Idaho Mechanics Lien Guide and FAQs

If contractors and suppliers don’t get paid on a construction project in Idaho, they can file a mechanics lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property. This page breaks down the rules, requirements, and deadlines you need to follow to file an Idaho mechanics lien.

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Idaho lien deadlines for:

Preliminary notice requirements Prime Contractor only

On residential projects in Idaho, the prime contractor must send a Residential Disclosure Notice before entering contract for more than $2000.

Idaho doesn't require other parties to send a preliminary notice before filing a mechanics lien. However, sending a prelim can reduce payment problems and help you get paid faster.

Send Your Notice

Mechanics lien deadline

In Idaho, a mechanics lien must be filed within 90 days after last furnishing of labor or materials.

Lien enforcement deadline

Idaho claimants must enforce their mechanics lien within 6 months of filing the lien.

Idaho mechanic liens can not be extended, and missing the enforcement deadline renders the lien unenforceable.

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Idaho Mechanics Lien FAQs

Frequently asked questions about mechanics lien rules and requirements in Idaho, with answers written by construction attorneys and payment experts.

Who can file an Idaho mechanics lien?

Idaho provides relatively broad mechanics lien rights. According to Idaho statute, “every person performing labor upon, or furnishing materials to be used in the construction, alteration or repair” of virtually any kind of real property or improvement is granted mechanics lien rights. Materials or equipment lessors are also explicitly allowed to file a lien. Further, professional engineers, licensed land surveyors, and persons providing on-site management or supervision are granted mechanics lien protection.

Is a written contract required to file a mechanics lien in Idaho?

No, there is no specific requirement that construction contracts be in writing in order to be able to file an Idaho mechanics lien. However, it’s always best practice to get your agreements in writing to avoid any confusion or complications.

Can an unlicensed contractor file an Idaho mechanics lien?

General and subcontractors on a construction project in Idaho are generally required to be licensed in order to claim a valid mechanics lien, subject to certain exceptions. However, if the contractor or subcontractor is unlicensed at the beginning of the project, and subsequently becomes licensed and registered during the project, the work performed after the licensing and registration will be protected.

When a subcontractor is licensed but the general contractor is unlicensed, the ability of the subcontractor to claim a valid mechanics lien depends on the subcontractor’s knowledge of the general’s licensing and registration status – if the sub knew the general was unlicensed, that sub cannot claim a valid lien. However, if the sub did not know the general was unlicensed, a mechanics lien is warranted. Suppliers are not required to be licensed if they do not also install the materials supplied such that they are acting as a subcontractor.

When is the deadline to file an Idaho mechanics lien?

Idaho law requires that all lien claimants file their mechanics lien within 90 days of the date they last supplied labor or materials.

Providing materials “trivial in character” if the work is substantially completed will not extend the period in which a lien may be filed. Generally, punch-list items fall into this category. However, remedying a defect in the project at the demand of a public inspector is not the same as “punch-list” work, and has been found to be not “trivial” and may extend the time in which a lien may be filed.

What information should be included in an Idaho mechanics lien?

An Idaho Claim of Lien is governed by Idaho Code §45-507, and must contain all of the following information:

• Claimant’s information;
• Amount claimed, after deducting all just credits and offsets;
• Owner’s information;
• Hiring party’s information;
• Property description; &
• Acknowledgement of receipt of residential disclosures, signed by the owner (if applicable).

Does an Idaho mechanics lien need to include a legal property description?

To be a valid mechanics lien in Idaho, it must only include a description of the site sufficient for identification. However, it’s a really good idea to include a legal description of the property, because this makes sure that you meet the “sufficiency” requirement.

Can attorney fees, collection costs, or other amounts be included in the lien amount?

No. Attorney’s fees and other consequential damages should not be included in an Idaho lien amount. However, the lien claimant is entitled to recover his attorney’s fees and the costs for filing and recording the Claim of Lien in a foreclosure action when the lien is enforced.

Does an Idaho mechanics lien need to be notarized?

Yes. Idaho law requires that a mechanics lien must be notarized to be valid and accepted for recording.

Where do I file and record an Idaho mechanics lien?

Idaho mechanics lien claims are documents recorded with the county recorder’s office. For your mechanics lien to be valid, you must record it in the county where the job is physically located.

