1.    When land is sold under an executory contract requiring the vendee to improve the land and such contract is forfeited or surrendered after liens have attached by reason of such improvements, the title of the vendor is subject thereto, but the vendor is not personally liable if the contract was made in good faith. When improvements are made by one person upon the land of another, all persons interested in the land, other than as bona fide prior encumbrancers or lienors, are deemed to have authorized the improvements, and are subject to the liens attached to the real estate.

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Terms Used In North Dakota Code 35-27-07

  • Contract: A legal written agreement that becomes binding when signed.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • Property: includes property, real and personal. See North Dakota Code 1-01-49
  • written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37

2.    A person may object to any unauthorized improvements by:

a.    Serving upon the person making the improvements, within five days after knowledge of the improvements, written notice that the improvement is unauthorized; or

b.    Posting a notice objecting to the unauthorized improvements, and keeping the notice posted in a conspicuous place on the premises.

3.    If the legal or equitable owner’s tenant orders improvements on leased real estate, no lien is allowed unless the legal or equitable owner has actual or constructive notice of the improvements and fails to object to the improvements on the leased property.