You have worked with this GC for years. He calls, you show up, you get paid. No contracts, just a handshake. But does that protect your lien rights? No.
Verbal agreements and lien rights are separate issues
Whether your agreement is written or verbal, your obligation to file an NTO is the same. The NTO requirement is about your relationship with the property owner, not the nature of your contract with the GC.
The problem with handshake deals
Verbal agreements create two risks. Terms are harder to prove in a dispute. And the informal arrangement often means NTO filings get skipped because "we trust each other." Trust does not survive a bankruptcy filing or a cash flow crisis.
What to do going forward
Continue working with contractors you trust. But file your NTO on every project regardless. It takes five minutes and costs $59. No relationship is worth giving up that protection.
SimpleNTO is a document preparation service, not a law firm. This article is for informational purposes only and does not constitute legal advice.
