Tuesday, May 25, 2010

Idaho Mechanics Lien Law

In Idaho, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When an Idaho mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Idaho mechanics lien. Suppliers to suppliers cannot file Idaho construction lien claims.  Keep in mind that to file a construction lien, one must first have provided materials or services for the improvement of property (real estate).

In many states, pre-lien or preliminary notices are required to be filed prior to the filing of a mechanics lien claim.  Idaho does not have such a requirement.

Even though a preliminary notice is not required in Idaho, the State is still very strict on the time in which the mechanics lien must be filed.  The filing of an Idaho construction lien must be completed within ninety days after the completion of the labor or services or furnishing of materials, or the cessation of the labor, services or furnishing of materials for any cause.  Failure to file the mechanics lien within that period of time may make it invalid.

Idaho also does not have a requirement that a written contract for the work exist in order to validate the filing of a lien.  In Idaho, oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing a construction lien.

Filing an Idaho mechanics lien claim is a great way to protect your accounts receivables because on a private project, the Idaho mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.

In addition to Idaho mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing an Idaho Construction Lien, an Idaho Mechanics Lien, an Idaho Stop Notice, an Idaho Bond Claim, or an Idaho pre-lien notice, please visit http://lienitnow.com/idaho-faq.asp.

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