Liens filed on private property or on funds relating to a public project are known as North Dakota Mechanic’s Liens. When a North Dakota lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. When a North Dakota lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).
Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a North Dakota mechanics lien.
North Dakota has preliminary notice requirements. No claimant is entitled to a North Dakota mechanics lien unless it first serves written notice upon the owner, informing him that if payment is not made on the lien claimant’s account within 15 days of mailing, a North Dakota mechanics lien will be perfected. The notice must be recorded.
North Dakota mechanics’ liens on private property must be filed within 90 days of the last date the lienor provided materials or services to the Project. However, North Dakota lien rights are not lost if the time frame is not met except against bona fide purchasers for value.
For more information on liens, please visit LienItNow.