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Kentucky does not require General Contractors to send preliminary notice to the property owner in order to retain the right to file a mechanics lien. However, sending a Kentucky preliminary notice is best practice on every project.
The deadline to file a Kentucky mechanics lien is 6 months from last providing materials or labor.
An action to enforce a Kentucky mechanics lien must be commenced within 12 months from the date on which the lien was filed. The enforcement deadline can not be extended in Kentucky.
Subcontractors in Kentucky must provide a Notice to Owner within 75 days of last furnishing labor or materials if contract is $1000 or less. If the contract is more than $1000, subs must give notice within 120 days of last furnishing labor or materials. On owner-occupied residential projects, notice must always be provided within 75 days of last furnishing.
The deadline to file a Kentucky mechanics lien is 6 months from last providing materials or labor.
An action to enforce a Kentucky mechanics lien must be commenced within 12 months from the date on which the lien was filed. The enforcement deadline can not be extended in Kentucky.
Material suppliers in Kentucky must provide a Notice to Owner within 75 days of last furnishing materials if the contract is valued at $1000 or less. If the contract is more than $1000, suppliers must provide a NTO within 120 days of last furnishing materials. On owner-occupied residential projects, notice must always be provided within 75 days of last furnishing.
The deadline to file a Kentucky mechanics lien is 6 months from last providing materials or labor.
An action to enforce a Kentucky mechanics lien must be commenced within 12 months from the date on which the lien was filed. The enforcement deadline can not be extended in Kentucky.
In Kentucky, parties entitled to mechanics lien rights include prime contractors, subcontractors, sub-subcontractors, material suppliers, equipment lessors, and licensed design professionals who contracted directly with the owner (architects, engineers, surveyors). Suppliers to suppliers do not have mechanic’s lien protection in Kentucky.
Yes, Kentucky lien law requires a contract with. or written consent of, the owner, contractor, subcontractor, architect, or authorized agent in order to file a mechanics lien.
• Dive deeper: Can You File a Mechanics Lien Without a Written Contract?
There is no specific licensing requirement for contractors to be able to file a mechanics lien in Kentucky. Although it’s never a good idea to perform work without a license.
• Learn how to get licensed: Kentucky Contractor Licensing Guide
However, design professionals (architects, engineers, surveyors) claiming a lien in Kentucky must be licensed for the lien to be valid.
In Kentucky, all lien claimants must file a mechanics lien claim within 6 months from the date of last furnishing labor or materials to the project.
The information required for a Kentucky mechanics lien can be found under KRS §376.080(1) and must include the following information:
• Amount claimed (with all just credits and offsets known);
• Claimant’s name & address (if a corporation, the name and address of the corporation’s process agent);
• Owner’s name (if known);
• Hiring party’s name, address, and role (GC, sub, etc.);
• Description of the property (sufficient for identification); &
• Sworn and subscribed to by the claimant.
We also recommend including
• A brief description of labor and/or materials provided; &
• The last date of furnishing labor/materials to the project.
No, Kentucky only requires that the lien statement include a “description of the property intended to be covered by the lien sufficiently accurate to identify it.”
This requirement does not entail a full legal description of the property.
No. The total lien amount claimed in a Kentucky lien should not exceed the contract price. This does not mean that these fees and costs are not recoverable. They may be recoverable in an action to enforce the lien claim. However, extraneous amounts should not be included in the total lien amount claimed.
Yes. Kentucky law requires that a mechanics lien must be notarized to be valid and accepted for recording.
• Learn more about notarizing construction payment documents
• Options for notarizing mechanics liens remotely
Kentucky mechanics lien claims are documents recorded with the county recorder’s office. For your mechanics lien to be valid, you must record it in the county where the job is physically located.
Kentucky counties each have their own unique rules and requirements. To help you, we’ve assembled all of the offices in Kentucky that record mechanics liens. These pages will walk you through the county’s specific formatting requirements, deadlines, and fees.
• Be prepared: Essential Questions to Ask The County Recorder Before Filing a Lien
There are a lot of questions on this page about who can file a Kentucky mechanics lien, when it must be filed, what types of rules apply, and more. But you may be wondering something much more practical: how do I actually get my mechanics lien recorded and filed?
• For a full breakdown of the process see: How to File a Kentucky Mechanics Lien | A Step-by-Step Guide
Yes. Kentucky law requires that the lien claimant send a copy of the lien statement to the property owner within 7 days of filing the lien with the county clerk. The copy of the lien should be sent to the property owner’s last known address and may be sent by regular U.S. mail.
However, compliance with this step is crucial to the lien claim, so sending the copy of the lien statement by certified mail, return receipt requested will provide proof of compliance within the allotted time period. Failure to comply with this requirement will result in the dissolution of the lien.
Yes, a mechanics lien may be filed against an individual condominium just as against every other property, provided the lien claimant has valid mechanics lien rights.
• Learn more: Mechanics Liens on Condominiums- An Overview
In Kentucky, all lien claimants on private projects must initiate an action to enforce their lien within 12 months from the date the lien claim was filed. Fortunately, most lien claims get paid before a foreclosure action is necessary.
Yes, Kentucky is considered a “full-price” lien state; meaning that the claimant may recover the total amount of the labor and/or materials provided under their contract.