Idaho counties each have their own unique rules and requirements. To help you, we’ve assembled all of the offices in Idaho that record mechanics liens. These pages will walk you through the county’s specific formatting requirements, deadlines, and fees.

How do I actually file an Idaho mechanics lien?

There are a lot of questions on this page about who can file a Idaho mechanics lien, when it must be filed, what types of rules apply, and more. But you may be wondering something much more practical: how do I actually get my mechanics lien recorded and filed?

• For a full breakdown of the process, you may want to consult: Step-by-Step Guide: How to File an Idaho Mechanics Lien

Do I need to send notice that the mechanics lien was recorded in Idaho?

Yes. Idaho law requires that the lien claimant send a copy of the Claim of Lien to the owner of the property, or reputed owner of the property, within 5 days of filing the Claim of Lien in the county recorder’s office.

This copy must be delivered to the owner or reputed owner either by personal delivery, or by certified mail return receipt requested. This notice is essential.

When is the deadline to enforce an Idaho mechanics lien, or, how long is my lien effective?

In Idaho, all lien claimants must initiate the enforcement of the lien within 6 months from the date on which the lien was filed. Failure to meet this deadline for enforcement will result in the expiration of the lien claim.

However, the time by which the lien must be enforced may be increased by “payment on account” or “an extension of credit given with expiration date thereof” provided that “such payment or credit and expiration date, is endorsed on the record of the lien.” This extension allows the lien to be enforced within 6 months after the date of such payment or extension.

Does an Idaho lien have priority over pre-existing mortgages or other construction loans?

No. Mechanics liens in Idaho have priority over other encumbrances/mortgages etc., following the “first-in-time” rule.

For priority determinations, mechanics liens are judged to have attached on the date of the first work on the project by any of the trades. If a construction lender records the mortgage after the work has started, any mechanics lien would have priority.

In terms of priority battles between mechanics lien claims, Idaho mechanics liens are paid in the following order, by group:

  1. laborers,
  2. materialmen
  3. subcontractors
  4. prime contractor
  5. engineers/surveyors

All claimants in each step are paid before any in the next step, if there is not enough to satisfy all claimants in one step they will be paid pro-rata.

Who cancels the Idaho mechanics lien if/when I get paid?

Idaho does not have specific requirements regarding the cancellation of a lien upon payment. Generally, however, a payment to satisfy a lien will be made in consideration of the claimant executing a satisfaction of lien document.

People are asking Idaho construction attorneys:

As a Subcontractor, can I be sued for filing a lein after the GC refused to pay me.

If you are already being named in a lawsuit, this public forum is not the right place to discuss such a sensitive legal issue. If you are about to be taken to court you should reach out to a licensed attorney in Idaho directly at their office. Levelset provides a list of attorneys in Idaho here: https://www.levelset.com/payment-help/experts/construction-lawyer/idaho/ . From that directory you may find a law firm in your area to call privately.

Answered by Julie Gelderblom | Levelset Admin https://www.levelset.com/payment-help/question/what-do-i-do-to-get-paid-1/

What Do I do to get paid?

Porter, I am assuming you did not provide a written bid listing everything that was included or that the general did not issue you a written work order. Where was the job located? What are the lien laws in that State? I would file a lien against the project if you're able. What are the laws with regard to small claims court filings? Since the difference between the amount of your invoice and the amount you were paid, you should be able to file a small claims court claim against the general.

Answered by Chuck Miller | Consultant / Home Builder & Remodeler

laims court? Can I do a breech of contract and file for more then owed because of financial stresses and loss of opport

Your best bet is to sue the homeowner for breach of contract
in small claims court as the costs of using a lawyer would be cost
prohibitive. You would end up spending exponentially more on attorneys
fees than what you are owed. You would likely be entitled to recover your
attorneys fees but if you can’t afford to pay for leads, you certainly cannot
afford a lawyer. Neither party can use a lawyer in small claims court so
you will not be at a disadvantage. Make sure to submit copies of the
texts/emails from the homeowner agreeing to pay for the work. It sounds
like you have an excellent case with a high likelihood of prevailing.

The maximum amount you can recover in small claims court is
$5,000. You can seek to recover lost profits but those are very difficult
to prove without actual contracts that you couldn’t perform due to the
homeowner’s non-payment.

