This document summarizes Minnesota mechanics' lien laws. It explains that contractors and subcontractors who improve real property by providing labor, materials, or services can obtain a mechanics' lien on the property if they are not paid. To obtain a lien, a notice must be provided to the property owner and a lien statement must be filed within 120 days of the last date work was performed. The lien takes effect when work begins and is superior to later-recorded mortgages. To preserve the lien, a foreclosure action must be commenced within one year.

1. Minnesota Mechanics’ Liens www.berrylawoffices.com facebook/berrylawofficesmn

2. Who is entitled to a mechanics’ lien? Whoever performs engineering or land surveying services with respect to real estate, or contributes to the improvement of real estate by performing labor, or furnishing skill, material or machinery1

3. The process to obtaining a mechanics’ lien facebook/berrylawofficesmn berrylawoffices.com

4. The Contractor facebook/berrylawofficesmn berrylawoffices.com

5. You are Defined as a “Contractor” under Minnesota Law if: You enter into a contract with the owner of the property; AND You will contract with a subcontractor to provide labor or skill; OR You will contract with a material supplier to provide materials2

6. A contractor must provide the following notice: “(a) Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions. (b) Under Minnesota law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or withhold the amounts due them from us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor or material for the improvement and who gave you timely notice.”3

8. You mustprovide the owner a copy of the written contract;

9. If no written contract, the contractor’s notice must be delivered personally or by certified mail to the owner within 10 days after the work is agreed upon;

11. To any contractor who is an officer or controlling shareholder of a corporation which is the owner of the improved real estate; or

13. You are Defined as a “SubContractor” under Minnesota Law if: You contribute to the improvement of real property; AND You ARE NOT under direct contract with the owner of the property6.

14. A subcontractor must provide the following notice: “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 (insert your name and address) have been hired by your contractor (insert name of contractor) to provide or for (type of service or material) this improvement. To the best of our knowledge, we estimate our charges will be (value of your service or material) . 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.”7

16. The subcontractor’s notice mustbe delivered by personal delivery or certified mail;

19. When do mechanics’ liens take effect? Mechanics’ liens take effect from the time of the first visible item of material or labor is furnished upon the property from the beginning of the improvement and is superior to any mortgage or other encumbrance not recorded at the time of the improvement unless you have actual notice of the mortgage or encumbrance10.

20. Preserving your Lien facebook/berrylawofficesmn berrylawoffices.com

23. The statement of Mechanics’ Lien (Con’t) (3) Your name, and the name of the person for which the work was performed or furnished for; (4) The dates when the first and last work was performed or materials that were supplied; (5) A description of the property to be liened, describing the property with reasonable certainty (should be the legal description); (6) The name of the owner of the property when the mechanics’ lien statement is completed13;

24. The statement of Mechanics’ Lien (Con’t) (7) Your mailing address; (8) An acknowledgement by you that a copy of the Mechanics’ Lien Statement must be served personally or by certified mail within the 120-day period on the owner or the person who entered into the contract with the contractor; and (9) Include a statement that the pre-lien notice was given14.

25. Preserving your lien – Step II Foreclosure of the Mechanics’ Lien To preserve your lien rights, you mustcommence an action to foreclosure your mechanics’ lien within one year of your last day of work or last day you provided materials for the project15.

26. www.berrylawoffices.com facebook/berrylawofficesmn Copyright Berry Law Offices 2010 All Rights Reserved youtube.com/berrylawoffices twitter/berrylawoffices

27. www.berrylawoffices.com Statutory Authority Minn. Stat. §514.01 Mechanics, Laborers and Material Suppliers Minn. Stat. §514.011, Subd. 1 Notice Minn. Stat. §514.011, Subd. 1 Notice Minn. Stat. §514.011, Subd. 1 Notice Minn. Stat. §514.011, Subd. 1 Notice Minn. Stat. §514.011, Subd. 2 Subcontractor to Give Notice Minn. Stat. §514.011, Subd. 2 Subcontractor to Give Notice Minn. Stat. §514.011, Subd. 2 Subcontractor to Give Notice Minn. Stat. §514.011, Subd. 3 Material suppliers, may request information Minn. Stat. §514.08 Statement; Notice; Necessity for Recording; Contents Minn. Stat. §514.08, Subd. 1 Notice Required Minn. Stat. §514.08, Subd. 2. Statement by lien claimant; requirements Minn. Stat. §514.08, Subd. 2. Statement by lien claimant; requirements Minn. Stat. §514.08, Subd. 2. Statement by lien claimant; requirements Minn. Stat. §514.12, Subd. 3. One-year limitation. facebook/berrylawofficesmn twitter/berrylawoffices youtube.com/berrylawoffices