Note, however, that Kentucky lien claims cannot exceed the total contract amount between the owner and the general contractor.
Generally, mechanics liens in Kentucky have priority only over liens or encumbrances on the property created after the mechanics lien. For purposes of determining priority, the mechanics lien “relates back,” and was created on the date of the beginning of the labor or the furnishing of materials. Among competing mechanics liens, there is no priority and all will share pro-rata if there are not enough funds to fully cover all claims.
If the aggregate amount of the mechanics liens filed on the project exceed the amount of the original contract, the original contract amount is the cap, and that amount is distributed pro-rata among the lien claimants. Kentucky mechanics liens do not have priority over a mortgage or other contract lien, or a bona fide conveyance for value unless the person claiming the lien filed a statement stating that he furnished or expects to furnish labor or materials to the property and the amount in full thereof, in the office of the county clerk prior to the recording of the mortgage or other contract lien or conveyance.
• NOTE also that if the claimant files the optional preliminary notice it will preserve priority over subsequent mortgages without notice
Once the lien claim has been satisfied (i.e. paid), the claimant is required to file a notarized lien release in the county clerk’s office within 30 days of payment.
→ Download a free Kentucky Lien Release form here
If not released within 45 days of satisfaction, the claimant will be penalized $100 per day, stating on the 15th day after the date payment is received. The penalty increases to $500 per day after the 30th day.
For those amounts, you will probably have to look at it as a business decision because all of your options could easily cost more than $1000, but so will his.
Do you have a contract with him? Your contract could be written to cover your costs in this type of dispute. If it doesn't, your contract needs to be revised.
Assuming no favorable provisions in your contract, you have several options:
Bond off the lien. Check with your insurance company and see what the cost would be.
Sue him, but you will need a lawyer. Unless you have a really good current relationship with a lawyer, you will likely have to pay an hourly rate plus court costs, which will exceed $1000 almost immediately.
Settle with him and never work with him again. Use the money you would have spent on the above options to revise your contract terms.
First, a verbal contract to buy or sell real property is not enforceable in Kentucky, but that does not mean you are completely without recourse for the work you performed.
If the owner told you to do construction work on the property, that may be sufficient to constitute an oral agreement that could support a mechanics lien, assuming you have proof and meet the lien filing requirements.
You could also have a cause of action against the owner using promissory estoppel or quantum meriut principals.
Please contact an attorney in your jurisdiction to see if the specifics of your case support a claim against the property owner.
Yes. You have one year from the lien filing date. That said, it might serve your interests better to try a letter or phone call first. A foreclosure suit usually has more out of pocket costs than a 'normal' lawsuit because you have to perform a title search to identify any other parties who may have an interest in the property and pay to serve those additional parties.
You are past the deadline to file a Mechanics Lien. That leaves you the option to file suit against the GC. However, you need to look at your contract to determine if you have agreed to alternate dispute resolution (ie: mediation, arbitration) or other conditions precedent to payment or filing a lawsuit.
First, how did the subcontractor contact you? If it was service of a lawsuit, contact an attorney immediately. If you don't answer and raise your defenses, you could end up with a judgment against you even if the lien is not valid.
While I am unable to determine whether the lien is technically valid or not based only on your question, my first consideration would be whether your project qualifies as an owner-occupied residence.
There is nothing in Kentucky law that would prevent it, but it would depend on Ohio lien laws.
KRS 376.010(1) provides for a lien for work performed. Therefore, the lien should be filed for the 75% of the work you performed less the payment received by you. A limitation for "unpaid balance" would only come into effect for a subcontractor or material supplier who performed work on an owner-occupied home (the lien "shall not be applicable to the extent that an owner-occupant of a single or double family dwelling or owner of other property as described in this subsection has, prior to receipt of the notice provided for in this subsection, paid the contractor, subcontractor, architect, or authorized agent for work performed or
materials furnished prior to such payment. KRS 373.010(4)), or possibly a public project (the lien is for the full contract price, but attaches only to the remaining funds due the general contractor, rather than the property itself. KRS 376.210(1)).
Yes, subject to the other requirements for a mechanics lien and being able to prove the necessary items to support an oral contract.
In general, you would have lien rights for supplying material to a project in Kentucky.
Under KRS 376.010(1) "Any person who performs labor or furnishes materials, for the erection, altering, or repairing of a house or other structure..., by contract with, or by
the written consent of, the owner, contractor, subcontractor, architect, or authorized
agent, shall have a lien thereon, and upon the land upon which the improvements
were made or on any interest the owner has therein, to secure the amount thereof
with interest as provided in KRS 360.040 and costs. "
You potentially have two issues: first, since your customer is picking the material up, rather than you delivering it on site, it is possible that you could be put in position to prove that your material was actually used on the site; and, second, your customer has to be a contractor or subcontractor. A materialman supplying to another materialman cannot claim a lien.
If you have an attorney, you should address this question to him or her. Open communication is very important for a successful attorney/client relationship.
The lien would be filed on the association's interest in the common area referencing the owner's agent (the property management company).
A pre-lien notice is not required in Kentucky. However, it does protect a lien against subsequent purchasers 'without notice'.
This is a complicated set of facts, and you should address your question with a local attorney immediately.
