Providing a Montana preliminary notice is a powerful tool to help ensure faster payment on a construction project. This notice serves as a formal notification, usually delivered to the property owner early in the project’s timeline. If you plan to send preliminary notices in Montana, accuracy is crucial. The state’s regulations, requirements, and exceptions can be intricate, so careful attention to detail is essential.
For those receiving these notices, understanding their purpose and knowing the appropriate steps to take is equally important. Montana’s preliminary notice process comes with many specific rules, making it a challenging area to navigate. Below is a guide to help you understand the key requirements and procedures for issuing preliminary notices in Montana.
Key Takeaways
- Accuracy is Crucial: Ensuring all information on the preliminary notice is correct is essential, as mistakes could jeopardize your ability to file a valid mechanics lien later.
- Deadlines Matter: Preliminary notices in Montana must be sent within specific deadlines—20 or 45 days—depending on the type of project and payment circumstances. Missing these deadlines can limit your ability to claim payment for labor or materials provided.
- Recording is Required: In Montana, preliminary notices must be filed with the county clerk and recorder’s office within 5 days after being sent. If payment is received, a release of the notice must also be recorded.
Do I Need to Send a Montana Preliminary Notice on Private Projects?
It depends on the situation. While sending a preliminary notice is a general requirement in Montana, certain lien claimants are exempt from this obligation. However, even if you fall into one of the exempt categories, it might still be a good idea to send a notice. Montana courts have yet to provide clear guidance on the interpretation and application of these exceptions, leaving room for uncertainty.
That said, the following parties are not obligated to provide preliminary notice in Montana:
- Those who supply labor or materials directly to the property owner at the owner’s request.
- Wage-earning laborers.
- Providers of labor or materials for residential projects housing five or more families.
- Suppliers of labor or materials for projects with a partially or fully commercial purpose.
When do I Need to Send a Montana Preliminary Notice on Private Projects?
Preliminary notice must be delivered to the property owner within 20 or 45 days from the initial provision of labor or materials to the project. The 20-day deadline applies to all projects except for non-owner-occupied residences where payments are managed by a lender holding a security interest in the property.
Additionally, the preliminary notice must also be recorded with the county clerk and recorder’s office in the county where the property is located. This filing must occur within 5 days after the notice has been served to the property owner.
What if I Send the Montana Preliminary Notice Late on Private Projects?
If the preliminary notice is submitted after the 20- or 45-day deadline, it doesn’t invalidate everything. Instead, the notice will only apply to the labor or materials provided within the 20 or 45 days before the notice was sent.
That said, when a preliminary notice is mandatory, it serves as a critical step for filing a valid mechanics lien. In such cases, the notice must be officially recorded with the county clerk and recorder where the property is situated before proceeding with the mechanics lien Montana filing.
How Should the Montana Preliminary Notice be Sent on Private Projects?
The preliminary notice must be delivered to the property owner either through personal service or via certified mail with a return receipt requested. If delivered in person, the property owner must provide a written acknowledgment confirming receipt.
Additionally, the notice must be recorded with the county clerk and recorder’s office in the jurisdiction where the property is located.
Do I Have to Send the Montana Preliminary Notice to Someone Other than the Owner?
Absolutely. The Montana preliminary notice must be recorded with the clerk and recorder in the county where the property is situated. Additionally, the lien claimant should ensure the notice is sent to all listed property owners on record to meet compliance requirements.
Is the Montana Preliminary Notice Requirement met when sent or delivered?
In Montana, a notice sent via certified mail with a return receipt requested is deemed delivered once it is mailed. For notices delivered in person, they are considered delivered when the property owner provides a signed acknowledgment of receipt.
Do I Need to Send a Montana Preliminary Notice on Public Projects?
It varies. Any party providing materials or supplies to a subcontractor—or anyone other than the general contractor or public entity—must issue a preliminary notice to the general contractor. This step is crucial to retain the right to file a bond claim in the event of non-payment.
When do I Need to Send a Montana Preliminary Notice on Public Projects?
To maintain the right to file a bond claim, subcontractors or suppliers at the second tier or lower must send the preliminary notice within 30 days from the initial provision of materials or supplies.
