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LIEN
LAWS BY STATE
Massachusetts |
MASSACHUSETTS
GENERAL LAWS |
A Mechanic's Lien
is a lien created by statute for the purpose of securing priority
of payment for the price or value of work performed and materials
furnished in construction or repair of improvements to land,
and which attaches to the land as well as the improvements.
A
Mechanic's Lien is the right of a craftsman, laborer, supplier,
architect or other person who has worked upon improvements
or delivered materials to a particular parcel of real estate
(either as an employee of the owner or as a sub-contractor
to a general contractor) to place a lien on that real property
for the value of the services and/or materials if not paid.
Numerous other technical laws surround Mechanic's Liens, including
requirements of prompt written notice to the owner of the
property (even before the general contractor has been tardy
in making payment), limits on the amount collectable in some
states, and various time limitations to enforce the lien.
Ultimate, last-resort enforcement of the Mechanic's Lien is
accomplished by filing a lawsuit to foreclose the lien and
have the property sold in order to be paid. Property owners
should make sure that their general contractors pay their
employees or subcontractors to avoid a Mechanic's Lien, since
the owner could be forced to pay the debts of a general contractor
even though the owner has already paid the contractor. If
the worker or supplier does not sue to enforce the Mechanic's
Lien, he/she may still sue for the debt.
A
Mechanic's Lien (also known as a Materialmen's Lien) is a
method used by contractors or other people employed for the
purpose of improving real property to ensure that property
owners will pay them for services and materials. If the property
owner does not pay for the services or materials, the mechanic
can initiate a court proceeding to force a sale of the property
to pay for the services and materials. |
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PART III COURTS, JUDICIAL OFFICERS AND PROCEEDINGS IN CIVIL
CASES
TITLE IV CERTAIN WRITS AND PROCEEDINGS IN SPECIAL CASES
CHAPTER 254 LIENS ON BUILDINGS AND LAND MISCELLANEOUS PROVISIONS
1 Lien for Personal Labor
2 Persons Entitled to Lien Under Written Contract, Notice
of Contract, Recording
2A Definitions, Notice of Substantial Completion, Service
2B Notice of Termination, Recording, Service
4 Notice of Contract for Labor or Material, Form, Recording:
Lien, Preliminary Notice
5 Foreclosure Action
6 Public Property Exempt
7 Mortgages, Priority
8 Statement of Account, Filing, Time
9 Duties of Recorder
10 Dissolution of Lien
11 Foreclosure Action, Time
12 Release Bond, Requirements, Recording
13 Priority of Attachments Over Liens
14 Dissolution Bond
15 Judgment of Dissolution
17 Interest, Reasonable Value
18 Order of Sale
19 Notice of Sale
20 Redemption
21 Distribution Prorata
22 Costs
23 Death, Conveyance, Parties
24 Death of Creditor
25 Estates
26 Other Remedies
27 Lien for Land Reclamation
28 Subcontractor Notice of Contract, Notice of Furnishing
Labor or Material, Filing, Lien
29 Applicable Loss
30 Recording, Indexing
31 Insolvency, Enforcement Proceedings, Public Projects
32 Waivers, Enforceability, Partial Waivers and Subordinations
33 Right to Withhold Financing
MASSACHUSETTS GENERAL LAWS
PART III COURTS, JUDICIAL OFFICERS AND PROCEEDINGS IN CIVIL
CASES
TITLE IV CERTAIN WRITS AND PROCEEDINGS IN SPECIAL CASES
CHAPTER 254 LIENS ON BUILDINGS AND LAND MISCELLANEOUS PROVISIONS
1 Lien for Personal Labor
A person to whom a debt is due for personal labor performed
in the erection, alteration, repair or removal of a building
or structure upon land or improvement or alteration to real
property, by virtue of an agreement with, or by consent
of, the owner of such building or structure, or of a person
having authority from or rightfully acting for such owner
in procuring or furnishing such labor, shall, under the
provisions of this chapter, other than section four, have
a lien upon such building or structure and upon such interest
in such real property, land, building, structure, or improvement
owned by the party authorizing or consenting to said work,
for not more than thirty days’ work actually performed
for the ninety days next prior to his filing a statement
as provided in section eight.