I have some immediate thoughts from what I can extract from your question. It would be the property owner, but, based on the facts you stated, you are likely far outside the time limit for a lien on a owner occupied residence. You also reference a judge. If you have already been party to a lawsuit regarding this claim, there is a good chance that you had a mandatory counterclaim in that suit that must have been raised or it would be waived.
"What should I do from here?"
At this point, you could either have an attorney write a letter disputing the agreement and/or the amount owed, or wait to see if he takes any further action.
What you likely received from the attorney was a notice of intent to file a lien. If a lien is filed, it would have to be filed within 6 months from the last work that he did. At that time, he would have to send you a copy. Then he would have one year from the lien filing to sue for forclosure on the property or the lien would be dissolved.
A lien filing would not preclude him from filing a lawsuit based on the work he performed, but you would also be entitled to raise any of your defenses to his claim.
If the project is an owner occupied residence, you are protected from subcontractor/supplier liens IF you have paid the general contractor for that work and have not received a lien notice (KRS 376.010(4)). In that case, a lien release from the general contractor acknowledging that they have been paid in full is sufficient to protect you. But, the legal requirements of the owner-occupied exclusion can be tricky.
Otherwise, you would need lien releases from all of the subcontractors and suppliers to ensure that a lien could not be filed.
Assuming you have filed a valid mechanics lien, you can file suit to enforce the lien immediately.
Assuming a lawsuit was filed against you, a Motion to Dismiss would be proper. If no lawsuit has been filed, the lien is void because it must be sued upon within one year from the filing date.
KRS 376.010 is the general mechanic’s and materialman’s lien statute in Kentucky. It provides for a lien on real property for any person who has:
1) performed labor and/or furnished
materials;
2) for the improvement of the property;
3) by contract (or written approval) with the owner, contractor,
subcontractor, architect or authorized agent.
Unless you have some agreement with the lessee to make the improvements, they are not entitled to a valid lien.
As I read it, you have two main issues, the remedies for both depend on whether you have written contracts, and their terms. It is nearly impossible to reply to your question without that information.
Nonetheless, it is critical that you 'appear' at the eviction hearing that you have been noticed for. Since most courts in Kentucky have been holding hearings by telephone or Zoom conference, it is important that you follow the instructions that should be contained in the notice that you received, or call the court clerk's office in that county to obtain information about how to call in.
As in all cases, you should contact an attorney in your jurisdiction to advise you.
A loan does not fall within the lien statute. They are likely telling you to file a claim in Probate Court under KRS Chapter 396.
KRS 396.011 Presentation of claims against estate — Time limitations — Exceptions.
(1) All claims against a decedent’s estate which arose before the death of the decedent, excluding claims of the United States, the State of Kentucky and any subdivision thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or other legal basis, if not barred earlier by other statute of limitations, are barred against the estate, the personal representative, and the heirs and devisees of the decedent, unless presented within six (6) months after the appointment of the personal representative, or where no personal representative has been appointed, within two (2) years after the decedent’s death.
(2) Nothing in this section shall affect or prevent:
(a) To the extent of the security only, any proceeding to enforce any mortgage, pledge, lien or other security interest securing an obligation of the decedent or upon property of the estate; or
(b) To the limits of the insurance protection only, any proceeding to establish liability of the decedent or the personal representative for which he is protected by liability insurance.
Effective: July 15, 1988
History: Created 1988 Ky. Acts ch. 90, sec. 6, effective July 15, 1988
You should contact an attorney in your jurisdiction to see if you may be able to file a claim.
If you require legal assistance, please contact a lawyer in your jurisdiction for help. Do not act or refrain from acting based on what I write here. While I am an attorney, licensed in Kentucky, nothing I write here is legal advice. Nor does any communication here form an attorney/client relationship with me.
Mechanics liens are filed against the property that was improved. Filing a claim against real property other than the one where labor and/or materials were furnished would be invalid.
For more information, see: How to File a Kentucky Mechanics | A Step-by-Step Guide
Generally speaking, a mechanics lien is a legal claim for unpaid construction work. Typically, anyone who provides labor or materials to property improvements can file a mechanics lien if they are not paid.
In regards to who can file a mechanics lien, in general, anyone who makes a permanent improvement to real property can file a mechanics lien. In Kentucky, lien rights are generally pretty expansive, but they don't include everyone. The following parties maintain the right to file a mechanics lien in Kentucky including prime contractors, subcontractors, sub-subcontractors, material suppliers, equipment lessors, and license design professionals.
If you have fully paid the party in question, there likely won't be a valid mechanics lien claim.
I am sorry to hear about the frustrating position you are in. To the extent it was truly a bid, it does not sound like it meets the standard of improvement to real property that is necessary for a mechanic's lien. However, bear in mind that architectual services in Maryland do typically qualify for a mechanic's lien so long as something was done onsite, ie, measuring, mapping, etc. So, depending on the precise content of this "bid" and the activities performed by the contractor, it is certainly possible a judge will find that work as qualifing for a mechanic's lien. Consulting with an experienced construction law attorney is your best next step.
Contractors & suppliers have strong lien rights in Kentucky. If a contractor or supplier isn’t paid on an Kentucky job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed. Here are 5 essential things you need to know about Kentucky’s mechanics lien law.
