Some states attach even more importance to the contractor`s affidavit than to simply serving as a means of obtaining unpaid debts. In Minnesota, for example, a contractor who works for the state, cannot get his final payment at all until he and all subcontractors for a project have filed an affidavit from a contractor with the Minnesota Department of Revenue. If a contractor has not been fully paid for his work, he cannot sue the owner until he gives the licensee`s sworn insurance. Nor can he place a pledge right on the ground until the insurance under oath is made. A pledge is a public notice related to a property that indicates that the owner of the property owes money to a creditor. The title to a property must be clear or free of all pawn rights before it can be sold, or the cost of the right to pledge must be included in the sale price of the property. The exact methods of clarifying the title vary according to state law. Some states provide standard contracts specifying what should be in the policy of insurance under oath. As a general rule, sworn insurance must accurately indicate the amount of money owed by whom. They must be signed by a notary.

Some states, such as Florida, require timely notification to the owner before legal action or a pledge can begin. In Florida, this means that sworn insurance must be made to the owner at least five days before a complaint is filed. The sworn insurance of a contractor is a legal document stating that a contractor has provided all the stocks and labour necessary for the completion of a construction project. The contractor signs the insurance under oath in front of a notary, certifies that he has completed the project and lists exactly how much money the project owner still owes him. The form is notified to the owner when the final payment of a project is due and only after the completion of the project. The sworn insurance of a contractor is also called the contractor`s affidavit. This is a form signed before a notary that a contractor who has worked on a construction project must issue before he can file a cease-and-desist action or deposit a pledge on the land he has built. The rules for what should be in a contractor`s sworn insurance vary from state to state.

Most states require all general contractors to file insurance under oath before filing a complaint, and some states also require outsourced insurance, electrical contractors and others who have worked on a construction project.