What if I Send the Montana Preliminary Notice Late on Public Projects?
Not sending the preliminary notice on time, when required, will result in the loss of the right to pursue a bond claim later.
How Should the Montana Preliminary Notice be Sent on Public Projects?
When necessary, the preliminary notice should be mailed via certified mail.
To Whom Must the Montana Preliminary Notice be Given?
The general contractor must be notified.
About Montana Preliminary Notices
Montana’s rules for preliminary notices are intricate and lack clear definitions in both statutes and court decisions. While preliminary notice is generally required in the state, the numerous exceptions significantly reduce the scope of the requirement. The following parties are specifically exempt from sending preliminary notice under Montana lien law:
- An original contractor providing services or materials directly to the owner upon the owner’s request.
- Wage laborers working for a contractor or subcontractor (construction employees).
- Any party supplying labor or materials to a residential property for five or more families, as part of a real estate improvement contract.
- Any party supplying labor or materials to a project with a commercial element, when the work is part of a real estate improvement contract. In some cases, a project that is primarily residential can be classified as commercial if certain work was completed before the residential portion (JTL Group, Inc. v. New Outlook, LLP, 223 P.3d 912, Mont., 2010).
When these exceptions are considered, it seems that the only parties required to send preliminary notice in Montana are those, excluding direct contractors or laborers, working on fully residential projects involving fewer than five family dwellings.
Despite these exceptions, it is still recommended to send a preliminary notice on most projects to avoid potential issues. Montana law provides minimal case law guidance on this subject, and other statutes in the state suggest that notices might be necessary in additional situations.
A major area of confusion regarding Montana’s preliminary notice rules is the calculation of deadlines. The law sets two different deadlines: 20 or 45 days from the first provision of labor or materials. The general deadline is 20 days, but the 45-day deadline applies under specific conditions, such as when the payment for the work comes from a lender with a security interest in the property, excluding contracts for owner-occupied residences.
In simpler terms, the 45-day deadline applies to non-owner-occupied residential projects that are funded by a lender with a security interest in the property. For owner-occupied residential projects or other residential projects not involving lender financing, the 20-day deadline applies.
Montana also has a unique rule that requires preliminary notices to be recorded with the county clerk and recorder’s office within five days after being sent. While this is not common in most states, Montana requires this recordation. Furthermore, if a participant is paid after filing a preliminary notice, a release of that notice must be recorded. This is unusual, as preliminary notices are not typically recorded and do not encumber property, but Montana mandates a release if payment is made for the materials or labor outlined in the Montana notice of intent to lien.
Finally, Montana law allows a subcontractor who has not been paid to request written notification from the property owner whenever the owner makes any further payments. However, the statute provides little detail on the timing, content, or delivery requirements for such notices.
How To Send Preliminary Notice In Montana?
Steps to Send a Preliminary Notice in Montana
1. Download the Preliminary Notice Form Start by downloading a free copy of the Montana preliminary notice form. Since Montana has specific formatting and language requirements for preliminary notices, the form provided is created by construction attorneys to ensure everything is correct.
2. Complete the Notice Form Carefully Accuracy is crucial! When filling out your preliminary notice, ensure all the information is precise. Any errors could affect your ability to file a lien if payment isn’t received. Double-check all details to ensure everything is accurate.
3. Serve the Notice The next step is to deliver your notice to the property owner. You can do this either through personal delivery or by certified mail with return receipt requested. If delivered in person, you must obtain a written acknowledgment of receipt from the property owner.
Additionally, don’t forget to file the notice with the county clerk’s office in the county where the property is located.
Get in Touch
Navigating the process of sending a preliminary notice in Montana is crucial for ensuring timely payment on construction projects. While the state has specific requirements, including strict deadlines and unique rules like recording the notice with the county clerk, understanding and following these steps carefully can protect your rights. Accuracy is key, as errors in the notice could affect your ability to file a valid mechanics lien. Whether you’re a contractor, subcontractor, or supplier, knowing when and how to send this notice, and understanding who is exempt, is essential for safeguarding your payment rights in Montana’s construction industry.c.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
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 preliminary notice and mechanics lien, give us a call or shoot us an email.