In Kentucky, the only project participants without mechanics lien rights are suppliers to suppliers. This means that prime contractors, subcontractors, sub-subcontractors, material suppliers, equipment lessors, and design professionals all have Kentucky mechanics lien rights. It is important to note that design professionals (architects, engineers, and surveyors) must be licensed in order to file. All other parties may not be required to be licensed, although it is always advisable to be licensed if a license is otherwise required.
Kentucky does not require any notification prior to the beginning of work, but some parties are required to provide notice within a certain amount of time after last furnishing labor and/or materials to the project, and prior to filing a valid Kentucky mechanics lien.
On owner-occupied residential projects, a preliminary notice must be sent by all parties without a direct contract with the property owner within 75 days after the date of last furnishing labor or materials to the project. Note that any mechanics lien on an owner-occupied residential project is not effective to the extent the owner has paid the contractor, subcontractor or architect prior to receipt of notice, so for full protection, the lien claimant must send the notice prior to any payment by the property owner.
On all other residential projects, and all commercial projects, notice must be sent no later than 75 days after the last furnishing of labor or materials to the project if the claim amount is less than $1000, and no later than 120 days after the date of last furnishing labor or materials if the claim is greater than $1000.
In any case, a failure to send the required preliminary notice will result in the fatality of the lien.
The deadline to file a Kentucky mechanics lien is the same for all parties – 6 months from the date that the project participant last provided service or materials. Within 7 days of filing the lien, it is imperative to send a copy of the lien statement to the property owner. Although the notice can be sent through regular U.S. mail, it’s preferable that it is sent through certified mail (return receipt requested) so because without proof that the notice was sent to the owner, the lien is not valid. Once the lien is filed on a private project, the claimant must initiate an action to enforce the lien within 12 months.
The state of Kentucky does not specifically require a legal description of the property. Kentucky statute requires a lien statement to include a “description of the property intended to be covered by the lien sufficiently accurate to identify it.” Note, however, that as we have discussed many times on the blog – the description considered “sufficiently accurate” may vary greatly even between counties. Further, even if the statute does not specifically require a legal description, certain county recorders may “require” one anyway. It is always the safest bet to include the best description of the property available – including a legal description if possible.
Generally, Kentucky mechanics liens have priority over encumbrances on the property created after the mechanics lien attached. Among competing mechanics liens, there is no priority, and in a foreclosure action, all mechanics lien claimants will share funds pro rata assuming there is not enough to fully cover all claims. Further, the original contract amount is the cap on the recovery in any foreclosure action, and project participants that have filed liens must share this amount.
In our Guide to Filing a Kentucky Mechanics Lien, we will walk you through each step required to qualify for and file a mechanics lien in Kentucky. We’ll show you the notices you need to send, the information required on Kentucky’s mechanics lien form, and essential tips about delivering it to the county recorder’s office.
Download a blank Kentucky mechanics lien form to use when filing a claim. Our free forms were created by construction attorneys to meet the requirements in Kentucky’s mechanics lien laws. The state statutes are very specific about the language and formatting required in a lien claim document. We make it easy to get this part right.
This part can get tricky; making a mistake on the form could cause a Kentucky lien claim to be invalid. All of the information must be 100% accurate, including the legal names of each party, the property description, and the claim amount. Review every detail carefully.
File your completed form with the recorder’s office in the county where the property is located, and pay the recording fee. View a full list of Kentucky recorder’s offices to find contact information, fees, and filing requirements.
A mechanics lien doesn’t last forever in Kentucky. If you get paid, it’s a good idea to discharge or release your lien. If you don’t get paid, you may need to enforce it. You must file an enforcement action before the deadline expires.
The provisions of the Kentucky statutes that permit the filing of mechanics liens and materialman’s liens can be found in Kentucky’s Construction Lien Law, Kentucky Code § 376.010 et. seq. The full text of Kentucky Mechanics’ and Materialman’s Lien Law is provided below. Updated as of May 2023.
(1)
(a) Any person who performs labor or furnishes materials for the erection, altering, or repairing of a house or other structure or for any fixture or machinery therein, for the excavation of cellars, cisterns, vaults, wells, or for the improvement in any manner of real property including the furnishing of agricultural lime, fertilizer, concrete pipe or drainage tile, crushed rock, gravel for roads or driveways, and materials used in the construction or maintenance of fences, by contract with, or by the written consent of, the owner, lessee, contractor, subcontractor, architect, or authorized agent, shall have a lien thereon, and upon the land upon which the improvements were made, or on any interest the owner or lessee has therein, to secure the amount thereof with interest as provided in KRS 360.040, and costs.
(b) When improvements to property are made pursuant to an agreement or contract with a lessee, the lessee shall not be deemed the authorized agent of the owner unless the owner has designated the lessee, in writing, as the owner’s agent for purposes of entering into the agreement or contract.
(c)The lien on the land or improvements shall be superior to any mortgage or encumbrance created subsequent to the beginning of the labor or the furnishing of the materials, and the lien, if asserted as hereinafter provided, shall relate back and take effect from the time of the commencement of the labor or the furnishing of the materials.
(d)The lien shall not be for a greater amount in the aggregate than the contract price of the original contractor, and should the aggregate amount of the liens exceed the price agreed upon between the original contractor and the owner there shall be a pro rata distribution of the original contract price among the lienholders.