A person or his assignee, agent, authorized representative
or third party beneficiary, to whom amounts are due or for
whose benefit amounts are computed and due for, or on the
basis of, the personal labor of such person, may file a
lien to secure the payment of such unpaid amounts including
interest and agreed penalties for failure to pay the same.
2 Persons Entitled to Lien Under Written
Contract, Notice of Contract, Recording
A person entering into a written contract with the owner
of any interest in real property, or with any person acting
for, on behalf of, or with the consent of such owner for
the whole or part of the erection, alteration, repair or
removal of a building, structure, or other improvement to
real property, or for furnishing material or rental equipment,
appliances, or tools therefore, shall have a lien upon such
real property, land, building, structure or improvement
owned by the party with whom or on behalf of whom the contract
was entered into, as appears of record on the date when
notice of said contract is filed or recorded in the registry
of deeds for the county or district where such land lies,
to secure the payment of all labor, including construction
management and general contractor services, and material
or rental equipment, appliances, or tools which shall be
furnished by virtue of said contract. Said notice may be
filed or recorded in the registry of deeds in the county
or registry district where the land lies by any person entitled
under this section to enforce a lien, and shall be in substantially
the following form:
Notice is hereby given that by virtue of a written contract
dated _________, between _________, owner, and _________,
contractor, said contractor is to furnish or has furnished
labor and material or rental equipment, appliances or tools
for the erection, alteration, repair or removal of a building,
structure, or other improvement on a lot of land or other
interest in real property described as follows:
(INSERT DESCRIPTION)
Such person may file or record the notice of contract at
any time after execution of the written contract whether
or not the date for performance stated in such written contract
has passed and whether or not the work under such written
contract has been performed, but not later than the earliest
of: (i) sixty days after filing or recording of the notice
of substantial completion under section two A; or (ii) ninety
days after filing or recording of the notice of termination
under section two B; or (iii) ninety days after such person
or any person by, through or under him last performed or
furnished labor or materials or both labor and materials.
2A
Definitions, Notice of Substantial Completion, Service
As used in this chapter the following words shall, unless
the context clearly requires otherwise, have the following
meaning:-
“Substantial completion”, that work under the
written contract is sufficiently complete so that it can
be occupied or utilized for its intended use.
“Written contract”, any written contract enforceable
under the laws of the commonwealth. Upon or after substantial
completion of any contract subject to the provisions of
section two, the owner and contractor shall execute and
file or record in the appropriate registry of deeds a notice
of substantial completion in substantially the following
form:
NOTICE OF SUBSTANTIAL COMPLETION
Notice is hereby given that the work performed by virtue
of a written contract dated __________ between __________
as owner, and __________ _________ as contractor, for the
erection, alteration, repair or removal of a building, structure,
or other improvement of real property described below, has
been substantially completed as of the date of filing or
recording of this notice. The lot of land or other interest
in real property which is the subject of such contract is
described as follows:
(INSERT DESCRIPTION)
The undersigned owner hereby states that he has served written
notice of the recording or filing of this notice of substantial
completion upon every person who has filed or recorded prior
to the date this notice is filed or recorded notice of contract
under section four of chapter two hundred and fifty-four
of the General Laws. The undersigned contractor hereby states
that he has served written notice of the recording or filing
of this notice of substantial completion upon every person
who has entered into a written contract directly with the
contractor or who has given written notice of identification
to the contractor prior to the date this notice is filed
or recorded as provided in said section four of said chapter
two hundred and fifty-four of the General Laws. A copy of
such notice, indicating the date of filing or recording,
shall be mailed by certified mail return receipt requested
by the owner to every person who has filed a notice of contract
under section four and by the contractor to every person
who has entered into a written contract directly with the
contractor and every person who has given written notice
of identification to the contractor claiming by, through,
or under him as provided in section four. The failure of
the owner or contractor to give notice of the filing or
recording of the notice of substantial completion to those
persons so entitled shall not prejudice the rights of third
parties who rely upon said notice of substantial completion
in good faith and without actual knowledge of such failure
of notice.
