Vol. 31, No. 3, #6. Nonconsensual Liens Under Title 29 of the Wyoming Statutes for Work Performed and Materials Provided Under Contract to Another Person's Property.

• Author: Author: James R. Belcher

Wyoming Bar Journal

2008.

Vol. 31, No. 3, #6.

Nonconsensual Liens Under Title 29 of the Wyoming Statutes for Work Performed and Materials Provided Under Contract to Another Person's Property

Wyoming Bar Journal Issue: June, 2008 Author: James R. Belcher Nonconsensual Liens Under Title 29 of the Wyoming Statutes for Work Performed and Materials Provided Under Contract to Another Person's Property

A person who makes improvements to or repairs property adds to its value. Consequently, the Wyoming Legislature granted such persons a lien right against the property to secure payment for contributing to the value of the property. Title 29 of the Wyoming Statutes grants lien rights to persons who perform work or materials to improve real property, mineral interests and personal property. Title 29 also provides lien rights for other work or services performed. This article is intended only as a primer, discussing only liens against real property, minerals and personal property. Lien Rights and Requirements, Generally

Chapter 1 of Title 29 includes general provisions that apply to all liens. Contractors, subcontractors and materialmen are granted lien rights if the work is performed or the materials are provided pursuant to a contract entered into by the property owner. The general rule is that a lien claimant must provide services or material to the owner or a general contractor. While this language suggests that a supplier to a subcontractor does not hold lien rights, this is not the case, as discussed in more detail below.

The key document to create and enforce a lien is the Lien Statement. For liens against real property or mineral interests, the Lien Statement must be recorded in the real property records of the county in which the improved property is located. The Lien Statement must contain the following information: 1) name and address of lien claimant; 2) lien amount; 3) name and address of the property owner; 4) itemized list of materials delivered or work performed; 5) name of the person against whom the lien claim is made; 6) date labor was last performed or services rendered, or date when the project was substantially completed; 7) legal description of the real property to which the lien is claimed; and 8) copy of the contract, if available. As soon as the Lien Statement has been recorded, notice by certified mail must be sent to the last known owner of the liened property.

All liens enjoy the same priority. Priority is not established by the lien filing date. Rather, the priority date of liens is the date work was first commenced on the property. A perfected lien is expressly granted priority over subsequently perfected other types of liens, security interests or mortgages. Only other types of liens, security interests, or mortgages which have been perfected prior to the commencement of work on the liened property have priority over the Title 29 liens. The Wyoming Supreme Court has not yet ruled when work on a project is first commenced, but the fact that an architect, engineer and surveyor are granted lien rights might suggest that, for purposes of lien claims, work may commence before dirt is first moved. A ruling that follows that logic would preclude a construction lender from ever obtaining legal assurance that its mortgage lien enjoyed priority over any Title 29 lien because architectural and engineering services are almost always performed before a loan application is submitted to a construction lender. In the event proceeds from sale of the...