(2)
(a) The lien shall not take precedence over a mortgage or other contract lien or bona fide conveyance for value without notice, duly recorded or lodged for record according to law, unless the person claiming the prior lien shall, before the recording of the mortgage or other contract lien or conveyance, file in the office of the county clerk of the county where he or she has furnished or expects to furnish labor or materials, a statement showing that he or she has furnished or expects to furnish labor or materials, and the amount of the labor or materials in full.
(b) The lien shall not, as against the holder of a mortgage or other contract lien or conveyance, exceed the amount of the lien claimed or expected to be claimed as set forth in the statement.
(c) The statement shall, in other respects, be in the form prescribed by KRS 376.080.
(3)
(a) Any lien under this section shall only extend to the right, title, and interest of the person who contracts for the improvements as the right, title, and interest exist at the commencement of the improvements or as thereafter acquired in the real property. When improvements to property are made by a lessee in accordance with an agreement between the lessee and his or her lessor, the lien shall also extend to the interest of the lessor.
(b) When a lease agreement expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any improvements of the provisions in the lease, and the knowing or willing failure of the lessee to provide this notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.
(4)
(a) A person who has not contracted directly with the owner, the owner’s agent, or the lessee, if applicable, shall not acquire a lien under this section unless he or she notifies, in writing, the owner of the property to be held liable, the owner’s authorized agent, or the lessee, if applicable, within seventy-five (75) days on claims amounting to less than one thousand dollars ( $1,000) and one hundred twenty (120) days on claims in excess of one thousand dollars ( $1,000) after the last item of material or labor is furnished, of his or her intention to hold the property liable and the amount for which he or she will claim a lien; and
(b)It shall be sufficient to prove that the notice was mailed to the last known address of the owner of the property upon which the lien is claimed, or to the owner’s duly authorized agent within the county in which the property to be held liable is located.
(5)
(a) A person who has not contracted directly with the owner or the owner’s authorized agent shall not acquire a lien under this section on an owner-occupied single or double family dwelling, the appurtenances or additions thereto, or upon other improvements for agricultural or personal use to the real property or real property contiguous thereto and held by the same owner, upon which the owner-occupant’s dwelling is located, unless he or she notifies in writing the owner of the property to be held liable or the owner’s authorized agent not more than seventy-five (75) days after the last item of material or labor is furnished, of the delivery of the material or performance of labor and of his or her intention to hold the property liable and the amount for which he or she will claim a lien.
(b)It shall be sufficient to prove that the notice was mailed to the last known address of the owner of the property upon which the lien is claimed, or to the owner’s duly authorized agent.
(c) The notice under this subsection is in lieu of the notice provided for in subsection (4) of this section .
(d) Notwithstanding the foregoing provisions of this subsection, the lien provided for under this section shall not be applicable to the extent that an owner-occupant of a single or double family dwelling, or owner of other property as described in this subsection has, prior to receipt of the notice provided for in this subsection, paid the contractor, subcontractor, architect, or authorized agent for work performed or materials furnished prior to such payment.
(e) The contractor or subcontractor cannot be the authorized agent under this subsection.
(f) This subsection shall apply to the construction of single or double family homes constructed pursuant to a construction contract with a property owner and intended for use as the property owner’s dwelling.
(6) For purposes of this section, “labor” includes but is not limited to all supplies and work done by teams, trucks, machinery, and mechanical equipment, whether the owner furnishes a driver or operator or not.
(7) As used in this section:
(a) “Supplies” includes small tools and equipment reasonably necessary in performing the work required to be done, including picks, shovels, sledge hammers, axes, pulleys, wire cables, ropes, and other similar items costing not more than fifty dollars ($50) per item, and tires and tubes furnished for use on vehicles engaged in the performance of the work; and
(b) “Supplies” also includes the cost of labor, materials, and repair parts supplied or furnished for keeping all machinery and equipment used in the performance of the work in good operating condition; and shall include the agreed or reasonable rental price of equipment and machinery used in performing the work to be done:
1. The lien for rental equipment or machinery shall not be more than the aggregate sum of six (6) months’ rental, and the aggregate amount of such rental shall not exceed sixty percent (60%) of the agreed value of the machinery or equipment; and
2. The liens for supplies as defined in this subsection are subordinate to the liens for labor, material, and supplies as defined in this section.
If the owner claims by executory contract and for any cause the contract is rescinded or set aside, the lien provided for in KRS 376.010 shall follow the property into the hands of the person to whom the property may come or with whom it may remain by reason of the rescissions, but only to the extent that the actual value of the property is enhanced by the improvements so placed upon it.
If the owner or claimant of the property is evicted from possession by the judgment of a court, and is entitled to compensation for improvements, the holder of a lien under KRS 376.010 shall, to the extent of the lien, debt and costs, be substituted to the rights of the person evicted and shall have satisfaction of his debt and costs out of the sum adjudged for improvements.
If labor is performed or materials furnished by contract with the lessee of real property for a term of years, and if before the expiration of the term by lapse of time the lessee’s interest therein shall, from any cause, be forfeited or surrendered to the lessor, and if the lessor refuses to pay for the labor or materials furnished, the person furnishing the labor or materials may remove the same from the premises, if this can be done without material injury to any previous improvement on the premises.
