Bill Text: MN HF1522 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Real estate; priority of mechanics lien rights of contractors and subcontractors over a mortgage lender to mechanics liens for goods or services provided prior to the recording of the mortgage limited.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-04-18 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF1522 Detail]
Download: Minnesota-2011-HF1522-Introduced.html
1.2relating to real estate; limiting priority of mechanics lien rights of contractors and
1.3subcontractors over a mortgage lender to mechanics liens for goods or services
1.4provided prior to the recording of the mortgage;amending Minnesota Statutes
1.52010, section 514.05.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 514.05, is amended to read:
1.8514.05 WHEN LIEN ATTACHES; NOTICE.
1.9 Subdivision 1. Generally. All liens, as against the owner of the land, shall attach
1.10and take effect from the time the first item of material or labor is furnished upon the
1.11premises for the beginning of the improvement, and. Liens for items of material or labor
1.12furnished upon the premises before a mortgage or other encumbrance became of record
1.13shall be preferred to any mortgage or other encumbrance not then of record, unless the
1.14lienholder had actual notice thereof. As against a bona fide purchaser, mortgagee, or
1.15encumbrancer without actual or record notice, no lien shall attach prior to the actual and
1.16visible beginning of the improvement on the ground, but a person having a contract for
1.17the furnishing of labor, skill, material, or machinery for the improvement, may file for
1.18record with the county recorder of the county within which the premises are situated, or, if
1.19claimed under section514.04 , with the secretary of state, a brief statement of the nature of
1.20the contract, which statement shall be notice of that person's lien only.
1.21 Subd. 2. Exception. Visible staking, engineering, land surveying, and soil testing
1.22services do not constitute the actual and visible beginning of the improvement on the
1.23ground referred to in this section. This subdivision does not affect the validity of the
1.24liens of a person or the notice provision provided in this chapter and affects only the
2.1determination of when the actual and visible beginning of the improvement on the ground,
2.2as the term is used in subdivision 1, has commenced.
2.3EFFECTIVE DATE.This section is effective August 1, 2011, and applies to
2.4mechanics liens that attach on or after that date.
1.3subcontractors over a mortgage lender to mechanics liens for goods or services
1.4provided prior to the recording of the mortgage;amending Minnesota Statutes
1.52010, section 514.05.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 514.05, is amended to read:
1.8514.05 WHEN LIEN ATTACHES; NOTICE.
1.9 Subdivision 1. Generally. All liens, as against the owner of the land, shall attach
1.10and take effect from the time the first item of material or labor is furnished upon the
1.11premises for the beginning of the improvement
1.12furnished upon the premises before a mortgage or other encumbrance became of record
1.13shall be preferred to any mortgage or other encumbrance not then of record, unless the
1.14lienholder had actual notice thereof. As against a bona fide purchaser, mortgagee, or
1.15encumbrancer without actual or record notice, no lien shall attach prior to the actual and
1.16visible beginning of the improvement on the ground, but a person having a contract for
1.17the furnishing of labor, skill, material, or machinery for the improvement, may file for
1.18record with the county recorder of the county within which the premises are situated, or, if
1.19claimed under section
1.20the contract, which statement shall be notice of that person's lien only.
1.21 Subd. 2. Exception. Visible staking, engineering, land surveying, and soil testing
1.22services do not constitute the actual and visible beginning of the improvement on the
1.23ground referred to in this section. This subdivision does not affect the validity of the
1.24liens of a person or the notice provision provided in this chapter and affects only the
2.1determination of when the actual and visible beginning of the improvement on the ground,
2.2as the term is used in subdivision 1, has commenced.
2.3EFFECTIVE DATE.This section is effective August 1, 2011, and applies to
2.4mechanics liens that attach on or after that date.