You could also record a lien against their property to
secure the amounts you are owed but you would have to file a lien foreclosure
suit to recover a judgment ordering that you be paid out of the proceeds of the
sale of the property. I strongly recommend using a lawyer to record the
lien and to prosecute the foreclosure action. There are many technical
requirements to record a valid lien. Any decent construction lawyer will
ensure that all of these requirements are met. It typically costs between
$500 - $700 to have a lawyer draft and record a lien on your behalf. If
you choose to record your own lien make sure to closely review the lien
statutes and follow their requirements to the letter. The lien statutes
are located at Idaho Code §§ 45-501 – 45-525 and are available online.

Answered by Rick Stacey | Founding Member

Best rated general contractors in Idaho

Core & Main Bayley Construction Blue Pine Construction Corporation Costco Wholesale Corporation Brown Construction Inc. (West Sacramento, CA) EMCOR Group

Are others reporting slow payment?

Contractor name

5 Things to Know

Contractors & suppliers have strong lien rights in Idaho. If a contractor or supplier isn’t paid on an Idaho job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed.

Here are 5 essential things you need to know about Idaho’s mechanics lien law.

1) Idaho Mechanics Lien Law Is Friendly to Contractors

Idaho mechanics lien law is lenient. One way to describe it might be that Idaho is very friendly to those in the construction industry, as most anyone in Idaho providing labor or materials to be used in “virtually any kind of real property or improvement is granted mechanics lien rights.” This extends to material or equipment lessors, professional engineers, licensed land surveyors, and even persons providing on-site management or supervision. Note, however, that a valid license may be required if the work being performed requires a license.

2) The Deadline to File an Idaho Mechanics Lien Is Counted From Date of Last Furnishing

The deadline to file a mechanics lien in Idaho is 90 days within the last date of furnishing labor and materials to the project. If the work is substantially complete and a project participant is just performing “punch-list work,” or other work that is trivial in nature, the deadline will not be extended. However, if a project participant is required to remedy a defect at the demand of a public inspector, that work is not considered trivial and will likely extend the deadline by which a mechanics lien must be filed.

3) Only the General Contractor May Be Required to Send Preliminary Notice

The only instance in Idaho where preliminary notice is required to be sent prior to claiming a valid Idaho mechanics lien is when a general contractor is performing work on a residential project with a contract in excess of $2,000. The general contractor must send a Residential Disclosure Statement if this is the case (see below).

4) Attorney’s Fees May Be Reimbursed

In Idaho, you cannot claim attorney’s fees and other consequential damages as part of the lien amount. However, if a project participant needs to foreclose on the lien, they are entitled to recover the attorney’s fees and filing costs.

5) The Bottom Tiers of Mechanics Lien Claimants Tend to Take Priority

In Idaho, there is a set order for which party’s mechanics lien takes priority. Laborers’ claims take first priority. Next in line are material men, followed by subcontractors, then the prime contractor, and then engineers/surveyors.

Start a residential project worth more than $2,000 in work? You need to send a Residential Disclosure statement

How to file a Mechanics Lien in Idaho (DIY)

Read the guide

Construction payment Idaho

In our step-by-step guide, we will walk you through each step required to qualify for and file an Idaho mechanics lien. This guide explains the notices you need to send, the information required on the Idaho mechanics lien form, and essential tips about delivering it to the county office for recording.

Get the correct form

After you read the guide, get a blank copy of the Idaho mechanics lien form. Levelset’s free forms were created by construction attorneys to meet the strict requirements under Idaho mechanics lien law. The state statutes are very specific about the language and formatting required in a lien claim document. We make it easy to get this part right.

Fill the form out

Be careful! Accuracy is important.

This is the trickiest part. Since Idaho lien law is very specific about what information you must provide, you need to make sure your form includes all the required information and that the information is 100% accurate. Even the smallest mistake when filling your Idaho lien form out could invalidate your claim entirely.

After you fill the form out, sign the form in the presence of a notary and get the form notarized.

File your lien with the county recorder

Mechanics Lien Recorded

After you fill the form out, it’s time to file your lien claim with the recorder’s office in the Idaho county where the property is located. View a full list of Idaho recorder’s offices to find contact information, fees, and filing requirements for your local county.