(1) Any mortgage taken to secure a loan made for the purpose of erecting, improving or adding to a building shall state such facts.
(2) No person shall willfully misappropriate or misapply the proceeds received from such a loan.
If the owner of any legal or equitable interest in land or improvements thereon contracts for labor or material used in the erection, repair or improvement of any structure thereon under such circumstances that a lien for the payment therefor may attach to the property, and sells or mortgages the property before the expiration of the time provided for the filing and recording of a mechanic’s or materialman’s lien, he shall, on receiving the consideration for the sale or the proceeds of the loan, pay in full any sum owing for the labor and materials, unless released in writing by the person furnishing the labor or materials. If the sum received is insufficient to make such payment in full, the owner shall make pro rata payments on all claims for such labor and materials.
(1) Any contractor, architect or other person who builds, repairs or improves the property of another under such circumstances that a mechanic’s or materialman’s lien may be imposed on the property shall, from the proceeds of any payment received from the owner, pay in full all persons who have furnished material or performed labor on the property.
(2) If any payment by the owner to the contractor, architect or other person is not sufficient to pay in full all bills for material and labor, then such claims shall be paid on a pro rata basis to the amount of payments received, unless otherwise agreed between the contractor, architect or other person and the holder of the claim for material or labor.
(3) This section shall not apply where persons furnishing material or performing labor have waived in writing their right to file mechanics’ or materialmen’s liens.
(1) Any professional engineer, licensed architect, licensed landscape architect, real estate broker, or professional land surveyor who performs professional services or services as defined in KRS 322.010(4) for professional engineers, KRS 323.010(3) for architects, KRS 323A.010(3) for landscape architects, KRS 324.010(1) for real estate brokers, and KRS 322.010(10) for professional land surveyors shall have a lien on the building, structure, land, or project relative to which the services were performed, to secure the amount of the charges for services with interest as provided in KRS 360.040 and costs.
(2) The provisions of KRS 376.010(1) and (2) shall determine when a lien created under this section shall take precedence over a mortgage or other contract lien or bona fide conveyance for value without notice.
(3) No person who has not contracted directly with the owner or his agent shall acquire a lien under this section.
(4) Any lien provided for under this section shall be dissolved unless the claimant, within six (6) months after he ceases to provide services, files in the office of the county clerk of the county in which the property is situated a statement of the amount due the claimant, with all just credits and setoffs known to him, together with a description of the property intended to be covered by the lien sufficiently accurate to identify it, the name of the owner, if known, and whether the services were furnished by contract with the owner or with a contractor or architect. This statement shall be subscribed and sworn to by the person claiming the lien or by someone in his behalf.
(5) Any lien created under this section shall be dissolved unless an action is brought to enforce the lien within twelve (12) months from the day of filing the statement in the clerk’s office as required by subsection (4) of this section. If the lienholder complies with all filing requirements under this section, and does so within the time fixed, his lien shall be valid and effective against any creditor of, or bona fide or other purchaser from, the owner of the property.
(6) The provisions of this section shall in no way abridge or conflict with the provisions of KRS 376.210 which provide for liens on public improvements, and any potential lien or valid lien of a professional engineer, architect, landscape architect, real estate broker, or professional land surveyor on a public improvement shall be governed by KRS 376.210.
(7) No real estate broker shall acquire a lien under this section relative to newly constructed residential real estate unless the purchaser has agreed in writing to directly compensate such broker for performing brokerage services related to the transaction.
(8) No real estate broker shall acquire a lien under this section unless:
(a) The owner or the owner’s authorized agent:
1. Lists the subject property with the broker under the terms of a written agreement to sell, lease, or otherwise convey any interest in the subject property; or
2. Agrees in a written agreement to pay the broker a fee for his or her services as a buyer’s representative; and
(b) The broker or the broker’s affiliated sales associate provides licensed services that result, during the term of a written agreement described in paragraph (a) of this subsection, in the procuring of a person or entity ready, willing, and able to purchase, lease, or otherwise accept a conveyance of the property or any interest in the property:
1. Upon terms contained in a written agreement described in paragraph (a) of this subsection; or
2. Upon terms that are otherwise acceptable to the owner or the owner’s authorized agent as evidenced by a written agreement to convey any interest in the property signed by the owner or the owner’s authorized agent.
(1) Any lien provided for in KRS 376.010 shall be dissolved unless the claimant, within six (6) months after he ceases to labor or furnish materials, files in the office of the county clerk of the county in which the building or improvement is situated a statement of the amount due him, with all just credits and set-offs known to him, together with a description of the property intended to be covered by the lien sufficiently accurate to identify it, the name of the owner, if known, and whether the materials were furnished or the labor performed by contract with the owner or with a contractor or subcontractor. Lien statement forms shall require the name and address of the claimant. If the claimant is a corporation, the statement shall require the name and address of the corporation’s process agent, or some other address at which service of process under the Rules of Civil Procedure may be accomplished. If no name and address is included in the statement, service of process in an action involving the real property may be accomplished by serving the person who signs the lien statement. This statement shall be subscribed and sworn to by the person claiming the lien or by someone in his behalf. The claimant shall send by regular mail a copy of the statement to the property owner at his last known address within seven (7) days of filing the statement with the county clerk. Any lien provided for in KRS 376.010 shall be dissolved if a copy of the statement is not sent to the property owner as provided in this subsection.
