Contractors and Lien Notices
Effective January 1, 2010, the Mechanics Lien Act shall be amended to require contractors to provide written notice to a homeowner within ten days after recording any lien against the home. This amendment applies specifically to contractors and owner-occupied single-family homes. Subcontractors and other types of homes are not covered by the amendment. Furthermore, the amendment only applies to contracts entered into after January 1, 2010.
The legislature intends the ten-day rule to be quite strict. If a contractor files a lien and fails to notify the owner of a single-family owner-occupied residence that a lien has been filed, the lien is extinguished to the extent of any actual damages the owner incurs as a result of the lien, so long as the damages were incurred before the contractor provides notice of the lien.
Residential contractors should take care to comply with this new law in order to preserve their liens!