DELAWARE - On May 3rd DE Governor Markell signed DE HB 29. This bill creates a commercial real estate Broker's Lien and is patterned after similar legislation enacted in several other states. Commercial real estate brokers perform valuable services making a market for real estate and assisting sellers, buyers, landlords, and tenants. These services increase the value of real estate. The broker's right to compensation should be protected by the right to file a lien. At the same time, this bill protects sellers, buyers, landlords or tenants by being sure they are only charged for brokerage services if they signed a document agreeing to pay. The bill also protects mortgage lenders, real estate taxes and municipal utilities by providing that all of these lienholders have a higher lien status then the Broker's Lien and will not be affected by the Broker's Lien. This bill also provides for a procedure to establish an escrow account to extinguish a Broker's Lien so as not to delay a real estate settlement for a Broker's Lien that is genuinely in dispute. For a notice of lien to be effective while a complaint is pending under section 2610, the Broker is required to file a continuation of lien prior to the expiration of the current notice of lien. The law becomes effective on August 3rd.
ALABAMA: On April 23rd AL HB 668 was introduced by Representative Bill Pool of the 63rd District. The bill titled Liens, priority of liens, mechanics liens, procedure for termination of a notice of commencement by a contractor, creates a Notice of Commencement structure designed to clarify priority between mechanic's lien claimants and mortgage holders.
Under existing law, a lien may be declared by certain persons who perform work on certain real or personal property. This bill would provide for the priority of future advances made pursuant to a future advance mortgage over the liens of persons who perform work on real property when the mortgage is recorded prior to a notice of commencement. his bill would provide that a mechanics' or materialman's lien would only apply to real property if it is recorded in the county where the property is situated and preceded by a notice of commencement. his bill would provide the procedure for the termination of a notice of commencement by a contractor.
TEXAS - Texas legislator Jose Rodriguez had Georgia on his mind as he introduced SB 1281 last month. SB 1281 and HB 3553 will revise Texas' lien laws to make the processes and procedures for perfecting and maintaining one's lien rights straightforward, and ensure compliance with them is not difficult or a stumbling block to maintaining lien rights.
Borrowing the Notice of Commencement and preliminary notice rules from Georgia, Texas may become the next NOC state following North Carolina's changes in April.
VIRGINIA - HB 1913 became effective in Virginia on 7/1/13 and eliminated the mechanic's lien rights of an unlicensed contractor when a valid contractor's license or certificate was legally required for the labor performed or materials furnished. The bill also requires contractors to provide, on the memorandum for a mechanic's lien:Their license or certificate number.The dates on which their license or certificate were issued.The dates on which their license or certificate will expire.A certification that a license or certificate was not legally required for the labor performed or materials furnished, in the instance that the contractor in question has no license or certificate.
The legislation was introduced by Delegate Scott Surovell (D) and signed into law by Virginia Governor Bob McDonnell (R) on March 13, 2013. It provided for approximately three months from the date of its signature—until July 1, 2013—for contractors to acquire licenses. Now that the bill is in effect, contractors without a license performing work on projects that require them will not be able to assert their mechanic's liens.
TENNESSEE: TN HB 452 which was originally introduced during the 2009-2010 session has been revived and Feb 20, 2013 was placed on the Senate Judiciary Committee calendar for review on 2/26/13. Sponsored by Steve Hall (District 18) Stacey Campfield (District 7) would as introduced require property liens greater than $10,000 be based on a written contract or agreement unless the property lien arises from a judgment. Effective date 7/1/13. - Amends TCA Title 66. - Amends TCA Title 66. Click here: HB 452 to see the full text.