How many days does a contractor have to file to release a lien after being paid to avoid penalties?

A contractor is required to file a release of lien within 20 days after receiving payment to avoid incurring penalties. This timeframe is specified under Arizona law to ensure that contractors fulfill their obligations and that property owners are protected from having unresolved liens against their property.

If a contractor fails to file the release within this window, they may face penalties, which can include potential legal complications or additional financial repercussions. This 20-day period is critical for maintaining a clear title on the property and is intended to help facilitate smooth transactions in the construction and contracting industry.

The other options do not align with the established guidelines in Arizona, making them incorrect. Hence, understanding this specific timeframe is essential for contractors to comply with the law and avoid penalties, safeguarding their standing and that of their clients.