Common Questions

What Happens If the Property Owner Changed After You Started Work?

The property sold mid-project. Here's what that means for your NTO and lien rights
What Happens If the Property Owner Changed After You Started Work?

You filed your Notice to Owner at the start of the project, and now the property has been sold to a new owner. Does your NTO still protect you?

Your original NTO is still valid

A properly served Notice to Owner remains effective even if the property changes hands after you filed it. Your NTO was served on the owner of record at the time, and it preserves your lien rights as of that date. The new owner takes the property subject to any existing lien rights, including yours.

Should you serve the new owner too?

While not always legally required, it is good practice to serve a copy on the new owner as well. They may not be aware of your involvement and potential lien claim.

When ownership changes affect your rights

The situation becomes more complex if the property was sold to a bona fide purchaser before you recorded a Claim of Lien. In those circumstances, your lien rights against the property may be limited.

What to do right now

Confirm your original NTO was properly served. Consider serving a copy on the new owner. If there is a payment dispute, consult a construction attorney promptly.

SimpleNTO is a document preparation service, not a law firm. This article is for informational purposes only and does not constitute legal advice.

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