2B
Notice of Termination, Recording, Service
If, prior to the filing or recording in the registry of
deeds and delivery of the copies of the notice of substantial
completion described in section two A, any contract subject
to the provisions of section two shall have been terminated,
the owner shall execute and file or record in the appropriate
registry of deeds a notice of termination in substantially
the following form:
NOTICE OF TERMINATION
Notice is hereby given that a written contract dated ________
between ________ as Owner and _________ as Contractor for
the erection, alteration, repair or removal of a building,
structure or other improvement of real property described
below, has been terminated. The lot of land or other interest
in real property which is the subject of such contract is
described as follows:
(INSERT DESCRIPTION)
The undersigned owner hereby states that he has served written
notice of the recording or filing of this notice of termination
upon the contractor and every person who has filed or recorded
prior to this date a notice of contract under section four
of chapter two hundred and fifty-four of the General Laws.
A copy of such notice, indicating the date of filing or
recording, shall be mailed by certified mail return receipt
requested by the owner to every person who has filed or
recorded a notice of contract under section four and to
the contractor. Upon receipt of such notice from the owner,
the contractor shall deliver a copy of such notice to every
person who has entered into a written contract directly
with the contractor or who has given to the contractor written
notice of identification in accordance with said section
four. The failure of the owner or contractor to give notice
of the filing or recording of the notice of termination
to those persons so entitled shall not prejudice the rights
of third parties who rely upon said notice of termination
in good faith and without actual knowledge of such failure
of notice.
4 Notice of Contract for Labor or Material,
Form, Recording: Lien, Preliminary Notice
Whoever furnishes labor, including subcontractor construction
management services, or who furnishes material, or both
labor and material, or furnishes rental equipment, appliances
or tools, under a written contract with a contractor, or
with a subcontractor of such contractor, may file or record
in the registry of deeds for the county or district where
such land lies a notice of his contract substantially in
the following form:
Notice is hereby given that by virtue of a written contract
dated _________, between _________ _________ contractor
(or subcontractor) and _________ said _________ is to furnish
or has furnished labor or material, or both labor and material,
or is to furnish or has furnished rental equipment, appliances
or tools, in the erection, alteration, repair or removal
of a building, structure or other improvement of real property
by _________, contractor, for _________, owner, on a lot
of land or other interest in real property described as
follows:
(INSERT DESCRIPTION)
As of the date of this notice, an account of said contract
is as follows:
1. contract price $_______
2. agreed change orders $_______ (indicate whether addition
or subtraction)
3. pending change orders: $_______ (indicate whether addition
or subtraction)
4. disputed claims $_______ (indicate whether addition or
subtraction)
5. payments received $_______
The regular mailing address of the party recording or filing
this notice is as follows: _____________________.
Such person may file or record the notice of contract at
any time after execution of the written contract whether
or not the date for performance stated in such written contract
has passed and whether or not the work under such contract
has been performed, but not later than the earliest of:
(i) sixty days after filing or recording the notice of substantial
completion under section two A; or
(ii) ninety days after filing or recording of the notice
of termination under section two B; or (iii) ninety days
after the last day a person entitled to enforce a lien under
section two or anyone claiming by, through or under him
performed or furnished labor or materials or both labor
and materials to the project or furnished rental equipment,
appliances or tools. Such notice may also be filed by a
person or his assignee, agent, authorized representative
or third party beneficiary to whom amounts are due or for
whose benefit amounts are computed and due for or on the
basis of the labor of that person performing labor under
a written contract with a contractor, or with a subcontractor
of such contractor and the person filing such notice shall
not be required to itemize the amount of the contract, the
amount of pending changes in the contract, the amount of
outstanding claims or the amount paid in such notice. Upon
filing or recording a notice, as hereinbefore provided,
and giving actual notice to the owner of such filing, the
subcontractor shall have a lien upon such real property,
land, building, structure or improvement owned by the party
who entered into the original contract as appears of record
at the time of such filing, to secure the payment of all
labor and material and rental equipment, appliances or tools
which he is to furnish or has furnished for the building
or structure or other improvement, regardless of the amount stated in the notice of contract. Such lien shall not exceed
the amount due or to become due under the original contract
as of the date notice of the filing of the subcontract is
given by the subcontractor to the owner. If the person claiming
a lien under this section has no direct contractual relationship
with the original contractor, except for liens for labor
by persons defined in section one of this chapter, the amount
of such lien shall not exceed the amount due or to become
due under the subcontract between the original contractor
and the subcontractor whose work includes the work of the
person claiming the lien as of the date such person files
his notice of contract, unless the person claiming such
lien has, within thirty days of commencement of his performance,
given written notice of identification by certified mail
return receipt requested to the original contractor in substantially
the following form:
NOTICE OF IDENTIFICATION
Notice is hereby given to ________, as contractor, that
________, as subcontractor/vendor, has entered into a written
contract with ________ to furnish labor or materials, or
labor and materials, or rental equipment, appliances or
tools to a certain construction project located at ________
(Street Address), ______________ (Town or City), Massachusetts.
