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HF 1522

as introduced - 87th Legislature (2011 - 2012) Posted on 04/18/2011 09:36am

KEY: stricken = removed, old language.
underscored = added, new language.
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Current Version - as introduced

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A bill for an act
 relating to real estate; limiting priority of mechanics lien rights of contractors and
subcontractors over a mortgage lender to mechanics liens for goods or services
provided prior to the recording of the mortgage; amending Minnesota Statutes
2010, section 514.05.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 514.05, is amended to read:


514.05 WHEN LIEN ATTACHES; NOTICE.

Subdivision 1.

Generally.

All liens, as against the owner of the land, shall attach
and take effect from the time the first item of material or labor is furnished upon the
premises for the beginning of the improvementdeleted text begin , anddeleted text end new text begin . Liens for items of material or labor
furnished upon the premises before a mortgage or other encumbrance became of recordnew text end
shall be preferred to any mortgage or other encumbrance not then of record, unless the
lienholder had actual notice thereof. As against a bona fide purchaser, mortgagee, or
encumbrancer without actual or record notice, no lien shall attach prior to the actual and
visible beginning of the improvement on the ground, but a person having a contract for
the furnishing of labor, skill, material, or machinery for the improvement, may file for
record with the county recorder of the county within which the premises are situated, or, if
claimed under section 514.04, with the secretary of state, a brief statement of the nature of
the contract, which statement shall be notice of that person's lien only.

Subd. 2.

Exception.

Visible staking, engineering, land surveying, and soil testing
services do not constitute the actual and visible beginning of the improvement on the
ground referred to in this section. This subdivision does not affect the validity of the
liens of a person or the notice provision provided in this chapter and affects only the
determination of when the actual and visible beginning of the improvement on the ground,
as the term is used in subdivision 1, has commenced.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011, and applies to
mechanics liens that attach on or after that date.
 new text end