Court Rescinds Order Barring Lien Service Companies from Signing Lien Documents
Arizona lien services may continue to sign Preliminary 20-Day Notices and Mechanics' Liens on behalf of contractors, pending
On December 6, 2012, the Arizona Supreme Court rescinded its November 21,
2012, order that
barred lien service companies from signing lien documents for its customers.
As a result of the new order (Administrative Order 2012-94),
it is "business as usual" for contractors and for the lien service companies
that prepare, sign, file, record and arrange for service of legal forms on their
In the wake of the November 21 order, the Certification
and Licensing Division of the Administrative Office of the Courts, which
supervises the activities of Legal Document Preparers (such as lien service
companies), advised the Supreme Court that the November 21 order "may
unintentionally prohibit Legal Document Preparers from executing Preliminary
The primary intent of the order was to prevent document
preparers from executing lien documents on behalf of homeowner associations. The
Court noted in its December 6 order that "the current wording of the amendment
has caused unintended consequences," presumably referring to the spillover
effect on construction and other industries.
Stating that "it is desirable to receive further comment
before adopting the exact wording," the Court's December 6 order:
rescinded the November 21 order;
instructed the Certification and Licensing Division (CLD) to continue to allow
Legal Document Preparers to "draft, execute or serve 20-Day Notices"
execute liens"; and
instructed the CLD to solicit public comment through January 15, 2013.