Notice of the Right to Claim a Lien

NOTICE OF THE RIGHT TO CLAIM A LIEN: Many Montana Contractors believe that they have 90 days from the date that they stop working to claim a lien. While this may be true in some cases in many cases this is not true.

Montana Law requires with few exceptions that unless you have contracted directly and worked directly for the owners of the real property and building project that a NOTICE OF THE RIGHT TO CLAIM A LIEN be filed.Sub-Contractors almost always have to file a notice of right to claim a lien and should make it a regular practice.

Here is a standard letter that I recommend: Dear Homeowner or Landowner: I am enclosing a Notice of the Right to Claim a Lien. Please be advised that This is not a lien.  It simply protects our right to file a lien within 90 days after completing our work in the event that we are not paid. As this is an important project to you and us feel that all paperwork required by Montana Legal requirements are filed we are filing this document for both of our protection. This provides you with notice that we are on the project so that you can ensure that payment is made for our service through the general through a dual check or other protective measure. This protects you from having to pay twice for contractor-services. Please note that as soon as our work is completed and payment is made in full we will immediately withdrawal the Notice. We look forward to working on your project and working hard for you. Once again this is not a lien and does not in any manner negatively reflect upon you. We thank you for your understanding of these formalities.

This document must be filed by sub-contractors or any other contractor who is not working directly under written contract for the landowner whether residential or commercial.

TYPE IN FORM 2 INSTRUCTIONS THEN TYPE IN FORM: NOTICE OF THE RIGHT TO CLAIM A LIEN INSTRUCTIONS
In the first space the name of the legal owner of the land must be typed in. This could be a person or it could be a Company. You can get this information with a tax notice. Take the assessors number to the Clerk and Recorder Plat Room and obtain a copy of the last recorded document. In the alternative obtain the legal description from a title report or other document from the lender. It may also be obtained from a Certificate of Survey but it is very important that you obtain the name of the landowner and the legal description.

First space: include name of legal owner of landowner.

Second Space: Date of Mailing. This notice must be filed no later than 20 days after the date on which the services or materials are fist furnished to the contracting owner. If notice is not given within this period, a lien is enforceable only for the services or materials furnished within the 20-days period before the date on which notice is given.Sec. 71-3-531 MCA.

Fourth space: work Firth Space: describe services or materials Sixth Space Ordered by: name of contractor or general contractor. The property is located at: Insert Street address and legal address.

Seventh space: actually 3 spaces fill out your Name; Address; and Telephone Number.

If you have any complications or questions feel free to contact our office. Please note that the notice must be provided to the contracting owner personally or by certified mail.

Within 5 days of mailing or giving the notice to the Contracting Owner then the Notice must be filed with the Clerk and Recorder for the purpose of public notice in the County where the land is located. The Notice lapses in 1 year prior to the 1 year period a continuation statement must be filed.

CONSTRUCTION LIEN: The problem with construction liens is that while the form itself may not be overly complicated the procedure, manner and timing of when and how it's filed is very complicated. We feel that Montana Construction Liens should be filed by a Montana Attorney familiar with Construction Law. As it is not an expensive procedure we encourage you to contact our office or another attorneys' office to prepare and file the lien. A lien must be filed within 90 days of completion of services or provision of material. Unless it is a commercial project or the work is done directly for the contracting owner by you then you will not be able to file a valid lien unless the Notice of Right to Claim a Lien has been filed this is particularly true for sub-contractors. When in doubt the Notice of Right to Claim a Lien should be filed which is one of the reasons we provide this form free to the public.

The following form is in .pdf format. Click on the blank fields in the document to input text into the field. When you are finished, print the document.

Notice of the Right to Claim a Lien PDF