Mechanics Lien

News & Analysis as of

Merger Doctrine Does Not Prevent Deed of Trust Beneficiary From Extinguishing Junior Lien through Foreclosure, California Court...

The California Court of Appeal recently held that a foreclosure by the beneficiary under a first deed of trust extinguished a junior lien, even though the beneficiary acquired the property by way of a deed in lieu of...more

Changes Made to the Pennsylvania Mechanics’ Lien Law to Protect Holders of Open-End Mortgages and Residential Property Owners

Mechanics’ liens grant contractors and subcontractors an interest in improvements made to real property to secure the payment obligations of owners to contractors, and of contractors to subcontractors. While these liens...more

Pennsylvania Mechanics' Lien Law Amended, Clarifying Open-End Construction Loan Mortgage Priority

On July 9, 2014, Pennsylvania Governor Tom Corbett signed into law Act 117 of 2014, which amends the Pennsylvania Mechanics' Lien Law (MLL), 49 P.S. 1101, et seq., to provide that a construction loan secured by an open-end...more

Under Well Established California Law, Judgment In Favor Of Borrower In A Lawsuit Brought To Foreclose A Mechanic's Lien After...

The issue before the Second District Court of Appeal ("Appellate Court") in this published opinion was whether a senior trust deed holder loses its priority lien position after accepting a deed in lieu of foreclosure from its...more

Surprising Shakeup in Construction Lending: New Law Kisses Kessler Goodbye

On July 9, 2014, Governor Tom Corbett signed into law Act 117 of 2014 which amends the Mechanics’ Lien Law to grant lien priority to open-end mortgages over mechanics’ liens, provided that sixty percent (60%) of the proceeds...more

News for Contractors and Construction Lenders in Arizona and Nevada – The Contractors' Lien May Trump the Bank's

In addition to an arid climate and plenty of sunshine, Arizona and Nevada have something more to offer contractors: a potentially advantageous position over lenders when a project goes bad. When a project derails and...more

Bill Updates That Will Make Your Head Spin - Weekly Wrap-Up.

Patent Trolling - The contents of HB 1032 - Patent Trolling have been added to SB 648 - NC Commerce Protection Act and sent to the Senate for a concurrence vote. The new SB 648 now addresses contracts between the NC...more

Construction E-Note - June 27, 2014

In This Issue: - Mississippi Legislature Expands State’s Lien Law to Protect Subcontractors, Suppliers, and Materialmen - The Alabama Supreme Court Broadens the Definition of “Occurrence” in a General...more

Mississippi Legislature Expands State’s Lien Law to Protect Subcontractors, Suppliers, and Materialmen

In the wake of the Fifth Circuit Court of Appeals’ long-awaited ruling in Noatex Corp. v. King Construction of Houston, LLC, Case No. 12-60385 (5th Cir. Oct. 10, 2013), which struck down Mississippi's now-repealed Stop-Notice...more

Construction Lenders Beware: Unbonded Stop-Payment Notices May Be Worth More Than The Paper They Are Written On

A common perception in the construction industry is that the most valuable part of an unbonded stop payment notice is the paper it is written on, at least when it is served on a construction lender. While an unbonded stop...more

Protect Your Lien Rights - Four things you need to know ...

Know your deadline for filing the lien - There are different time limits for recording a mechanic’s lien depending on the type of project. Generally: - Residential Projects ..Must file within 60 days of the...more

Weekly Wrap Up

Promises kept: we're starting to see the General Assembly narrow its focus as they promised before this Short Session convened in May. House and Senate calendars are stacked with similar bills including committee work and...more

Weekly Wrap

A super-busy week in Raleigh - HB 1050 - Omnibus Tax Changes was signed by the Governor after the House concurred in the Senate changes. It is now Session Law 2014-3...more

Hump Day Update

My head is spinning. Is yours? Happy Hump Day! Last night the Senate Finance Committee had an unusual - and unusual - evening meeting to take up it's version of HB 1030 - Omnibus Tax Changes. Two hours later the bill...more

Fourth Circuit Clarifies that Bankruptcy Proceedings Need Not Defeat Your Unperfected Mechanics Lien

The statutory mechanics lien is a powerful tool for contractors and suppliers aggrieved by an owner or prime contractor who fails or refuses to pay. Before a mechanics lien may be enforced, the Code of Virginia mandates that...more

"Lien In": North Carolina General Assembly Revisits New Mechanics Lien Laws

Last April, we wrote about the significant changes to the North Carolina mechanics lien laws, which are continuing to create issues and opportunities for owners, contractors, subcontractors and title companies working in the...more

Mechanics Liens Bill Movement

HB 1101 and HB 1102 dealing with Mechanics Liens which we wrote about earlier this week will be considered Wednesday 5/28 at 10:00 in the Subcommittee C of the House Judiciary Committee...more

New Bills Introduced Affecting Mechanics Liens

Mechanics Liens Bills Filed - HB 1101 - An Act to Enhance the Protection provided to Persons Making Improvements to Leased Real Property Under Article 3 of Chapter 44A of the General Statutes, as Recommended by the LRC...more

Mainebiz Real Estate Insider – Reading Between the Liens

Maine has one of the most powerful mechanics lien laws in the country protecting contractors’ rights to get paid for their work, sometimes to the detriment of owners and mortgage holders. A mechanics lien creates a security...more

The Construction Advantage – Issue 4

In our fourth issue of The Construction Advantage, we depart from summaries of regional and national case law to provide you with some helpful information from George Burns, David Ray and Michael Bosse on contract drafting,...more

Developer's Subdivision Project for County Deemed Private Work of Improvement for Purposes of Subcontractor's Claim, Extending...

The California Court of Appeal recently held that where a developer hires a subcontractor to perform work in connection with a subdivision agreement with a public entity, the project may be considered a private work of...more

Pennsylvania Supreme Court Unanimously Holds That Union Workers Are Not Subcontractors for Purposes of Pa. Mechanics' Lien Law

On April 17, 2014, the Supreme Court of Pennsylvania issued a decision eagerly awaited by owners, developers, contractors and others involved in the construction industry....more

The Condominium Form Of Ownership

In Alabama, contractors and subcontractors performing work involving common elements of the condominium at the request and direction of a condominium association should be aware of unique laws applicable to their lien rights...more

The Applicability of Pennsylvania’s Mechanics Lien Law to Oil and Gas Well and Pipeline Construction Projects

The owner and contractors on a construction project usually anticipate that all parties will be properly paid for work performed. In reality, however, it is not uncommon for issues to arise related to the payment of a...more

Mortgage Lenders Can’t Jump Ahead of Mechanic’s Liens

In Weitz Co., LLC v. Heth, 223 Ariz. 442, 314 P.3d 569 (Ct. App. Nov. 26 2013), the Arizona Court of Appeals held that the plain language of Arizona’s mechanic lien statute, A.R.S. § 33-992(A), does not allow a lender to jump...more

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