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

Mont. Code Ann. § 71-3-523 (2026)

Who May Claim Construction Lien -- Limitation

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  1. MCA Contents
  2. TITLE 71
  3. CHAPTER 3
  4. Part 5
  5. 71-3-523 Who may claim construction lien -- limitation

TITLE 71. MORTGAGES, PLEDGES, AND LIENS

CHAPTER 3. LIENS

Part 5. Construction Liens

Who May Claim Construction Lien -- Limitation

71-3-523. Who may claim construction lien -- limitation. A person who furnishes services or materials pursuant to a real estate improvement contract may claim a construction lien, only to the extent provided in this part, to secure the payment of the person's contract price.

History: En. Sec. 3, Ch. 202, L. 1987; amd. Sec. 2273, Ch. 56, L. 2009.

Notes of Decisions
Cited in 16 cases (3 in the last 5 years), 1997–2024 · leading case: Johnston v. Palmer, 2007 MT 99, 158 P.3d 998.
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Johnston v. Palmer, 2007 MT 99, 158 P.3d 998. · cites it 5× “¶35 The lien statutes or statutory provisions relevant to our analysis are: Section 71-3-523, MCA: A person who furnishes services or materials pursuant to a real estate improvement contract may claim a construction hen, only to the extent provided in this part, to secure the…”
Dick Anderson Constr., Inc. v. Monroe Prop. Co., 2011 MT 138, 255 P.3d 1257. · cites it 3× ““A construction lien extends to the interest of the contracting owner in the real estate, as the interest exists at the commencement of work or is subsequently acquired....” Section 71-3-525, MCA. A “contracting owner” is a “person who owns an interest in real estate and who…”
Riverview Homes, II, Ltd. v. Canton, 2001 MT 309, 38 P.3d 848. · cites it 4× “§ 71-3-523, MCA. Furthermore, certain steps are required to perfect and enforce construction liens, such as notice pursuant to § 71-3-531, MCA, and recordation pursuant to § 71-3-535, MCA.”
Swain v. Battershell, 1999 MT 101, 983 P.2d 873. · cites it 3× “Section 71-3-525(1), MCA. A “contracting owner” is one who owns an interest in real estate and who enters into an express or implied contract for the improvement of the real estate.”
Weimar v. Lyons, 2007 MT 182, 164 P.3d 922. · cites it 5× “We disagree. ¶42 Pursuant to Montana’s construction lien statutes, a person who furnishes services or materials pursuant to a real estate improvement contract may claim a construction lien to secure the payment of the contract price.”
Mandell v. Bayliss, 2016 MT 205, 377 P.3d 1228. · cites it 2× “Further, because a contractor’s hen rights arise from a “real estate improvement contract,” § 71-3-523, MCA, the District Court correctly held that the voiding of the contract *384 eliminated Bayliss’ lien rights for the construction management services he provided.”
Mulroy v. Morgan Pierce, PLLP, 2017 MT 3, 387 P.3d 199. · cites it 2× “3d 998 (applying § 71-3-523, MCA, which governs construction liens and requires specific property descriptions); Price Bldg.”
Gwynn v. Cummins, 2006 MT 239, 144 P.3d 82. · cites it 3× “Section 71-3-523, MCA. The “contract price” for performing the services and furnishing material covered by the contract may be increased by “(i) the price of change orders or extras; *528 (ii) any amounts attributable to altered specifications; or (iii) a breach of contract,…”
Skyline Consulting v. Mortensen, 2022 MT 192, 518 P.3d 462. · cites it 3× “Section 71-3-523, MCA. Once such a lien has been claimed, “the contracting owner of any interest in the property, whether legal or beneficial,” may file a bond in substitution for the lien, clearing up the property’s title while the payment dispute proceeds.”
Petri v. James Talcott Constructio, 2000 MT 355N. · cites it 3× “Section 71-3-523, MCA. The "contracting owner of any interest in such property, whether legal or beneficial," against which a construction lien has been filed may post a substitution bond.”
Earthworks v. Waldher, 2002 MT 272N. · cites it 7× “Plaintiffs have met the requirements for their lien pursuant to Sections 71-3-534, -535 and -536, MCA, and their lien is thus valid and enforceable. ¶22 Pursuant to Montana’s construction lien statutes, a person who furnishes services or materials pursuant to a real estate…”
Thermal Design v. Thorson, 2022 MT 191. · cites it 3× “” Section 71-3-523, MCA. The “contract price” is “the amount agreed upon by the contracting parties for performing services and furnishing materials covered by the contract.”
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