Written contract for mechanic's lien enforcement requirement

A bill for an act

relating to civil law; requiring a written contract for mechanic's lien enforcement;

requiring additional notice; amending Minnesota Statutes 2024, sections 514.01;

514.011, subdivision 1; 514.12, subdivision 1; proposing coding for new law in

Minnesota Statutes, chapter 514.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 514.01, is amended to read:

514.01 MECHANICS, LABORERS AND MATERIAL SUPPLIERS.

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Subject to section 514.0101,
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whoever performs engineering or land surveying services

with respect to real estate, or contributes to the improvement of real estate by performing

labor, or furnishing skill, material or machinery for any of the purposes hereinafter stated,

whether under contract with the owner of such real estate or at the instance of any agent,

trustee, contractor or subcontractor of such owner, shall have a lien upon the improvement,

and upon the land on which it is situated or to which it may be removed, that is to say, for

the erection, alteration, repair, or removal of any building, fixture, bridge, wharf, fence, or

other structure thereon, or for grading, filling in, or excavating the same, or for clearing,

grubbing, or first breaking, or for furnishing and placing soil or sod, or for furnishing and

planting of trees, shrubs, or plant materials, or for labor performed in placing soil or sod,

or for labor performed in planting trees, shrubs, or plant materials, or for digging or repairing

any ditch, drain, well, fountain, cistern, reservoir, or vault thereon, or for laying, altering

or repairing any sidewalk, curb, gutter, paving, sewer, pipe, or conduit in or upon the same,

or in or upon the adjoining half of any highway, street, or alley upon which the same abuts.

Sec. 2.

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[514.0101] WRITTEN CONTRACT REQUIRED.

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A lien is not enforceable against an owner and the remedies under this chapter are not

available unless the work is performed or the services or materials are provided pursuant

to a written contract signed and dated by the owner or, in the case of a subcontractor who

does not directly contract with the owner, signed and dated by all parties to the agreement.

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Sec. 3.

Minnesota Statutes 2024, section 514.011, subdivision 1, is amended to read:

Subdivision 1.

Contractors.

Every person who enters into a
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written
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contract with the

owner for the improvement of real property and who has contracted or will contract with

any subcontractors or material suppliers to provide labor, skill or materials for the

improvement shall include in
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any
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the
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written contract with the owner the notice required

in this subdivision and shall provide the owner with a copy of the written contract.
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If no

written contract for the improvement is entered into, the notice must be prepared separately

and delivered personally or by certified mail to the owner or the owner's authorized agent

within ten days after the work of improvement is agreed upon.
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The notice, whether included

in a written contract or separately given, must be in at least 10-point bold type, if printed,

or in capital letters, if typewritten and must state as follows:

"(a) Any person or company supplying labor or materials for this improvement to your

property may file a lien against your property if that person or company is not paid for the

contributions.

(b) Under Minnesota law, you have the right to pay persons who supplied labor or

materials for this improvement directly and deduct this amount from our contract price, or

withhold the amounts due them from us until 120 days after completion of the improvement

unless we give you a lien waiver signed by persons who supplied any labor or material for

the improvement and who gave you timely notice."

A person who fails to provide the notice shall not have the lien and remedy provided by

this chapter.

The notice required by this subdivision is not required of any person who is an owner

of the improved real estate, to any corporate contractor of which the owner of the improved

real estate is an officer or controlling shareholder, to any contractor who is an officer or

controlling shareholder of a corporation which is the owner of the improved real estate, or

to any corporate contractor managed or controlled by substantially the same persons who

manage or control a corporation which is the owner of the improved real estate.

Sec. 4.

Minnesota Statutes 2024, section 514.12, subdivision 1, is amended to read:

Subdivision 1.

Recording.

At the beginning of the action the plaintiff shall file for record

with the county recorder or, if registered land, with the registrar of titles of the county in

which it is brought, and of the several counties if the lien be claimed under section
514.04
,

a notice of the pendency thereof, embracing therein a copy of the summons, omitting the

caption.
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In addition to other notices required by law, the plaintiff must notify the owner of

the improved real estate within 24 hours of the recording that a recording has been made

under this subdivision.

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Sec. 5.
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EFFECTIVE DATE.
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Sections 1 to 4 are effective August 1, 2026, and apply to labor, skill, material, or

machinery furnished to improve real property on or after that date.

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