Idaho

Idaho Construction Lien Law

Lien Law Overview

General Contractor Disclosure Statement
On 1-4 family residential construction, the general contractor must provide disclosure to the owner of potential lien rights. Idaho Code § 45-525 et. seq.

A general contractor shall provide to a prospective residential real property purchaser or homeowner a written disclosure statement, which shall be signed by the general contractor listing the business names, addresses and telephone numbers of all subcontractors, materialmen and rental equipment providers having a direct contractual relationship with the general contractor and who have supplied materials or performed work on the residential property of a value in excess of five hundred dollars ($500). Idaho Code § 45-525 et. seq.

Obtaining Lien Rights
A party obtains lien rights when they become involved in work or providing materials.

Perfecting Lien Rights
To perfect the lien, a person must file a claim of lien within 90 days after the completion of the labor or services or furnishing of materials or the cessation of the labor or services or furnishing of materials, for any cause, record the claim of lien. (Idaho Code § 45-507.) A true and correct copy of the claim of lien must be served on the owner or reputed owner (owner or reputed owner does not include a trustee of a deed of trust) of the property either by an officer authorized by law to serve process delivering a copy thereof to the owner or reputed owner personally or by mailing a copy thereof by certified mail to the owner or reputed owner at his last known address. Such delivery or mailing shall be made no later than five (5) business days.

Lien Waivers

Lien Waiver Summary

Idaho law does provide that an express waiver of a mechanic’s lien must be supported by consideration in order to be effective and binding. (Pierson v. Sewell, 97 Idaho 38, 42-43 (Idaho 1975).)

Statutory Form
See below*

Notary
Not Required

Electronic Signature
Acceptable

*Idaho law does not impose strict regulations on the format, wording, and timing of lien waivers. Based on the state’s statutes and legal precedent, it appears that lien waivers are treated like any other type of contract.

Are Title companies required by law to manage construction loan disbursements?

No

Notices

Notice of Commencement (or similar like event)

No, however, the state uses a disclosure statement (Model Disclosure Statement) that should be considered as a notice in the early stage of construction on certain construction projects.

Preliminary Lien Notifications

Every person furnishing professional services, materials, or equipment for the improvement of real property must give the owner or reputed owner notice in writing of the right to claim a lien. RCW § 60.04.031(1). The Notice to Owner form is set forth in the statute. RCW § 60.04.031(4). A lien may be claimed for all professional services, materials, or equipment furnished after a date that is 10 days before this notice was given to you or mailed to you (for construction of a new single-family residence) or 60 days before this notice was given to or mailed to you for all other construction projects.

Any contractor agreeing to perform any contracting project: (a) For the repair, alteration, or construction of four or fewer residential units or accessory structures on the such residential property when the bid or contract price totals one thousand dollars or more; or (b) for the repair, alteration, or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars, must provide the customer with the Model Disclosure Statement (MDS) before starting any work on the project. The MDS is published by the Washington Department of Labor and Industries, must be signed by the customer (owner), and meet all of the requirements of RCW § 18.27.114.

Notice of Completion

Not applicable.

Title

Washington uses ALTA title commitments that allow for the Construction Loan Update Endorsement, which is used when the lender requests endorsements as additional disbursements are made. It gives coverage up to the new outstanding mortgage balance and shows whether any other instruments have been filed and recorded since the last title update. The endorsement also insures the priority of the insured mortgage over instruments that are not specifically listed in the endorsement. Since the title company has a stake in the disbursements, you may find that they exercise some due diligence relating to construction draws.