Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Persons who have provided work or materials in connection with construction, repair, and/ or improvement in connection with building upon real estate authorized by the legal owner of property. Includes contractors, subcontractors, registered architects, and registered surveyors. GA ST § 44-14-361 DEADLINE TO PERFECT Upon substantial compliance with contract, a claim of lien must be recorded within 90 days of completion of furnishing services/materials GA ST § 44-14-361.1 BROKEN PRIORITY Lien relates back to date of commencement of specific work contracted. Marbut-Williams Lumber Co. v. Dixie Elec. Co., 166 Ga. 42, 142 S.E. 270, 271 (1928) NOTES/EXCEPTIONS: • Work commenced before the requesting party has acquired title will not attach until title is acquired (e.g., architectural plans completed before requestor had legal title will not relate back to before requestor acquired title). Murray v. Chulak, 250 Ga. 765, 769, 300 S.E.2d 493, 497 (1983). • Security Deeds or Deeds to Secure Debt recorded after commencement will still maintain priority if lender has no actual notice of work, construction, or improvement on property. Gamble v. Pilcher, 242 Ga. 556,557, 250 S.E.2d 416, 417(1978). GA ST § 44-14-361.1(C) DURATION OF LIEN Failure of a lien claimant to commence a lien action 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. GA ST § 44-14-367 CONTENTS OF LIEN (1) Written statement; (2) name of lienor; (3) amount that is being claimed; (4) the date the claim first came due; (5) the project name; (6) the name of the true owner; (7) description of the property; (8) the purposes for which it was supplied; (9) a statement regarding expiration pursuant to GA ST § 44- 14-367; and (10) a notice to the owner of the owner’s right to contest the lien. The absence of such statement or notice shall invalidate the lien. Strict compliance required for lienor name, owner name, property description, and deadlines; substantial compliance sufficient in amount due and the date the claim became due. 3 Ga. Jur. § 21B:7 GA ST § 44-14-361.1(A)(2) GEORGIA GEORGIA – 513 – 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

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