Serve the lien on the owner

Mechanics Lien Notify Owner

In Idaho, you’re required to serve a copy of the lien on the property owner after you file it. The deadline to do this is 5 days after filing. You can either deliver the copy personally or by certified mail. If you fail to serve the notice within the 5 day deadline your lien is invalidated.

After you file

4 steps after filing your lien: a video

After the lien is recorded and delivered, it is valid for 6 months after the date of filing. Unless you extend the lien, you only have 6 months to enforce your lien claim if needed.

If you get paid, it’s a good idea to release your lien from the property.

Idaho's Mechanics Lien Statutes

The provisions of the Idaho statutes that permit the filing of mechanics liens can be found in Idaho’s statute for Liens of Mechanics and Materialmen, Idaho Code § 45-501 et. seq. The full text of the statute is provided below. Updated as of May 2023.

§ 45-501. RIGHT TO LIEN

Every person performing labor upon, or furnishing materials to be used in the construction, alteration or repair of any mining claim, building, wharf, bridge, ditch, dike, flume, tunnel, fence, machinery, railroad, wagon road, aqueduct to create hydraulic power, or any other structure, or who grades, fills in, levels, surfaces or otherwise improves any land, or who performs labor in any mine or mining claim, and every professional engineer or licensed surveyor under contract who prepares or furnishes designs, plans, plats, maps, specifications, drawings, surveys, estimates of cost, on-site observation or supervision, or who renders any other professional service whatsoever for which he is legally authorized to perform in connection with any land or building development or improvement, or to establish boundaries, has a lien upon the same for the work or labor done or professional services or materials furnished, whether done or furnished at the instance of the owner of the building or other improvement or his agent; and every contractor, subcontractor, architect, builder or any person having charge of any mining claim, or of the construction, alteration or repair, either in whole or in part, of any building or other improvement, as aforesaid, shall be held to be the agent of the owner for the purpose of this chapter: provided, that the lessee or lessees of any mining claim shall not be considered as the agent or agents of the owner under the provisions of this chapter.

For purposes of this chapter the term “furnishing material” shall also include, notwithstanding any other provision of law to the contrary, supplying, renting or leasing equipment, materials or fixtures as defined in section 28-12-309, Idaho Code.

“Furnishing material” shall also include renting, leasing or otherwise supplying any equipment, materials, fixtures or machinery to any mine or mining claim.

§ 45-504. LIEN FOR IMPROVING LOTS

Any person who, at the request of the owner of any lot in any incorporated city or town, surveys, grades, fills in, or otherwise improves the same, or who rents, leases or otherwise supplies equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, to such person for the improvement of any lot, or the street in front of or adjoining the same, has a lien upon such lot for his work done or material furnished or equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, rented, leased or otherwise supplied.

§ 45-505. LAND SUBJECT TO LIEN

The land upon which or in connection with which any professional services are performed or any building, improvement or structure is constructed, together with a convenient space about the same, or so much as may be required for the convenient use and occupation thereof, to be determined by the court on rendering judgment, is also subject to the lien, if, at the commencement of the furnishing of professional services or other work, the furnishing of the material, or the renting, leasing or otherwise supplying of equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, for the same, the land belonged to the person who caused said professional services to be performed or said building, improvement or structure to be constructed, altered or repaired, or such person was acting as the agent of the owner, but if such person owns less than a fee simple estate in such land, then only the interest of the person or persons causing the services or improvement therein is subject to such lien.

§ 45-506. LIENS PREFERRED CLAIMS

The liens provided for in this chapter shall be on equal footing with those liens within the same class of liens, without reference to the date of the filing of the lien claim or claims and are preferred to any lien, mortgage or other encumbrance, which may have attached subsequent to the time when the building, improvement or structure was commenced, work done, equipment, materials or fixtures were rented or leased, or materials or professional services were commenced to be furnished; also to any lien, mortgage, or other encumbrance of which the lienholder had no notice, and which was unrecorded at the time the building, improvement or structure was commenced, work done, equipment, materials or fixtures were rented or leased, or materials or professional services were commenced to be furnished.

§ 45-507. CLAIM OF LIEN

(1) Any person claiming a lien pursuant to the provisions of this chapter must file a claim for record with the county recorder for the county in which such property or some part thereof is situated.

