What happens if we file a preliminary notice halfway through the project? For example, we sign a new sales order this week, but we have been working on it for the past six months. What right do we have in that circumstance?
1 reply
Aug 6, 2020
A Montana preliminary notice is an absolute requirement for anyone who didn't contract directly with the property owner to secure the right to file a mechanics lien. Exactly when this notice needs to be sent, depends on the type of project.
The general rule is that notice needs to be sent within 45 days of first furnishing labor or materials to the project. If, however, the project is an owner-occupied residential property, the time to serve notice is reduced to just 20 days after first furnishing.
A Montana preliminary notice can be sent late, but it will limit the amount of lien rights available. A late notice will only cover the value of labor or materials provided in the 45/20 days (whichever is applicable) preceding the notice, and everything thereafter. So even if you've missed your notice deadline, it's worth sending a late notice anyways. That way you've secured some lien rights, as opposed to none.
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