purpose of conveyance, or contained in the instrument by which the owner, part owner, or lessee took title, is a legal description.
  2. A brief description of the improvement to be performed on the property containing sufficient specificity to permit lien claimants to identify the improvements;
  3. The name, address, and capacity of the owner, part owner, or lessee of the real property contracting for the improvement;
  4. The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee;
  5. The name and address of the owner's, part owner's, or lessee's designee, if any;
  6. The name and address of all original contractors, except that if the notice of commencement is recorded for an improvement involving a single- or double-family dwelling and if more than one original contractor is involved, instead of listing each original contractor, the owner shall state that multiple original contractors are involved in the improvement;
  7. The date the owner, part owner, or lessee first executed a contract with an original contractor for the improvement;
  8. The name and address of all lending institutions which provide financing for the improvements, if any;
  9. The name and address of all sureties on any bond which guarantee payment of the original contractor's obligations under the contract for the improvement, if any;
  10. The following statement:

    "To Lien Claimants and Subsequent Purchasers:

    Take notice that labor or work is about to begin on or materials are about to be furnished for an improvement to the real property described in this instrument. A person having a mechanics' lien may preserve the lien by providing a notice of furnishing to the above-named designee and his original contractor, if any, and by timely recording an affidavit pursuant to section 1311.06 of the Revised Code.

    A copy of this notice may be obtained upon making a written request by certified mail to the above-named owner, part owner, lessee, designee, or the person with whom you have contracted."

  11. The name and address of the person preparing the notice;
  12. An affidavit of the owner, part owner, or lessee or the agent of the owner, part owner, or lessee which verifies the notice.

The owner must do the following with the prepared notice of commencement: (a) file the notice of commencement with the county recorder's office in the county where the project is located; (b) provide a copy of the notice of commencement to the original contractor(s); (c) post the notice of commencement at the project site; (d) amend the notice of commencement to add any additional original contractors during the project; and (e) provide copies of the notice of commencement to any potential lien claimant requesting a copy.

Practical pointers:

  • Many owners have decided not to prepare a Notice of Commencement for construction projects.
  • If the owner fails to prepare and file a notice of commencement, lien claimants are not obligated to file notice of furnishings.
  • The lien claimant must still file a lien within the statutory time period in order to preserve its claim (75 days on commercial project).

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Fortney & Klingshirn
4040 Embassy Parkway, Suite 280
Akron, Ohio 44333
telephone 330-665-5445 - fax 665-5446

 

Fortney & Klingshirn

Representing Companies and Individuals in Employment, Business and Construction Disputes.

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