Page 30 - State Law Summary of Mechanic's Lien Law

Montana MT

What is the statutory authority?
Mt. St. §§ 71-3-521 to 71-3-564.
What is the Attachment Date of the Mechanic’s Lien?
A lien attaches at the commencement of work as defined in Mt. St § 71-3-522. A
lien also attaches when it is filed if it is for the preparation of plans, surveys, or
architectural or engineering plans or drawings for any change in the physical
condition of land or structures that are not used incident to producing a change in
the physical condition of the real estate. Mt. St. § 71-3-535 (5)(6).

What constitutes visible commencement of construction?
The first visible change in physical condition of the real estate caused by the
first person furnishing services, or materials pursuant to a particular real estate
improvement contract. Mt. St. §§ 71-3-522(1) and 71-3-535(5).

What is the priority of the insured construction mortgage/
deed of trust?
In Montana, construction loans cannot take priority over mechanic’s liens. A
construction lien has priority over any interest, lien, mortgage or encumbrance
that is filed before the construction lien attaches if that interest, lien, mortgage
or encumbrance was taken to secure advances made for the purposes of paying
for the particular real estate improvement to which the lien was attached. Mt. St.
§ 71-3-542(4).
If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
90 days after the claimant’s final furnishing of services or materials or after the
owner files a Notice of Completion. Mt. St. § 71-3-535.

What is the period of enforcement of a filed mechanic’s lien?Actions
must be commenced within 2 years from the date of the filing of the lien. Mt. St. §
71-3-562.
Is there a procedure to bond over the mechanic’s lien(s)?
Yes. Whenever a construction lien has been filed upon real property or
any improvements of the real property, the owner may, at any time before
commencement of a foreclosure action of the lien, or within 30 days of the service
of a complaint in an action to foreclosure the lien, file a bond with the clerk of the
district court in the county where the property is located. Mt. St. § 71-3-551.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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