What a Driveway Stop Notice Means for Homeowners
A Driveway Stop Notice is a powerful legal document that can bring your driveway project to an abrupt halt. Contractors, subcontractors, and suppliers file it when they haven’t been paid. Once recorded, it “stops” further payments from you (the property owner) to the general contractor until the debt is resolved.
Understanding how this notice works—and how to avoid it—protects your budget, timeline, and property title. Below, we break down everything homeowners need to know, from warning signs to step-by-step prevention.
Why Subcontractors File a Driveway Stop Notice
Most driveway jobs involve layers of specialists: demolition crews, gravel suppliers, asphalt finishers, stamping crews, and seal-coat vendors. If your general contractor withholds payment, any of these parties can file a stop notice—even if you already paid the GC in full.
Typical Triggers
- General contractor delays or withholds progress payments
- Disputed change-order amounts
- Short-pay on material invoices (concrete, rebar, sealant)
- GC’s cash-flow problems on other projects
Your Legal Role
State statutes treat you as the “funding source.” A properly filed stop notice forces your lender (or you, if cash-paying) to hold the remaining job funds until the claimant is satisfied or releases the notice. Ignore it and you could face a lien on your home.
Driveway Stop Notice Timeline: From Pour to Pause
Knowing the clock helps you stay ahead of claims.
- Day 0: Work completed or materials delivered
- Day 1–20: Subcontractor can file stop notice (varies by state)
- Day 5–30: Notice served on you and/or lender
- Day 10–45: Funds must be withheld (automatic “stop”)
- Day 90: Claimant must initiate foreclosure suit or notice expires
Mark your calendar the day each crew finishes. Ask for lien releases before you release the next draw.
How to Prevent a Driveway Stop Notice on Your Project
1. Vet the General Contractor
- Request proof of current contractor’s license and bonding
- Check CSLB or state website for complaints
- Call past driveway clients—ask if any liens or stop notices appeared
2. Use a Written Payment Schedule
Tie every payout to a verifiable milestone: “After 4-inch base compacted and inspected.” Never pay 50 % up front; 10–15 % mobilization is standard.
3. Collect Conditional Lien Releases
Before each draw, demand signed conditional lien releases from every subcontractor and supplier. They become unconditional when the check clears, protecting you from double payment.
4. Get a Joint Check Agreement
When the concrete truck arrives, write one check payable jointly to your GC and the ready-mix supplier. Both parties must endorse, ensuring the supplier gets paid.
5. Keep a Job Log
Photograph each crew, note license plates, and save business cards. If a mystery subcontractor later files, you’ll have evidence to dispute.
What to Do If You Receive a Driveway Stop Notice
Stay calm—act fast. Follow these steps within 48 hours:
- Verify: Match the claimant’s name to invoices you’ve seen. Typos or wrong address invalidate some notices.
- Notify your lender: They’ll freeze remaining funds; ask for written confirmation.
- Demand proof from your GC: Ask for paid receipts or a release from the claimant.
- Negotiate: Offer to pay the subcontractor directly in exchange for a full release and lien waiver.
- Escrow the funds: If amounts are disputed, deposit the contested sum into a neutral escrow until resolved.
Never ignore the notice—paying the GC again does not remove your obligation to the claimant.
Hidden Costs Homeowners Overlook
Interest & Attorney Fees
Many states allow the claimant to recover 12–18 % interest plus legal fees if you release frozen funds too early.
Project Delays
Concrete curing schedules are unforgiving. A two-week payment freeze can push you into rainy season, requiring costly re-scheduling or winterization.
Title Problems
An unresolved notice can cloud title, blocking refinance or sale. Budget $500–$2,000 for a bond to release the cloud quickly.
State-by-State Quick Glance
Rules vary—here are the key differences homeowners ask about:
- California: 20-day preliminary notice required; stop notice effective against construction funds, not property itself.
- Texas: Must file by 15th day of 3rd month after work; residential homestead driveways need extra sworn statements.
- Florida: “Notice to Owner” due 45 days after first work; stop notice called “Notice of Non-Payment.”
- Arizona: 120-day window to record lien, but 10-day stop notice freeze applies immediately to lender.
Always confirm with a local construction attorney—the above is a snapshot, not legal advice.
Homeowner’s Driveway Stop Notice Prevention Checklist
Print and tape to your fridge:
- ☐ Contract lists every subcontractor & supplier
- ☐ Payment schedule tied to milestones
- ☐ Conditional lien releases collected before every draw
- ☐ Joint checks for large material deliveries
- ☐ Final unconditional releases before last 10 % payment
- ☐ Job log with photos and business cards
- ☐ Scanned copies of all notices and releases saved to cloud
Frequently Asked Questions
Yes. A stop notice targets the undisbursed construction funds, not your prior payments. If money is still in your loan account—or you haven’t yet paid the GC’s final draw—the claimant can freeze those amounts. Always collect final releases before cutting the last check.
A stop notice “ties up” money but does not by itself attach to your property. A mechanics lien, however, is a recorded claim against your home title. Claimants often file both to double their leverage. Resolving payment usually requires releasing both documents.
The lender (or you, if cash-paying) becomes personally liable to the claimant for the amount of funds they wrongly release. In practice, reputable lenders always freeze the money, which is why projects stall until disputes settle.
Most states set no minimum; even a $500 gravel delivery qualifies. Because legal fees can eclipse small claims, homeowners often negotiate immediate cash settlements to keep the job moving.