Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Any individual/entity who performs work and/or furnishes material to repair, alter, or beautify improvements on land (includes architects, excludes surveyors). AL ST § 35-11-210 DEADLINE TO PERFECT Any potential lien will be lost if not filed in the probate court of the relevant county by: • Original Contractor: 6 months • Day Laborer: 30 days • Every Other Person: 4 months After the last time of work or labor was performed or material furnished. AL ST § 35-11-215 BROKEN PRIORITY If timely filed, lien priority relates back to the date of commencement or furnishing for particular lienor. “Commencement” is the date materials have been incorporated into the improvement or furnished at the construction site. Therefore, commencement generally requires a visible component at the subject property. Gamble’s, Inc. v. Kansas City Title Ins. Co., 217 So. 2d 923, 926 (Ala. 1969) If buyer/mortgagee acquires interest after date of commencement, but before filing of notice, bound only if have actual notice of facts giving rise to lien. Hutto Const., Inc. v. Buffalo Holdings, LLC, 488 F. Supp. 2d 1180, 1186 (M.D. Ala. 2007) AL ST § 35-11-211 DURATION OF LIEN Any action for the enforcement of the lien declared in this division must be commenced within 6 months after the maturity of the entire indebtedness secured thereby, except as otherwise provided in this division. If not commenced timely, lien may be deemed invalid. See Hutto Const., Inc. v. Buffalo Holdings, LLC, 488 F. Supp. 2d 1180, 1186 (M.D. Ala. 2007) AL ST § 35-11-221 CONTENTS OF LIEN (1) Statement in writing; (2) verified by oath of lienor or one with knowledge of facts; (3) amount of demand secured by lien; (4) description of property in a manner allowing one to identify the same (street address sufficient). Substantial compliance sufficient. AL ST § 35-11-213 ALABAMA ALABAMA – 503 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

RkJQdWJsaXNoZXIy ODI0NDE4