Section 2.3.2.1 Requirements for the Homeowner Exception|Exemption

• Jurisdiction: Arizona

The owner-occupant is required to sign the written contract with the potential lien claimant, and only those that have direct contractual privity with the owner-occupant are entitled to record a lien.

Homeowners who have construction, alteration, or repair made to their dwelling have an important exception to the general rule permitting liens by non-privity subcontractors or materials suppliers. A.R.S. Sec. 33-1002(B) reads, in pertinent part: "[n]o lien provided for in this article shall be allowed or recorded by the person claiming a lien against a dwelling of a person who became an owner-occupant prior to the construction, alteration, repair or improvement, except by a person having executed in writing a contract directly with the owner-occupant."

The homeowner exemption was enacted by the legislature, when it was discovered that a large number of homeowners were being forced to pay more than once for certain home improvements due to unscrupulous contractors who failed to pay subcontractors and materialmen. Thus the general policy under this provision is that no homeowner should be subject to a lien. To affect this end, A.R.S. Sec. 33-1002(B) requires that the owner-occupant sign the written...