Notice of Commencement
What a Notice of Commencement Is and why it matters
Why filing a Notice of Commencement matters
Filing preserves notice to potential claimants, clarifies payment responsibilities, and can limit lien exposure by identifying the official project record and contact points.
Who typically prepares and relies on this filing
The Notice of Commencement is prepared by the owner or the owner's agent and shared with contractors, lenders, and relevant county recorders before work begins.
- Owners and developers who control project financing and need to protect title and lending interests.
- General contractors who coordinate subcontractor notices and need a clear record for pay applications.
- Subcontractors and suppliers who require recorded project data to preserve mechanic's lien or bond claim rights.
Step-by-step: filing a Notice of Commencement
-
01Prepare form: Complete all required fields with legal names and property details.
-
02Sign and notarize: Owner or authorized agent signs; notarization required in many states.
-
03Record in county: File the document at the county recorder or clerk's office for the property.
-
04Distribute copies: Provide recorded copies to contractors, lenders, and interested suppliers.
Configuring an online Notice of Commencement workflow
| Field | Configuration |
|---|---|
| Project and Property | Make these required fields; add validation for address and parcel formats. |
| Owner / Contractor | Assign signer roles and require signer authentication. |
| Notary Block | Include an embedded notary section with date and jurisdiction fields. |
| Recording Delivery | Add routing to export a printable PDF for county recorders or for e-recording services. |
Digital signing, e-notarization, and integrations
Electronic workflows can streamline preparation, notarization, and distribution but must meet local legal and e-recording requirements.
- Authentication: Email, SMS, or multi-factor verification.
- Integrations: Salesforce, NetSuite, Procore, Box, Google Workspace.
- eNotary / RON: Supports remote or in-person notarization where allowed.
Typical document flow from draft to recorded copy
-
Drafting: Prepare the Notice with project and party details.
-
Signing: Owner/agent signs; notary completes acknowledgement.
-
Recording: File with the county recorder or clerk's office.
-
Distribution: Send recorded copy to contractors, lenders, and suppliers.
Timing considerations and common recording expectations
Before work begins:
Record or deliver notice when required to protect title and lender interests.
Before first pay request:
Provide recorded notice prior to initial draw to support funding conditions.
Notary timing:
Sign and notarize on the same date in many counties.
Local filing hours:
Check county office open hours and electronic filing windows.
Retention of proof:
Keep recorded copy and receipt for dispute resolution.
Common mistakes to avoid when preparing a Notice of Commencement
- Using an informal or project nickname instead of the legal project or permit identifier, which causes record mismatch and indexing errors.
- Entering abbreviated or inconsistent owner or contractor names that do not match title documents, complicating searches and lien disputes.
- Failing to include the correct recording county or parcel ID, which can prevent the document from being associated with the property in public records.
- Distributing an unrecorded copy to subcontractors or lenders when state law requires recordation for the notice to be effective.
Consequences of errors or omission
Practical tips for accurate and efficient completion
Real-world examples of Notices in action
Martin Properties — Site Start
A regional developer recorded a Notice before mobilization to document lender and owner contact information.
- The recorded Notice clarified the pay application schedule for subs.
- The clear public record helped avoid payment disputes and sped up funding draws during the first two months of construction.
BIS — Bond and Claims
A contractor recorded the Notice of Commencement and provided copies to suppliers and the bond issuer.
- Timely distribution triggered required notice windows.
- When a supplier later claimed nonpayment, the recorded Notice and distribution evidence simplified the bond claim review and reduced litigation risk.
Typical eSignature vendor comparison for Notice of Commencement workflows
| 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 | Varies by vendor | Varies by vendor | Varies by vendor | Varies by vendor |
| Bulk Send | Yes | Yes | Yes | Yes | Yes |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
Frequently asked questions about Notices of Commencement
-
Can a Notice be signed electronically?
Yes. Electronic signatures satisfy federal ESIGN (15 U.S.C. §7001) and UETA where adopted; confirm the county recorder and state allow e-signatures or e-notarization for the instrument you intend to file.
-
Is notarization always required?
Notarization is required in many states or by some county recorders; local practice varies. If a notary is required, use in-person or RON where the state permits remote notarization.
-
What if I need to correct a recorded Notice?
Prepare an amendment or corrective instrument and re-record according to county procedures; consult counsel for errors that affect lien rights or title.
-
Who should receive recorded copies?
Distribute the recorded copy to the general contractor, lender, major subcontractors, and suppliers who may need the information to preserve lien or bond claims.
-
Does filing a Notice change lien deadlines?
Filing may affect notice and lien timelines under state mechanic's lien statutes. Verify statutory claim deadlines with the applicable state statute or county clerk.
-
How long to retain the record?
Retain the recorded Notice and audit trail for the life of the project plus applicable retention periods such as IRS minimums and industry-specific rules (see retention timeline).