Release of Lien by Corporation or LLC
Note: This summary is not intended to be an all-inclusive discussion of Kansas'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?
"Whenever any person,
at or with the owner's request or consent shall perform work, make repairs
or improvements or replace, add or install equipment on any goods, personal
property, chattels, horses, mules, wagons, buggies, automobiles, trucks,
trailers, locomotives, railroad rolling stock, barges, aircraft, equipment
of all kinds, including but not limited to construction equipment, vehicles
of all kinds, and farm implements of whatsoever kind, a first and prior
lien on such personal property is hereby created in favor of such person
performing such work, making such repairs or improvements or replacing,
adding or installing such equipment..." Kan. Stat. Ann. §58-201.
How long does a party have to file a lien?
A contractor must file
a lien statement within four months of the last day that labor and/or material
was provided. A subcontractor must also file a lien statement, but
must serve a copy of the statement on the owner within three months of
the last date of furnishing of labor and/or materials.
How long is a lien good for?
A lien claimant must
bring an action to foreclose on a lien within one year of the filing of
the lien statement.
Are liens assignable?
All claims and rights
of action to recover under Kansas's Lien statute are assignable.
Where a statement has been filed and recorded, the assignment may be made
by separate instrument in writing attached to the original lien.
Does this state require or provide for a notice
from contractors, subcontractors, and laborers to property owners?
A subcontractor performing
work on residential property is required to provide the property owner
with a form warning regarding the possibility of a lien. If the subcontractor
files a lien statement, it must be attached to an affidavit attesting to
the fact that the warning was provided.
Also, a subcontractor
working on the construction of new residential property is required to
provide the property owner with a Notice of Intent to Perform.
Does this state require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
Property owners may
provide subcontractors with an acknowledgment of receipt of the above mentioned
warning. In addition, after payment in full of a lien claim, the
property owner may demand that the lien claimant provide a written release
of said lien.
Does this state require a notice prior to starting
work, or after work has been completed?
No. Kansas 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. Kansas 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?
Yes. Kansas law requires
a subcontractor who has filed a notice of intent to perform to also file
a written release of said lien.
By what method does the law of this state permit
the release of a lien?
A lien may be
released by payment in full or expiration of the statute of limitations,
as well as the filing of a bond.
Does this state permit the use of a bond to release
a lien?
Yes.
Kansas law permits the contractor or the owner to execute a bond in the
amount of the contract price. If approved by a judge of the circuit
court, no lien shall attach. Liens already filed are discharged.
