Home>Levelset Community>Legal Help>Multiple Questions

Multiple Questions

1. Do we legally need to file a preliminary notice, to file an Intent to Lien, prior to filing a lien on a property? 2. What right do we have to lien a property without filing a Preliminary Notice? 4. How long are preliminary notices valid for? We found some information that indicated that the preliminary notices are only valid for one year, and that a continuation notice needed to be filed. 5. On the Levelset website, it mentions that the Montana preliminary notices ‘can be filed late’. What does this mean? We have the information from the website, but would like additional information. We do business in Montana, Wyoming, Idaho, Utah, and New York.

1 reply

Aug 28, 2020

Notice requirements change from state to state, so the answers may be different depending on whatever state the project is in. Additionally, notice requirements can change due to the role a particular participant has on the project. All of the information you have requested can be found in more detail on the state specific FAQ pages, available through the Levelset Learning Center. With respect to your numbered questions, so information I hope you find helpful is below: 1. Montana: Preliminary notice is required from project participants who do not contract directly with the property owner. Wyoming: Preliminary notice is required from all parties. Idaho: Idaho oes not generally require any party to provide a preliminary notice, but on residential projects of more than $2,000 the GC must provide a "Residential Disclosure Statement" Utah: Utah generally requires preliminary notice be provided by all project participants and filed through the state electronic notice database. New York: Does not require preliminary notices. 2. The right to lien a property when no preliminary notice was given at all depends on the preliminary notice requirements of the particular state. For states, like New York, that do not require preliminary notices, the right to lien is not impacted. For states that do require preliminary notice, the failure to provide any notice at all is generally fatal to any subsequent ability to file a lien. Occasionally, however, a preliminary notice may be given late and it will still have some effect. 3. Generally, only one preliminary notice is required on any particular project - provided the project is a single continuous project that remains ongoing. In some cases, like in AZ an additional preliminary notice may be required if the value of the labor or materials furnished exceeds the amount outlined in the initial notice by a particular amount. And,, in some cases, if a project is split into different sections or parts, a preliminary notice may be required or beneficial for each separate phase (especially if they are pursuant to different contracts). 4. In Montana a preliminary notice is required from claimants who dis not contract directly with the property owner. This notice is a strict prerequisite to filing a valid and enforceable mechanics lien, so if the notice is not given by a party from whom it is required, no lien is allowed. In order to protect the full value of the labor or materials furnished to the project, the notice must be provided within a certain time period (either 20 or 45 days after first furnishing labor or materials to the project, depending on the project type). However, if that deadline is missed and the notice is sent late, it is still effective to protect the ability to file a lien for the value of the labor or materials furnished to the project beginning on the day 20 or 45 days preceding the day on which the notice was given.

1 person found this helpful

Helpful