(2) The claim shall be filed within ninety (90) days after the completion of the labor or services, or furnishing of materials.

(3) The claim shall contain:

(a) A statement of his demand, after deducting all just credits and offsets;

(b) The name of the owner, or reputed owner, if known;

(c) The name of the person by whom he was employed or to whom he furnished the materials;

(d) A description of the property to be charged with the lien, sufficient for identification; and

(e) For work or materials subject to the provisions of section 45-525, Idaho Code, the required proof of disclosure and acknowledgment of receipt.

(4) Such claim must be verified by the oath of the claimant, his agent, or his attorney to the effect that the affiant believes the same to be just.

(5) A true and correct copy of the claim of lien shall be served on the owner or reputed owner 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 following the filing of said claim of lien.

(6) For purposes of this chapter, owner or reputed owner does not include a trustee of a deed of trust as defined and required by chapter 15, title 45, Idaho Code.

(7) In any court proceeding regarding a lien filed pursuant to this section, the prevailing party shall be entitled to recover reasonable attorney’s fees and costs.

§ 45-508. CLAIMS AGAINST TWO BUILDINGS

In every case in which one (1) claim is filed against two (2) or more buildings, mines, mining claims, or other improvements, owned by the same person, the person filing such claim must, at the same time, designate the amount due him on each of said buildings, mines, mining claims, or other improvement; otherwise the lien of such claim is postponed to other liens. The lien of such claim does not extend beyond the amount designated as against other creditors having liens by judgment, mortgage, or otherwise, upon either of such buildings, or other improvements, or upon the land upon which the same are situated.

§ 45-509. RECORD OF LIEN CLAIMS

The county recorder must record the claims mentioned in this chapter in a book kept by him for that purpose, which record must be indexed, as deeds and other conveyances are required by law to be indexed, and for which he may receive the same fees as are allowed by law for recording deeds or other instruments.

§ 45-510. DURATION OF LIEN

(1) No lien provided for in this chapter binds any building, mining claim, improvement or structure for a longer period than six (6) months after the claim has been filed, unless proceedings be commenced in a proper court within that time to enforce such lien; or unless a payment on account is made, or extension of credit given with expiration date thereof, and such payment or credit and expiration date, is endorsed on the record of the lien, then six (6) months after the date of such payment or expiration of extension. The lien of a final judgment obtained on any lien provided for in this chapter shall cease ten (10) years from the date the judgment becomes final.

(2) Nothing in this chapter requires that a trustee of a deed of trust as defined and required by section 45-1502 et seq., Idaho Code, be included in a claim of lien or foreclosure or judgment under this chapter.

§ 45-511. RECOVERY BY CONTRACTOR - DEDUCTION OF DEBTS TO SUBCONTRACTORS

The original or subcontractor shall be entitled to recover, upon the claim filed by him, only such amount as may be due to him according to the terms of his contract, and, if applicable, such other amounts as may be found due to the lien claimant by the court pursuant to section 45-522, Idaho Code, after deducting all claims of other parties for work done and materials furnished to him as aforesaid, of which claim of lien shall have been filed as required by this chapter, and in all cases where a claim shall be filed under this chapter for work done or materials furnished to any subcontractor, he shall defend any action brought thereupon at his own expense; and during the pendency of such action, the person indebted to the contractor may withhold from such contractor the amount of money for which claim is filed; and in case of judgment upon the lien, the person indebted in the contract shall be entitled to deduct from any amount due or to become due by him to such contractor, the amount of such judgment and costs; and if the amount of such judgment and costs shall exceed the amount due from him to such contractor, if the person indebted in the contract shall have settled with such contractor in full, he shall be entitled to recover back from such contractor any amount so paid by him in excess of the contract price, and for which such contractor was originally the party liable.

§ 45-512. JUDGMENT TO DECLARE PRIORITY

In every case in which different liens are asserted against any property, the court in the judgment must declare the rank of each lien or class of liens which shall be in the following order:

1. All laborers, other than contractors or subcontractors.

2. All materialmen including persons furnishing, renting or leasing equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, other than contractors or subcontractors.

4. The original contractor.

5. All professional engineers and licensed surveyors.

And in case the proceeds of sale under this chapter shall be insufficient to pay all lienholders under it:

1. The liens of all laborers, other than the original contractor and subcontractor, shall first be paid in full, or pro rata if the proceeds be insufficient to pay them in full.

