What
does a Sub-Contractor's Pre-Lien Notice Have
to Say? A sub-contractor's
notice must be in writing in at least 10-point
bold type, if printed, or in capital letters, if
typewritten, and must state:
This
notice is to advise you of your rights under
Minnesota law in connection with the
improvement to your property.
Any
person or company supplying labor or materials
for this improvement may file a lien against
your property if that person or company is not
paid for the contributions.
We,
____________________________________ (name and
address of subcontractor) have been
hired by your contractor,
_______________________________ (name of your
contractor) to provide .______________________
(type of service) or
_______________________
(material)
for this improvement. To the best of our
knowledge, we estimate our charges will be
_________________________.
If we
are not paid by your contractor, we can file a
claim against your property for the price of
our services.
You
have the right to pay us directly and deduct
this amount from the contract price, or
withhold the amount due us from your
contractor until 120 days after completion of
the improvement unless your contractor gives
you a lien waiver signed by me (us).
We may
not file a lien if you paid your contractor in
full before receiving this notice.
When
is a Pre-lien Notice not required?
The pre-lien notice need not be given under
these circumstances:
- Same ownership - where the
contractor is managed or controlled by
substantially the same persons who manage
or control the owner of the improved real
estate.
- Multiple dwelling - where the
improvement is to real property consisting
of or providing more than four family
units when the improvement is wholly
residential in character.
- Nonagricultural and nonresidential
real estate - where the improvement is
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.
What
else has to be done to get a Mechanic's
Lien? A Mechanic's Lien
Statement must be served on the owner and
filed with the Recorder's Office or Registrar
of Titles. This must be done within 120
days after doing the last of the work, or
furnishing the last item of skill, material,
or machinery. It is critical that the
Lien Statement be properly prepared, served
and filed. Courts carefully scrutinize
these factors, and if the legal requirements
have not been met, there will be no
lien. For this reason, we strongly
advise that you consult with us regarding the
preparation and filing of a mechanic's lien
statement.
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