Note: This summary is not intended to be an all inclusive discussion of Alaska's construction or mechanic's lien laws, but does include basic provisions.
What is a construction or mechanic's lien?
Every State permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. While some states differ in their definition of improvements and some states limit lien claims to buildings or structures, most permit the filing of a document with the local court that puts parties interested in the property on notice that the party asserting the lien has a claim. States differ widely in the method and time within which a party may act on their lien. Also varying widely are the requirements of written notices between property owners, contractors, subcontractors and laborers, and in some cases lending institutions. As a general rule, these statutes serve to prevent unpleasant surprises by compelling parties who wish to assert their legal rights to put all parties who might be interested in the property on notice of a claim or the possibility of a claim. This by no means constitutes a complete discussion of construction lien law and should not be interpreted as such. Parties seeking to know more about construction laws in their State should always consult their State statutes directly.
Who can claim a lien in this State?
Alaska statute permits
any person who furnishes labor, materials, equipment, or services for the
improvement of real property at the request of the owner or the agent of
the owner. A.S. § 34.35.050.
How long does a party have to claim a lien?
As a general proposition,
the time within which a party may file a lien depends on whether the owner
filed a Notice of Completion. If the owner has NOT filed a Notice
of Completion, the lien claimant has ninety (90) days after the completion
of the construction contract or ninety (90) days after the lien claimant
ceases to furnish labor or materials to file a lien claim.
If the owner HAS filed
a Notice of Completion, generally a lien claimant has fifteen (15) days
after the recording of the Notice to record a Claim of Lien or a Notice of
Right to a Lien. However, the fifteen (15) day limitation only
applies to parties who received advance notification of the recording of
the Notice of Completion, or a lien claimant who has not provided a Notice
of Right to a lien.
In addition, a claimant
who records a Notice of Right to a Lien within fifteen (15) days as required
above, has an additional ninety (90) days to file a Claim of Lien.
Lien Claimants who provided a Notice of Right to a Lien but were
not given advance notification of the recording of a Notice of Completion
also have ninety (90) days to record a Lien Notice. A.S. § 34.35.068.
What kind of notice is required prior to claiming
a lien?
As explained above, Alaska law provides for a series of notices prior
to the actual filing of a lien. Potential lien claimants should submit
a Notice of Right a Lien prior to recording a Claim of Lien.
This Notice may be recorded any time after the lien claimant enters into
a contract or first furnishes labor or materials. Alaska law requires
that this Notice contain a form warning placing the property owner on notice
that the property may be subject to a lien . A.S. § 34.35.064
By what method is a lien filed in this State?
A Claim of Lien is recorded
at any time after entering into a contract for a construction project,
subject to the time restrictions outlined above. The Claim of Lien must
be verified by the oath of the claimant and contains a description of the
property and a general description of the labor, materials, services, or
equipment furnished. A.S. § 34.35.070.
How long is a lien good for?
Alaska law does not
permit property to be bound by a lien for more than six months after the
recording of a Claim of Lien, unless a legal action to enforce said lien is
commenced within that period. A.S. § 34.35.080.
Are liens assignable?
Alaska statute does
not have a provision which states that liens may be assigned to other parties.
Does this State require or provide for a notice
from contractors and subcontractors to property owners?
Alaska statutes provide
for a series of notices from potential lien claimants to property owners.
As described above, the lien claimant may record a Notice of Right to
a Lien prior to the recording of a Claim of Lien.
Also, if payment
is past due, a lien claimant may provide the party funding the construction
project with a Stop Lending Notice. A lender who receives this Notice
is required to withhold payment to the project until receiving written
confirmation from the lien claimant of payment or the expiration of the Notice after
(90) days.
In addition, Alaska
statute requires a prime contractor to provide for any requesting lien
claimant, within five (5) days of the request, a property description,
the name and address of the owner and lender, as well as information on
a payment bond, if any.
A lien claimant is also
required, within ten (10) days of the request of the property owner, to
provide the property owner with a written statement of the amount due to
the claimant and unpaid. A.S. § 34.35.114.
Does this State require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
Alaska statutes
permit a property owner to record a Notice of Completion at the conclusion
of the construction project. As explained above, the Notice of Completion
puts potential lien claimants on notice that the time within which to file
a Lien Claim is running.
Does this State permit a person with an interest
in property to deny responsibility for improvements?
Yes. Alaska statute
permits a party with an ownership interest in property being improved to
provide Notice that the party providing the Notice will not be responsible
for the cost of the improvements. This Notice must be posted in an
obvious place upon the property being improved within three (3) days of
the owner obtaining knowledge of the improvements. Also, three days
after posting, the Notice must be recorded with the county recorder.
A.S. § 34.35.065.
Is a notice attesting to the satisfaction of a
lien provided for or required?
No. Alaska statute
does not provide or require a written notice of the satisfaction of a lien.
By what method does the law of this State permit
the release of a lien?
Alaska statutes
have no specific provision for the release of a lien other than by expiration
of the statute of limitations after six (6) months.
Does this State permit the use of a bond to release
a lien?
Yes. Alaska statute allows a contracting owner who disputes
the validity of a lien to record, before the filing of a suit to enforce
the lien, to record a bond in the amount of one and one half times the
amount of the claim of lien. Upon the acceptance of the bond by the
county clerk, the lien against the real property shall be discharged and
released. A.S. § 34.35.072.
Accounting of Amount Due and Unpaid - Corporation