(2) The county clerk shall endorse upon each statement the date of its filing, and shall make an abstract of the statement in a book to be kept by him for that purpose, properly endorsed and indexed, containing the date of filing, the name of the person seeking to enforce the lien, the amount claimed, the name of the person against whose property the lien is filed, and a description of the property charged with the lien. The clerk shall receive a fee pursuant to KRS 64.012 from the person filing the statement as full compensation, which shall be taxed and collected as other costs.
(1) Any lien provided for in KRS 376.010 shall be deemed dissolved unless an action is brought to enforce the lien within twelve (12) months from the day of filing the statement in the clerk’s office, as required by KRS 376.080. If the debtor against whose property the lien is claimed dies before the expiration of the time prescribed for bringing the action, a further period of six (6) months from the date of the qualification of his personal representative shall be allowed within which the action may be brought.
(2) Any lien provided for in KRS 376.010 shall, if the lienholder complies with the requirements of KRS 376.080 and subsection (1) of this section, and does so within the time therein fixed, be valid and effectual against any creditor of, or bona fide or other purchaser from, the owner of the property.
The owner or claimant of property against which a lien has been asserted, or any contractor or other person contracting with the owner or claimant of such property for the furnishing of any improvements or services for which a lien is created by this chapter or any subcontractor or other person in privity with the contractor, may, at any time before a judgment is rendered enforcing the lien, execute before the county clerk in which the lien was filed a bond for double the amount of the lien claimed with good sureties to be approved by the clerk, conditioned upon the obligors satisfying any judgment that may be rendered in favor of the person asserting the lien. The bond shall be preserved by the clerk, and upon its execution the lien upon the property shall be discharged. The person asserting the lien may make the obligors in the bond parties to any action to enforce his claim, and any judgment recovered may be against all or any of the obligors on the bond.
(1) An action to enforce a lien provided for in KRS 376.010 shall be by equitable proceedings, and conducted as other proceedings in equity in similar cases except as otherwise provided. The petition shall allege the facts necessary to secure a lien, and shall describe the property charged and the interest the plaintiff seeks to subject. As many of the lien-holders as wish to do so may unite in the action as plaintiffs, and those who are not plaintiffs shall be made defendants. The debtor or his personal representative or heirs or devisees, and all other persons having liens on or interests in the property sought to be subjected, shall be made defendants. The clerk of the court in which the petition is filed shall issue the proper process against the resident defenders, enter warning orders against the nonresidents and appoint an attorney to defend for them, and appoint guardians for the infants. After the expiration of ten (10) days from the filing of the petition, the clerk of the court in which the petition was filed shall draw up an order referring the action to the master commissioner of the court and file it with the petition, deliver to the commissioner the pleadings and papers of the action, and make a memorandum thereof in his minute book.
(2) If for any cause it should be improper to refer the case to the master commissioner, he is then directed to select some suitable person to act as commissioner for the occasion and refer the case to him; but before such person shall proceed to act, he shall, before the clerk, take an oath, and execute bond, with sufficient surety, similar in all respects to the bond required to be executed by the master commissioner, which bond shall be preserved by the clerk, and reported to the court.
(1) The commissioner shall immediately ascertain the name of each person who has filed a lien against the property sought to be subjected, and fix a time and place at which he will hear proof touching claims against the property. Any person holding a lien against the property, whether arising under the provisions of KRS 376.010 or otherwise, is required to present his claim with the evidence in its support to the commissioner. The owner of the property, or any other person whose interest may be affected by the action, may contest any claim presented.
(2) Any person shall be deemed a party to the action, though not made so by the pleadings or by the service of process, who presents to the commissioner a claim against the property sought to be subjected or who appears before the commissioner to contest the claim of another.
(3) The commissioner shall give reasonable written notice to all parties to the action, and to any other lien-holders known to him or those that reside in the county, or to their attorneys, of the time and place of receiving proof of claims. He shall also post a similar notice on the front door of the courthouse of the county.
The commissioner shall issue subpoenas for witnesses to appear before him at his sittings, and upon their failure to attend he shall issue attachments as in other cases. The commissioner shall have the same power and authority as an examiner in taking depositions, and shall be governed by the same rules and regulations in respect to the evidence which may be produced before him. He may adjourn from day to day and from time to time, until his duties in the action have been completed and he is ready to report. He shall audit the statements, and make up his report showing the amount due to each claimant, the nature and character of the respective liens, and the evidence upon which each claim was allowed.
(1) Any person, firm, or corporation who performs labor or furnishes materials or supplies for the construction, maintenance, or improvement of any canal, railroad, bridge, public highway, or other public improvement in this state by contract, express or implied, with the owner thereof or by subcontract thereunder shall have a lien thereon, and upon all the property and the franchises of the owner, except property owned by the state, a subdivision or agency thereof, or by any city, county, urban-county, or charter county government. If the property improved is owned by the state or by any subdivision or agency thereof, or by any city, county, urban-county, or charter county government, the person furnishing the labor, materials, or supplies shall have a lien on the funds due the contractor from the owner of the property improved. Except as provided in KRS 376.195, the lien shall be for the full contract price of the labor, materials, and supplies furnished, and shall be superior to all other liens thereafter created.
