Construction Liens in Montana
Contents
Overview
Sources
Mont. Code Ann. §§ 71-3-521 et seq.
Authorized Claimants
A person who furnishes services or materials pursuant to a real estate improvement contract may claim a construction lien, only to the extent provided in this part, to secure the payment of the person's contract price. (MCA 71-3-523)
Lien Priority
(1) A construction lien arising under this part has priority over any other interest, lien, mortgage, or encumbrance that may attach to the building, structure, or improvement or on the real property on which the building, structure, or improvement is located and that is filed after the construction lien attaches. (2)?An interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches has priority over a construction lien arising under this part, except as provided in subsections (3) and (4). (3)?A construction lien has priority, to the extent of the value of the work or improvement that is severable, over an interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches. If the work or improvement may be removed without harm to the rest of the real property, the lienholder may have the value determined, the work or improvement sold separately on foreclosure, and the proceeds delivered to the lienholder to satisfy the construction lien. (4)?A construction lien has priority over any interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches if that interest, lien, mortgage, or encumbrance was taken to secure advances made for the purpose of paying for the particular real estate improvement to which the lien was attached. (MCA 71-3-542)
Notices and Registries
Filing Deadlines
A person's lien does not attach and may not be enforced unless, after entering into the contract under which the lien arises, the person has filed a lien not later than 90 days after: (a) the person's final furnishing of services or materials; or (b) the owner files a notice of completion pursuant to 71-3-533. (MCA 71-3-535)
Enforcement Deadlines
All actions under this part must be commenced within 2 years from the date of the filing of the lien. (MCA 71-3-562)
