- North Dakota is an UNPAID BALANCE lien state.
- Lien rights are contingent on a contractor, subcontractor, materials supplier or any other lien claimant keeping an itemized account, separate and apart from all other items of account against the purchaser. Mixing this information with information on the construction, alteration repair or improvement of the property of different persons, except in cases of joint ownership or ownership in common, will extinguish the claimant's lien rights.
- Only companies that rent equipment according to a contract with the owner are entitled to lien rights. Rental companies that have contracts with other parties do not.
- Suppliers to suppliers” are entitled to lien rights in North Dakota.
- Lien Release: The release must be recorded either 1) within sixty (60) days after the lien is satisfied, or 2) within thirty (30) days of receipt of a written demand of the owner, whichever is shorter. Failure to do so will result in the lien holder’s liability to the owner for all damages sustained plus a one hundred dollars fine.
- Wind Turbines and facilities generating over ½ megawatt of electricity by wind energy do not fall under construction liens. They fall under Wind, Oil & Gas statutes. (see Oil & Gas Liens)
Mechanic’s Lien Speed Bumps
- Written notice that a lien will be claimed must be given to the owner of the real estate by certified mail at least ten days before the recording of the construction lien.
- Liens filed after 90 days are valid, except to the extent of payments made after 90 days and before the lien was filed.
Foreclosure Speed Bumps
- A lien holder must notify owners of their intent to file a lawsuit at least 10 days in advance of bringing any legal action, so long as they notify the owner via person service. Owners must be given at least 20 days notice if the lien holder notifies the owner of their intent to file suit via registered or certified mail.
Oil & Gas Lien Speed Bumps
- Such liens are created, perfected and enforced in the same manner as mechanic's liens, except that filing must be made within six months of performing labor or furnishing materials.
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