HB451 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Wes Long
Republican
Session: Regular Session 2014
Title: Liens, priority of liens, mechanics liens, procedure for termination of a notice of commencement by a contractor, Secs. 35-11-211 am'd.
Summary: HB451 updates Alabama lien law to adjust how mortgage future advances interact with construction liens, requires notices of commencement for certain liens, and sets a procedure for terminating notices of commencement.
What This Bill Does
It allows future advances on a mortgage recorded before the start of work to take priority over mechanic’s or materialman’s liens for that work. It requires mechanics’ or materialmen’s liens on real property to be recorded in the property's county and to be preceded by a notice of commencement. It creates a procedure for a contractor to terminate a notice of commencement. It also clarifies how liens are affected by foreclosures and redemption rights, and states the rules apply to liens created before and after 1990, with an effective date of January 1, 2015.

Who It Affects
Mortgage lenders/owners with future-advance loans: their pre-commencement future advances can have priority over construction liens for the same work.
Construction contractors, suppliers (mechanics/materialmen), property owners, and buyers: mechanics’ liens must be county-recorded and preceded by a notice of commencement to attach to real property; there is a new contractor procedure to terminate a notice of commencement; lien enforcement and foreclosure interactions affect who gets paid and when.

Key Provisions
Future advances secured by a mortgage recorded before commencement of work that provides for future advances have priority over mechanic’s/materialman liens for that work.
A mechanic’s or materialman’s lien on real property is only enforceable if the lien is recorded in the county where the property is located and preceded by a notice of commencement.
There is a defined procedure for a contractor to terminate a notice of commencement.
Foreclosure of a prior mortgage or lien terminates subordinate mechanic’s/materialman liens, with redemption rights and consideration of excess proceeds as provided by law.
Liens created before the work may have priority only against the building/improvement and separable product; such liens may be enforced by sale before foreclosure, and may be removed by the buyer within a reasonable time.
The provisions apply to liens existing before February 23, 1990 and those arising after that date; the act becomes effective January 1, 2015.

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