The amount or estimated amount of said contract is $_________.
(No amount need be stated for contracts for the rental of
equipment, appliances or tools). The
amount stated in any such notice of identification shall
not limit the amount of the lien. Any inaccuracy in the
naming of the contractor or other information in such notice
shall not affect its validity provided there shall be actual
notice.
5 Foreclosure Action
A lien upon land for the erection, alteration, repair or
removal of a building or other structure or other improvement
of real property or a lien established under section seventy-six
of chapter sixty-three, section six of chapter one hundred
and eighty-three A, or subsection (a) of section twenty-nine
of chapter one hundred and eighty-three B shall be enforced
by a civil action brought in the superior court for the
county where such land lies or in the district court in
the judicial district where such land lies. The plaintiff
shall bring his action in his own behalf and in behalf of
all other persons in interest who shall become parties.
An attested copy of the complaint, which shall contain a
brief description of the property sufficient to identify
it, and a statement of the amount due, shall be filed in
the registry of deeds and recorded as provided in section
nine within thirty days of the commencement of the action,
or such lien shall be dissolved. All other parties in interest
may appear and have their rights determined in such action,
and at any time before entry of final judgment, upon the
suggestion of any party in interest that any other person
is or may be interested in the action, or of its own motion,
the court may summon such person to appear in such cause
on or before a day certain or be forever barred from any
rights thereunder. The court may in its discretion provide
for notice to absent parties in interest. The terms “party
in interest” and “person in interest”,
as used in this chapter, shall include mortgages and attaching
creditors.
6 Public Property Exempt
No lien shall attach to any land, building or structure
thereon owned by the commonwealth, or by a county, city,
town, water or fire district.
7 Mortgages, Priority
(a) No lien under section one shall avail against a mortgage
duly registered or recorded unless the work or labor performed
is in the erection, alteration, repair or removal of a building,
structure, or other improvement to real property which erection,
alteration, repair, removal, or improvement was actually
begun prior to the recording of the mortgage.
(b) No lien under section two shall avail as against a mortgage
duly registered or recorded to the extent of amounts actually
advanced or unconditionally committed (i) prior to the filing
or recording of the notice of contract, and (ii) after the
filing or recording of the notice of contract but within
twenty-five days after the last day of the period stated
in an accurate duly executed partial waiver and subordination
of lien in the form required by section thirty-two, except
for the amount of retainage accurately stated in such partial
waiver and subordination of lien.
(c) No lien under section four shall avail against a mortgage
actually existing and duly registered or recorded to the
extent of the amount actually advanced or unconditionally
committed prior to the filing or recording in the registry
of deeds of the notice required by section four.
(d) No lien under section two or four of this chapter shall
avail as against a purchaser, other than the owner or person
acting for or on behalf of, or with the consent of such
owner who entered into the written contract on which the
lien is based, whose deed or other instrument of title was
duly registered or recorded prior to the filing or recording
of such notices under said section two or four.
