08 SB374/CSFA/1
Senate
Bill 374
By:
Senators Weber of the 40th and Seabaugh of the 28th
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Part 3 of Article 8 of Chapter 14 of Title 44 of the Official Code of
Georgia Annotated, relating to mechanics and materialmen, so as to provide for
definitions; to revise certain time periods for filing materialmen´s and
mechanics´ liens; to provide for certain notices regarding waiver of lien
or claim upon bond; to set filing fees for such liens; to define certain terms;
to provide that certain notices shall be sent by registered or overnight mail or
statutory overnight delivery; to provide that certain liens are unenforceable if
an action is not commenced within 12 months; to provide for a notice of contest
of lien; to provide for the computation of certain time periods; to provide for
related matters; to provide for an effective date; to repeal conflicting laws;
and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Part
3 of Article 8 of Chapter 14 of Title 44 of the Official Code of Georgia
Annotated, relating to mechanics and materialmen, is amended by adding new
paragraphs to Code Section 44-14-360, relating to definitions, to read as
follows:
"(.1)
' Business day' means any day that is not a Saturday, Sunday, or legal
holiday."
"(2.1)
'Lien action' means a lawsuit, proof of claim in a bankruptcy case, or a binding
arbitration."
SECTION
2.
Said
part is further amended by revising Code Section 44-14-361.1, relating to how
liens are declared and created, as follows:
"44-14-361.1.
(a)
To make good the liens specified in paragraphs (1) through (8) of subsection (a)
of Code Section 44-14-361, they must be created and declared in accordance with
the following provisions, and on failure of any of them the lien shall not be
effective or enforceable:
(1)
A substantial compliance by the party claiming the lien with his
or
her contract for building, repairing, or
improving; for architectural services furnished; for registered forester
services furnished or performed; for registered land surveying or registered
professional engineering services furnished or performed; or for materials or
machinery furnished or set up;
(2)
The filing for record of his
or
her claim of lien within
three
months
90
days after the completion of the work, the
furnishing of the architectural services, or the furnishing or performing of
such surveying or engineering services or within
three
months
90
days after the material or machinery is
furnished in the office of the clerk of the superior court of the county where
the property is
located,
which. The
lien shall include a statement regarding its expiration pursuant to Code Section
44-14-367 and a notice to the owner of the property on which a claim of lien is
filed that such owner has the right to contest the lien; the absence of such
statement or notice shall invalidate the lien.
The claim shall be in substance as
follows:
'A.B.,
a mechanic, contractor, subcontractor, materialman, machinist, manufacturer,
registered architect, registered forester, registered land surveyor, registered
professional engineer, or other person (as the case may be) claims a lien in the
amount of (specify the amount claimed) on the house, factory, mill, machinery,
or railroad (as the case may be) and the premises or real estate on which it is
erected or built, of C.D. (describing the houses, premises, real estate, or
railroad), for satisfaction of a claim which became due on (specify the date the
claim was due,
which is the same as the last date the labor, services, or materials were
supplied to the premises) for building,
repairing, improving, or furnishing material (or whatever the claim may
be).'
At
the time of filing for record of his claim of
lien
No later than
two business days after the date the claim of lien is filed of
record, the lien claimant shall send a
true and
accurate copy of the claim of lien by
registered or certified mail or statutory overnight delivery to the owner of the
property or,
if the owner´s address cannot be
found, the contractor, as the agent of the
owner;
provided, however, if the property owner is an entity on file with the Secretary
of State´s Corporations Division, sending a copy of the claim of lien to
the entity´s address or the registered agent´s address shall satisfy
this requirement. In all cases in which a notice of commencement is filed with
the clerk of the superior court pursuant to subsection (b) of Code Section
44-14-361.5, a lien claimant shall also send a copy of the claim of lien by
registered or certified mail or statutory overnight delivery to the contractor
at the address shown on the notice of
commencement;
(3)
The commencement of
an
a
lien action for the recovery of the amount
of the party´s claim within
12
months
365
days from the
time the
same shall become due
date of filing
for record of his or her claim of lien. In
addition, within
14
30
days after
filing
commencing
such
lien
action, the party claiming the lien shall file a notice with the clerk of the
superior court of the county wherein the subject lien was filed. The notice
shall contain a caption referring to the then owner of the property against
which the lien was filed and referring to a deed or other recorded instrument in
the chain of title of the affected property. The notice shall be executed, under
oath, by the party claiming the lien or by such party´s attorney of record,
but failure to execute the notice under oath shall be an amendable defect which
may be cured by the party claiming the lien or by such party´s attorney
