Stay legally compliant
Deficient NOCs Can Cause Serious Legal and Financial Risks
A deficient Notice of Commencement (NOC) can be a costly mistake for contractors. If the NOC is incomplete or improperly filed, it can lead to significant project delays and legal headaches. The most immediate pitfall is the risk of losing lien rights, making it harder to secure payment for work completed. This can result in contractors having to absorb the costs of labor and materials without compensation. Additionally, filing errors can lead to repeated trips to the courthouse, wasting hours of billable time and driving up administrative costs. A deficient NOC is a common occurrence but hardly noticed as most projects get completed without an issue, but it’s also the most straightforward document to dispute when trying to dismiss a lien claim as a large percentage of NOCs are filled with the wrong data.
Many Contractors Are Unknowingly Violating Notary Laws
Many contractors unintentionally break the law by failing to follow proper notarial procedures when notarizing documents. A common violation occurs when contractors fail to ensure that the notary witnesses the client physically signing the documents. This oversight may seem minor, but it violates notarial laws designed to prevent fraud and ensure authenticity. Skipping steps like this can invalidate the notarization, exposing the contractor legally and at risk of penalties. In worst-case scenarios, improperly notarized documents can lead to legal disputes, delays in project approvals, or even fines, adding unnecessary costs and liability to the contractor’s business. Contractors must follow correct procedures to avoid these legal pitfalls, and Permit Rockstar ensures all notarizations follow current law.