8
Statement of Account, Filing, Time
Liens under sections two and four shall be dissolved unless
the contractor, subcontractor, or some person claiming by,
through or under them, shall, not later than the earliest
of:
(i) ninety days after the filing or recording of the notice
of substantial completion under section two A;
(ii) one hundred and twenty days after the filing or recording
of the notice of termination under section two B; or
(iii) one hundred and twenty days after the last day a person,
entitled to enforce a lien under section two or anyone claiming
by, through or under him, performed or furnished labor or
material or both labor and materials or furnished rental
equipment, appliances or tools, file or record in the registry
of deeds in the county or district where the land lies a
statement, giving a just and true account of the amount
due or to become due him, with all just credits, a brief
description of the property, and the names of the owners
set forth in the notice of contract. A lien under section
one shall be dissolved unless a like statement, giving the
names of the owner of record at the time the work was performed
or at the time of filing the statement, is filed or recorded
in the appropriate registry of deeds within the ninety days
provided in said section. Nothing in this section shall
prohibit the filing or recording of a statement under this
section prior to the filing or recording of the notices
under section two A or two B.
9
Duties of Recorder
Any notice or any statement provided for in this chapter
shall remain in the custody of the register and be open
to public inspection. He shall record it in a book kept
therefore, but the items of the account, except the total
amount claimed due, may be omitted from the record.
10 Dissolution of Lien
The lien of any person may, so far as his interest is concerned,
be dissolved by a notice signed by him, stating that his
lien is dissolved, filed in the registry of deeds where
the notice of the contract is filed under which contract
the lien is claimed.
11 Foreclosure Action, Time
The lien shall be dissolved unless a civil action to enforce
it is commenced within ninety days after the filing of the
statement required by section eight. The validity of the
lien shall not be affected by an inaccuracy in the description
of the property to which it attaches, if the description
is sufficient to identify the property, or by an inaccuracy
in stating the amount due for labor or material unless it
is shown that the person filing the statement has willfully
and knowingly claimed more than is due him.
12 Release Bond, Requirements, Recording
Any person, including the owner, in interest in connection
with a written contract covered by section two or section
four may cause to be recorded in the registry of deeds in
the county or district where the land lies a bond of a surety
company authorized to do a surety business in Massachusetts
and in a penal sum equal to the contract sum or, if the
contract does not contain a contract sum, in a penal sum
equal to that person’s fair estimate of the contract
sum, all as set forth in the certificate on the bond. The
bond shall describe the land in such detail as is required
in a common conveyance of land, and shall be in the following
form:
Know All Men By These Presents: That we _____ of _____ in
the County of _____ and Commonwealth of Massachusetts, as
principal, and _____ a surety company organized under the
laws of _____ and authorized to do business in the Commonwealth
as a surety company, are holden and stand firmly bound and
obliged unto _____ Register of Deeds for the _____ District,
County of ________, in the principal sum of _______ Dollars
($ ) to be paid unto said Register and his successors in
said office, to which payment, well and truly to be made,
we bind ourselves, our heirs, executors, administrators,
successors and assigns, jointly and severally, firmly by
these presents.
Whereas, said principal is interested in the erection, alteration,
repair or removal of a building or structure on a certain
lot of land situated within the __________ Registry District
in the Commonwealth, bounded and described as follows:
(INSERT DESCRIPTION)
and desires to free said land from liens for all labor and
all labor and materials entitled to lien protection under
chapter 254 and amendments thereto;
NOW, THEREFORE, the condition of this obligation is such
that if the Principal shall pay for all labor and for all
labor and materials entitled to lien protection under chapter
254 and amendments thereto under the contract referred to
in the Certificate in this bond, irrespective of any agreement
made between him and the owner or any other persons now
interested or who may hereinafter be interested therein,
then the above written obligation shall be null and void,
otherwise to remain in full force and effect. This bond
is made for the use and benefit of all persons entitled
to file the documents for lien protection as provided in
Massachusetts General Laws, chapter 254 and they and each
of them are hereby made Obligees hereunder, and in case
of the failure of the principal to carry out the provisions
of this bond made for their use and benefit they and each
of them may sue hereon in their own name.
Signed, sealed and delivered this _____ day of _____ 20___________________________Principal
By_____________________________
_______________________________ Surety
By_____________________________
CERTIFICATE
__________, principal on the above bond, hereby certify
that the (estimated) contract price for the proposed work
to be performed on the land described in the above bond
under a written contract between ___ and ___ dated ____
._____ 20__, is .____ Dollars ($ ).
