For the state of Idaho, is a notary section required on Pay Applications and Lien Releases? If not, are there any issues/liabilities with removing the notary section from the pay apps and lien releases?
Aug 27, 2019
There is no statutory requirement that Idaho lien waivers must be notarized. Pay applications are creations of contract and of requirements made by the highest tiers of the project - so, statutorily, there's no requirement that a pay app be notarized, either.
However, if a customer or if some higher-up on a project requires that waivers or pay apps be notarized, then a party submitting a payment application on the job might not be able to obtain payment unless they abide by the requirements created by those above them on the payment chain. So, while there may be no regulatory requirement that these documents be notarized, notarization may effectively still be "required" if the contract in place requires that these documents be notarized or if the higher-tiered parties demand notarization.
As for liability - generally, liability shouldn't arise simply because a notary block is removed from some document which doesn't have to be notarized (at least pursuant to statute). Though, it would not be abnormal to hear that a customer, owner, or lender would refuse to release payment if they're insistent that certain docs be notarized.
Here are some additional resources I think might be helpful here:
(1) Idaho Lien Waivers Guide and FAQs(2) Guide to Construction Payment Applications