(2) Any person undertaking or expecting to furnish labor, materials, or supplies as provided in this section may acquire the lien herein provided by filing in the clerk’s office of each county in which he has undertaken to furnish labor, materials, or supplies, except as provided in subsection (3), a statement in writing that he has undertaken and expects to furnish labor, materials, or supplies and the price at which they are to be furnished, and the lien for labor, material, or supplies furnished thereafter shall relate back and take effect from the date of the filing of the statement. In all cases of original construction the liens shall be prior to all liens theretofore or thereafter created on the part so constructed and on no other part.
(3) In all cases where the labor, materials, or supplies are furnished for the improvement of any public highway or other public property owned by the state or by any city, county, urban-county, or charter county government, the statement shall be filed in the county clerk’s office of the county in which is located the seat of government of the owner of the property improved, and the lien shall attach only to any unpaid balance due the contractor for the improvement from the time a copy of the statement, attested by the county clerk, is delivered to the owner or the owner’s authorized agent with whom the contract for improving the public highway or other public property was made.
(1) Any contractor or other person contracting with the public authority for the furnishing of any improvements or services for which a lien is created by KRS 376.210 or any person in privity with the contractor or other person may, at any time before a judgment is rendered enforcing the lien, execute before the county clerk in the county in which the lien was filed a bond for double the amount of the lien claimed.
(2) The bond executed under subsection (1) of this section shall be subject to the following conditions:
(a) The bond shall be approved by the clerk only if the bond is secured by:
1. Cash;
2. A letter of credit from a bank; or
3. Surety insurance as defined by KRS 304.5-060 that is issued by a licensed insurer; and
(b) The bond shall require that the obligor satisfy any judgment that may be rendered in favor of the person asserting the lien.
(3) The bond shall be preserved by the clerk, and upon its execution, the lien provided by KRS 376.210 shall be discharged.
(4) The person asserting the lien may make the obligors on the bond parties to any action to enforce his claim, and any judgment received may be against any of the obligors on the bond.
(1) The liens provided for in KRS 376.210 shall not be for a greater amount in the aggregate than the contract price of the original contractor, and should the aggregate amount of liens exceed the price agreed upon between the original contractor and the owner there shall be a pro rata distribution of the original contract price among the lien-holders.
(2) On claims for labor, materials or supplies furnished for the improvement of any bridge, public highway or other public property owned by the state or by any county or city, the provisions of this section for a pro rata distribution of the original contract price among lien-holders shall not apply to liens on the unpaid balance due the contractors, except as provided in KRS 376.240.
(3) If any person files a statement asserting a lien against any contractor on any fund due the contractor, for an amount in excess of the amount actually due, the person filing the lien shall be liable to any person damaged thereby to the extent of such damage, including reasonable court costs and attorney’s fees incurred by the injured parties. Any such claim for damages may be asserted and prosecuted in the county in which the lien statement was filed.
(1) The lien provided for in KRS 376.210 shall be dissolved unless the person who furnishes the labor, materials, or supplies shall, whichever is later, within sixty (60) days after the last day of the month in which any labor, materials, or supplies were furnished, or by the date of substantial completion, file in the county clerk’s office of each county in which labor, materials, or supplies were furnished, except as hereinafter provided, a statement in writing verified by affidavit of the claimant or his or her authorized agent or attorney, setting forth the amount due for which the lien is claimed, the date on which labor, materials, or supplies were last furnished and the name of the canal, railroad, bridge, public highway, or other public improvement upon which it is claimed.
(2) In all cases where a lien is claimed for labor, materials, or supplies furnished for the improvement of any bridge, public highway, or other public property owned by the state or by any county, charter county, urban-county, consolidated local government, or city, the statement of lien shall be filed only in the county clerk’s office of the county in which the seat of government of the owner of the property is located.
(3) The county clerk, upon the filing of the statement, shall make an abstract and entry thereof as now provided by law in case of mechanics’ liens in the same book used for that purpose, and shall make proper index thereof. The clerk shall be paid by the party filing the claim, and for attesting any copy of the lien statement. If he or she is required to make the copy, he or she may make an additional charge as provided by law. The clerk’s fees shall be determined pursuant to KRS 64.012. All of these charges may be recovered by the lien claimant as costs from the party and out of the fund against which the claim is filed.
(1) Any lien acquired under KRS 376.210 shall be enforced by proper proceedings in equity, to which other lien-holders shall be made parties. If a court action is filed to enforce a lien acquired under KRS 376.210 and the owner of the property is the state, a subdivision or agency thereof, or any city, county, urban-county, or charter county government, that owner shall be given notice of the court action to enforce the lien, but that owner shall not be required to respond to or participate in the court action. The proceedings shall be begun within six (6) months from the filing of the claim in the county clerk’s office, except as provided in subsection (4) of KRS 376.250.
(2) If, in any suit brought for the enforcement of a lien, it is shown by evidence that the items embraced in the account were sold and delivered for use on a particular project or public work, that evidence shall make out a prima facie case that those items were used in the performance of the contract.