Notice of Furnishing - Professional by Corporation or LLC
Note: This summary is not intended to be an all-inclusive discussion of Kentucky's construction or mechanic's lien laws,
but does include basic provisions.
What is a construction or mechanic's lien?
Every state permits
a person who supplies labor or materials for a construction project to
claim a lien against the improved property. While some states differ
in their definition of improvements and some states limit lien claims to
buildings or structures, most permit the filing of a document with the
local court that puts parties interested in the property on notice that
the party asserting the lien has a claim. States differ widely in
the method and time within which a party may act on their lien. Also
varying widely are the requirements of written notices between property
owners, contractors, subcontractors and laborers, and in some cases lending
institutions. As a general rule, these statutes serve to prevent
unpleasant surprises by compelling parties who wish to assert their legal
rights to put all parties who might be interested in the property on notice
of a claim or the possibility of a claim. This by no means constitutes
a complete discussion of construction lien law and should not be interpreted
as such. Parties seeking to know more about construction laws in
their state should always consult their state statutes directly.
Who can file a lien in this state?
Kentucky law permits
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, contractor, subcontractor, architect, or
authorized agent, to 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 K.R.S.A. 360.040
and costs. K.R.S.A. § 376.010.
Also, Kentucky law permits
certain professionals (Professional Engineers, Land Surveyors, Licensed
Architects and Landscape Architects) to claim a lien for the cost of services
rendered. K.R.S.A. § 376.075.
How long does a party have to file a lien?
A lien claimant must
file a Notice of Furnishing within six (6) months after he ceases to labor
or furnish materials. A copy of the Notice must be sent by regular
mail to the property owner within seven (7) days of filing. K.R.S.A.
§ 376.080.
Professional engineers,
land surveyors, licensed architects and landscape architects also have
six (6) months to file a notice to protect their liens. K.R.S.A. §
376.075(4).
What kind of notice is required prior to filing
a lien?
Kentucky law does not
provide for a specific notice prior to a lien filing. However, please
note that a Notice of Furnishing is required as a prerequisite to the filing
of a claim.
By what method is a lien filed in this state?
Within six (6) months
of completing work, a lien claimant must file a Notice with the county
clerk. As stated above, the lien claimant then has seven (7) days
to provide the property owner with a copy via regular mail. K.R.S.A.
§ 376.080.
How long is a lien good for?
Any lien created under
Kentucky law will be deemed to have dissolved unless a suit is filed to
enforce the lien within twelve (12) months from the date of the filing
of the Notice of Furnishing. If the property owner passes away before
this time has expired, an additional six months from the date of the qualification
of the deceased's personal representative shall be allowed to bring such suit. K.R.S.A. § 376.090.
Are liens assignable?
Kentucky statutes on
construction liens do not specifically speak to whether liens may be assigned
to other parties.
Does this state require or provide for a notice
from subcontractors and laborers to property owners?
Yes. Kentucky
law does not allow a party who has not contracted directly with the property
owner to claim a lien unless the lien claimant issues a Notice to Owner.
If the claim is less than $1000, the claimant has seventy-five (75) days,
if more that $1000, the claimant has one hundred twenty (120) days to mail
to the property owner by regular mail to the owner's last known address.
K.R.S.A. § 376.010(3).
In addition, Kentucky makes the distinction
that a party who has not contracted directly with the property owner of
an owner occupied single or double family dwelling, may not claim a lien
unless the claimant issues a Notice to Owner within forty-five (45) days.
K.R.S.A. § 376.080(4).
Does this state require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
No. Kentucky law
does not provide or require specific notices from the property owner to
contractors, subcontractors, or laborers.
Does this state require a notice prior to starting
work, or after work has been completed?
No. Kentucky statutes
do not require a Notice of Commencement or a Notice of Completion as required in
some other states.
Does this state permit a person with an interest
in property to deny responsibility for improvements?
No. Kentucky statutes
do not have a provision which permits the denial of responsibility for
improvements.
Is a notice attesting to the satisfaction of a
lien provided for or required?
No. Kentucky statutes
do not provide for or require that a lien holder who has been paid produce
or file a notice to that effect. However, please see KY-08-09 Release
of Lien as an example of a form that could be used by a lien holder to
provide a property owner with documentation that the lien has been satisfied
after payment in full.
By what method does the law of this state permit
the release of a lien?
As stated above,
Kentucky statutes have no specific provision for the release of a lien, other
than the automatic dissolution that occurs if suit to enforce the lien
is not brought within twelve (12) months.
Does this state permit the use of a bond to release
a lien?
Yes.
Kentucky law permits a party with an interest in the property in question
to file a bond in the amount of twice the lien claim with the county clerk.
If the bond is approved, upon its execution the lien upon the property
shall be discharged. K.R.S.A. § 376.100.
