mechanics' and materialmen's
liens
HB 2465 clarifies the lien priority for improvements at a construction site. In addition, the bill clarifies the definition of construction lender.
History
Those who furnish labor, professional services, materials, machinery, fixtures or tools at a construction site, to construct, alter, repair or make improvements to the building, structure or site, are entitled to a mechanic's lien for the work, materials and professional services. A written preliminary 20-day notice prior to recording a mechanic's lien must be given to the owner, the original contractor, the construction lender, and the person with whom the claimant has contracted.
HB 2465 establishes the lien priority for an improvement at the construction site. Improvement at the site is currently defined in statute.
· Establishes the lien for improvement at the construction site has the same lien priority as the commencement of work or materials furnished at the site.
· Clarifies that construction lender means the mortgagee or beneficiary under a deed of trust who is lending funds that are secured by a mortgage or deed of trust if the majority of the money is used to defray the cost of construction, alteration, improvement or repair.
HB 2465 passed the Commerce and Economic
Development Committee unamended.
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45th Legislature
First Regular Session 2 February
21, 2001
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