If you are having trouble collecting payment on a recent construction project performed in the state of Minnesota, you may be thinking about filing a Mechanics Lien Statement. While filing a Mechanics Lien Statement can certainly expedite the collection process and move those who owe you money into payment, you need to be aware that the process for filing a Mechanics Lien Statement in the state of Minnesota is governed by state statute and must be administered with precision. Minnesota, not unlike many other states, has strict requirements when it comes to defining who can and cannot file a Mechanics Lien Statement and how it must be filed. Failure to comply with just one part of the statute could result in the loss of your Lien Rights.

While we cannot share all of our experiences in one article, we can provide you with a summary of key points to help you on your journey to collecting payment from your Minnesota construction projects. Here are six things you should know before filing a Minnesota Mechanics Lien Statement:

1. Minnesota Statute allows 120 days from the last date you provided labor and/or materials to the project to file a Minnesota Mechanics Lien Notice. The deadline to File, Serve and Record a Mechanics Lien Statement in Minnesota is hard and fast; miss it, and you miss your chance to use the most effective tool for collecting construction related accounts receivables in Minnesota.
2. Unless you are a supplier to a supplier, you are granted Mechanics Lien Rights in the state of Minnesota. Any party who furnishes labor, materials or services at the request of the Real Property Owner, Owner’s Agent, General Contractor, or Sub-Contractor on a construction projects has Mechanics Lien Rights in the state of Minnesota. The Minnesota Lien Law also allows suppliers to file a Mechanics Lien Statement even if their supplies are not incorporated into the project as long as they were provided in good faith. Suppliers to suppliers, however, are not protected under Minnesota’s Lien Law.
3. General Contractors are required to provide the Real Property Owner with a Contractor’s Pre-Lien Notice. A Minnesota Contractor’s Pre-Lien Notice must be sent via certified mail, or personally delivered, within 10 days after the work is agreed upon by the General Contractor and Property Owner.
4. If you are not in direct contract with the Property Owner, you are required to file a Mechanics Lien Claimant’s Notice within 45 days of first furnishing labor and/or materials to the project. Failure to file and serve this notice to the Property Owner will result in the forfeit of your Lien Rights. This is quite similar to the Preliminary Notice or Notice of Furnishings used in other nearby states
5. Unlike most states, Minnesota does allow you to claim interest in the total amount of your Mechanics Lien Statement. You cannot, however, include attorney’s fees, “soft costs”, surety bond premiums, or the costs of extra materials unauthorized by the Property Owner.
6. In some cases, Minnesota Mechanics Lien Statements can take priority over a mortgage. Because Mechanics Lien Statements relate back to the start of work (legally defined as the first date of actual physical improvement on the Property), they can take priority over a mortgage if the first materials or labor were furnished prior to the date the mortgage was originally filed.

­­­­­­­­­­­­­These provisions are just a few included in Minnesota’s Lien Law. To skip the hassle of digesting the Minnesota Lien Law Statute, hire an experienced Preliminary Notice and Mechanics Lien Service to prepare and serve your Contractor’s Pre-Lien Notice, Mechanics Lien Claimant’s Notice, and Mechanics Lien Statement. Using a professional service will ensure that the proper research is performed and your notices are valid and will meet the test of the Minnesota Mechanics Lien Laws.

CRM Lien Services will thoroughly research and verify all of the information included in your Contractor’s Pre-Lien Notice, Mechanics Lien Claimant’s Notice, and Mechanics Lien Statement so your Lien Rights are fully protected. CRM keeps current with the changes to the Minnesota Lien Law so your notices are prepared according to the latest statutes.

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