2. The lien of materialmen including persons furnishing, renting or leasing equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, other than the original contractor or subcontractor, shall be paid in full, or pro rata if the proceeds be insufficient to pay them in full.

3. Out of the remainder, if any, the subcontractors shall be paid in full, or pro rata if the remainder be insufficient to pay them in full, and the remainder, if any, shall be paid pro rata to the original contractor and the professional engineers and licensed surveyors; and each claimant shall be entitled to execution for any balance due him after such distribution; such execution to be issued by the clerk of the court upon demand, at the return of the sheriff or other officer making the sale, showing such balance due.

§ 45-513. JOINDER OF ACTIONS - FILING FEES AS COSTS - ATTORNEY'S FEES

Any number of persons claiming liens against the same property may join in the same action, and when separate actions are commenced the court may consolidate them. The court shall also allow as part of the costs the moneys paid for filing and recording the claim, and reasonable attorney’s fees.

§ 45-514. EXEMPTION OF MATERIALS FROM EXECUTION

Whenever materials shall have been furnished for use in the construction, alteration or repair of any buildings, or other improvement, such materials shall not be subject to attachment, execution or other legal process, to enforce any debt due by the purchaser of such materials, except a debt due for the purchase money thereof, so long as, in good faith, the same are being applied to the construction, alteration or repair of such building, mining claim or other improvement.

§ 45-515. ACTION TO RECOVER DEBT

Nothing contained in this chapter shall be construed to impair or affect the right of any person to whom any debt may be due for work done, equipment, materials or fixtures rented or leased or materials furnished, to maintain a personal action to recover such debt against the person liable therefor.

§ 45-516. RULES OF PRACTICE AND APPEALS

Except as otherwise provided in this chapter, the provisions of this code relating to civil actions, new trials and appeals are applicable to, and constitute the rules of practice in, the proceedings mentioned in this chapter: provided, that the district courts shall have jurisdiction of all actions brought under this chapter.

§ 45-517. LIEN FOR WORKER'S COMPENSATION SECURITY

The term “labor” as used in this title shall include the cost of worker’s compensation and occupational disease compensation security required by the provisions of sections 72-301 through 72-304, Idaho Code, and amendments thereto, payment for which security has not been made.

§ 45-518. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - MANNER

A mechanic’s lien of record upon real property may be released upon the posting of a surety bond in the manner provided in sections 45-519 through 45-524, Idaho Code.

§ 45-519. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - FORM OF BOND

The debtor of the lien claimant or a party in interest in the premises subject to the lien must obtain a surety bond executed by the debtor of the lien claimant or a party in interest in the premises subject to the lien, as principal, and executed by a corporation authorized to transact surety business in this state, as surety, in substantially the following form:

(Title of court and cause, if action has been commenced)

WHEREAS, …….. (name of owner, contractor, or other person disputing the lien) desires to give a bond for releasing the following described real property from that certain claim of mechanic’s lien in the sum of $ …. recorded …. . in the office of the recorder in ……… (name of county where the real property is situated):

NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to ………, (name of claimant) the claimant named in the mechanic’s lien, under the conditions prescribed by sections 45-518 through 45-524, Idaho Code, inclusive, in the sum of $ … (1-1/2 x claim), from which sum they will pay the claimant such amount as a court of competent jurisdiction may adjudge to have been secured by his lien, with interest, costs and attorney’s fees.

IN WITNESS WHEREOF, the principal and surety have executed this bond at ……., Idaho, on the … day of …., …

(Signature of Principal)

(Its Attorney in Fact)

On …. . before me, the undersigned, a notary public of this county and state, personally appeared ……… who acknowledged that he executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ……… known (or satisfactorily proved) to me to be the attorney in fact of the corporation that executed the foregoing instrument and known to me to be the person who executed that instrument on behalf of the corporation therein named, and he acknowledged to me that that corporation executed the foregoing instrument.

(Notary Public in and for the

County and State)

§ 45-520. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - PETITION FOR RELEASE - SERVICE OF COPY OF PETITION

(1) A petition for the release of a mechanic’s lien by posting a surety bond must be filed in the district court of the county wherein the property is located and shall set forth:

(a) The title of the cause, thus: “In the matter of the petition of ……… (name of petitioner) for release of mechanic’s lien of ……… (name of mechanic’s lien claimant) upon posting surety bond.”

