One of the fundamental principles of contract law is the right to assign contract rights to a third party. This is a corollary to the principle of "delegation," which involves assigning the duties under a contract to a third party. For example, Jack contracts with Jill to build Jill a house. Jack then assigns the right to payment for the house to Fred (maybe he owes Fred some money on a debt). This is called an "assignment." Contrast that with if Jack were to enlist Fred to build the house for Jill to fulfill Jack and Jill's contract, this would be a "delegation" (although possibly not a legal one if Jill entered the agreement specifically to seek Jack's special services). With the basic legal terminology clarified, let's move on to how lien assignments work in Minnesota.

Lien assignments work like any other assignments of rights under other types of contracts. Therefore, they are governed under Minnesota's version of the Uniform Commercial Code which is codified under Chapter 336 of the Minnesota Statutes.

Under the Commercial Code's rule on assignments, all rights of either seller or buyer can be assigned except where the assignment would materially change the duty of the other party, or increase materially the burden or risk imposed on the other party by the contract, or impair materially the other party's chance of obtaining return performance. M.S. 336.2-210(2). In general, as long as there is no increased burden or risk, or the duties required by the party subject to the lien somehow change, an assignment is permissible.

This article is provided for informational purposes only and is not intended to be relied upon as a substitute for the advice of an attorney. Please contact a Minnesota attorney with any questions about assigning lien rights or other related issues.

How to Use This Form

Select your county from the list above
Download the county-specific form
Fill in the required information
Have the document notarized if required
Record with your county recorder's office

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Common Uses for Assignment of Mechanic Lien

Release a mechanic's lien after receiving full payment
Provide notice of intent to file a lien for unpaid work
Protect a contractor's right to payment for work performed
Establish priority of a construction lien on a property
Document consent of the property owner for improvements

Compare other Minnesota deed forms and documents

Quitclaim Deed Quitclaim Deed from Individual to Joint Tenants Quitclaim Deed Divorce Gift Deed Warranty Deed Warranty Deed Excluding Assessment Warranty Deed from Individual to Joint Tenants Warranty Deed from Individual to Joint Tenants Excluding Assessments Limited Warranty Deed Limited Warranty Deed Excluding Assessment Limited Warranty Deed from Individual to Joint Tenant Limited Warranty Deed from Individual to Joint Tenant Excluding Assessment Easement Deed Termination of Easement Affidavit of Identity and Survivorship Transfer on Death Deed Transfer on Death Revocation Affidavit of Identity and Survivorship for Transfer on Death Deeds Deed of Distribution Personal Representative Deed of Sale Transfer on Death Deed by Married Joint Tenants Transfer on Death Deed by Married Sole Owner Transfer on Death Deed by Unmarried Owner Trustee Deed Individual Affidavit of Trustee for Testamentary Trust Affidavit of Trustee for Non-testamentary Trust Correction Deed Mineral Deed Mortgage Secured by Promissory Note Subcontractor Notice of Furnishing Mechanics Statement of Lien Receipt and Waiver of Mechanic Lien Satisfaction of Mechanic Lien Release of Mechanic Lien Disclaimer of Interest Certificate of Trust

Important: County-Specific Forms

Our assignment of mechanic lien forms are specifically formatted for each county in Minnesota.

After selecting your county, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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