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Notice of Commencement

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Notice of Commencement

What a Notice of Commencement Is and when it’s used

A Notice of Commencement is a recorded public notice, typically filed at the county recorder or land records office, that identifies the owner, general contractor, lender (if any), and the legal description of the property for a construction project. It establishes the start of a project for lien and claim purposes, clarifies parties entitled to notices, and helps define deadlines for mechanic’s liens and preliminary notices.

Why recording a Notice of Commencement matters

Recording a Notice of Commencement protects property owners, lenders, and contractors by defining the start of the project, centralizing contact information, and enabling accurate lien notice timelines under state lien law. It reduces confusion about claim deadlines and who should receive preliminary notices.

Why recording a Notice of Commencement matters

Which parties typically prepare or rely on this notice

The Notice of Commencement is used by owners, lenders, and prime contractors to create an official project record and preserve statutory rights for downstream contractors and suppliers.

  • Property owners and developers — record to clarify owner identity and lender involvement for lien and notice purposes.
  • General contractors and construction managers — rely on the recorded notice to coordinate subcontractor notice requirements and draws.
  • Subcontractors and suppliers — use the recorded notice to confirm filing deadlines for preliminary notices and liens.

Proper preparation and distribution of the Notice of Commencement helps all parties understand notice, lien, and payment timelines under applicable state law.

Essential elements included in a professional Notice of Commencement

A complete Notice of Commencement contains specific fields and disclosures to meet state recording offices and lien statute expectations.

Project ID

Legal description and property address to precisely identify the project for the recorder and lien claimants.

Owner Information

Owner name, mailing address, and contact information required to identify the party who authorized the work.

General Contractor

Name and address of the general contractor or construction manager responsible for the work.

Lender Details

Name and contact of lender or mortgagee if funds are being advanced by a financial institution.

Recording Details

Space for recorder stamp, filing number, and date so subsequent parties can reference the recorded instrument.

Signature Block

Signature, printed name, title, and date for the person authorized to file the Notice of Commencement.

Step-by-step: prepare, sign, and record the Notice of Commencement

Follow these sequential steps to prepare a Notice of Commencement that will be accepted by the county recorder and serve its notice function.

  • 01
    Gather documents: Collect deed, title report, and lender information before drafting the notice.
  • 02
    Complete fields: Fill the project, owner, contractor, and lender fields clearly and accurately.
  • 03
    Authenticate signature: Have the authorized signer sign and, if required, notarize the form.
  • 04
    Record with county: File at the county recorder or land records office where the property is located.

How to configure an online Notice of Commencement workflow

When automating Notice of Commencement creation and distribution, configure fields, authentication, and storage to match legal and operational needs.

Field Configuration
Required Fields Make legal description and owner fields mandatory for submission.
Conditional Fields Show lender block only when a construction loan is indicated.
Signer Authentication Use email with SMS code or advanced auth when required by state law.
Document Retention Automatically save signed PDF and audit trail to secure cloud storage.

Process overview: recording, notification, and distribution

A Notice of Commencement workflow includes preparing the notice, authenticating the signer, recording the instrument, and distributing copies to interested parties.

  • Prepare Notice: Populate required fields and confirm accuracy against title documents.
  • Sign / Notarize: Obtain signature and notary acknowledgement if applicable.
  • Record: Submit to the county recorder where the property is located.
  • Distribute: Provide recorded copies to lender, prime contractor, and key subcontractors.

Digital signing and eSubmission considerations

Use platforms that support secure eSigning, PDF output, and storage to preserve the notice and audit trail.

  • File formats: PDF, DOCX accepted for upload
  • Integrations: Salesforce, NetSuite, Procore, Google Workspace
  • Authentication: Email + SMS or advanced signer verification

Ensure the chosen platform preserves a timestamped audit trail, stores the signed PDF securely, and produces a recorder-ready document for county filing.

Timing and filing expectations for Notices of Commencement

Timing can affect lien deadlines. File and distribute the notice early in the project lifecycle and comply with any state-specific filing windows.

Record before work:

Record prior to the first major draw or before materials are first furnished, when feasible.

Distribute promptly:

Provide recorded copies to lender, contractor, and known subcontractors soon after recording.

Amendments:

File amended notices if ownership, lender, or contractor details change.

Duration:

Notice remains effective until project completion or as defined by state statute.

Local office timing:

County recorder processing times vary; expect same-day to several business days.

Key milestones from preparation to closeout

Use this milestone sequence to track the Notice of Commencement lifecycle and related notice events.

01

Draft and review

Complete and verify all required fields before signature and recording.

02

Sign and notarize

Obtain signature and any required acknowledgements to meet recorder requirements.

03

Record and index

File with county recorder and note the recorded instrument number.

04

Distribute and monitor

Send recorded copies to interested parties and update records for lien timelines.

Security and compliance considerations for eSigned notices

Transport Encryption: TLS 1.2/1.3
Data at Rest: AES-256 encryption
Certifications: SOC 2 Type II available
Healthcare Compliance: HIPAA-compliant with BAA
Regulatory Standards: 21 CFR Part 11 support
Signature Laws: ESIGN and UETA compliant

Consequences and legal risks of an incorrect or missing notice

Misidentified Property: May invalidate notice effect
Late Recording: Can alter lien priority
Missing Parties: May prevent proper notice delivery
Incorrect Signer: Could result in rejection by recorder
Failure to Distribute: Subcontractors may miss preliminary notice windows
Statutory Penalties: State-level lien consequences and costs

Common preparation mistakes to avoid

  • Using an abbreviated or informal property description that does not match the recorded deed, causing the recorder to reject the filing or confusing claimants.
  • Failing to include lender information when a construction loan exists, which can impact lien priority and notice responsibilities during draws.
  • Not notarizing when the county requires an acknowledgement, leading to rejection or delay in recording and subsequent distribution.
  • Distributing an unrecorded copy to subcontractors, creating mismatches between what claimants rely on and the official record.

Real examples from organizations using recorded notices

These brief case notes illustrate how different organizations leveraged Notices of Commencement to manage construction risk and payment processes.

Optica Ventures LLC

Project onboarding improved clarity on lien deadlines and contacts

  • Contractor used recorded notice to centralize notifications
  • As a result, claim disputes reduced and payment schedules matched recorded draws, improving project cash flow and reducing administrative follow-up.

Martin Properties

Remote projects required consistent records across sites

  • Team recorded Notice of Commencement at county prior to major draws
  • This ensured lenders and subcontractors received the same official details, simplifying lien avoidance and escrow releases.

Pricing snapshot for eSignature tools used with Notice of Commencement

Compare typical starting prices and plan features relevant to recording and distributing Notices of Commencement. Prices reflect vendor-published starting tiers and feature availability.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Notices of Commencement

Answers to common questions about filing, signatures, eSubmission, and what to do if details change.


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