(b) An allegation of the purchase of and payment of the premium for the bond, and the dates of purchase and payment.

(c) An allegation incorporating by reference a true copy of the bond, which copy must be attached to the petition.

(d) The name or names of the owner or reputed owners of the land subject to the lien.

(e) A description of the real property subject to the lien, and the instrument number of the lien as given by the recorder’s office.

(f) A prayer for an order releasing the lien.

(2) The petitioner shall obtain an order from the district court setting forth the time and date of the hearing on the petition, which time and date must be at least five (5) days after the date of the order and not more than ten (10) days after the date of the order.

(3) A copy of the petition and a copy of the order must be served on the lien claimant at least two (2) days before the date set for the hearing and served in the manner provided by law for service of summons.

§ 45-521. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - HEARING ON PETITION - CONTENTS AND EFFECT OF ORDER RELEASING LIEN

(1) Upon the hearing, the court shall enter its order releasing the mechanic’s lien upon the petitioner’s filing in open court the original bond, and introducing into evidence a receipt for payment of the premium.

(2) The entry of the order by the court must refer to the property which is the subject of the lien and the lien itself, by instrument number, and must recite that the lien is released of record for all purposes to the same extent as if released of record by the lienor.

(3) Upon entry of the order, the lien is released of record in its entirety and for all purposes and the real property, the subject of the lien, is released from the encumbrances of the lien.

(4) There is no appeal from the entry of an order pursuant to the provisions of this section and upon entry the order is final for all purposes.

§ 45-522. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - ACTION AGAINST DEBTOR AND SURETY - PREFERENTIAL SETTINGS

(1) The lien claimant is entitled to bring an action against the lien claimant’s debtor and to join therein the surety on the bond. The rights of the lien claimant include and the court may award to him in that action:

(a) The amount found due to the lien claimant by the court;

(b) The cost of preparing and filing the lien claim, including attorney’s fees, if any;

(c) The costs of the proceedings;

(d) Attorney’s fees for representation of the lien claimant in the proceedings; and

(e) Interest at the rate of seven percent (7%) per annum on the amount found due to the lien claimant and from the date found by the court that the sum was due and payable.

(2) Proceedings under subsection (1) of this section are entitled to priority of hearing second only to criminal hearings. The plaintiff in the action may serve upon the adverse party a “demand for thirty (30) day setting” in the proper form, and file the demand with the clerk of the court. Upon filing, the clerk of the court shall, before Friday next, vacate a case or cases as necessary and set the lien claimant’s case for hearing, on a day or days certain, to be heard within thirty (30) days of the filing of the “demand for thirty (30) day setting.” Only one (1) such preferential setting need be given by the court, unless the hearing date is vacated without stipulation of counsel for the plaintiff in writing. If the hearing date is vacated without that stipulation, upon service and filing of a “demand for thirty (30) day setting,” a new preferential setting must be given.

§ 45-523. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - MOTION TO ENFORCE LIABILITY OF SURETY

(1) By entering into a bond given pursuant to section 45-519, Idaho Code, the surety submits himself to the jurisdiction of the court in which the bond is filed in the proceeding for release of the lien, and the surety irrevocably appoints the clerk of that court as its agent upon whom any papers affecting its liability on the bond may be served. Its liability may be enforced on motion without the necessity of an independent action. The motion and such notice of motion as the court prescribes may be served on the clerk of the court, who shall forthwith mail copies to the surety if his address is known.

(2) The motion described in subsection (1) of this section must not be instituted until the lapse of thirty (30) days following the giving of notice of entry of judgment in the action against the lien claimant’s debtor, if no notice of appeal from the judgment is filed, nor may the motion be instituted until the lapse of thirty (30) days following the filing of the remittitur from the court of appeals or the supreme court, if an appeal has been taken from the judgment.

