Mont. Code Ann. » TITLE 71. MORTGAGES, PLEDGES, AND LIENS · CHAPTER 3. LIENS · Part 5. Construction Liens
Montana Code Annotated

Mont. Code Ann. § 71-3-522 (2026)

Definitions

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 71
  3. CHAPTER 3
  4. Part 5
  5. 71-3-522 Definitions

TITLE 71. MORTGAGES, PLEDGES, AND LIENS

CHAPTER 3. LIENS

Part 5. Construction Liens

Definitions

71-3-522. Definitions. As used in this part, the following definitions apply:

(1) "Commencement of work" means the date of the first visible change in the physical condition of the real estate caused by the first person furnishing services or materials pursuant to a particular real estate improvement contract.

(2) "Construction lien" or "lien" means a lien against real estate arising under this part.

(3) (a) "Contract price" means the amount agreed upon by the contracting parties for performing services and furnishing materials covered by the contract, increased or diminished by:

(i) the price of change orders or extras;

(ii) any amounts attributable to altered specifications; or

(iii) a breach of contract, including but not limited to defects in workmanship or materials.

(b) If a price is not agreed upon by the contracting parties, the contract price means the reasonable value of all services or materials covered by the contract.

(4) (a) "Contracting owner" means a person who owns an interest in real estate and who, personally or through an agent, enters into an express or implied contract for the improvement of the real estate.

(b) For the purpose of determining whether a person is a contracting owner, agency is presumed, in the absence of clear and convincing evidence to the contrary:

(i) between employer and employee;

(ii) between spouses;

(iii) between joint tenants; and

(iv) among tenants in common.

(5) "Original contractor" means a contractor who contracts directly with the contracting owner.

(6) (a) "Real estate improvement contract" means an agreement to perform services, including labor, or to furnish materials for the purpose of producing a change in the physical condition of the real estate, including:

(i) alteration of the surface by excavation, fill, change in grade, or change in a shore, bank, or flood plain of a stream, swamp, or body of water;

(ii) construction or installation on, above, or below the surface of land;

(iii) demolition, repair, remodeling, or removal of a structure previously constructed or installed;

(iv) seeding, sodding, or other landscape operation;

(v) surface or subsurface testing, boring, or analysis; and

(vi) preparation of plans, surveys, or architectural or engineering plans or drawings for any change in the physical condition of the real estate, regardless of whether they are used to produce a change in the physical condition of the real estate.

(b) For the purpose of claiming a construction lien, a real estate improvement contract does not include:

(i) a contract for the mining or removal of timber, minerals, gravel, soil, sod, or things growing on the land or a similar contract in which the activity is primarily for the purpose of making the materials available for sale or use; or

(ii) a contract for the planting, cultivation, or harvesting of crops or for the preparation of the soil for the planting of crops.

History: En. Sec. 2, Ch. 202, L. 1987; amd. Sec. 1, Ch. 293, L. 2007.

