35-27 Construction Lien

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CHAPTER 35-27CONSTRUCTION LIEN35-27-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Contract" means any agreement for improving real property, written or unwritten,<br>express or implied.2."Improve" means to build, erect, place, make, alter, remove, repair, or demolish any<br>improvement upon, connected with, or beneath the surface of any land, or excavate<br>any land, or furnish materials for any of such purposes, or dig or construct any<br>fences, wells, or drains upon such improvement, or perform any labor or services<br>upon such improvement; or perform any architectural services, construction staking,<br>engineering, land surveying, mapping, or soil testing upon or in connection with the<br>improvement; or perform any labor or services or furnish any materials in laying<br>upon the real estate or in the adjoining street or alley any pipes, wires, fences, curbs,<br>gutters, paving, sewer pipes or conduit, or sidewalks, or in grading, seeding,<br>sodding, or planting for landscaping purposes, or in equipping any such<br>improvement with fixtures or permanent apparatus.3."Improvement" means any building, structure, erection, construction, alteration,<br>repair, removal, demolition, excavation, landscaping, or any part thereof, existing,<br>built, erected, improved, placed, made, or done on real estate for its permanent<br>benefit.4."Materials" means materials or fixtures which are incorporated in the improvement<br>and those which become normal wastage in construction operations, custom or<br>specially fabricated materials for incorporation in the improvement, building<br>materials used for construction, but not remaining in the improvement, subject to<br>diminution by the salvage value of such materials, tools, appliances, or machinery,<br>excluding hand tools, used in the construction of the improvement to the extent of<br>the reasonable value for the period of actual use. The rental value shall not be<br>determinable by the contract for rental unless the owner is a party thereto.5."Owner" means the legal or equitable owner and also every person for whose<br>immediate use and benefit any building, erection, or improvement is made, having<br>the capacity to contract, including guardians of minors or other persons, and<br>including any agent, trustee, contractor, or subcontractor of such owner.6."Person" means every natural person, fiduciary, association, corporation, or limited<br>liability company.7."Subcontractor" means all persons contributing any skill, labor, or materials to the<br>improvement except such as have contracts therefor directly with the owner; and,<br>includes any person who enters into a contract with a subcontractor as above<br>defined, for the performance of any part of such subcontractor's contract.35-27-02. Persons entitled to construction lien - Notice. Any person that improvesreal estate, whether under contract with the owner of such real estate or under contract with any<br>agent, trustee, contractor, or subcontractor of the owner, has a lien upon the improvement and<br>upon the land on which the improvement is situated or to which the improvement may be<br>removed for the price or value of such contribution. Provided, however, that the amount of the<br>lien is only for the difference between the price paid by the owner or agent and the price or value<br>of the contribution. If the owner or agent has paid the full price or value of the contribution, no<br>lien is allowed. Provided further that if the owner or an agent of the owner has received a waiver<br>of lien signed by the person that improves the real estate, a lien is not allowed.Page No. 1Any person that extends credit or makes a contract with any agent, trustee, contractor, orsubcontractor of the owner for the improvement of real estate, upon demand, has the right to<br>request and secure evidence of the legal description of the real estate upon which the<br>improvement is located, including the name of the title owner of the real estate. Written notice<br>that a lien will be claimed must be given to the owner of the real estate by certified mail at least<br>ten days before the recording of the construction lien.35-27-03. When lien attaches. As against the owner of the land, subject to section35-27-02, such liens attach and take effect from the time the first item of material or labor is<br>furnished upon the premises for the beginning of the improvement.As against a bona fidepurchaser, mortgagee, or encumbrancer without notice, no lien may attach prior to the actual and<br>visible beginning of the improvement on the ground. Subject to the exception set forth in section<br>35-27-04, all such liens are preferred to any mortgage or other encumbrance not then of record,<br>unless the lienholder had actual notice thereof.35-27-04. When lien attaches - Exception - Filing. As against a mortgage given ingood faith for the purpose of providing funds for the payment of materials or labor for the<br>improvement, a lien may not be preferred even though such mortgage is recorded after the time<br>the first item of material or labor is furnished upon the premises, or after the actual visible<br>beginning of the improvement unless the person furnishing such labor, skill, or material for such<br>improvement, before the recording of such mortgage, files for record a construction lien.35-27-05. Notice of intention to claim lien - Recordation. Repealed by S.L. 2009,ch. 293,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t35/pdf/t35c27.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 35-27CONSTRUCTION LIEN35-27-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.\u0026quot;Contract\u0026quot; means any agreement for improving real property, written or unwritten,\u003cbr\u003eexpress or implied.2.