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S1454......................................................by STATE AFFAIRS
RESIDENTIAL PROPERTY - Amends and adds to existing law to provide that a
copy of a claim of lien shall be personally delivered or mailed within a
certain time; and to require that general contractors disclose certain
information to owners and purchasers of residential property.
02/14 Senate intro - 1st rdg - to printing
02/15 Rpt prt - to Com/HuRes
02/22 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Andreason
Title apvd - to House
02/28 House intro - 1st rdg - to St Aff
03/04 Rpt out - ref'd to Bus
03/08 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
Rls susp - PASSED - 49-16-5
AYES -- Aikele, Barraclough, Bedke, Block, Boe, Bolz, Callister,
Campbell, Collins, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge,
Field(13), Field(20), Gagner, Gould, Hadley, Harwood, Henbest,
Higgins, Hornbeck, Jaquet, Kunz, Lake, Loertscher, Martinez, Meyer,
Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Raybould, Robison,
Sali, Schaefer, Sellman, Shepherd, Smith(33), Smylie, Stone, Tilman,
Trail, Wheeler, Young, Mr. Speaker
NAYS -- Barrett, Bell, Bradford, Bruneel, Clark, Crow, Hammond,
Jones, Kellogg, Kendell, Langford, McKague, Pearce, Ridinger,
Roberts, Stevenson
Absent and excused -- Bieter, Black, Mader, Smith(23), Wood
Floor Sponsor - Smylie
Title apvd - to Senate
03/12 To enrol
03/13 Rpt enrol - Pres signed
Sp signed
03/14 To Governor
03/26 Governor signed
Session Law Chapter 307
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1454
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO LIENS; AMENDING SECTION 45-507, IDAHO CODE, TO PROVIDE THAT A COPY
3 OF A CLAIM OF LIEN SHALL BE PERSONALLY DELIVERED OR MAILED NO LATER THAN
4 FIVE BUSINESS DAYS FOLLOWING THE FILING OF SUCH CLAIM OF LIEN; AND AMEND-
5 ING CHAPTER 5, TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
6 45-525, IDAHO CODE, TO REQUIRE THAT GENERAL CONTRACTORS DISCLOSE CERTAIN
7 INFORMATION TO OWNERS AND PURCHASERS OF RESIDENTIAL REAL PROPERTY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 45-507, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 45-507. CLAIM OF LIEN. (1) Any person claiming a lien pursuant to the
12 provisions of this chapter must file a claim for record with the county
13 recorder for the county in which such property or some part thereof is situ-
14 ated.
15 (2) The claim shall be filed within ninety (90) days after the completion
16 of the labor or services, or furnishing of materials.
17 (3) The claim shall contain:
18 (a) A statement of his demand, after deducting all just credits and off-
19 sets;
20 (b) The name of the owner, or reputed owner, if known;
21 (c) The name of the person by whom he was employed or to whom he fur-
22 nished the materials; and
23 (d) A description of the property to be charged with the lien, sufficient
24 for identification.
25 (4) Such claim must be verified by the oath of the claimant, his agent or
26 attorney, to the effect that the affiant believes the same to be just.
27 (5) A true and correct copy of the claim of lien shall be served on the
28 owner or reputed owner of the property either by delivering a copy thereof to
29 the owner or reputed owner personally or by mailing a copy thereof by certi-
30 fied mail to the owner or reputed owner at his last known address. Such deliv-
31 ery or mailing shall be made no later than twenty-four five (245) hours busi-
32 ness days following the filing of said claim of lien.
33 SECTION 2. That Chapter 5, Title 45, Idaho Code, be, and the same is
34 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
35 ignated as Section 45-525, Idaho Code, and to read as follows:
36 45-525. GENERAL CONTRACTORS -- RESIDENTIAL PROPERTY -- DISCLOSURES. (1)
37 Legislative intent. This section is intended to protect owners and purchasers
38 of residential real property by requiring that general contractors provide
39 adequate disclosure of potential liens.
40 (2) General contractor information. Prior to entering into any contract
41 in an amount exceeding two thousand dollars ($2,000) with a homeowner or resi-
2
1 dential real property purchaser to construct, alter or repair any improvements
2 on residential real property, or with a residential real property purchaser
3 for the purchase and sale of newly constructed property, the general contrac-
4 tor shall provide to the homeowner a disclosure statement setting forth the
5 information specified in this subsection. The statement shall contain an
6 acknowledgment of receipt to be executed by the homeowner or residential real
7 property purchaser. The general contractor shall retain proof of receipt and
8 shall provide a copy to the homeowner or residential real property purchaser.