Notes of Decisions
Cited in 16 cases (3 in the last 5 years), 1997–2022 · leading case: Dick Anderson Constr., Inc. v. Monroe Prop. Co., 2011 MT 138 (Mont. 2011).
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Dick Anderson Constr., Inc. v. Monroe Prop. Co., 2011 MT 138 (Mont. 2011). · cites it 9× “Therefore, under § 71-3-522, MCA, Monroe Property, acting through its agent Monroe Construction, was a “contracting owner” with regard to the construction contract with DAC.”
Dck Worldwide Holdings Inc. v. CH SP Acquisition LLC, 2015 MT 225 (Mont. 2015). · cites it 13× “” In turn, § 71-3-522, MCA, defines “contract price” as the “amount agreed upon by the contracting parties for performing services and furnishing materials covered by the contract, increased or diminished by: (i) the price of *219 change orders or extras; (ii) any amounts…”
Swain v. Battershell, 1999 MT 101 (Mont. 1999). · cites it 7× “Swain asserts that Battershell qualifies as a “contracting owner” as that term is defined in § 71-3-522(4)(a), MCA, because Battershell holds an interest in the mini-mall property.”
Total Indus. Plant Servs., Inc. v. Turner Indus. Grp., LLC., 2013 MT 5 (Mont. 2013). · cites it 2× “Section 71-3-551, MCA, provides that a “contracting owner of any interest in the property” may file a bond in an amount 1.”
Gaston Eng'g & Surveying, P.C. v. Oakwood Props., LLC, 2011 MT 44 (Mont. 2011). · cites it 9× “” Section 71-3-522(1), MCA (2007). “A construction hen arising under this part has priority over any other interest, lien, mortgage, or encumbrance that may attach to the .”
Tch Bldrs. & Remod. v. Elements Of Const., 437 P.3d 1035 (Mont. 2019). · cites it 3× “" Section 71-3-522(3), MCA. HFOT's argument that "[n]othing in the trial involved any foreclosure issue," while technically correct, fails to account for the impact of the jury's determination of the contract issues on the ultimate resolution of the lien claim.”
Sudan Drilling, Inc. v. Anacker, 2009 MT 14 (Mont. 2009). · cites it 6× “Section 71-3-522(3), MCA. ¶ 10 The depositions filed in this case establish that Sudan and the Anackers entered into a verbal contract under which Sudan agreed to drill a well on the Anackers' property and the Anackers agreed to pay Sudan $21 per foot of well drilled.”
Gatzke v. Christian (In Re Gatzke), 365 B.R. 138 (Bankr. D. Mont. 2007). · cites it 2× “The Christian Contract is a joint venture agreement for the sharing of profits, not a “real estate improvement contract” as defined at § 71-3-522(5), MCA. See, Adv. No. 06-00043 Memorandum of Decision at p.”
Skyline Consulting v. Mortensen, 2022 MT 192 (Mont. 2022). · cites it 7× “For example, the model Uniform Construction Lien Act explicitly authorizes parties other than contracting owners to substitute bonds for liens.”
Gwynn v. Cummins, 2006 MT 239 (Mont. 2006). · cites it 6× “” Section 71-3-522(3)(a), MCA. A person claiming a construction lien “shall give notice of the right to claim a lien to the contracting owner in order to claim a lien.”
A.C.I. v. Elevated Prop., 2021 MT 246 (Mont. 2021). · cites it 4× “See § 71-3-522(2), (6), MCA. A person "who has furnished services or materials pursuant to a real estate improvement contract is entitled to a lien for the unpaid part of the person's contract price.”
Petri v. James Talcott Constructio, 2000 MT 355N (Mont. 2000). · cites it 3× “" Section 71-3-522(4)(a), MCA. Upon filing the substitution bond, the lien against the real property shall forthwith be discharged and released in full.”
Show all 16 citing cases →
Mont. Code Ann. § 71-3-522(1): 1 case
Gaston Eng'g & Surveying, P.C. v. Oakwood Props., LLC, 2011 MT 44 (Mont. 2011). “” Section 71-3-522(1), MCA (2007). “A construction hen arising under this part has priority over any other interest, lien, mortgage, or encumbrance that may attach to the .”
Mont. Code Ann. § 71-3-522(2): 1 case
A.C.I. v. Elevated Prop., 2021 MT 246 (Mont. 2021). “See § 71-3-522(2), (6), MCA. A person "who has furnished services or materials pursuant to a real estate improvement contract is entitled to a lien for the unpaid part of the person's contract price.”
