If contractors and suppliers are not paid for their work on an Idaho construction project, they can file a mechanics lien to secure payment. A mechanics lien grants the unpaid party a security interest in the property as a legal measure to enforce payment.

The Idaho mechanics lien law is particularly important as it provides favorable conditions for securing payment and granting lien rights to a wide range of professionals providing labor or materials for real property or improvement.

At CRM Lien Services, we specialize in ensuring you get paid quickly and reliably. We can prepare and file mechanics liens for you, considering Idaho Mechanics Lien and state-specific rules and regulations.

This page details the rules, requirements, and deadlines to file a mechanics lien in Idaho.

Key Takeaways

• Broad Eligibility and Rights: The guide clarifies that a wide range of professionals, including contractors, subcontractors, suppliers, engineers, and surveyors, can file a mechanics lien in Idaho. This inclusivity ensures that most parties involved in the construction process can secure their right to payment.
• No Written Contract Required: Unlike many states, Idaho does not require a written contract for filing a mechanics lien. However, having written agreements is advisable to avoid disputes and provide clear evidence of the agreed-upon terms.
• Timely Filing and Preliminary Notices: It is crucial to file the mechanic’s lien within 90 days of the last provision of labor or materials. While preliminary notices are not mandatory for all projects, they are required for residential projects over $2,000. Sending a Notice of Intent to Lien can be a proactive measure to facilitate payment.

Who Is Eligible to File an Idaho Mechanics Lien Under Idaho Mechanics Lien Law?

Idaho offers extensive mechanics lien rights. State law stipulates that “every person who performs labor or provides materials for construction, alteration, or repair” of virtually any type of real property or improvement has the right to a mechanics lien. This also applies to those who lease materials or equipment. Additionally, professional engineers, licensed land surveyors, and individuals who provide on-site management or supervision are entitled to mechanic’s lien protection for performing any professional service whatsoever.

Is a Written Contract Necessary to File a Mechanics Lien in Idaho?

No, Idaho does not mandate that construction contracts be in writing for a mechanics lien to be filed. However, it is always advisable to have written agreements to prevent any misunderstandings or complications.

Can Unlicensed Contractors File a Mechanics Lien in Idaho?

Idaho’s laws regarding the licensing and registration of contractors and their eligibility for mechanics lien rights are complex.

In Idaho, general contractors and subcontractors are typically required to be licensed to file a valid mechanics lien, although some exceptions exist. If a contractor starts work unlicensed but obtains a license during the project, only the work performed after becoming licensed is eligible for lien protection.

The situation also varies when a subcontractor is licensed, but the general contractor is not. The subcontractor’s ability to file a valid mechanics lien depends on their awareness of the general contractor’s licensing status. If the subcontractor knows the general contractor is unlicensed, they cannot file a valid lien. Conversely, if the subcontractor is unaware, they may be entitled to file a lien. Suppliers, on the other hand, do not need a license unless they also install materials, effectively acting as subcontractors.

When Is the Deadline to File an Idaho Mechanics Lien?

Under Idaho law, anyone claiming a mechanics lien must file it within 90 days from the last date they provided labor or materials.

A lien’s expiration date can be extended by endorsing the payment or credit and the expiration date thereof on the lien record. This extension allows the lien’s duration to be extended to six months after the date of such payment or expiration of the extension.

Materials or labor that are “trivial in character” do not extend the filing period if the work is substantially completed. This usually includes punch list items. However, correcting defects as required by a public inspector does not fall into the “punch list” category. Such work is considered significant and can extend the deadline for filing a lien.

What Information Should Be Included in an Idaho Mechanics Lien Form?

An Idaho Claim of Lien is regulated under Idaho Code §45-507 and must include the following details to ensure a valid lien claim:

• Information of the claimant;

• Amount claimed, accounting for all appropriate credits and offsets;

• Information of the property owner;

• Information of the party who hired the claimant;

• Description of the property;

• Acknowledgment of receipt of residential disclosures, signed by the owner (if applicable).

Does an Idaho Lien Have Priority Over Pre-existing Mortgages or Other Construction Loans?

For a mechanics lien Idaho to be valid, it must include a description of the property sufficient for identification. However, it is highly recommended that a legal description of the property be included to ensure that the “sufficiency” requirement is definitively met.

Who Is Required to Send a Preliminary Notice in Idaho?

In Idaho, there is generally no requirement for advance notice before filing a mechanics lien or bond claim.

However, for residential projects, general contractors must provide homeowners or residential real property purchasers with a written Residential Disclosure Statement before signing a contract valued over $2,000.

Additionally, any party may opt to send a Notice of Intent to Lien as a proactive step.

Who Should I Send a Notice to on an Idaho Construction Project?

Idaho does not mandate a preliminary notice, allowing you to send it to any party you choose. It is generally advisable to at least notify the property owner. Sending this notice can enhance your chances of timely payment, making it prudent to send it to anyone involved in approving your payments.

5 Things to Know About Idaho Mechanics Lien

In Idaho, contractors and suppliers enjoy robust lien rights, which provide a crucial safety net when job payments are delayed. Filing a lien can expedite payment and offer protection, but it’s essential to adhere to specific requirements and rules.