without leave of court at any time before entry of the pretrial order and
thereafter by leave of court. An amendment of notice pursuant to this Code
section shall relate back to the date of filing of the notice. The notice shall
identify the court
or arbitration
venue wherein the
lien
action is brought; the style and
number, if
any, of the
lien
action, including the names of all parties thereto; the date of the filing of
the
lien
action; and the book and page number of the records of the county wherein the
subject lien is recorded in the same manner in which liens specified in Code
Section 44-14-361 are filed. The clerk of the superior court shall enter on the
subject lien so referred to the book and page on which the notice is recorded
and shall index such notice in the name of the then purported owner as shown by
the caption contained in such notice. A separate lis pendens notice need not be
filed with the commencement of this action; and
(4)
In the event any contractor or subcontractor procuring material,
architect´s services, registered forester´s services, registered land
surveyor´s services, or registered professional engineer´s services,
labor, or supplies for the building, repairing, or improving of any real estate,
building, or other structure shall abscond or die or leave the state
within 12
months from the date such services, labor, supplies, or material are furnished
to him or her
during the
required time period for filing a lien
action, so that personal jurisdiction
cannot be obtained on the contractor or subcontractor in
an
a
lien action for the services, material,
labor, or supplies, or if the contractor or subcontractor shall be adjudicated a
bankrupt, or if, after the filing of
an
a
lien action, no final judgment can be
obtained against him or her for the value of such material, services, labor, or
supplies because of his or her death, adjudication in bankruptcy, or the
contract between the party claiming the lien and the contractor or subcontractor
includes a provision preventing payment to the claimant until after the
contractor or the subcontractor has received payment, then and in any of these
events, the person or persons furnishing material, services, labor, and supplies
shall be relieved of the necessity of filing
an
a
lien action or obtaining judgment against
the contractor or subcontractor as a prerequisite to enforcing a lien against
the property improved by the contractor or subcontractor. Subject to Code
Section 44-14-361, the person or persons furnishing material, services, labor,
and supplies may enforce the lien directly against the property so improved in
an
a
lien action against the owner thereof, if
filed within
12 months
from the time the lien becomes due
the required
time period for filing a lien action, with
the judgment rendered in any such proceeding to be limited to a judgment in rem
against the property improved and to impose no personal liability upon the owner
of the property; provided, however, that in such
lien
action for recovery, the owner of the real estate improved, who has paid the
agreed price or any part of same, may set up the payment in any
lien
action brought and prove by competent and relevant evidence that the payments
were applied as provided by law, and no judgment shall be rendered against the
property improved. Within
14
30
days after filing such
lien
action, the party claiming the lien shall file a notice with the clerk of the
superior court of the county wherein the subject lien was filed. The notice
shall contain a caption referring to the then owner of the property against
which the lien was filed and referring to a deed or other recorded instrument in
the chain of title of the affected property. The notice shall be executed, under
oath, by the party claiming the lien or by his or her attorney of record. The
notice shall identify the court
or arbitration
venue wherein the
lien
action is brought; the style and number of the
lien
action, if
any, including the names of all parties
thereto; the date of the filing of the
lien
action; and the book and page number of the records of the county wherein the
subject lien is recorded in the same manner in which liens specified in Code
Section 44-14-361 are filed. The clerk of the superior court shall enter on the
subject lien so referred to the book and page on which the notice is recorded
and shall index such notice in the name of the then purported owner as shown by
the caption contained in such notice. A separate lis pendens notice need not be
filed with the commencement of this action.
(b)
As between themselves, the liens provided for in Code Section 44-14-361 shall
rank according to the date filed; but all of the liens mentioned in this Code
section for repairs, building, or furnishing materials or services, upon the
same property, shall, as to each other, be of the same date when declared and
filed for record within
three
months
90
days after the work is done or before that
time.
(c)
The liens specified in Code Section 44-14-361 shall be inferior to liens for
taxes, to the general and special liens of laborers, to the general lien of
landlords of rent when a distress warrant is issued out and levied, to claims
for purchase money due persons who have only given bonds for titles, and to
other general liens when actual notice of the general lien of landlords and
others has been communicated before the work was done or materials or services
furnished; but the liens provided for in Code Section 44-14-361 shall be
superior to all other liens not excepted by this subsection.