Mont. Code Ann. § 71-3-522(3): 2 cases
Tch Bldrs. & Remod. v. Elements Of Const., 437 P.3d 1035 (Mont. 2019). “" Section 71-3-522(3), MCA. HFOT's argument that "[n]othing in the trial involved any foreclosure issue," while technically correct, fails to account for the impact of the jury's determination of the contract issues on the ultimate resolution of the lien claim.”
Sudan Drilling, Inc. v. Anacker, 2009 MT 14 (Mont. 2009). “Section 71-3-522(3), MCA. ¶ 10 The depositions filed in this case establish that Sudan and the Anackers entered into a verbal contract under which Sudan agreed to drill a well on the Anackers' property and the Anackers agreed to pay Sudan $21 per foot of well drilled.”
Mont. Code Ann. § 71-3-522(3)(a): 3 cases
Dck Worldwide Holdings Inc. v. CH SP Acquisition LLC, 2015 MT 225 (Mont. 2015). “” In turn, § 71-3-522, MCA, defines “contract price” as the “amount agreed upon by the contracting parties for performing services and furnishing materials covered by the contract, increased or diminished by: (i) the price of *219 change orders or extras; (ii) any amounts…”
Gwynn v. Cummins, 2006 MT 239 (Mont. 2006). “” Section 71-3-522(3)(a), MCA. A person claiming a construction lien “shall give notice of the right to claim a lien to the contracting owner in order to claim a lien.”
Thermal Design v. Thorson, 2022 MT 191 (Mont. 2022).
Mont. Code Ann. § 71-3-522(3)(b): 1 case
Earthworks v. Waldher, 2002 MT 272N (Mont. 2002).
Mont. Code Ann. § 71-3-522(4): 1 case
Dick Anderson Constr., Inc. v. Monroe Prop. Co., 2011 MT 138 (Mont. 2011). “Therefore, under § 71-3-522, MCA, Monroe Property, acting through its agent Monroe Construction, was a “contracting owner” with regard to the construction contract with DAC.”
Mont. Code Ann. § 71-3-522(4)(a): 6 cases
Dick Anderson Constr., Inc. v. Monroe Prop. Co., 2011 MT 138 (Mont. 2011). “Therefore, under § 71-3-522, MCA, Monroe Property, acting through its agent Monroe Construction, was a “contracting owner” with regard to the construction contract with DAC.”
Swain v. Battershell, 1999 MT 101 (Mont. 1999). “Swain asserts that Battershell qualifies as a “contracting owner” as that term is defined in § 71-3-522(4)(a), MCA, because Battershell holds an interest in the mini-mall property.”
Total Indus. Plant Servs., Inc. v. Turner Indus. Grp., LLC., 2013 MT 5 (Mont. 2013). “Section 71-3-551, MCA, provides that a “contracting owner of any interest in the property” may file a bond in an amount 1.”
Gaston Eng'g & Surveying, P.C. v. Oakwood Props., LLC, 2011 MT 44 (Mont. 2011). “” Section 71-3-522(1), MCA (2007). “A construction hen arising under this part has priority over any other interest, lien, mortgage, or encumbrance that may attach to the .”
Skyline Consulting v. Mortensen, 2022 MT 192 (Mont. 2022). “For example, the model Uniform Construction Lien Act explicitly authorizes parties other than contracting owners to substitute bonds for liens.”
Mont. Code Ann. § 71-3-522(5): 1 case
Gatzke v. Christian (In Re Gatzke), 365 B.R. 138 (Bankr. D. Mont. 2007). “The Christian Contract is a joint venture agreement for the sharing of profits, not a “real estate improvement contract” as defined at § 71-3-522(5), MCA. See, Adv. No. 06-00043 Memorandum of Decision at p.”
Mont. Code Ann. § 71-3-522(5)(a): 2 cases
Gwynn v. Cummins, 2006 MT 239 (Mont. 2006). “” Section 71-3-522(3)(a), MCA. A person claiming a construction lien “shall give notice of the right to claim a lien to the contracting owner in order to claim a lien.”
Braun Intertec v. G R Ranch (Mont. 1997).
Mont. Code Ann. § 71-3-522(5)(a)(v): 1 case
Braun Intertec v. G R Ranch (Mont. 1997).
Mont. Code Ann. § 71-3-522(6)(a): 1 case
A.C.I. v. Elevated Prop., 2021 MT 246 (Mont. 2021). “See § 71-3-522(2), (6), MCA. A person "who has furnished services or materials pursuant to a real estate improvement contract is entitled to a lien for the unpaid part of the person's contract price.”
Mont. Code Ann. § 71-3-522(6)(a)(ii): 1 case
Thermal Design v. Thorson, 2022 MT 191 (Mont. 2022).
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