March 11, 2008

Proposed amendment to construction lien law will allow owner to post and serve notice of completion on prime and remote contractors

SB 2950/HB 3102 - Mechanic's and materialmen's liens. Modifies provisions regarding mechanic's and materialmen's liens and notices pertaining thereto. Permits other authorized parties in addition to the owner or purchaser to serve notice of completion recorded with the register of deeds. States that no notice is required to be served on prime contractor if owner is also the general contractor. (S: Haynes; H: Curtiss)

Senate Status: Referred to Senate Judiciary.
House Status: House Utilities, Banking & Small Business Subcommittee deferred to 03/18/2008.

"(d)(1) On the same date of the recording of the notice of completion, a copy of the notice shall be served on each prime contractor and remote contractor who has served the required notice of nonpayment, pursuant to § 66-11-145, and the prime contractor and remote contractor:
(A) For improvements to or on real property for one-family, twofamily, three-family and four-family residential units, shall have ten (10) days from such service to serve notice in accordance with this section, and if notice is not served within that time, then the lien rights of the claimant shall expire; or
(B) For all other contracts for improvements to or on real property, shall have thirty (30) days from such service to serve notice in accordance with this section, and if notice is not served within that time, then the lien rights of the claimant shall expire.
[(d)](2) The lien rights of the prime contractor and each remote contractor not
so notified shall not be affected by the notice of completion." SB 2950/HB 3102.