\u0026quot;Improve\u0026quot; means to build, erect, place, make, alter, remove, repair, or demolish any\u003cbr\u003eimprovement upon, connected with, or beneath the surface of any land, or excavate\u003cbr\u003eany land, or furnish materials for any of such purposes, or dig or construct any\u003cbr\u003efences, wells, or drains upon such improvement, or perform any labor or services\u003cbr\u003eupon such improvement; or perform any architectural services, construction staking,\u003cbr\u003eengineering, land surveying, mapping, or soil testing upon or in connection with the\u003cbr\u003eimprovement; or perform any labor or services or furnish any materials in laying\u003cbr\u003eupon the real estate or in the adjoining street or alley any pipes, wires, fences, curbs,\u003cbr\u003egutters, paving, sewer pipes or conduit, or sidewalks, or in grading, seeding,\u003cbr\u003esodding, or planting for landscaping purposes, or in equipping any such\u003cbr\u003eimprovement with fixtures or permanent apparatus.3.\u0026quot;Improvement\u0026quot; means any building, structure, erection, construction, alteration,\u003cbr\u003erepair, removal, demolition, excavation, landscaping, or any part thereof, existing,\u003cbr\u003ebuilt, erected, improved, placed, made, or done on real estate for its permanent\u003cbr\u003ebenefit.4.\u0026quot;Materials\u0026quot; means materials or fixtures which are incorporated in the improvement\u003cbr\u003eand those which become normal wastage in construction operations, custom or\u003cbr\u003especially fabricated materials for incorporation in the improvement, building\u003cbr\u003ematerials used for construction, but not remaining in the improvement, subject to\u003cbr\u003ediminution by the salvage value of such materials, tools, appliances, or machinery,\u003cbr\u003eexcluding hand tools, used in the construction of the improvement to the extent of\u003cbr\u003ethe reasonable value for the period of actual use. The rental value shall not be\u003cbr\u003edeterminable by the contract for rental unless the owner is a party thereto.5.\u0026quot;Owner\u0026quot; means the legal or equitable owner and also every person for whose\u003cbr\u003eimmediate use and benefit any building, erection, or improvement is made, having\u003cbr\u003ethe capacity to contract, including guardians of minors or other persons, and\u003cbr\u003eincluding any agent, trustee, contractor, or subcontractor of such owner.6.\u0026quot;Person\u0026quot; means every natural person, fiduciary, association, corporation, or limited\u003cbr\u003eliability company.7.\u0026quot;Subcontractor\u0026quot; means all persons contributing any skill, labor, or materials to the\u003cbr\u003eimprovement except such as have contracts therefor directly with the owner; and,\u003cbr\u003eincludes any person who enters into a contract with a subcontractor as above\u003cbr\u003edefined, for the performance of any part of such subcontractor's contract.35-27-02. Persons entitled to construction lien - Notice. Any person that improvesreal estate, whether under contract with the owner of such real estate or under contract with any\u003cbr\u003eagent, trustee, contractor, or subcontractor of the owner, has a lien upon the improvement and\u003cbr\u003eupon the land on which the improvement is situated or to which the improvement may be\u003cbr\u003eremoved for the price or value of such contribution. Provided, however, that the amount of the\u003cbr\u003elien is only for the difference between the price paid by the owner or agent and the price or value\u003cbr\u003eof the contribution. If the owner or agent has paid the full price or value of the contribution, no\u003cbr\u003elien is allowed. Provided further that if the owner or an agent of the owner has received a waiver\u003cbr\u003eof lien signed by the person that improves the real estate, a lien is not allowed.Page No. 1Any person that extends credit or makes a contract with any agent, trustee, contractor, orsubcontractor of the owner for the improvement of real estate, upon demand, has the right to\u003cbr\u003erequest and secure evidence of the legal description of the real estate upon which the\u003cbr\u003eimprovement is located, including the name of the title owner of the real estate. Written notice\u003cbr\u003ethat a lien will be claimed must be given to the owner of the real estate by certified mail at least\u003cbr\u003eten days before the recording of the construction lien.35-27-03. When lien attaches. As against the owner of the land, subject to section35-27-02, such liens attach and take effect from the time the first item of material or labor is\u003cbr\u003efurnished upon the premises for the beginning of the improvement.As against a bona fidepurchaser, mortgagee, or encumbrancer without notice, no lien may attach prior to the actual and\u003cbr\u003evisible beginning of the improvement on the ground. Subject to the exception set forth in section\u003cbr\u003e35-27-04, all such liens are preferred to any mortgage or other encumbrance not then of record,\u003cbr\u003eunless the lienholder had actual notice thereof.35-27-04. When lien attaches - Exception - Filing. As against a mortgage given ingood faith for the purpose of providing funds for the payment of materials or labor for the\u003cbr\u003eimprovement, a lien may not be preferred even though such mortgage is recorded after the time\u003cbr\u003ethe first item of material or labor is furnished upon the premises, or after the actual visible\u003cbr\u003ebeginning of the improvement unless the person furnishing such labor, skill, or material for such\u003cbr\u003eimprovement, before the recording of such mortgage, files for record a construction lien.35-27-05. Notice of intention to claim lien - Recordation. Repealed by S.L. 2009,ch. 293,"])</script><script>self.__next_f.push([1,"3c:[\"$\",\"article\",null,{\"className\":\"article-content\",\"children\":[[\"$\",\"header\",null,{\"className\":\"article-header\",\"children\":[[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"className\":\"article-category\",\"children\":[\"North Dakota\",\" Statutes\"]}],[\"$\",\"h1\",null,{\"className\":\"article-title\",\"children\":\"35-27 Construction Lien\"}]]}],[\"$\",\"div\",null,{\"className\":\"article-body statute-content\",\"dangerouslySetInnerHTML\":{\"__html\":\"$3e\"}}],false]}]\n"])</script><script>self.__next_f.push([1,"3d:[\"$\",\"aside\",null,{\"className\":\"right-sidebar\",\"children\":[\"$\",\"div\",null,{\"className\":\"related-sidebar\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"⚖️\"}],\" State 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