There is definitely an uptick of new construction in East Tennessee and as a real estate professional, it’s important that you are informed about issues that may affect your clients. One such thing to be familiar with is “Notice of Completion.”
The Notice of Completion is an instrument that can be recorded pursuant to TN statute TCA 66-11-143 in order to protect property interests from unrecorded mechanics and materialmen lien claims. It is designed to “cut off” the right of a service or goods provider from establishing a lien against real property for services or goods provided to benefit the property.
Per TCA 66-11-143, the Notice MUST contain the following at a minimum:
1. Legal name of the owner or owners of the real property;
2. The name of the prime contractor or prime contractors;
3. The location AND DESCRIPTION of the real property;
4. The date of completion of the improvement;
5. A statement that a transfer of the property or a settlement of all mechanics liens will take place more than 10 days from recording;
6. The name and address of the person that is designated to receive notice of a claim;
7. Acknowledgement by the person filing the notice, their agent, or their attorney;
8. The name of the person that prepared it.
The Notice of Completion should be recorded, and SIMULTANEOUSLY served on any prime contractor.
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