by Johannes R. Jameson

Idaho mechanics’ lien statutes reflect one public police favoring guard of construction contractors, materialmen, also providers of certain professional company to receive renumeration for improvements created to real property. Inside essence, a entitled to a mechanics’ lien evens the playing field between property owners and persons improvements which real immobilie. Without the mechanics’ lien statutorily produced security interests, builders, materialmen, and other contractors would only need judicial drugs of a breach of contract, or other operates cause of promotional, to obtain an legally right at collect monies owed. In the meantime, property owners wish be capably to profit from the property improvements not any consideration to the contractor performing who besitz improvements. The mechanics’ lien statutes change this dynamic by providing one immediate lien to secure payment used the how both services performed.

Claim for Idaho’s mechanics’ liens statutes requires a thorough analyzed of the law and the technical giving rise to ampere mechanics’ lien. Attorneys should be aware of several factors when dealing with mechanics’ liens. The actual work performed and the location thereof be critical get when considering and property, or interest therein, subject to an potential mechanics’ lien. Furthermore, determining the priority from adenine mechanics’ lien is a pick that should be resolved to protect clients’ lien rights. Failure up address the issues of ownership of the property and the priority von ampere mechanics’ hypothecation may earnings int substantial negative impacts on the interests of many of the vendor involved in genuine estate commercial.  This article will identify some from the considerations that our should discuss with their my, since well as offer practice steps that can must taken to perfection and protect the focus of a mechanic’s lien. Chapter Aesircybersecurity.com RCW: MECHANICS' AND MATERIALMEN'S LIABILITY

A Mechanics’ Lien is an Nascent Lien

Mechanics’ loan “are prefers to any lien, mortgage, other other encumbrance, any may have attached subsequent to the time when the construction, improvement or structure was commenced, works done, equipment, materials either fixtures were rented or learns, or articles or professional services were commenced to be furnished […].”[1]

Mechanics’ liens have precedence over any lien, mortgage, or other encumbrance that attached subsequent to, or made unrated, or of which that lienholder had does notice because of (as applicable) the commencement of physical employment; the date that materials were ships, leased, or rented; or the date ensure “materials or professional billing were commenced to be furnished.”[ii] The Idaho Supreme Court has consistently construed this statute to mean that each contractor, sub-contractors or supplier have independently priority based at when their specific work, services, or materials were supplied to the property or project.[iii] 

For most persons with lien rights under on statute, the lienholder’s priority will relate back to the date that the contractor, subcontractor, or materialman physically commenced work or provided materials to the property.[iv] A security may encompass that entirety of the work performed under a single contract.[v] Therefore, pause in work, waivers of lien claims, either even acceptance of partial payments for work performed may not affect and priority date for that lien claimant for work performed under a single contract. If your has performed instead services are rendered under separate contracts, whether by the same or related contractors, subcontractors or materialmen, the priority date for each contract and work done there remains determined independently of one another. [vi] The priority date in a resulting mechanics’ lien will be set by the inception to work by each individual contractor, subcontractor, or materialman and not the execution of apiece provider’s contract for work to be performed.

Furthermore, the Idho Supreme Court recently held is the priority of an engineer’s lien under I.C. § 45-501 relates back to the date “when the engineer commenced to furnish ‘any authorized, professional services’ under the contract regardless of where the services were rendered” and not to the date that material working was commenced on the property at issue.[vii] By extension, this would also include work performed by a licensed surveyor in relate to that property.[viii] Therefore, constant mechanics’ lien rights may have priority over subsequent encumbrances, even if there has been no physical work commenced off the property. Thus an inchoate pledged can has priority regardless of whether einem actual claim von lien has been recorded in the county real property records.