(d)
In any proceeding brought by any materialman, by any mechanic, by any laborer,
by any subcontractor, or by any mechanic of any sort employed by any
subcontractor or by any materialmen furnishing material to any subcontractor, or
by any laborer furnishing labor to any subcontractor, to enforce such a lien,
the contractor having a direct contractual relationship with the subcontractor
shall not be a necessary party; but he
or
she may be made a party. In any
proceedings brought by any mechanic employed by any subcontractor, by any
materialmen furnishing material to any subcontractor, or by any laborer
furnishing labor to any subcontractor, the subcontractor shall not be a
necessary party; but he
or
she may be made a party. The contractor or
subcontractor or both may intervene in the proceedings at any time before
judgment for the purpose of resisting the establishment of the lien or of
asserting against the lienor any claim of the contractor or subcontractor
growing out of or related to the transaction upon which the asserted lien is
based.
(e)
In no event shall the aggregate amount of liens set up by Code Section 44-14-361
exceed the contract price of the improvements made or services
performed.
(f)
The filing fees for a claim of materialman´s or mechanic´s lien and
any related document created pursuant to this Code section, including but not
limited to a notice of commencement of action, shall be the amount set by Code
Section 15-6-77 for liens on real estate and personal
property."
SECTION
3.
Said
part is further amended by revising subsection (c) of Code Section 44-14-361.5,
relating to liens of persons without privity of contract, as
follows:
"(c)
A Notice to
Contractor
notice to
contractor shall be
given
sent by
registered or certified mail or statutory overnight
delivery to the owner or the agent of the
owner and to the contractor at the addresses set forth in the
Notice of
Commencement
notice of
commencement setting forth:
(1)
The name, address, and telephone number of the person providing labor, services,
or materials;
(2)
The name and address of each person at whose instance the labor, services, or
materials are being furnished;
(3)
The name of the project and location of the project set forth in the
Notice of
Commencement
notice of
commencement; and
(4)
A description of the labor, services, or materials being provided and, if known,
the contract price or anticipated value of the labor, services, or materials to
be provided or the amount claimed to be due, if any."
SECTION
4.
Said
part is further amended by revising subsection (a) of Code Section 44-14-364,
relating to the release of lien on filing of bond, as follows:
"(a)
When any person entitled under this part to claim a lien against any real estate
located in this state files his
or
her lien in the office of the clerk of the
superior court of the county in which the real estate is located, the owner of
the real estate or the contractor employed to improve the property may, before
or after foreclosure proceedings are instituted, discharge the lien by filing a
bond in the office of that clerk. The bond shall be conditioned to pay to the
holder of the lien the sum that may be found to be due the holder upon the trial
of any
lien
action that may be filed by the lienholder to recover the amount of his
or
her claim within
12
months
365
days from the time the claim
becomes
due
of lien is
filed. The bond shall be in double the
amount claimed under that lien and shall be either a bond with good security
approved by the clerk of the court or a cash bond, except in cases involving a
lien against residential property, in which event the bond shall be in the
amount claimed under the lien. Upon the filing of the bond provided for in this
Code section, the real estate shall be discharged from the lien.
Within seven
days of filing such bond and any attachments, the party filing the bond shall
send a notice of filing such bond and a copy of the bond by registered or
certified mail or statutory overnight delivery to the lien claimant at the
address stated on the lien or, if no such address is shown for the lien
claimant, to the person shown as having filed such lien on behalf of the
claimant at the indicated address of such person or, if the bond is filed by a
contractor, to the owner of the property, provided that whenever the lien
claimant or the owner is an entity on file with the Secretary of State´s
Corporations Division, sending the notice of filing such bond and a copy of the
bond to the company´s address or the registered agent´s address on
file with the Secretary of State shall be deemed sufficient; provided, however,
that the failure to send the notice of filing the bond and copy of the bond
shall not invalidate the bond for purposes of discharge of a claim of lien under
this Code section. With respect to
property bonds, the clerk shall not accept any real property bond unless the
real property is scheduled in an affidavit attached thereto setting forth a
description of the property and indicating the record owner thereof, including
any liens and encumbrances and amounts thereof, the market value, and the value
of the sureties´ interest therein, which affidavit shall be executed by the
owner or owners of the interest; the bond and affidavit shall be recorded in the
same manner and at the same cost as other deeds of real property. So long as the
bond exists, it shall constitute a lien against the property described in the
attached affidavit."
SECTION
5.
Said
part is further amended by revising Code Section 44-14-366, relating to a waiver
of lien or claim upon bond in advance of furnishing labor, services, or
materials void, as follows:
"44-14-366.
