HB 1323 Summary

• Amends North Dakota Century Code sections 35-27-01 through 35-27-24 to clarify and expand construction lien rights for persons furnishing materials and labor on real property improvements.

• Expands the definition of "subcontractor" to include any person contributing skill, labor, or materials without a direct contract with the owner, clarifying lien eligibility for indirect contractors.

• Requires written notice of intent to claim a lien be given to the legal or equitable owner by certified mail at least 10 days before lien recording, and notice of enforcement action at least 10 days before court action.

• Clarifies that liens attach against legal and equitable owners from the time materials or labor are first furnished, but do not attach against good-faith purchasers or encumbrancers without actual or constructive notice before visible improvements begin.

• Allows property owners or lessors to object to unauthorized improvements by serving written notice within five days of learning of the work or by posting conspicuous notice on the premises to prevent lien attachment.