4.3.4.2.2 Lien Discharge Bonds

• Jurisdiction: Arizona

If a lien has been recorded by someone other than the prime contractor, the project’s owner may insist that the prime contractor promptly remove the lien. A.R.S. § 33-995. The owner may withhold from the prime contractor the amount claimed in the lien, or recover from the prime contractor any amount paid in settlement of the lien. If the prime contractor defends the lien claim, the prime contractor is entitled to recover penalties in accordance with A.R.S. § 33-420.

If the contractor cannot (due to insolvency), or will not (due to a contract dispute) cause the lien to be removed, or if the property owner does not want to wait for any lengthy court battle to reach a conclusion, the lien can be immediately removed from...