HB668 Alabama 2013 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2013

Title

Liens, priority of liens, mechanics liens, procedure for termination of a notice of commencement by a contractor, Secs. 35-11-211 am'd.; Secs. 35-11-210.01, 35-11-210.02 added

Summary

HB668 changes how construction liens and mortgage priorities work by tying lien priority to recorded notices of commencement and by regulating future mortgage advances.

What This Bill Does

It prioritizes future advances under a future advance mortgage over mechanic's or materialman's liens if the mortgage was recorded before the notice of commencement. It also requires that mechanic's or materialman's liens apply to real property only when a notice of commencement is recorded in the county where the property sits and before the lien is recorded. The bill creates a formal process for terminating a notice of commencement by contractors, and adds new rules about what must be in the notice, how long it lasts, how it can be extended, and how termination is recorded and publicized.

Who It Affects

• Lenders and others providing financing through future advance mortgages: their priority over liens can be preserved if the mortgage is recorded before the notice of commencement.
• Contractors, subcontractors, material suppliers (claimants) and property owners/tenants involved in construction: they must use recorded notices of commencement, follow termination procedures, and their liens are governed by the new rules.

Key Provisions

• Amends 35-11-211 to ensure future advances secured by a mortgage recorded before the notice of commencement have priority over mechanic's or materialman's liens.
• Adds 35-11-210.01 and 35-11-210.02 to require a notice of commencement to be recorded in the county where the real property lies and sets out what the notice must contain, how long it lasts, and how it can be extended.
• Defines that a mechanics' or materialman's lien has priority only to interests created after the notice of commencement is recorded and subject to the new rules about prior mortgages and liens.
• Establishes a detailed termination process for notices of commencement, including how contractors or claimants can terminate, how owners/tenants can terminate, notification requirements, publication requirements, and applicable timelines.
• Allows a purchaser or other interested party to rely on a termination recording or accompanying affidavit without inquiry into its accuracy.
• Effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Liens