UNOFFICIAL COPY 23 RS BR 220
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AN ACT relating to mechanic's and materialman's liens. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 376.010 is amended to read as follows: 3
(1) (a) Any person who performs labor or furnishes materials[,] for the erection, 4
altering, or repairing of a house or other structure or for any fixture or 5
machinery therein, for the excavation of cellars, cisterns, vaults, wells, or for 6
the improvement in any manner of real property including the furnishing of 7
agricultural lime, fertilizer, concrete pipe or drainage tile, crushed rock, gravel 8
for roads or driveways, and materials used in the construction or maintenance 9
of fences, by contract with, or by the written consent of, the owner, lessee, 10
contractor, subcontractor, architect, or authorized agent, shall have a lien 11
thereon, and upon the land upon which the improvements were made, or on 12
any interest the owner or lessee has therein, to secure the amount thereof with 13
interest as provided in KRS 360.040, and costs. 14
(b) When improvements to property are made pursuant to an agreement or 15
contract with a lessee, the lessee shall not be deemed the authorized agent of 16
the owner unless the owner has designated the lessee, in writing, as the 17
owner's agent for purposes of entering into the agreement or contract. 18
(c) The lien on the land or improvements shall be superior to any mortgage or 19
encumbrance created subsequent to the beginning of the labor or the 20
furnishing of the materials, and the lien, if asserted as hereinafter provided, 21
shall relate back and take effect from the time of the commencement of the 22
labor or the furnishing of the materials. 23
(d) The lien shall not be for a greater amount in the aggregate than the contract 24
price of the original contractor, and should the aggregate amount of the liens 25
exceed the price agreed upon between the original contractor and the owner 26
there shall be a pro rata distribution of the original contract price among the 27 UNOFFICIAL COPY 23 RS BR 220
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lienholders. 1
(2) (a) The lien shall not take precedence over a mortgage or other contract lien or 2
bona fide conveyance for value without notice, duly recorded or lodged for 3
record according to law, unless the person claiming the prior lien shall, before 4
the recording of the mortgage or other contract lien or conveyance, file in the 5
office of the county clerk of the county where[wherein] he or she has 6
furnished or expects to furnish labor or materials, a statement showing that he 7
or she has furnished or expects to furnish labor or materials, and the amount 8
of the labor or materials in full[ thereof]. 9
(b) The lien shall not, as against the holder of a mortgage or other contract lien or 10
conveyance, exceed the amount of the lien claimed or expected to be claimed 11
as set forth in the statement. 12
(c) The statement shall, in other respects, be in the form prescribed by KRS 13
376.080. 14
(3) (a) Any lien under this section shall only extend to the right, title, and interest 15
of the person who contracts for the improvements as the right, title, and 16
interest exist at the commencement of the improvements or as thereafter 17
acquired in the real property. When improvements to property are made by 18
a lessee in accordance with an agreement between the lessee and his or her 19
lessor, the lien shall also extend to the interest of the lessor. 20
(b) When a lease agreement expressly provides that the interest of the lessor 21
shall not be subject to liens for improvements made by the lessee, the lessee 22
shall notify the contractor making any improvements of the provisions in 23
the lease, and the knowing or willing failure of the lessee to provide this 24
notice to the contractor shall render the contract between the lessee and the 25
contractor voidable at the option of the contractor. 26
(c) The interest of the lessor is not subject to any lien for improvements made 27 UNOFFICIAL COPY 23 RS BR 220
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by the lessee or at the request of the lessee when: 1
1. The lease, a short form of the lease, or a memorandum of the lease 2
that contains the specific language in the lease prohibiting the liability 3
is recorded in the office of the county clerk in the county where the 4
premises are located before the commencement of improvements to the 5
premises, and the terms of the lease expressly prohibit such liability; 6
or 7
2. a. The terms of the lease expressly prohibit such liability; and 8
b. A notice advising that leases for the rental of premises on a 9
parcel of land, or at a particular location, prohibit such liability 10
has been recorded in the office of the county clerk in the county 11
where the parcel of land or particular location is located before 12
the commencement of improvements to the premises. The notice 13
shall include the following: 14
i. The name of the owner; 15
ii. The legal description of the parcel of land or particular 16
location to which the notice applies; 17
iii. The specific language contained in the various leases 18
prohibiting such liability; and 19
iv. A statement that all or a majority of the leases entered into 20
for the premises on the parcel of land or particular location 21
expressly prohibit such liability. 22
(d) A notice that is consistent with the requirements of paragraph (c) of this 23
subsection shall prohibit the acquisition of any lien against the lessor's 24
interest in the property for improvements made by a lessee even if other 25
leases for premises on the parcel of land or particular location do not 26
expressly prohibit liens, or if the provisions of each lease restricting the 27 UNOFFICIAL COPY 23 RS BR 220
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acquisition of liens are not identical; 1
(e) 1. Any person who performs labor or furnishes materials for 2
