Bill Text: CT HB06644 | 2011 | General Assembly | Introduced

Connecticut House Bill 6644 (Prior Session Legislation)

Introduced

Bill Title: An Act Concerning Priority Of Mechanic's Liens.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2011-04-04 - Public Hearing 04/08 [HB06644 Detail]

Download: Connecticut-2011-HB06644-Introduced.html


General Assembly		*Raised Bill No. 6644*
*January Session, 2011*		LCO No. 5159
		05159_______JUD
Referred to Committee on Judiciary
Introduced by:
(JUD)

AN ACT CONCERNING PRIORITY OF MECHANIC'S LIENS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective January 1, 2012) A person furnishing materials or rendering services as provided in section 49-33 of the general statutes, as amended by this act, may lodge with the town clerk of the town in which the land, building and appurtenances or lot or plot of land for which such materials have been furnished or are being furnished or such services have been rendered or are being rendered is situated, a notice of commencement of work (1) stating such person's name and address, (2) stating the name of the owner of the subject premises, (3) describing the subject premises, by street address or, if not available, by assessor's lot and map or by lot number and map name, (4) describing the general nature of the materials being furnished or which have been furnished or the services being rendered or which have been rendered, and (5) stating the date upon which such person commenced to furnish materials or render services. The person lodging the notice of commencement of work may rely on information obtained from the tax assessor's office as to the identity of the owner of the subject premises. The town clerk shall record and index the notice of commencement in the land records. The notice shall be in substantially the following form, with the words "NOTICE OF COMMENCEMENT OF WORK" and "THIS IS NOT A LIEN" printed in at least ten-point boldface capital letters:

NOTICE OF COMMENCEMENT OF WORK

THIS IS NOT A LIEN

(Name of owner of subject premises)

(Name of person furnishing materials or rendering services) of (address) is furnishing or has furnished materials to or is rendering or has rendered services on property known as (street address or, if not available, assessor's lot and map or lot number and map name). Those materials or services are (describe the general nature of the materials or services). The furnishing of materials or rendering of services commenced on (date).

(Signature and printed name of person filing the notice)

(Date)

Sec. 2. Section 49-33 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2012):

(a) If any person has a claim for more than ten dollars for materials furnished or services rendered in the construction, raising, removal or repairs of any building or any of its appurtenances or in the improvement of any lot or in the site development or subdivision of any plot of land, and the claim is by virtue of an agreement with or by consent of the owner of the land upon which the building is being erected or has been erected or has been moved, or by consent of the owner of the lot being improved or by consent of the owner of the plot of land being improved or subdivided, or of some person having authority from or rightfully acting for the owner in procuring the labor or materials, the building, with the land on which it stands or the lot or in the event that the materials were furnished or services were rendered in the site development or subdivision of any plot of land, then the plot of land, is subject to the payment of the claim.

(b) The claim is a lien on the land, building and appurtenances or lot or in the event that the materials were furnished or services were rendered in the site development or subdivision of any plot of land, then on the plot of land and the claim takes precedence over any other encumbrance originating after the commencement of the services, or the furnishing of any such materials, and, if a notice of commencement of work has been recorded pursuant to section 1 of this act, the claim takes precedence as of the date of such recording over any other mechanic's lien with respect to which a notice of commencement of work has not been recorded pursuant to section 1 of this act or has been recorded pursuant to section 1 of this act after such date, subject to apportionment as provided in section 49-36, as amended by this act.

(c) If any such liens exist in favor of two or more persons for materials furnished or services rendered in connection with the same construction, raising, removal or repairs of any building or any of its appurtenances, or in the improvement of any lot, or in the site development or subdivision of any plot of land, no one of those persons shall have any priority over another except as hereinafter provided.