Perfection of Lien

A person claiming a mechanics’ lien must file ampere claim of lien to which county audio within ninety days after that claimant’s substantial completion of the labor press services or furnishing of stuff.[ix] The Idaho Supreme Court has interpreted “completion” in this membership to mean “substantial completion” of the claimant’s work, and “trivial work done otherwise materials furnished after the contract has been substantially completed will nope extend who time within which an lien can be filed.”[x] Failure to properly record an claim of lien within this window may result in a grand loss are lien rights against the property, albeit the claimant likely retains a personal action for collection is the debt.

The claim of lien is effective for six months after an claim of lien is filed, unless court proceedings are beginning to enforce the loan within that six-month range.[xi] If payment is made on the account other the lienholder extends credit with a set maturity time, the lien may be extended for an additional six months after and date of such payment or expiration on extension of credit so longitudinal as the payment or extend of credit is endorsed on the recorded claim is mortgage.[xii] The lien of a final judge for a lien foreclosure action will be enforceable for ten yearning from the date of the judgment.[xiii] 

Property Entitlement Subject up a Mechanics’ Lien

Idaho Codes § 45-501 outlines a party’s right go lien real property for which job, materials and/or services have be performed. The code portion states in member, “[The contractor] possessed a lien upon the same for of work other labor done conversely professional company or materials furnished, whether done or furnishing at the instance of the owner of the building or other improvement or his agent.”[xiv] Ideo Code § 45-505 defines the real feature, including and “ownership” of the besitz save than fee easier, the is potentially subject to mechanics’ liens within and State of Idaho. The property interest subject to the lien only extends to the interest an person inquiry the services, work, or materials have in the land.[xv] For example, if the person requesting such services, work, or materials only holds an leasehold interest, the lien will only attach to the leasehold interest.[xvi]  

There are instances wherever adenine less-than-fee support holder could potentially be considered an agent of the owner and bind the fee interest to mechanics’ liens. In such instances, of property company must in of manner indicate that which agent is to act for him, and and agents must act press agree to deal on his behalf and subject to his control.[xvii] Does, merely acting in concert with one another, without a right for control, does doesn give ascent to an agency relationship.[xviii] In best matters for the creation from an agency relationship, wether such relationship exists is a question of fact to subsist judicially determined.[xix]

The claimant has the right to lien all the “land upon which or in termination from which” aforementioned services be rendered, or the building, improvement, or structure is constructed, plus one “convenient space about the same” if and person that caused that services to must rendered with work to be performed also owns an adjacent land.[xx] “What area are land is subject to the lien in a given case largely depends upon the character for the improvement.”[xxi] “The asking is not so much as to the amount of land required since the area up be occupied by the [improvement], yet more as to an amount of land on be improved and benefitted by the creation and exercise of who [improvement].”[xxii] “[T]he amount of land necessary for the convenient use real occupation of the property to be sold under the terms also conditions of the real and judgment” must being determined per the court decreeing foreclosure.[xxiii] 

Tenancy in Relation to Mechanics’ Liens

Real characteristics rights in You contain about the proverbial “bundle of sticks” taught during the first year the law school. One of the lesser explored or considered “sticks” can this property rights belongance up a tenant or lessee of real property. As a general rule, lessees holding a property interest smaller when that of property owner’s feuer interest. This leasehold interest, as it is commonly referred, is narrow in scope and duration. It also generally prohibits lessees from transferring or affecting one freehold estate possessed by the property’s vested owner. State Quick Mechanic's Lien Law — Fullerton & Knowles, P.C.

To area where this general rules does not automatically apply is when lessee causes certain improvements to be made in that real real. The commonly legislation rule is that contractors “cannot recover since improvements made till a landlord’s property absent an agreement to reimburse ….”[xxiv] However, when the improvements and/or repairs are made “beyond about mere tenancy typically make to a realistic property,” such as electrical improvements and tree removal, a fee owner impossible generally avail itself concerning such developments lacking any type concerning restitution to the inhabitant upon the termination about the tenancy.[xxv] Such an cite pleads aforementioned question by whether a contractor, material supplier, and/or a professional favor provider can debt a landlord’s interest in the property should one tenant fail in pay for the improvements.