improvements being made by a lessee may serve written demand on 3
the lessor, by certified mail, requesting a copy of the provision in the 4
lease prohibiting liability for improvements made by the lessee. 5
2. The demand shall: 6
a. Identify the lessee and premises being improved; and 7
b. Include a warning in conspicuous type that the failure to provide 8
the requested copy of the lease provision within thirty (30) days 9
of the receipt of the demand may result in the lessor's property 10
being subject to the filing of a mechanic's or materialman's lien. 11
3. If the lessor does not provide a true and accurate copy of the lease 12
provision within thirty (30) days of the receipt of the demand, the 13
lessor's interest in the property shall be subject to a lien under this 14
section by the person performing labor or furnishing materials, if the 15
person has otherwise complied with the requirements of this section 16
and the person did not have actual notice that the interest of the lessor 17
was not subject to a lien for improvements made by the lessee. 18
(4) (a) A[No] person who has not contracted directly with the owner, the owner's[ or 19
his] agent, or the lessee, if applicable, shall not acquire a lien under this 20
section unless he or she notifies, in writing, the owner of the property to be 21
held liable, the owner's[or his] authorized agent, or the lessee, if applicable, 22
within seventy-five (75) days on claims amounting to less than one thousand 23
dollars ($1,000) and one hundred twenty (120) days on claims in excess of 24
one thousand dollars ($1,000) after the last item of material or labor is 25
furnished, of his or her intention to hold the property liable and the amount 26
for which he or she will claim a lien; and[.] 27 UNOFFICIAL COPY 23 RS BR 220
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(b) It shall be sufficient to prove that the notice was mailed to the last known 1
address of the owner of the property upon which the lien is claimed, or to the 2
owner's[his] duly authorized agent within the county in which the property to 3
be held liable is located. 4
(5) (a)[(4)] A[No] person who has not contracted directly with the owner or the 5
owner's[his] authorized agent shall not acquire a lien under this section on an 6
owner-occupied single or double family dwelling, the appurtenances or 7
additions thereto, or upon other improvements for agricultural or personal use 8
to the real property or real property contiguous thereto and held by the same 9
owner, upon which the owner-occupant's dwelling is located, unless he or she 10
notifies in writing the owner of the property to be held liable or the 11
owner's[his] authorized agent not more than seventy-five (75) days after the 12
last item of material or labor is furnished, of the delivery of the material or 13
performance of labor and of his or her intention to hold the property liable 14
and the amount for which he or she will claim a lien. 15
(b) It shall be sufficient to prove that the notice was mailed to the last known 16
address of the owner of the property upon which the lien is claimed, or to the 17
owner's[his] duly authorized agent. 18
(c) The[This] notice under this subsection is in lieu of the notice provided for in 19
subsection (4) of this section[(3)]. 20
(d) Notwithstanding the foregoing provisions of this subsection, the lien provided 21
for under this section shall not be applicable to the extent that an owner-22
occupant of a single or double family dwelling, or owner of other property as 23
described in this subsection has, prior to receipt of the notice provided for in 24
this subsection, paid the contractor, subcontractor, architect, or authorized 25
agent for work performed or materials furnished prior to such payment. 26
(e) The contractor or subcontractor cannot be the authorized agent under this 27 UNOFFICIAL COPY 23 RS BR 220
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subsection. 1
(f) This subsection shall apply to the construction of single or double family 2
homes constructed pursuant to a construction contract with a property owner 3
and intended for use as the property owner's dwelling. 4
(6)[(5)] For purposes of this section, "labor" includes but is not limited to all supplies 5
and work done by teams, trucks, machinery, and mechanical equipment, whether 6
the owner furnishes a driver or operator or not. 7
(7)[(6)] As used in this section: 8
(a) "Supplies" includes small tools and equipment reasonably necessary in 9
performing the work required to be done, including picks, shovels, sledge 10
hammers, axes, pulleys, wire cables, ropes, and other similar items costing not 11
more than fifty dollars ($50) per item, and tires and tubes furnished for use on 12
vehicles engaged in the performance of the work; and[.] 13
(b) "Supplies" also includes the cost of labor, materials, and repair parts supplied 14
or furnished for keeping all machinery and equipment used in the 15
performance of the work in good operating condition; and shall include the 16
agreed or reasonable rental price of equipment and machinery used in 17
performing the work to be done: 18
1. The lien for rental equipment or machinery shall not be more than the 19
aggregate sum of six (6) months' rental, and the aggregate amount of 20
such rental shall not exceed sixty percent (60%) of the agreed value of 21
the machinery or equipment; and 22
2. The liens for supplies as defined in this subsection are subordinate to the 23
liens for labor, material, and supplies as defined in this section. 24
Section 2. KRS 371.325 is amended to read as follows: 25
No waiver of defense clause in any retail installment contract shall operate to cut off any 26
defense that an owner-occupant of a single or double family dwelling or the 27 UNOFFICIAL COPY 23 RS BR 220
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appurtenances or additions thereto may have acquired by virtue of a third party 1
materialmen's lien under KRS 376.010[(4)]. 2