CS/CS/HB 941 Summary

• Specifies that a lessor's interest in property is not subject to construction liens for improvements made by a lessee if the lease or a memorandum containing specific anti-lien language is recorded before the notice of commencement, or if a notice meeting certain criteria is recorded by the lessor before the notice of commencement.

• Allows contractors and lienors to demand that a lessor provide a verified copy of the lease provision prohibiting liability for improvements within 30 days; failure to comply or providing false/fraudulent copies subjects the lessor's interest to a lien if the contractor/lienor otherwise qualifies.

• Requires the demand to include a conspicuous warning that failure to serve the verified copy within 30 days or service of a false copy may result in the property being subject to a lien claim.

• Revises the notice of commencement form to specify that a lessee who contracts for improvements must be listed as the owner with a statement that the ownership interest is a leasehold interest.

• Takes effect October 1, 2011.