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New Hampshire Assignment of Lien

New Hampshire Assignment of Lien Information

IMPORTANT: These forms are for assigning a mechanic's lien, NOT a general lien.

Construction liens are governed by Chapter 447 of the New Hampshire Statutes.

One of the fundamental principles of contract law is the right to assign contract rights to a third party. This is opposite 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 New Hampshire.

Typically, under the 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. 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.

In general, assignments identify the parties, the location and nature of the work or improvement, and relevant dates. The assignor (individual or entity transferring the outstanding lien) signs the completed form in the presence of a notary and records the document in the local land records. Deliver an official copy of the recorded assignment to the assignee (individual or entity gaining rights to the lien) via USPS Certified Mail with return receipt.

This article is offered for informational purposes only and is not legal advice. This information should not be relied upon as a substitute for speaking with an attorney. Please speak with a New Hampshire attorney familiar with mechanic's liens law for any questions regarding lien assignments.

Deeds.com New Hampshire Assignment of Lien Forms Have Been Updated as Recently as Monday August 1, 2022

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