(a)
A right to claim a lien or to claim upon a bond may not be waived in advance of
furnishing of labor, services, or materials. Any purported waiver or release of
lien or bond claim or of this Code section executed or made in advance of
furnishing of labor, services, or materials is null, void, and
unenforceable.
(b)
No oral or written statement by the claimant purporting to waive, release,
impair, or otherwise adversely affect a lien or bond claim is enforceable or
creates an estoppel or impairment of claim of lien or claim upon a bond
unless:
(1)
It is pursuant to a waiver and release form duly executed by claimant prescribed
below; and
(2)
The claimant has received payment for the claim as set forth in subsection (f)
of this Code section.
(c)
When a claimant is requested to execute a waiver and release in exchange for or
in order to induce payment other than final payment, the waiver and release must
follow substantially the following form, and the priority of such
claimant´s lien rights, except as to retention, shall
upon such
payment thereafter run from the day after
the date specified in such Interim Waiver and Release upon Payment form:
'INTERIM
WAIVER AND RELEASE
UPON PAYMENT
UPON PAYMENT
STATE
OF GEORGIA
COUNTY OF __________
COUNTY OF __________
The
undersigned mechanic and/or materialman has been employed by
_______________________ (name of contractor) to furnish _______________________
(describe materials and/or labor) for the construction of improvements known as
_______________________ (title of the project or building) which is located in
the City of _________________, County of _____________, and is owned by
_______________________ (name of owner) and more particularly described as
follows:
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
(DESCRIBE
THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND
BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET
ADDRESS OF THE PROJECT.)
Upon
the receipt of the sum of $__________, the mechanic and/or materialman waives
and releases any and all liens or claims of liens it has upon the foregoing
described property
or any rights
against any labor and/or material bond
through the date of _______________________ (date) and excepting those rights
and liens that the mechanic and/or materialman might have in any retained
amounts, on account of labor or materials, or both, furnished by the undersigned
to or on account of said contractor for said building or premises.
Given
under hand and seal this ______ day of ______________, ____.
__________________
(Seal)
_______________________
_______________________
(Witness)
_______________________
(Address)
_______________________
_______________________
(Witness)
_______________________
(Address)
NOTICE:
WHEN YOU EXECUTE AND SUBMIT THIS DOCUMENT, YOU SHALL BE CONCLUSIVELY DEEMED TO
HAVE BEEN PAID IN FULL THE AMOUNT STATED ABOVE, EVEN IF YOU HAVE NOT ACTUALLY
RECEIVED SUCH PAYMENT, 60 DAYS AFTER THE DATE STATED ABOVE UNLESS YOU FILE
EITHER AN AFFIDAVIT OF NONPAYMENT OR A CLAIM OF LIEN PRIOR TO THE EXPIRATION OF
SUCH 60 DAY PERIOD. THE FAILURE TO INCLUDE THIS NOTICE LANGUAGE ON THE FACE OF
THE FORM SHALL RENDER THE FORM UNENFORCEABLE AND INVALID AS A WAIVER AND RELEASE
UNDER O.C.G.A. SECTION 44-14-366.'
Provided,
however, that the failure to correctly complete any of the blank spaces in the
above form shall not invalidate said form so long as the subject matter of said
release may reasonably be determined.
(d)
When a claimant is requested to execute a waiver and release in exchange for or
in order to induce
payment
making
of final payment, the waiver and release must follow substantially the following
form:
UNCONDITIONAL
'WAIVER
AND RELEASE
UPON FINAL PAYMENT
UPON FINAL PAYMENT
STATE
OF GEORGIA
COUNTY OF __________
COUNTY OF __________
The
undersigned mechanic and/or materialman has been employed by
_______________________ (name of contractor) to furnish _______________________
(describe materials and/or labor) for the construction of improvements known as
_______________________ (title of the project or building) which is located in
the City of _________________, County of _____________, and is owned by
_________________________ (name of owner) and more particularly described as
follows:
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
(DESCRIBE
THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND
BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET
ADDRESS OF THE PROJECT.)
Upon
the receipt of the sum of $__________, the mechanic and/or materialman waives
and releases any and all liens or claims of liens
or any
right against any labor and/or material
bond it has upon the foregoing described
property or
any rights against any labor and/or material bond on account of labor or
materials, or both, furnished by the undersigned to or on account of said
contractor for said property.
Given
under hand and seal this ______ day of ______________, ____.
