Note: This summary is not intended to be an all inclusive discussion of Alabama'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 claim a lien in this State?
Alabama law states that "Every mechanic,
person, firm, or corporation who shall do or perform any work, or labor
upon, or furnish any material, fixture, engine, boiler, waste disposal
services and equipment, or machinery for any building or improvement on
land, or for repairing, altering, or beautifying the same, under or by
virtue of any contract with the owner or proprietor thereof, or his or
her agent, architect, trustee, contractor, or subcontractor, upon complying
with the provisions of this division, shall have a lien therefor..."
Ala. Code § 35-11-210.
How long does a party have to claim a lien?
A verified lien statement
must be filed by original contractors within six (6) months after the last
item of work, labor, or material, has been furnished. Journeymen
and day laborers have thirty (30) days and every other party has four (4)
months from after the last item of work, labor, or material has been provided.
Ala. Code § 35-11-215.
What kind of notice is required prior to claiming
a lien?
Alabama statutes have special provisions for those who furnish materials
to construction projects. A furnisher of materials may only claim
a lien for the unpaid balance due to the contractor from the owner unless
the furnisher of materials provides the owner with a notice of furnishing
materials. However, the owner may use the same notice form to object
to the furnisher's claim. If this form is properly provided without
objection from the owner, the furnisher of materials is entitled to a lien
for the full price of materials furnished. Ala. Code § 35-11-210.
Also, while an original contractor
may simply file a verified statement to claim a lien, any other party wishing
to claim a lien must, before filing a verified statement, give notice in
writing to the owner or proprietor of the intention to claim a lien.
The required notice will contain the amount of the lien and from whom that
amount is owed. This notice requirement does not apply to parties
who furnish materials and have already provided notice as set out in the
paragraph above. Ala. Code § 35-11-218.
By what method is a lien filed in this State?
Alabama law requires the filing
of a verified statement of lien in the office of the judge of probate in the county
which the property in question is situated. The form of the statement
is set out in Ala. Code § 35-11-213 and is required to be verified
by the oath of the submitter. Ala. Code § 35-11-213.
How long is a lien good for?
A action to enforce
a lien must be commenced within six (6) months "after the maturity of the
entire indebtedness secured thereby,..." Ala. Code § 35-11-221.
Are liens assignable?
Yes. Alabama has
an extensive statute providing for the transfer of a lien interest from
one party to another. A filing of the original lien plus a bond in
the amount of the lien may be required. Ala. Code § 35-11-233.
Does this State require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
Alabama law provides
that a property owner or proprietor may demand that the contractor provide
a list of materialmen, laborers, and employees as well as the amount they
are owed. Failure of a contractor to provide this information may
result in the forfeiture of the contractor's right to a lien. Ala.
Code § 35-11-219.
Does this State permit a person with an interest
in property to deny responsibility for improvements?
Only in the instance
of a party who provides a notice that they are furnishing materials for
the improvement of the owner's property. The property owner may use
the same notice form to provide notice that the owner will not be held
responsible for the cost of materials provided. Ala. Code §
35-11-210.
Is a notice attesting to the satisfaction of a
lien provided for or required?
Yes. Ala. Code
§ 35-11-231 requires that any lien holder who's lien has been satisfied
must provide a written acknowledgment of satisfaction within thirty (30)
days of a written request that they provide said notice. Failure
to provide this notice within thirty (30) days of request will result in
the lien holder being held liable for any damages that result. Ala. Code
§ 35-11-231.
By what method does the law of this State permit
the release of a lien?
Alabama statutes
have no specific provision for the release of a lien other than by expiration
of the statute of limitations or through an acknowledgment of satisfaction
after payment in full.
Does this State permit the use of a bond to release
a lien?
Alabama law does not
contain a provision under which a party could use a bond to release a lien.
Acknowledgment of Satisfaction - Individual
