Frequently Asked Questions - South Dakota Mechanics Lien
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What is a South Dakota mechanics' lien claim?
In South Dakota, liens filed on private property or funds relating to a public project are known mechanics' liens . When a South Dakota mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of the property. When a South Dakota mechanics lien is filed with regard to work performed on a public or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The primary reason for this is you cannot force the sale of publicly owned property. South Dakota construction liens can be filed for any alteration, repair, erection, or removal of any building, bridge or other structure, etc. Liens may also be filed upon any mine or mining claim, oil or gas well or spring construction project.
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Who can file a South Dakota mechanics' lien Claim?
Contractors, subcontractors, and suppliers who provide work, materials, or services on construction projects in South Dakota have mechanics' lien rights.
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Are pre-lien notices for a South Dakota mechanics' lien Claim required?
South Dakota provides for sending prelien notices at the beginning of the project and when payment is not being made in a timely manner. A Notice of Furnishing Labor or Materials is sent at the commencement of work in order to secure lien rights. A Sworn Account and Notice of Claim is sent when payment is overdue, and obligates the prime contractor to respond within 15 days to dispute the claim, after which, it is presumed that there is no dispute and the owner may pay the amount of the claim to the lien claimant and deduct such monies from the money owed to the contractor. It is recommended that a Notice of Intent to Lien be sent prior to filing a Mechanic's lien claim in order to provide the owner with warning and allow time to resolve the dispute.
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When should a South Dakota mechanics' lien Claim be filed?
A South Dakota construction lien may be filed within 120 days from the last work or furnishing of the last item or services, material, or machinery to the project.
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How much does it cost to file a South Dakota mechanics' lien Claim?
LienItNow.com prepares, files and serves South Dakota mechanics' liens for a fee of $290.00.
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Do I need a written contract to file a South Dakota mechanics lien?
No. Oral contracts are sufficient. However, if there is a contract, the South Dakota mechanics' lien secures the contract price for the improvement. If there is no contract, any filed construction lien would only cure the reasonable value of the work furnished or performed.
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How does filing a South Dakota mechanics' lien Claim help me get my money?
On a private project, the South Dakota mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the construction lien.
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What is a South Dakota Stop Notice and why should it be filed
LienItNow.com prepares and serves South Dakota Stop Notices for a fee of $125.00. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic's 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 has notice that it should 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.
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What is a South Dakota Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves South Dakota Amendments to mechanics' lien Claims for a fee of $250.00. 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.
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When should a South Dakota Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves South Dakota Discharges of mechanics' lien Claims for a fee of $85.00. 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.
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How much does it cost to file a South Dakota Extension of a mechanics' lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims for a fee of $85.00. All lien claims expire after a certain period of time, and filing an extension of the mechanics' lien claim prolongs the expiration date. South Dakota law, however, does not permit an extension of mechanics' lien claims.
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Can I file a Bond Claim on a South Dakota Project?
LienItNow.com prepares, files and serves South Dakota Bond Claims for a fee of $275.00. Bond claims can only be filed on a project where the owner, contractor or subcontractor has 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 are 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.
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Do I need to file a Pre-Notice to make a claim against a South Dakota payment bond?
LienItNow.com prepares, files and serves South Dakota 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.
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