HB 889 - Construction Lien Law Summary

• Requires direct contracts over $2,500 between owners and contractors for single/multi-family dwellings (up to 4 units) to include a detailed notice about construction lien rights printed in at least 12-point, capitalized, boldfaced type on the front page or separate signed page

• Modifies notice requirements for lienors not in privity with owners by removing the 45-day deadline and instead requiring notice before work commences or before payment is due, whichever is earlier, but in any event before the owner's final payment after contractor provides required affidavit

• Deletes the provision classifying payments made after notice of commencement expiration as "improper payments" (payments after expiration are still improper but language is streamlined)

• Requires notice of commencement and building permit documents to include expanded warnings about owner responsibility to record notices with the clerk's office, amend notices when needed, and the risk of paying twice for improvements if notice of commencement is not properly recorded

• Takes effect July 1, 2013