Court Rescinds Order Barring Document
Signing by Lien Service Companies
On December 6, 2012, the Arizona Supreme
Court rescinded its November 21 order that prohibited a lien
service company from signing notices and liens as an agent of
For the sake of convenience and
organization, many construction companies use lien service
companies to prepare their Preliminary Twenty Day Lien Notices
and their Notices of Materialman’s and Mechanic’s liens. As
common practice, the lien service companies also routinely
signed the notices and liens as the “agent” or “authorized
agent” of the company.
On November 21, 2012, the Arizona
Supreme Court issued Order No. 2012-85, which provided that,
effective that date, lien service companies could no longer sign
Preliminary Twenty Day Lien Notices or Mechanics’ Liens as a
contractor’s agent or authorized representative. The Order was
intended to apply to the execution of liens only and not
Preliminary Twenty Day Notices. However, as it was drafted it
appeared to apply to prohibit lien services from executing
Preliminary Twenty Day Notices pursuant to A.R.S. § 33-992.01.
New Order. Because of “unintended
consequences” of the Order, on December 6 it was rescinded by
the Court (see
Administrative Order No. 2012-94). The Court is permitting
time for public comment through January 15, 2013, at 5:00 p.m.
as to whether Legal Document Preparers should continue to be
allowed to draft, execute or serve 20-Day Notices and should be
allowed to execute mechanics liens. Comment needs to be in
writing, and the Certification and Licensing Division of the
Administrative Office of the Courts will be providing notice of
the forum for providing public comment.