__________________
(Seal)
_______________________
_______________________
(Witness)
_______________________
(Address)
_______________________
_______________________
(Witness)
_______________________
(Address)
NOTICE:
THIS
DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR
GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN
IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT YET BEEN PAID, USE A
CONDITIONAL RELEASE FORM.
WHEN YOU
EXECUTE AND SUBMIT THIS DOCUMENT, YOU SHALL BE CONCLUSIVELY DEEMED TO HAVE BEEN
PAID IN FULL THE AMOUNT STATED ABOVE, EVEN IF YOU HAVE NOT ACTUALLY RECEIVED
SUCH PAYMENT, 60 DAYS AFTER THE DATE STATED ABOVE UNLESS YOU FILE EITHER AN
AFFIDAVIT OF NONPAYMENT OR A CLAIM OF LIEN PRIOR TO THE EXPIRATION OF SUCH 60
DAY PERIOD. THE FAILURE TO INCLUDE THIS NOTICE LANGUAGE ON THE FACE OF THE FORM
SHALL RENDER THE FORM UNENFORCEABLE AND INVALID AS A WAIVER AND RELEASE UNDER
O.C.G.A. SECTION 44-14-366.'
Provided,
however, that the failure to correctly complete any of the blank spaces in the
above form shall not invalidate said form so long as the subject matter of said
release may reasonably be determined.
(e)
Nothing contained in this Code section shall affect:
(1)
The enforceability of any subordination of lien rights by a potential lien
claimant to the rights of any other party which may have or acquire an interest
in all or any part of the real estate, factories, railroads, or other property
for which the potential lien claimant has furnished labor, services, or
material, even though such subordination is entered into in advance of
furnishing labor, services, or material and even though the claimant has not
actually received payment in full for its claim;
(2)
The enforceability of any waiver of lien rights given in connection with the
settlement of a bona fide dispute concerning the amount due the lien claimant
for labor, services, or material which have already been furnished;
(3)
The validity of a cancellation or release of a recorded claim of lien or
preliminary notice of lien rights; or
(4)
The provisions of paragraph (2) of subsection (a) of Code Section 44-14-361.2,
paragraphs (3) and (4) of subsection (a) and subsections (b) and (c) of Code
Section 44-14-361.4, or Code Section 44-14-364.
(f)(1)
When a waiver and release provided for in this Code section is executed by the
claimant, it shall be binding against the claimant for all purposes, subject
only to payment in full of the amount set forth in the waiver and
release.
(2)
Such amounts shall conclusively be deemed paid in full upon the earliest to
occur of:
(A)
Actual receipt of funds;
(B)
Execution by the claimant of a separate written acknowledgment of payment in
full; or
(C)
Thirty
Sixty
days after the date of the execution of the waiver and release, unless prior to
the expiration of said
30
60
day period the claimant files a claim of lien or files in the county in which
the property is located an
Affidavit
of Nonpayment
affidavit of
nonpayment, using substantially the
following form:
'AFFIDAVIT
OF NONPAYMENT UNDER
O.C.G.A. SECTION 44-14-366
O.C.G.A. SECTION 44-14-366
STATE
OF GEORGIA
COUNTY OF __________
COUNTY OF __________
The
undersigned mechanic and/or materialman has been employed by
____________________________ (name of contractor) to furnish
_______________________ (describe materials and/or labor) for the construction
of improvements known as _______________________ (title of the project or
building) which is located in the City of ______________, County of ________,
and is owned by _______________________ (name of owner) and more particularly
described as follows:
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
(DESCRIBE
THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND
BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET
ADDRESS OF THE PROJECT.)
Pursuant
to O.C.G.A. Section 44-14-366 the undersigned executed a lien waiver and release
with respect to this property dated ______________, ____. The amount set forth
in said waiver and release ($______) has not been paid, and the undersigned
hereby gives notice of such nonpayment.
The
above facts are sworn true and correct by the undersigned, this ______ day of
______________, ____.
____________________(SEAL)
Claimant´s Signature
Sworn to and executed
in the presence of:
Claimant´s Signature
Sworn to and executed
in the presence of:
_____________________
Witness
_____________________
Notary Public
Witness
_____________________
Notary Public
Within
seven days of filing this affidavit of nonpayment, the filing party shall send a
copy of the affidavit by registered or certified mail or statutory overnight
delivery to the owner of the property. If the filing party is not in privity of
contract with the property owner and a notice of commencement is filed for the
improvement on the property for which the filing party´s labor, services,
or materials were furnished, a copy of the affidavit shall be sent to the
contractor at the address shown on the notice of commencement. Whenever the
owner of the property is an entity on file with the Secretary of State´s
Corporations Division, sending a copy of the lien to the company´s address
or the registered agent´s address on file with the Secretary of State shall
be deemed sufficient.'
