ID Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No act; search and examination of the title and a determination of insurability of title in accordance with sound title underwriting principles. IC. 41-2708. DOI – 60 years or as necessary
• Plant or other search restrictions -- Plant required for every county IC 41-2708
• Plant owner must counter-sign each policy. No countersignature required for direct issuance, IF insurer owners plant in that county – or for a county where no plant exists. IC 41-2702.
• Additional Requirements for REO Searches -- No
• Foreclosure Checklist -- No
• Special Searches Required (Code, HOA, Utilities)? --
  • See Child Support Judgment.
  • HOA’s – yes
  • Irrigation - yes
• Survey Requirements --

Tax Exemptions

Hospitals

If real property, not currently exempt from taxation, is being prepared for use as a hospital, the value of the bare land only shall be taxed while the property is being prepared for use as a hospital. If, as of the property tax assessment date, construction has not been abandoned, all improvements to and construction on the real property, while it is being prepared for use as a hospital, shall be exempt from taxation. Upon completion of construction and obtaining a certificate of occupancy, the entire real property shall be exempt from taxation subject to requirements in the statute.

In no event shall improvements to property that is being prepared for use as a hospital qualify for an exemption from property tax for more than three (3) consecutive tax years.

Id. Code 63-602D(3).

Construction Liens

Overview

Construction liens in Idaho are also referred to as "Mechanics'" and "Materialmen's" liens throughout the Idaho Statutes.

Sources

Idaho Code §§ 45-501 et seq.

Authorized Claimants

For the purposes of construction of any improvement upon real property at the instance of the property owner or construction agent of the owner, the following people may file a construction lien:

• Any person performing labor related to the construction;
• Any person providing supplies or materials to be used in the construction;
• Any person renting, leasing, or otherwise supplying of equipment for the construction; or
• Any professional engineer or licensed surveyor who establishes or marks the boundaries of, prepares maps, plans, or specifications for, or inspects, tests, or otherwise performs any other architectural or engineering services for the improvement of real property.

Id. Stat. 45-501

Lien Priority

A perfected claim of lien shall be prior to any lien, mortgage, deed of trust, or other encumbrance which attached to the land after or was unrecorded at the time of commencement of labor, professional services or the furnishing of materials or equipment.

Id. Stat. 45-506

Notices and Registries

Idaho statutes do not require notice of a lien other than the recording and service of the lien claim itself.

Perfecting a Lien

A construction lien shall be perfected not later than ninety (90) days after the completion of the labor or services, or furnishing of materials.

To perfect a construction lien, a claim must be filed with the recording officer of the county in which the real property is located.

The claim must contain:

• A statement of demand;
• The name of the owner, if known;
• The name of the person by whom he/she was employed or to whom he/she furnished materials; and
• A description of the property, sufficient for identification.

The claim must also include a verified oath by the claimant, or someone authorized to act on their behalf, to the truth and accuracy of the claim.

A copy of the claim shall be served on the owner no later than five (5) business days following the filing of the claim of lien.

Id. Stat. 45-507

Enforcement Deadlines

A construction lien encumbers real property for six (6) months after the claim of lien has been recorded with the county, unless a lawsuit is filed to enforce the lien within that time frame.

If the claim of lien lists a payment on account or extension of credit given with an expiration date, the lien will then encumber the subject real property for six (6) months after the date of such payment or expiration of the extension.

A final judgment on a lien will expire ten (10) years from the date the judgment becomes final.

Id. Stat. 45-510

Releases

1. Bond

A property owner may remove a perfected construction lien from the subject property by obtaining a surety bond. The bond must be 1.5 times the lien claim amount. Id. Stat. § 45-519

The debtor must file a petition with the district court where the property is located in order to release the lien via the bond. A hearing on the petition will be held at least five (5) days but not more than ten (10) days after the entry of the order granting the hearing. Service on the claimant at least two (2) days prior to the hearing is required. Id. Stat. § 45-520

Given the bond meets the statutory requirements, the court will enter an order releasing the construction lien. Upon entry of the order, the lien is released of record in its entirety and the real property is released from the encumbrances of the lien. There is no appeal from this order. Id. Stat. § 45-521

2. Release

A release of a construction lien may also be recorded with the county. It must reference the original construction lien recording document information and property that is subject to the lien. It must state the lien is paid in full and that the construction lien is released. It must also be signed by the original lien claimant.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 10 years from recording-may be renewed. IC 10-1110 (edit 8-24-18,RDW)
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens -- 5 years (may be continued) IC 45-1906
• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- Lien must be filed w/i 90 days following completion of improvements-lien good for 6 months unleass enforcement proceedings commenced I.S. 45-507 &45-510
• Financing Statements -- 5 years IC 28-9-515
• Mortgages -- 5 years from maturity date IC 5-214A
• HOA Liens -- 1 year (can be extended 1 additional year) IC 45-810
• Condominium assessments --
• Child Support Liens -- See (a) below
• Irrigation Liens
• Property Tax Liens
• Adverse Possession --
  • 3 years IC 43-2205
  • Continues until Paid IC 63-206
  • 20 years continuous use IC 5-210

Odd Stuff

• Child Support Liens - Filed in Boise at the State level – have to search Boise State Records. No lien shall continue more than 5 years after date of majority or death of child. Valid reason NOT to show: Decree (Clerk will not certify) from the Clerk of the Court showing paid. Child Support payments are collected by the Clerk of the Court. If more than one child, lien continues until date of majority of youngest child.
• Determination of Insurability: Prohibited Risks – Rebates
• Title 41-Chapter 27 (41-2708 (4)) – Forwarding Fees – No person forwarding or directing title insurance business to a title insurer or title insurance agent in Idaho, nor such insurer or agent receiving such business, shall give or receive anything of value, or a portion of the premium, therefor.
• Minerals: Should include a mineral exception as a standard exception.
• The Idaho Rate Manual establishes a charge for the cancellation of a commitment at 20% of the basic schedule of charges if cancelled prior to closing and at 80% of the basic schedule of charges if cancelled after closing.
• A title insurer or agent may reconvey a deed of trust if the obligation secured by the deed of trust has been fully paid by the title insurer or agent or if the title insurer or agent has satisfactory evidence of the full payment of the obligation secured by the deed of trust. See Idaho Stat. 45-1202. Process requires notice of intent to release or reconvey with copy of reconveyance. Idaho Stat. 45-1203. 60 day objection period after mailing. Idaho Stat. 45-1204.
• Usury coverage is not available in Idaho.