- Oklahoma is a FULL PRICE lien state.
- Important Reminder: Claim amounts are required on all statutorily required NTOs.
- Oklahoma has enacted P3 Legislation.
- The claimant may request in writing that the original contractor provide the name and last-known address of the owner of the property. Failure of the original contractor to provide the claimant with the information within five days from receipt of the request shall render the pre-lien notice requirement to the owner of the property unenforceable.
- Public / Private Partnerships: Effective 7/1/12 the existing state bond threshold for public construction ($50,000) is extended to improvements to private building on public property. The law also is extended to private buildings for which public funds are used.
- Additional remedies may be available under the state’s Construction Trust Fund statutes.
Notice Speed Bumps
- In the case of Izza Robert Jones Jr., d/b/a Professional Plumbing Serv. v. Purcell Invest., LLC, 2010 OK CIV APP 15, — P.3d —-, 2009 WL 5862436 (Okla. Ct. Civ. App. 2009), the Oklahoma Court of Civil Appeals has clarified the OK notice deadline: “no later than 75 days after labor, services, material or equipment have last been supplied by the lien claimant.” Id. At ¶ 19
Mechanic’s Lien Speed Bumps
- Once a claimant files its Lien Statement with the County Clerk, the Clerk shall serve the property owner with notice of the lien claim.
- Return trips for punch list or repair work do not extend the filing period.
Oil and Gas Lien Speed Bumps
- A lien exists for anyone contracting to perform labor or services, or furnish material, machinery and oil well supplies used in the digging, drilling, torpedoing, operating, completing or repairing of any oil or gas well. The lien extends to the whole leasehold including the proceeds from sale of the oil or gas.
- The lien has priority as to all other encumbrances obtained subsequent to the commencement of the furnishing or putting up of the material or supplies.
- The lien will follow the property and be enforceable against the property wherever it may be found.
- Filing of a lien statement will constitute constructive notice of the lien to third parties. No lien on the proceeds from the sale of oil or gas produced shall be effective against any purchaser of such oil or gas until a copy of the statement of lien has been delivered to such purchaser by registered or certified mail.
- Notice of such lien is given and filed in same manner as mechanic's liens. Liens for oil and gas wells are limited to the leasehold estate; they do not affect any other interest in the real property involved.
- If the owner also owns a working interest in a well located thereon, the lien attaches to the working interest.
Trust Fund Speed Bumps
- Amounts received by a contractor or subcontractor are held as trust funds for the payment of lienable claims. The managing officers of a corporation and the managers of a limited liability company are personally liable for the proper application of trust funds. Knowing misapplication of trust funds are subject to civil and criminal penalties [Title 42 O.S. §§152, 153].
- The Statutes contain harsh penalties for any person breaching his or her trust duty. Any person who willfully and knowingly misapplies such trust funds is guilty of embezzlement, and may be punished by imprisonment for up to five (5) years and fines up to Ten Thousand Dollars ($10,000.00).
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