(3)
A claimant who is paid, in full, the amount set forth in the waiver and release
form after filing an
Affidavit
of Nonpayment
affidavit of
nonpayment shall upon request execute in
recordable form an affidavit swearing that payment in full has been received.
Upon recordation thereof in the county in which the Affidavit of Nonpayment was
recorded, the
Affidavit
of Nonpayment
affidavit of
nonpayment to which it relates shall be
deemed void.
(4)
Nothing in this Code section shall shorten the time within which to file a claim
of lien.
(5)
A waiver and release provided in this Code section shall be suspended upon
filing of an
Affidavit
of Nonpayment
affidavit of
nonpayment until payment in full has been
received.
(6)
The claimant may rely upon the information contained in the waiver and release
form when completing for filing the
Affidavit
of Nonpayment
affidavit of
nonpayment or claim of
lien."
SECTION
6.
Said
part is further amended by revising Code Section 44-14-367, relating to notice
regarding the process to void liens not perfected by statute, in its entirety as
follows:
"44-14-367.
Failure
of a lien claimant to commence a lien action to collect the amount of his or her
claim within 365 days from the date of filing the lien, or failure of the lien
claimant to file the statutory notice of commencement of lien action in the
county where the property is located, renders the claim of lien unenforceable. A
claim of lien may be disregarded if no notice of commencement of lien action was
filed within 395 days from the date the claim of lien was filed. Any lien filed
after March 31, 2009, shall include on the face of the lien the following
statement in at least 12 point bold font: 'This claim of lien expires and is
void 395 days from the date of filing of the claim of lien if no notice of
commencement of lien action is filed in that time period.' Failure to include
such language shall invalidate the lien and prevent it from being filed. No
release or voiding of such liens shall be required. A lien shall expire sooner
and be disregarded once it is determined that no notice of commencement was
timely filed in response to a notice of contest pursuant to Code Section
44-14-368."
SECTION
7.
Said
part is further amended by inserting new Code sections to read as
follows:
"44-14-368.
(a)
An owner or an owner´s agent or attorney, or the contractor or
contractor´s agent or attorney, may elect to shorten the time prescribed in
which to commence a lien action to enforce any claim of lien by recording in the
superior court clerk´s office a notice in substantially the following form,
with the bold face type in at least 12 point font, along with proof of delivery
upon the lien claimant:
'NOTICE
OF CONTEST OF LIEN
To:
[Name and address of lien claimant]
You
are notified that the undersigned contests the claim of lien filed by you on
________________ 20____, and recorded in _______ Book __________, Page
_____________ of the public records of_______________ County, Georgia, against
property owned by __________________________, and that the time within which you
may commence a lien action to enforce your lien is limited to 60 days from
receipt of this notice. This _____ day of______________, 20__.
This
above-referenced lien will expire and be void if you do not: (1) commence a lien
action for recovery of the amount of the lien claim pursuant to O.C.G.A.
Section 44-14-361.1 within 60 days from receipt of this notice; and (2)
file a notice of commencement of lien action within 30 days of filing the
above-referenced lien action.
Signed:_______________________________________
(Owner, Contractor, Agent or Attorney)'
(Owner, Contractor, Agent or Attorney)'
(b)
The clerk of the superior court shall cross-reference the notice of contest of
lien to the lien. The owner or his or her agent or attorney, or the contractor
or his or her agent or attorney, shall send a copy of the notice of contest of
lien within seven days of filing by registered or certified mail or statutory
overnight delivery to the lien claimant at the address noted on the face of the
lien. Service shall be deemed complete upon mailing.
(c)
The lien shall be extinguished by law 90 days after the filing of the notice of
contest of lien if no notice of commencement of lien action is filed in that
time period. No release or voiding of such liens shall be required. This
subsection shall not be construed to extend the time in which a lien action must
begin.
44-14-369.
For
the purposes of this part, the computation of time shall be determined pursuant
to paragraph (3) of subsection (d) of Code
Section 1-3-1."
SECTION
8.
This
Act shall become effective on March 31, 2009.
SECTION
9.
All
laws and parts of laws in conflict with this Act are repealed.