Here are five key points you need to know about Idaho’s mechanics lien law:

1. Idaho’s Mechanics Lien Law Favors Contractors: Idaho’s mechanics lien law is considered lenient and contractor-friendly. Almost anyone in Idaho who provides labor or materials for any type of real property or improvement is eligible for mechanics lien rights. This includes material or equipment lessors, professional engineers, licensed land surveyors, and those providing on-site management or supervision. However, a valid license may be necessary for certain types of work.
2. Filing Deadline for Idaho Mechanics Liens: The deadline to file a mechanics lien in Idaho is 90 days from the last date labor or materials were furnished. If only trivial “punch-list” work is performed after substantial completion, the deadline is not extended. However, work required to correct a defect at the demand of a public inspector is not trivial and may extend this deadline. If a payment on account is made or an extension of credit is given with an expiration date endorsed on the record of the lien, then the lien may be extended for an additional six months after the date of such payment or expiration of the extension of credit.
3. Preliminary Notice Requirement for General Contractors: In Idaho, the general contractor may need to send notice only when working on a residential project with a contract over $2,000. In such cases, a Residential Disclosure Statement must be sent.
4. Reimbursement of Attorney’s Fees: While attorney’s fees and other consequential damages cannot be included in the lien amount in Idaho. They may be recoverable if a lien claimant needs to foreclose on the lien. This includes both reasonable attorney’s fees and filing costs.
5. Priority of Mechanics Lien Claims: In Idaho, there’s a hierarchy in mechanics lien claims. Laborers’ claims take the highest priority, followed by material suppliers, subcontractors, the prime contractor, and then engineers or surveyors.
6. Idaho Statutes and Mechanics Liens: Idaho statutes, specifically Idaho Code § 45-501 et. seq., govern the mechanics lien laws in the state. These statutes outline the rights and obligations of contractors, suppliers, and property owners, ensuring that lien claims are handled fairly and efficiently.
7. Lien Waivers in Residential Construction Projects: In residential construction projects, homeowners or residential real property purchasers can require general contractors to obtain lien waivers from any subcontractors providing services or materials. This requirement must be disclosed as part of the general contractor’s obligations, providing additional protection to property owners.

How to File a Mechanics Lien in Idaho?

Mechanic’s liens are a potent tool in Idaho for ensuring payment on construction projects. While highly effective at prompting payments, it’s crucial to remember the specific rules and requirements that govern their use.

Here are 5 essential things you need to know about Idaho’s mechanics lien law:

1. Idaho’s Contractor-Friendly Mechanics Lien Law: Idaho’s mechanics lien law is lenient and supports contractors and others in the construction industry. It extends mechanics lien rights to nearly anyone providing labor or materials for real property improvements, including material or equipment lessors, professional engineers, licensed land surveyors, and on-site managers. However, a valid license may be required for certain work types.
2. 90-Day Deadline for Filing: In Idaho, a mechanics lien must be filed within 90 days from the last date labor or materials were provided. This deadline is firm unless extended by additional non-trivial work required by a public inspector.
3. Preliminary Notice Requirements: General contractors working on residential projects over $2,000 must issue a Residential Disclosure Statement. This is the only scenario where a preliminary notice is required in Idaho.
4. Attorney’s Fees and Filing Costs May Be Recoverable: While attorney’s fees and other related costs cannot be included in the lien amount, they may be recoverable through foreclosure actions on the lien.
5. Priority of Claims Idaho prioritizes mechanics lien claims with laborers at the top, followed by material suppliers, subcontractors, prime contractors, and finally, engineers and surveyors.

Filing a Mechanics Lien in Idaho: A Step-by-Step Guide

Step 1. Prepare Your Idaho Mechanics Lien Form Ensure your lien form contains all required information and meets statutory signature and verification requirements. Using an inaccurate or incomplete form can render your lien invalid.

Filling Out Your Lien Form:

• Include your full name and address, and if representing a business, the registered.
• State the reasonable value of provided labor or materials, minus any credits, without exaggerating the amount.
• Ensure you have the correct owner information, which might require research if the property’s ownership is complex.
• Detail the hiring party’s name as stated in your contract.
• Provide a property description sufficient for identification, though a full legal description is ideal.
• Record the first and last dates you provided services or materials.
• Sign the form in the presence of a notary, ensuring it meets the verification requirements under Idaho law.

Step 2. File the Lien with the County Recorder. File the completed and notarized lien form at the county recorder’s office where the property is located. Check specific county requirements and ensure correct filing fees are included to avoid rejection.

Step 3. Deliver Your Lien to the Property Owner. Serve a true and correct copy of the filed lien on the property owner within 5 days of filing, using personal delivery or certified mail to the owner’s last known address. Proper service is crucial to maintain the validity of your lien.

By following these guidelines and understanding Idaho’s mechanics lien law, you can effectively secure payment for your services.

Get in Touch

The guide offers invaluable insights for contractors and suppliers on securing payments through mechanics liens in Idaho. This resource simplifies the complex lien filing process, ensuring compliance with state-specific regulations.

It emphasizes the importance of understanding the broad accessibility of lien rights, timely filings, licensing, and preliminary notice requirements. A crucial tool for construction professionals, this guide helps protect financial interests and maintain project integrity in Idaho.

At CRM Lien Services, we have been serving customers nationwide with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.

We would love to work with you and help you lower your risk and get paid fast!