§ 45-524. RELEASE OF LIEN ON REAL PROPERTY BY POSTING SURETY BOND - EXCEPTION TO SUFFICIENCY OF SURETY

(1) The lien claimant may, within two (2) days after the service of a copy of the petition for release of the lien with a copy of the bond attached thereto pursuant to section 45-520, Idaho Code, file with the clerk of the court in the action a notice excepting to the sufficiency of the surety on the bond, and shall, at the same time and together with that notice, file an affidavit setting forth the grounds and basis of the exceptions to the surety, and shall serve a copy of the notice and a copy of the affidavit upon the attorney or the petitioner on the same date as the date of filing of the notice and affidavit. A hearing must be had upon the justification of the surety at the same time as that set for the hearing on the petition for an order to release the lien.

(2) If the lien claimant fails to file and serve the notice and affidavit within two (2) days after the service of the petition for release of the lien, he shall be deemed to have waived all objection to the justification and sufficiency of the surety.

§ 45-525. GENERAL CONTRACTORS - RESIDENTIAL PROPERTY - DISCLOSURES

(1) Legislative intent. This section is intended to protect owners and purchasers of residential real property by requiring that general contractors provide adequate disclosure of potential liens.

(2) General contractor information. Prior to entering into any contract in an amount exceeding two thousand dollars ($2,000) with a homeowner or residential real property purchaser to construct, alter or repair any improvements on residential real property, or with a residential real property purchaser for the purchase and sale of newly constructed property, the general contractor shall provide to the homeowner a disclosure statement setting forth the information specified in this subsection. The statement shall contain an acknowledgment of receipt to be executed by the homeowner or residential real property purchaser. The general contractor shall retain proof of receipt and shall provide a copy to the homeowner or residential real property purchaser. The disclosure shall include the following:

(a) The homeowner or residential real property purchaser shall have the right at the reasonable expense of the homeowner or residential real property purchaser to require that the general contractor obtain lien waivers from any subcontractors providing services or materials to the general contractor;

(b) The homeowner or residential real property purchaser shall have the right to receive from the general contractor proof that the general contractor has a general liability insurance policy including completed operations in effect and proof that the general contractor has worker’s compensation insurance for his employees as required by Idaho law;

(c) The homeowner or residential real property purchaser shall be informed of the opportunity to purchase an extended policy of title insurance covering certain unfiled or unrecorded liens; and

(d) The homeowner or residential real property purchaser shall have the right to require, at the homeowner’s or residential real property purchaser’s expense, a surety bond in an amount up to the value of the construction project.

(3) Subcontractor, materialmen and rental equipment information.

(a) 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). A general contractor is not required under this subsection to disclose subcontractors, materialmen or rental equipment providers not directly hired by or directly working for the general contractor. Such information shall be provided within a reasonable time prior to:

(i) The closing on any purchase and sales agreement with a prospective residential real property purchaser; or

(ii) The final payment to the general contractor by a homeowner or residential real property purchaser for construction, alteration, or repair of any improvement of residential real property.

(b) All subcontractors, materialmen and rental equipment providers listed in the disclosure statement are authorized to disclose balances owed to the prospective real property purchasers or homeowners and to the agents of such purchasers or homeowners.

(c) The general contractor shall not be liable for any error, inaccuracy or omission of any information delivered pursuant to this section if the error, inaccuracy or omission was not within the personal knowledge of the general contractor.

(4) Failure to disclose. Failure to provide complete disclosures as required by this section to the homeowner or prospective residential real property purchaser shall constitute an unlawful and deceptive act or practice in trade or commerce under the provisions of the Idaho consumer protection act, chapter 6, title 48, Idaho Code.

(5) Definitions. For purposes of this section:

(a) “General contractor” means a person who enters into an agreement in excess of two thousand dollars ($2,000) with:

(i) A homeowner or prospective residential real property purchaser for the construction, alteration or repair of residential real property; or

(ii) A prospective residential real property purchaser for the purchase and sale of newly constructed property.

The term “general contractor” does not include subcontractors, materialmen or rental equipment providers who do not have a direct contractual relationship with the homeowner or residential real property purchaser.

(b) “Residential real property” shall include owner and nonowner occupied real property consisting of not less than one (1) nor more than four (4) dwelling units.

(6) This section shall not apply to instances in which a homeowner or the agent of the homeowner initiates the contact with the general contractor for purposes of providing repairs necessary to meet a bona fide emergency of the homeowner or to make necessary repairs to an electrical, plumbing or water system of the homeowner.