Minnesota Lien Frequently Asked Questions

What is a Mechanics’ Lien Claim?

Liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. There are no lien rights on public projects in the State of Minnesota.

Who can file a Mechanics’ Lien Claim?

Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a lien.

Are pre-notices for a Mechanics’ Lien Claim required?

Exceptions:

1. If the project is non-residential, contains more than 4 residential units, or is mixed use.
2. The property contains, or is adding, more than 5,000 square feet of usable space
3. The notice required is not required to be given in connection with an improvement to real property which is not in agricultural use and which is wholly or partially nonresidential in use if the work or improvement:
   (a) is to provide or add more than 5,000 total usable square feet of floor space; or
   (b) is an improvement to real property where the existing property contains more than
   5,000 total usable square feet of floor space; or
   (c) is an improvement to real property which contains more than 5,000 square feet and does not involve the construction of a new building or an addition to or the improvement of an existing building.

General Contractor’s Notice – General Contractors must include the general contractor’s notice in the contract, and the owner must be given a copy of the written contract. If there is not a written contract, the pre-lien notice must be prepared separately and delivered personally or by certified mail to the owner within 10 days after the work is agreed upon.

Subcontractors and Suppliers Notice must give the owner a detailed pre-lien notice. The notice must be served personally or by certified mail, within 45 days after the claimant’s first item of labor or materials is furnished.

Can you file a Mechanics’ Lien Claim without a pre-notice?

Contractors cannot. Subcontractors are given some leniency when they have failed to strictly comply.

When should a Mechanics’ Lien Claim be filed?

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Minnesota Mechanics’ Liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $250.00.

Do I need a written contract?

No. Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are liening.

How does filing a Mechanics’ Lien Claim help me get my money?

On a private project, the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien. On a public project, the filing of a lien freezes the fund of money that has been allocated for the public project, thus reducing or sometimes even stopping the flow of payments to the offending contractor until the lienor is paid.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Minnesota Stop Notices for a fee of $100.00.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a construction lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company is requested to withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Minnesota Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the claim changes. Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work. Amendments are not permitted in some States.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Minnesota Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Minnesota law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Minnesota Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor have obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work. Bond claims as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Minnesota Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.