Menu
Home>Levelset Community>Legal Help>Can I file a mechanic's lien?

Can I file a mechanic's lien?

Idaho

If a property is owned by they city but being leased to a private entity who hires a General Contractor to perform work on the property. Can Material suppliers enforce a lien against that property?

1 reply

Jun 27, 2021

Persons or entities performing labor or supplying materials for the construction of tenant improvements may record a lien against the Lessee's leasehold interest (i.e., the lease the private entity has with the City) but you cannot file a lien against the real property owned by the City. While every lease has value (the longer the term the more valuable the lease), most leases also have provisions stating that the recordation of a lien during the term of the lease will constitute a material defect that allows the Lessor to terminate the lease. If the private entity leasing the property is solvent, it likes the location, and the lease terms are as good or better than current market rates, the Lessee may be better off paying off the lien than risking a default under the lease. You may be able to use this as leverage to get paid.  

0 people found this helpful
Helpful