Contractor's Certification to Owner - Corporation
Note: This summary is not intended to be an all
inclusive discussion of Delaware's construction lien laws, but does include
basic provisions.
When and By Whom A Lien May Be Filed.
Delaware law permits any person who performs or furnishes labor
or material in excess of $25.00 in value for the erection, alteration,
or repair of any structure under written or express contract with the structure's
owner, contractor, or subcontractor, to obtain a lien for the value of
labor or materials provided. DE Tit. 25, § 2702. However,
a lien may not attach if improvements are made to land alone unless
a written contract is created that contains specific information found
in DE Tit. 25, § 2703.
Notice of Materials or Labor Furnished.
The owner of any structure being built, repaired, or altered, may
require the contractor to provide him a list of all persons who have provided
labor or materials to the structure and may be entitled to a lien.
The contractor has ten days to furnish the list or the owner may elect
to withhold payments and the contractor may not avail himself of the other
provisions of Delaware's lien law. DE Tit. 25, § 2705.
Requirement of a Contractor's Notice or Release Affidavit.
DE Tit. 25, § 2707 places a duty on the contractor to provide
the property owner with one of two types of written notification that certify
that no liens will be filed against the owner's property. The contractor
may provide either a Notice which states that the contractor has paid everyone
who might be entitled to a lien in full, or an affidavit signed by all
parties who provided labor or materials releasing the right to file a claim
and pursue a lien. Failure to provide one of these documents to the property
owner prior to or simultaneous with the full and final payment of the owner
to the contractor is sufficient cause to suspend or revoke the contractor's
license. DE Tit. 25, § 2707
Timely Filing of A Statement of Claim.
If the contractor in question has a contract directly with the owner,
and has furnished labor and materials to the structure, he must wait ninety
(90) days before he may file a statement of claim. The contractor
then has thirty (30) days from the expiration of the ninety (90) day period
to file his lien. Otherwise, a claim statement must be filed
within ninety (90) days of of the completion of labor or from the last
date of delivery of materials. DE Tit. 25, § 2711
Filing a Statement of Claim.
Any person entitled to a lien against an improved property must
file a Statement of Claim or a complaint with the Prothonotary of the Superior
Court in and for the county where the structure is situated. The
claim statement requires extensive information about the construction transaction.
For specific information required, please see DE Tit. 25, § 2712 or
UsLegalForm DE-05-09.