What is a preliminary lien notice and when is it necessary?

A preliminary lien notice is a document that contractors and material suppliers must provide to owners in order to secure rights to a construction lien in Minnesota. A lien is a legal claim filed against a piece of property for the payment of a debt or obligation. When a contractor or material supplier does not receive payment for work or materials provided in a construction project, they can file a lien against the property to secure payment. A preliminary lien notice must be filed at least 14 days before a lien can be established. This notice informs the owner that a payment dispute exists and that a lien may be filed against the property if payment is not made. The preliminary lien notice informs the owner of the name of the contractor or material supplier, the amount owed, and the legal authority of the lien. Once the notice is filed, the owner has 14 days to remedy the payment dispute. If payment is not made during that 14-day period, the contractor or material supplier can legally file a lien claim against the property. It’s important to note that the lien attaches to the property no matter who owns it, so an unpaid dispute can carry over to the new owners if the property is sold. Preliminary lien notices are important documents required by law in Minnesota to ensure that contractors and material suppliers are paid for their work and materials. Without the preliminary lien notice, a lien claim cannot be established.

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What is a preliminary lien notice and when is it necessary?

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