Idaho Lien Disclosure Statement

Introduction

Key Things to Know

1. 1

   There is no day count in Idaho. Section 45-525(2) attaches the duty prior to entering into any contract in an amount exceeding two thousand dollars, so the deadline is an event in your own office rather than a number of days after work begins.

2. 2

   The duty sits on the general contractor only. Section 45-525(5)(a) defines a general contractor as a person entering an agreement over $2,000 with a homeowner or prospective residential purchaser, and states that the term does not include subcontractors, materialmen or rental equipment providers who do not have a direct contractual relationship with the homeowner or purchaser.

3. 3

   An Idaho subcontractor or supplier has no equivalent step. Title 45 Chapter 5 runs from section 45-501 to section 45-525 and contains no notice a remote claimant must serve to preserve a lien, which is the opposite of how most states handle this.

4. 4

   The disclosure has to carry an acknowledgment of receipt for the homeowner or purchaser to execute. The general contractor must retain proof of receipt and must provide a copy to the homeowner, and section 45-507(3)(e) requires that proof of disclosure and acknowledgment of receipt inside a claim of lien for work subject to section 45-525.

5. 5

   Four subjects have to be covered: the homeowner's right to require lien waivers from subcontractors, the right to proof of general liability insurance including completed operations and of worker's compensation insurance, being informed of the opportunity to buy an extended title insurance policy covering certain unfiled or unrecorded liens, and the right to require a surety bond up to the value of the project.

6. 6

   Section 45-525 applies to real property of not less than one nor more than four dwelling units, owner occupied or not, and does not apply where the homeowner or the homeowner's agent initiates contact for repairs necessary to meet a bona fide emergency or to repair an electrical, plumbing or water system.

7. 7

   A second disclosure arrives later in the job. Section 45-525(3)(a) requires a signed written list of every subcontractor, materialman and rental equipment provider with a direct contract with the general contractor that supplied more than $500 in value, due within a reasonable time before closing or before the final payment.

Idaho Requirements for Preliminary Notice

• Due Before the Contract Is Signed, With No Day Count

  Section 45-525(2) requires the disclosure prior to entering into any contract in an amount exceeding two thousand dollars with a homeowner or residential real property purchaser. Idaho prescribes no number of days anywhere in the section, so there is no window to calculate. Attorney review available on this point, because the page reports an absence rather than a figure.

• Only the General Contractor, and Only Above $2,000

  Section 45-525(5)(a) defines a general contractor as a person entering an agreement in excess of two thousand dollars with a homeowner or prospective residential real property purchaser, and states that the term does not include subcontractors, materialmen or rental equipment providers without a direct contractual relationship with the homeowner or purchaser.

• No Early Notice From Idaho Subcontractors or Suppliers

  Idaho Code Title 45 Chapter 5 runs from section 45-501 to section 45-525. Read from the Legislature's own chapter index, it contains no provision requiring a subcontractor, sub-subcontractor, material supplier, equipment lessor or design professional to serve an early notice to preserve a lien. Attorney review available, since this is a reported absence.

• The Four Subjects the Disclosure Must Cover

  Section 45-525(2) requires the statement to disclose the homeowner's right at its own reasonable expense to require lien waivers from subcontractors; the right to proof of a general liability policy including completed operations and of worker's compensation insurance for employees as required by Idaho law; the opportunity to purchase an extended policy of title insurance covering certain unfiled or unrecorded liens; and the right to require, at the homeowner's expense, a surety bond up to the value of the project.

• An Acknowledgment of Receipt the Homeowner Executes

  Section 45-525(2) requires the statement to contain an acknowledgment of receipt to be executed by the homeowner or residential real property purchaser, requires the general contractor to retain proof of receipt, and requires it to provide a copy to the homeowner or purchaser. Section 45-507(3)(e) then requires that proof of disclosure and acknowledgment of receipt inside a claim of lien for work or materials subject to section 45-525.

• No Prescribed Delivery Method

  Section 45-525 names no delivery method. There is no certified mail requirement, no overnight carrier rule and no site-posting option. The statute relies on the executed acknowledgment of receipt instead, which is why the signature and the retained copy carry the whole evidentiary weight in Idaho.

• One to Four Dwelling Units, and the Emergency Carve Out

  Section 45-525(5)(b) defines residential real property to include owner and nonowner occupied real property consisting of not less than one nor more than four dwelling units. Section 45-525(6) excludes instances in which the homeowner or the homeowner's agent initiates the contact for repairs necessary to meet a bona fide emergency, or to make necessary repairs to an electrical, plumbing or water system.

• The Second Disclosure: Everyone Over $500

  Section 45-525(3)(a) requires a further written statement, signed by the general contractor, listing the business names, addresses and telephone numbers of all subcontractors, materialmen and rental equipment providers having a direct contractual relationship with the general contractor that supplied materials or performed work of a value in excess of five hundred dollars, due within a reasonable time prior to closing or prior to the final payment. Section 45-525(3)(b) authorizes everyone listed to disclose balances owed to the homeowner, the purchaser and their agents. Section 45-525(4) makes incomplete disclosure an unlawful and deceptive act under the Idaho Consumer Protection Act.