PRE‐LIEN NOTICE / NOTICE TO OWNER

(North Dakota Construction Project – Mechanics’ Lien Statutes)

Effective Date: [DATE OF NOTICE]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Statutory Notice & Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Certificate of Service

[// GUIDANCE: Delete the Table of Contents if the final document is fewer than five pages after customization.]

1. DOCUMENT HEADER

1.1 Parties.
a. “Claimant”: [LEGAL NAME OF CLAIMANT], a [STATE] [ENTITY TYPE] having its principal place of business at [ADDRESS] and holding North Dakota contractor license number [LICENSE NO. (if applicable)].
b. “Owner”: [LEGAL NAME OF OWNER], whose address for notice is [ADDRESS].
c. “General Contractor”: [LEGAL NAME] (if other than Claimant).

1.2 Project.
a. Project Name/Description: [PROJECT NAME OR DESCRIPTION].
b. Property: [LEGAL DESCRIPTION OR PARCEL ID] located in [COUNTY], North Dakota (the “Property”).

1.3 Governing Law. This Notice is governed by North Dakota mechanics’ lien statutes and related state lien law (the “Lien Law”).

2. DEFINITIONS

All capitalized terms have the meanings given below or as otherwise defined in this Notice.

“Amount Due” – The unpaid contract price, including approved extras, owed to Claimant as of the Effective Date, currently totaling $[AMOUNT].

“First Furnishing Date” – The date Claimant first supplied labor, materials, or equipment to the Project, namely [DATE].

“Last Furnishing Date” – The most recent date on which Claimant supplied labor, materials, or equipment to the Project, namely [DATE].

“Notice” – This Pre-Lien Notice / Notice to Owner, together with all exhibits and schedules.

“Service Methods” – The statutorily authorized means of delivering this Notice, as selected in Section 11 below.

3. STATUTORY NOTICE & OPERATIVE PROVISIONS

3.1 Statutory Warning.
THIS IS NOT A LIEN. However, if the Owner or its agent fails to pay the Amount Due, the Claimant intends to enforce its lien rights under the Lien Law, which may result in a lien, foreclosure, and sale of the Property to satisfy any unpaid balance.

3.2 Notice Timing.
Pursuant to the Lien Law, this Notice is being provided within the period prescribed for [CONTRACTORS / SUBCONTRACTORS / SUPPLIERS—SELECT ONE] after the First Furnishing Date.

[// GUIDANCE: North Dakota imposes different timing rules depending on the claimant’s tier and the project type. Insert the exact statutory deadline (e.g., “within 60 days after first furnishing”) once confirmed.]

3.3 Amount Due and Description of Work.
a. Labor/Materials Supplied: [DETAILED DESCRIPTION].
b. Contract Price: $[TOTAL CONTRACT PRICE].
c. Amount Paid to Date: $[AMOUNT].
d. Amount Due: $[AMOUNT DUE] (exclusive of finance charges, interest, attorney fees, and costs allowed by law).

3.4 Reservation of Rights.
Claimant reserves all rights and remedies available under the Lien Law, equity, and applicable contract documents, including the right to record and foreclose a mechanics’ lien if the Amount Due is not paid in full within the Cure Period stated in Section 6.2.

4. REPRESENTATIONS & WARRANTIES

4.1 Claimant represents and warrants that:
a. It has furnished labor, materials, or equipment for the improvement of the Property as described herein;
b. The Amount Due stated is true, correct, and owing;
c. All known credits, offsets, and payments have been applied; and
d. Claimant holds all licenses and registrations required for the work performed.

4.2 Survival. The representations and warranties in this Section survive delivery of this Notice and any payment negotiations.

5. COVENANTS & RESTRICTIONS

5.1 Owner Access to Records. Upon reasonable written request, Claimant will provide reasonable substantiation of the Amount Due, including invoices, delivery tickets, and proofs of labor.

5.2 Owner’s Duty to Notify. Owner covenants to notify Claimant promptly of any dispute regarding the Amount Due or the quality of Claimant’s work. Failure to provide such notice within [NUMBER] days constitutes acceptance of the Amount Due as stated.

