Escrow & Title
In North Dakota, 'mechanics' liens' (construction liens) can be placed on property by:
AOnly general contractors
BContractors, subcontractors, material suppliers, and laborers who have provided services or materials for property improvements✓ Correct
COnly licensed architects
DOnly government agencies
Explanation
North Dakota's mechanics' lien laws allow contractors, subcontractors, material suppliers, and laborers who provided improvements to real property to file liens if they are not paid. These liens attach to the property and must typically be satisfied before clear title can be conveyed.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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