Difference between revisions of "Construction Liens in Idaho"

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==Sources==
 
==Sources==
  
[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/ Title 45, Chapter 5 Liens of Mechanics and Materialmen §§ 45-501 ''et seq.'']
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[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/ Idaho Code §§ 45-501 ''et seq.'']
  
 
==Authorized Claimants==
 
==Authorized Claimants==
Every person performing labor upon, or furnishing materials to be used in the construction, alteration or repair of any…(property)...has a lien upon the same for the work or labor done or professional services or materials furnished… (Id. Stat. 45-501)
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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:
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* Any person performing labor related to the construction;
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* Any person providing supplies or materials to be used in the construction;
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* Any person renting, leasing, or otherwise supplying of equipment for the construction; or
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* 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.
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[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-501/ Id. Stat. 45-501]
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==Lien Priority==
 
==Lien Priority==
The liens provided for in this chapter shall be on equal footing with those liens within the same class of liens, without reference to the date of the filing of the lien claim or claims and are preferred to any lien, mortgage or other encumbrance, which may have attached subsequent to the time when the building, improvement or structure was commenced, work done, equipment, materials or fixtures were rented or leased, or materials or professional services were commenced to be furnished; also to any lien, mortgage, or other encumbrance of which the lienholder had no notice... (Id. Stat. 45-506)
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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.
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[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-506/ Id. Stat. 45-506]
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==Notices and Registries==
 
==Notices and Registries==
==Filing Deadlines==
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The claim shall be filed within ninety (90) days after the completion of the labor or services, or furnishing of materials… (Id. Stat. 45-507 (2))
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Idaho statutes do not require notice of a lien other than the recording and service of the lien claim itself.
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==Perfecting a Lien==
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A construction lien shall be perfected not later than ninety (90) days after the completion of the labor or services, or furnishing of materials.
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To perfect a construction lien, a claim must be filed with the recording officer of the county in which the real property is located.
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The claim must contain:
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* A statement of demand;
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* The name of the owner, if known;
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* The name of the person by whom he/she was employed or to whom he/she furnished materials; and
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* A description of the property, sufficient for identification.
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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.
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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.
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[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-507/ Id. Stat. 45-507]
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==Enforcement Deadlines==
 
==Enforcement Deadlines==
No lien provided for in this chapter binds any building, mining claim, improvement or structure for a longer period than six (6) months after the claim has been filed, unless proceedings be commenced in a proper court within that time to enforce such lien... (Id. Stat. 45-510 (1))
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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.
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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.
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A final judgment on a lien will expire ten (10) years from the date the judgment becomes final.
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[https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-510/ Id. Stat. 45-510]
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==Releases==
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1. Bond
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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.  [https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-519/ Id. Stat. § 45-519]
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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.  [https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-520/ Id. Stat. § 45-520]
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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.  [https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-521/ Id. Stat. § 45-521]
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2. Release
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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.
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==Other==
 
==Other==
  

Latest revision as of 14:17, 9 October 2018

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.

Other

Cross-References