9 The disclosure shall include the following:
10 (a) The homeowner or residential real property purchaser shall have the
11 right at the reasonable expense of the homeowner or residential real prop-
12 erty purchaser to require that the general contractor obtain lien waivers
13 from any subcontractors providing services or materials to the general
14 contractor;
15 (b) The homeowner or residential real property purchaser shall have the
16 right to receive from the general contractor proof that the general con-
17 tractor has a general liability insurance policy including completed oper-
18 ations in effect and proof that the general contractor has worker's com-
19 pensation insurance for his employees as required by Idaho law;
20 (c) The homeowner or residential real property purchaser shall be
21 informed of the opportunity to purchase an extended policy of title insur-
22 ance covering certain unfiled or unrecorded liens; and
23 (d) The homeowner or residential real property purchaser shall have the
24 right to require, at the homeowner's or residential real property
25 purchaser's expense, a surety bond in an amount up to the value of the
26 construction project.
27 (3) Subcontractor, materialmen and rental equipment information.
28 (a) A general contractor shall provide to a prospective residential real
29 property purchaser or homeowner a written disclosure statement, which
30 shall be signed by the general contractor listing the business names,
31 addresses and telephone numbers of all subcontractors, materialmen and
32 rental equipment providers having a direct contractual relationship with
33 the general contractor and who have supplied materials or performed work
34 on the residential property of a value in excess of five hundred dollars
35 ($500). A general contractor is not required under this subsection to dis-
36 close subcontractors, materialmen or rental equipment providers not
37 directly hired by or directly working for the general contractor. Such
38 information shall be provided within a reasonable time prior to:
39 (i) The closing on any purchase and sales agreement with a prospec-
40 tive residential real property purchaser; or
41 (ii) The final payment to the general contractor by a homeowner or
42 residential real property purchaser for construction, alteration, or
43 repair of any improvement of residential real property.
44 (b) All subcontractors, materialmen and rental equipment providers listed
45 in the disclosure statement are authorized to disclose balances owed to
46 the prospective real property purchasers or homeowners and to the agents
47 of such purchasers or homeowners.
48 (c) The general contractor shall not be liable for any error, inaccuracy
49 or omission of any information delivered pursuant to this section if the
50 error, inaccuracy or omission was not within the personal knowledge of the
51 general contractor.
52 (4) Failure to disclose. Failure to provide complete disclosures as
53 required by this section to the homeowner or prospective residential real
54 property purchaser shall constitute an unlawful and deceptive act or practice
55 in trade or commerce under the provisions of the Idaho consumer protection
3
1 act, chapter 6, title 48, Idaho Code.
2 (5) Definitions. For purposes of this section:
3 (a) "General contractor" means a person who enters into an agreement in
4 excess of two thousand dollars ($2,000) with:
5 (i) A homeowner or prospective residential real property purchaser
6 for the construction, alteration or repair of residential real prop-
7 erty; or
8 (ii) A prospective residential real property purchaser for the pur-
9 chase and sale of newly constructed property.
10 The term "general contractor" does not include subcontractors, materialmen
11 or rental equipment providers who do not have a direct contractual rela-
12 tionship with the homeowner or residential real property purchaser.
13 (b) "Residential real property" shall include owner and nonowner occupied
14 real property consisting of not less than one (1) nor more than four (4)
15 dwelling units.
STATEMENT OF PURPOSE
RS 12059C1
This legislation is designed to address issues relating to liens.
First, the legislation will extend the time for delivery of a
claim of lien to owners of property from 24 hours to five days.
Second, the legislation requires a disclosure by general
contractors to homeowners and residential real property
purchasers of certain options that homeowners and residential
real property purchasers may have when they are remodeling an
existing home, building a custom-built home or buying a home from
a general contractor. These options may help consumers avoid
liens. Third, the legislation requires general contractors to
provide the business names, addresses and telephone numbers of
certain subcontractors, materialmen and rental equipment
providers to the homeowners and residential real property
purchasers within a reasonable time prior to the closing on any
purchase and sale agreement with a prospective residential real
property purchaser or prior to final payment to the general
contractor by the homeowner or residential real property
purchaser for construction, alteration, or repair of any
improvement of residential real property. This information may
also help consumers avoid liens. Failure to provide these
disclosures shall constitute an unlawful and deceptive act or
practice in trade or commerce under the provisions of the Idaho
Consumer Protection Act.
FISCAL NOTE
There should be no fiscal impact resulting from this proposed
legislation.
CONTACT:
Name: Woody Richards
Organization: Idaho Land Title Association
Phone: 385-5451
Ron Williams
Idaho Building Contractors Association
334-6633
S 1454