A South Dakota mechanic’s lien is a legal tool used by contractors, subcontractors, laborers, and material suppliers to claim their right to compensation in the event of nonpayment on a project. First, a notice must be served on the property owner by the claimant (party seeking payment) that includes a copy of the lien. The lien is then filed by the claimant against the land/property/project they worked on, and it remains on record until the issue is resolved.
South Dakota has a very long claim period of six (6) years, meaning the claimant can enforce the lien at any point within that timeframe after completing their work on a project. However, the property owner has the right to deliver a written demand to the claimant that will limit the enforcement period to thirty (30) days. It’s common practice to file a lien release form once payment has been received.
Laws & Requirements
- Laws: Title 44, Chapter 9
- Signing Requirements (§ 44-9-16): Notary Public
- Time Limit for Recording Lien (§ 44-9-15): One hundred and twenty (120) days
- Deadline for Enforcing Lien (§ 44-9-24 and 44-9-26): Six (6) years from the date of completion; thirty (30) days if the owner requests the lawsuit be initiated sooner.