Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who performs labor or furnishes material to construct, alter, or repair a structure or improvement on real property pursuant to a contract with/ written consent of owner, contractor, subcontractor, architect, or authorized agent. NOTE: Engineers, surveyors, and architects may have a mechanics’ lien ‘style’ lien with similar priorities under KY ST § 376.075. KY ST § 376.010 DEADLINE TO PERFECT Lien must be filed in the office of the county clerk within 6 months from the date the lien claimant provides the last materials or ceases work. KY ST § 376.080 BROKEN PRIORITY Lien date relates back to the time of commencement of the labor or furnishing of materials for which lien claimed. EXCEPTION: Mechanics’ lien will not have priority over a recorded mortgage for value and without notice of mechanics’ lien unless a statement of lien or statement per KY ST § 376.080 showing ML claimant has furnished or expects to furnish materials is recorded before the mortgage. Cardinal Kitchens, Inc. v. Home Supply Co., 467 S.W.2d 775, 776 (Ky. 1971) “Commencement” does not require visible component as architects/engineers can have liens for plans prepared. Perkins v. Daugherty, 722 S.W.2d 907 (Ky. Ct. App. 1987). KY ST § 376.010 DURATION OF LIEN Lien will be deemed dissolved unless an action is brought within 12 months from the day the lien is filed per KY ST § 376.080. KY ST § 376.090 CONTENTS OF LIEN (1) Sworn and subscribed statement; (2) amount due, with all just credits and set-offs; (3) description of the property sufficiently accurate to identify it; (4) the name of the owner; (5) whether the materials or labor furnished per contract with the owner, contractor, or subcontractor; and (5) name and address of the claimant (if the claimant is a corporation, the name and address of the corporation’s process agent). Strict Compliance is required. PBI Bank, Inc. v. Schnabel Found. Co., 392 S.W.3d 421, 423 (Ky. Ct. App. 2013) KY ST § 376.080 KENTUCKY KENTUCKY – 520 – 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