LD 570
pg. 2
Page 1 of 2 An Act To Require the Fair Application of the Mechanic's Lien Law LD 570 Title Page
Download Bill Text
LR 1733
Item 1

 
This subsection shall not apply where labor, materials or
services are performed or furnished to the premises for a
business, commercial or industrial purpose unless the owner
resides on the premises affected.

 
SUMMARY

 
The mechanic's lien law permits a subcontractor or material
supplier to collect from a residential customer directly when
that subcontractor or material supplier has not been paid by the
general contractor, even if the residential customer has paid the
general contractor. Thus, the residential customer may end up
paying twice for services or materials, but only if the
residential customer is first given prior notice of this
possibility.

 
Commercial customers are not entitled to receive such prior
notice before they can be required to pay twice. This bill
eliminates the nonresidential exemption to the prior notice
requirement.


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