Page 38 - State Law Summary of Mechanic's Lien Law

North Dakota ND

What is the statutory authority?
North Dakota Century Code, Title 35, Chapter 35-27, §§ 35-27-01 to 35-27-28, §§
35-24-01 to 5-24-23; §§ 35-15-1 to 35-15-07.

What is the Attachment Date of the Mechanic’s Lien?
The lien attaches and takes effect from the time the first item of material or labor
is furnished upon the premises for the beginning of the improvement. N.D.C.C. §
35 27- 03(1).

What constitutes visible commencement of construction?
There is no visible commencement rule in North Dakota.

What is the priority of the insured construction mortgage/
deed of trust?
A construction loan mortgage given for the purpose of providing funds for the
payment of materials or labor for improvements has priority over claim of liens
regardless of whether construction has commenced or materials have been
furnished unless a lien claimant records a construction lien before the recording
of the mortgage. N.D.C.C. § 35-27-04.

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?
Every person, including original contractors and subcontractors, must record their
lien claim within 90 days after the last work or contribution to the property. N.D.C.C.
§ 35-27-13. Failure to file the lien within 90 days does not defeat the lien except as
against purchasers or lienholders in good faith and for value whose rights accrue
before the lien is filed. N.D.C.C. § 35-27-14. A lien may not be filed more than 3 years
after the date the first item of material is furnished. N.D.C.C. § 35-27-14.

What is the period of enforcement of a filed mechanic’s lien?
A lawsuit must be commenced to enforce the lien within 3 years of filing of the
lien. Additionally, the owner, owner’s agent or contractor can make demand upon
a lien claimant that a suit be filed within 30 days or the lien is forfeited. N.D.C.C. §
35-27-25.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. The process for discharging a lien by bond requires the principal to prepare an
application with the district court of the county where the lien is filed. Concurrent
with filing the affidavit and application the applicant must provide a North Dakota
mechanic’s lien release bond. The surety bond must include the jurisdiction,
identify the parties, name the appropriate beneficiary, lien recording details, and
that the surety guarantees payment in full of the lien claim and legal costs up to
the penal sum of the surety bond and the surety bond is equal to no less than the
amount of the lien. N.D.C.C. § 35-21-02.

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

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