Montana Code 71-3-525. Extent of lien
71-3-525. Extent of lien. (1) A construction lien extends to the interest of the contracting owner in the real estate, as the interest exists at the commencement of work or is subsequently acquired in the real estate, subject to the provisions of this section.
Terms Used In Montana Code 71-3-525
- Commencement of work: means the date of the first visible change in the physical condition of the real estate caused by the first person furnishing services or materials pursuant to a particular real estate improvement contract. See Montana Code 71-3-522
- Contracting owner: means a person who owns an interest in real estate and who, personally or through an agent, enters into an express or implied contract for the improvement of the real estate. See Montana Code 71-3-522
- Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- lien: means a lien against real estate arising under this part. See Montana Code 71-3-522
(2)(a) If an improvement is located wholly on one or more platted lots belonging to the contracting owner, the lien applies to the improvement and to the lots on which the improvement is located.
(b)If an improvement is not located wholly on one or more platted lots, the lien applies to the improvement and to the smallest identifiable tract or parcel of land on which the improvement is located.
(3)If the improvement is to leased premises, the lien attaches to the improvement and to the leasehold term. Except as provided in subsection (4), it does not attach to the lessor’s interest unless the lessor contracted for or agreed to the improvement before it was begun.
(4)(a) A construction lien is not impaired to the extent of the value of the work or improvement that is severable from the real estate if the improvement is to premises held by:
(i)a contracting owner who owns less than a fee simple interest; or
(ii)a lessee and the lease is forfeited by the lessee.
(b)If the work or improvement may be removed without harm to the rest of the real estate, the lienholder may have the value determined, the work or improvement sold separately, and the proceeds delivered to the lienholder to satisfy the construction lien. The purchaser shall remove the work or improvement within 45 days of the sale.
(5)If a contracting owner contracts for improvements on real estate not owned by the contracting owner as part of an improvement on the contracting owner’s real estate or for the purpose of directly benefiting the contracting owner’s real estate, there is a lien against the contracting owner’s real estate being improved or directly benefited in favor of persons furnishing services or materials to the same extent as if the improvement had been on the contracting owner’s real estate.