Idaho law protects suppliers, contractors, subcontractors, and laborers from homeowners or people that might refuse or delay payments for the job done or materials supplied. Here’s how it works:
Mechanics lien in Idaho
When someone takes you to court and the judge hands down a verdict or approves a settlement, a judgment is entered that parties involved must adhere to. For example, if the court orders you to pay a contractor or a supplier the money you owe them, you are legally obligated to pay them. When you can’t or refuse to pay, the judge will place a lien on your property.
Mechanics lien gives your contractor or supplier the right to claim against your property. According to Idaho construction law, the creditor can force the sale of your property to make up for what you owe them.
How mechanic liens work in Idaho
The person that applies for mechanic lien in Idaho is the supplier, contractor, or laborer and not the homeowner. But before they do so, they must serve a Residential Disclosure Notice. This notice enlightens the homeowner that the contractor will also obtain a lien waiver and that they have a liability insurance policy, among other legal requirements.
When the contractor is applying for a mechanics lien, they must use the right form and state the exact amount of money they are claiming. If they overstate, you can challenge the lien as being invalid. Further, the court can also penalize them for trying to take more than they should.
The deadline for applying for a mechanic lien in Idaho is 90 days. If a contractor fails to do this within this time limit, the court will nullify their rights to the project.
Once a contractor files for a lien, there are only two things you can do: Pay them what you owe or don’t. If you make the necessary payments, the court will release or cancel the lien. If you don’t pay, the contractor will start the foreclosure process on your property.
