| What
Happens When Construction Recommences? |
If
construction ceases, or is terminated prior to completion,
and the owner desires to recommence construction, there
are two options for the owner. One is that the owner can
pay all lienors in full or pro rata according to the proper
payments defense statutes, in which case all liens for work
performed after recommencement shall take priority as of
the date of the recommencement. The second alternative is
that the owner may record an affidavit in the office of
the Clerk of the Circuit Court, stating the intention to
recommence construction and that all lienors who have served
a Notice To Owner have been paid in full except for those
specifically listed. Those unpaid lienors specifically listed
must be served with copies of the Notice of Recommencement.
If any unpaid lienor listed on the Notice of Recommencement
fails to record a Claim of Lien within thirty (30) days
after the owner records the Notice of Recommencement, the
liens for work performed after recommencement shall have
priority over any lien rights of that unpaid lienor who
provided labor, services, or materials prior to the recommencement
and who failed to record a Claim of Lien within this thirty
(30) day period.
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DISCLAIMER
AND CAUTION: THESE MATERIALS ARE PROVIDED FOR GENERAL INFORMATIONAL
PURPOSES ONLY AND ARE NOT INTENDED NOR SHOULD THEY BE CONSTRUED
AS LEGAL ADVICE AS TO ANY PARTICULAR SET OF FACTS OR CIRCUMSTANCES.
DUE TO THE COMPLEXITY OF THE CONSTRUCTION LIEN LAW STATUTES
AND THE CASES INTERPRETING AND APPLYING THE STATUTES, IT
IS RECOMMENDED THAT COMPETENT LEGAL COUNSEL BE CONSULTED
IN REGARD TO ANY QUESTIONS AS TO THE APPLICABILITY OF CONSTRUCTION
LIEN LAW TO ANY SET OF PARTICULAR FACTS.
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