What is the process for filing a mechanic's lien in the construction industry?

In Minnesota, a mechanic’s lien is a legal tool that allows contractors to secure payment for their services in the construction industry. To file a lien, contractors must follow a specific process. The first step is to serve the property owner with a Notice of Commencement. This document must be filed before any work begins and states the name of the contractor, the project’s estimated cost, and the amount of security the owner must post. The next step is to serve the owner with a Notice of Furnishing. This document must be served within 120 days of the completion of the work and states the amount of money owed to the contractor. Once the contract is complete and the Notice of Furnishing is served, the contractor can file a mechanic’s lien. To file a lien, the contractor must submit a document to the county recorder containing information such as the name and address of the contractor, the name and address of the property owner, a description of the work performed, and the amount of money owed. Finally, the lien must be served to the property owner by certified mail. If payment is not received within a certain period of time, the contractor can foreclose on the property and recover the amount owed. In Minnesota, filing a mechanic’s lien is an important step in ensuring that contractors receive payment for their services. Following the steps outlined above can help contractors secure payment and protect their interests in the construction industry.

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