Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who performs labor, furnishes material or equipment that are delivered to the real property, performs work in anticipation or preparation regardless of whether implemented (includes architects and surveyors), and general contractors. AK ST § 34.35.050 DEADLINE TO PERFECT Lien filing deadline depends on whether the owner recorded a notice of completion pursuant to AK ST § 34.35.071: • If notice of completion is not recorded by owner: 120 days after lienor completes construction contract or ceases to furnish labor, materials, services, etc. • If notice of completion recorded by owner and lienor had advance notice of same or did not give notice of right to lien: 15 days after notice of completion recorded. • If notice of completion recorded by owner and lienor did not have advance notice of same and recorded own notice of right to lien: 120 days after completing contract or furnishing services. AK ST § 34.35.068 BROKEN PRIORITY A mechanic’s lien simply has priority over a recorded instrument where: • A claim of lien under AK ST § 34.35.070 or notice of right to lien under AK ST § 34.35.064 has been recorded before the encumbrance. • The lien created is in favor of an individual (individual(s) must be a natural person) who performed labor upon the building/trustee of an employee benefit trust on behalf of said individuals (no claim of lien/notice of right to lien required for priority). Nystrom v. Buckhorn Homes, Inc., 778 P.2d 1115 (Alaska 1989) AK ST § 34.35.060 DURATION OF LIEN A lien will expire 6 months after recordation unless: • Action is commenced to enforce within 6 months • An extension notice is filed in the same recorder’s office within original 6 month period showing original lien instrument’s (1) recording date, (2) book/page or serial number, and (3) balance owing. AK ST § 34.35.080 CONTENTS OF LIEN (1) Must be written and verified by oath; (2) contain a description sufficient for ID; (3) name of owner; (4) address of claimant; (5) general description of what provided; (6) amount due; and (7) date last service/labor/etc. furnished. Requires substantial compliance. In re Naknek Elec. Ass’n, Inc., 471 B.R. 225, 231 (Bankr. D. Alaska 2012) AK ST § 34.35.070 ALASKA ALASKA – 504 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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