(d) If any instrument constituting a valid encumbrance upon such land other than a mechanic's lien is filed for record while the building is being constructed, raised, removed or repaired, or the lot is being improved, or the plot of land is being improved or subdivided, all such mechanic's liens originating prior to the filing of that instrument for record take precedence over that encumbrance. [and no such mechanic's lien shall have priority over any other such mechanic's lien.] That encumbrance and all such mechanic's liens shall take precedence over any mechanic's lien which originates for materials furnished or services rendered after the filing of that instrument for record. [, but no one of the mechanic's liens originating after the filing of that instrument for record has precedence over another.] If any lienor waives or releases his lien or claim of precedence to any such encumbrance, that lien shall be classed with [and have no priority over] liens originating subsequent to that encumbrance.

(e) A mechanic's lien shall not attach to any such building or its appurtenances or to the land on which the same stands or to any lot or to any plot of land, in favor of any subcontractor to a greater extent in the whole than the amount which the owner has agreed to pay to any person through whom the subcontractor claims subject to the provisions of section 49-36, as amended by this act.

(f) Any such subcontractor shall be subrogated to the rights of the person through whom the subcontractor claims, except that the subcontractor shall have a mechanic's lien or right to claim a mechanic's lien in the event of any default by that person subject to the provisions of sections 49-34, 49-35 and 49-36, as amended by this act, provided the total of such lien or liens shall not attach to any building or its appurtenances, or to the land on which the same stands or to any lot or to any plot of land, to a greater amount in the whole than the amount by which the contract price between the owner and the person through whom the subcontractor claims exceeds the reasonable cost, either estimated or actual, as the case may be, of satisfactory completion of the contract plus any damages resulting from such default for which that person might be held liable to the owner and all bona fide payments, as defined in section 49-36, as amended by this act, made by the owner before receiving notice of such lien or liens.

(g) In the case of the removal of any building, no such mechanic's lien shall take precedence over any encumbrance upon the land to which such building has been removed which accrued before the building was removed upon the land.

(h) If any person has a claim for more than ten dollars for materials furnished or services rendered in the construction, raising, removal or repairs of any real property, and the claim is by virtue of an agreement with or by consent of the lessee of such real property or of some person having authority from or rightfully acting for such lessee in procuring the materials or labor, then the leasehold interest in such real property is subject to the payment of the claim. This subsection shall not be construed to limit any of the rights or remedies available to such person under subsection (a) of this section.

(i) Any mechanic's lien may be foreclosed in the same manner as a mortgage.

Sec. 3. Section 49-36 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2012):

(a) No mechanic's lien may attach to any building or its appurtenances, or to the land on which the same stands, or any lot, or any plot of land, in favor of any person, to a greater amount in the whole than the price which the owner agreed to pay for the building and its appurtenances or the development of any such lot, or the development of any such plot of land.

(b) When there are several claimants and the amount of their united claims exceeds that price, the claimants, other than the original contractor, shall be first paid in full, if the amount of that price is sufficient for that purpose; but, if not, it shall first be paid to the claimants having the liens, other than the original contractor, which take precedence pursuant to section 49-33, as amended by this act, or apportioned among such claimants in proportion to the amount of the debts due them respectively, with the remainder, if any, apportioned among the claimants having the liens, other than the original contractor, which do not take precedence pursuant to section 49-33, as amended by this act, in proportion to the amount of the debts due them respectively; and the court having jurisdiction thereof, on application of any person interested, may direct the manner in which the claims shall be paid.

(c) In determining the amount to which any lien or liens may attach upon any land or building, or lot or plot of land, the owner of the land or building or lot or plot of land shall be allowed whatever payments he has made, in good faith, to the original contractor or contractors, before receiving notice of the lien or liens. No payments made in advance of the time stipulated in the original contract may be considered as made in good faith, unless notice of intention to make the payment has been given in writing to each person known to have furnished materials or rendered services at least five days before the payment is made.


This act shall take effect as follows and shall amend the following sections:
Section 1	January 1, 2012	New section
Sec. 2	January 1, 2012	49-33
Sec. 3	January 1, 2012	49-36

Statement of Purpose:

To establish a process for the holder of a mechanic's lien to establish priority for the lien effective upon the filing of a "Notice of Commencement of Work" with the town clerk for recording with deeds of land.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]