6. DEFAULT & REMEDIES

6.1 Event of Default. Failure of Owner to pay the Amount Due within the Cure Period constitutes an Event of Default.

6.2 Cure Period. Owner has [NUMBER OF DAYS – RECOMMENDED 10 TO 15] days after receipt of this Notice (the “Cure Period”) to pay the Amount Due in full or otherwise resolve the claim to Claimant’s satisfaction.

6.3 Remedies. Upon an Event of Default, Claimant may, without further notice, exercise any or all of the following remedies:
a. Record a mechanics’ lien against the Property for the Amount Due plus allowable interest, costs, and attorney fees;
b. Initiate a foreclosure action in a North Dakota state court of competent jurisdiction; and
c. Pursue any additional remedies available under contract or law.

6.4 Attorneys’ Fees. Owner shall be liable for Claimant’s reasonable attorneys’ fees and costs incurred in enforcing lien rights or collecting the Amount Due, to the maximum extent permitted by the Lien Law.

7. RISK ALLOCATION

7.1 Limitation of Liability. To the fullest extent permitted by law, Claimant’s aggregate liability to Owner for claims arising from or relating to the work performed shall not exceed the lesser of (a) the Amount Due or (b) the total value of labor, materials, or equipment actually furnished by Claimant.

[// GUIDANCE: Because this is a statutory notice rather than a contract, liability caps may have limited practical effect. Confirm client objective before inclusion.]

7.2 No Indemnification. Consistent with the Metadata, no indemnity is granted or received under this Notice.

8. DISPUTE RESOLUTION

8.1 Governing Law. All disputes arising from this Notice or any subsequent lien enforcement shall be governed by North Dakota law, without regard to conflict-of-laws principles.

8.2 Forum Selection. The parties consent to the exclusive jurisdiction of the state courts located in [COUNTY], North Dakota for any action relating to this Notice, any recorded lien, or subsequent foreclosure proceedings.

8.3 Injunctive Relief. Nothing in this Notice limits Claimant’s right to seek equitable or injunctive relief, including but not limited to orders for foreclosure and sale of the Property.

9. GENERAL PROVISIONS

9.1 Amendments; Waivers. Any amendment or waiver of this Notice must be in writing and signed by Claimant.

9.2 Assignment. Claimant may assign its rights under this Notice and any resulting lien to a bona fide purchaser or financing party without Owner consent.

9.3 Severability. If any provision of this Notice is held invalid or unenforceable, the remaining provisions remain in full force.

9.4 Entire Notice. This document constitutes the entire pre-lien notice from Claimant to Owner regarding the Amount Due and supersedes all prior oral or written communications concerning the same.

9.5 Electronic Signatures. Signatures transmitted electronically or by facsimile are deemed original for all purposes.

10. EXECUTION BLOCK

CLAIMANT:
[LEGAL NAME OF CLAIMANT]

By: __________
Name: [TYPED NAME]
Title: [POSITION]
Date: [DATE]

OWNER ACKNOWLEDGMENT (Optional but recommended):
Receipt of this Notice is acknowledged. No waiver of rights is intended.

By: __________
Name: [TYPED NAME]
Title: [POSITION]
Date: [DATE]

[// GUIDANCE: North Dakota does not require owner signature for validity; however, obtaining acknowledgment can be useful evidence of receipt.]

11. CERTIFICATE OF SERVICE

I, [NAME OF PERSON SERVING NOTICE], certify under penalty of perjury that on [DATE OF SERVICE] I served the foregoing Pre-Lien Notice / Notice to Owner on the parties below using the Service Method(s) indicated:

*Service complies with the methods authorized under North Dakota lien statutes, including certified mail, return receipt requested, or personal delivery by a competent adult.

Signature: _______
Name: [PRINTED NAME]
Date: [DATE]

[// GUIDANCE: Attach USPS green cards or sworn delivery affidavits to strengthen proof of service.]

END OF DOCUMENT