_________________ (Signed)
After the recording of any such bond no lien under this
chapter shall thereafter attach in favor of any person entitled
to the benefit of such bond and not named as a principal
thereon for labor or for labor and materials performed under
the contract in respect to which such bond is given. The
register of deeds shall refuse to record the said bond if
it be defective in form or substance, but no party to any
such bond shall be discharged by any defect therein as against
any party who has in good faith allowed his lien to be dissolved
by lapse of time in reliance on the bond. The bond may be
enforced by a civil action in the superior court or district
court brought by any party in interest. An attested copy
of the complaint shall be filed and recorded in the registry
of deeds. No suit or action on the bond shall be commenced
after the expiration of ninety days after the claimant last
performed or furnished labor or labor and materials. Such
bond shall not create any rights which the claimant would
not have had, or impair any defense which the obligors would
have had, in an action to enforce a lien.
13
Priority of Attachments Over Liens
The rights of an attaching creditor shall not prevail as
against a lien under section one, nor against the claim
of a lienor where notice or notices of contract have been
filed or recorded in the registry of deeds under sections
two and four prior to the recording of the attachment. An
attachment recorded prior to the filing or recording of
the notice of contract shall prevail against a lien, other
than for personal labor, to the extent of the value of the
buildings and land as they were at the time when the labor
was commenced or the material furnished for which the lien
is claimed, and in case of a sale under section eighteen
the court shall determine what proportion of the proceeds
of the sale, as derived from the value of the property at
such time, shall be held subject to the attachment. If the
attaching creditor recovers judgment, the proceeds so held
subject to his attachment, or as much thereof as may be
necessary, shall be applied upon his execution, and the
residue, if any, shall be disposed of in the same manner
as if there had been no such attachment. If the interest
of the owner of the property is attached after the filing
of the notice, the proceeds of any sale of the property
under said section eighteen, after discharging all prior
liens and claims, shall be applied to satisfy the execution
of the attaching creditor, provided the lienor or the officer
making the sale has actual notice of the attachment. Several
attaching creditors as between themselves shall be paid
according to the order of their attachments. Liens of a
trustee or trustees of a fund or funds, described in section
one, providing coverage or benefits for persons shall be
considered as liens for personal labor.
14 Dissolution Bond
Any person in interest may dissolve a lien under this chapter
by recording or causing to be recorded in the registry of
deeds in the county or district where the land lies, a bond
of a surety company authorized to do business in Massachusetts
and in a penal sum equal to the amount of the lien sought
to be dissolved conditioned for the payment of any sum which
the claimant may recover on his claim for labor or labor
and materials. Upon the recording of the bond, the lien
shall be dissolved. Notice of the recording shall be given
to the claimant by serving on the claimant a copy of the
notice of recording together with a copy of the bond by
an officer qualified to serve civil process or by delivering
same to the claimant. The claimant may enforce the bond
by a civil action commenced within ninety days after receipt
of notice of recording of the bond, but such bond shall
not create any rights which the claimant would not have
had, or impair any defense which the obligors would have
had, in an action to enforce a lien.
The bond shall be in the following form:
Know All Men By These Presents:
That we,__________as principal and________________duly organized
to transact business as a surety within the Commonwealth
of Massachusetts, as surety, are holden and stand firmly
bound and obliged unto__________in the penal sum of_____________Dollars
($____________), to the payment of which we bind ourselves,
our heirs, successors and assigns, jointly and severally
by these presents. Whereas, under date of_____________,
the said obligee recorded a notice of contract in the registry
of deeds, as Instrument #_____________, in Book____________
at Page____________ upon premises more fully described in
said notice, and Whereas, the principal desires to dissolve
said lien in accordance with the provisions of section fourteen
of chapter two hundred and fifty-four of the General Laws.
Now, therefore, the condition of this obligation is such
that if the said principal shall pay to the said obligee
all sums which shall be adjudged in favor of the said obligee
in an action brought under the provisions of said section
fourteen, this obligation shall be void, otherwise to remain
in full force and effect.
In witness whereof, the aforesaid principal and surety have
executed this instrument under seal this ____________ day
of______________20__.
Principal ________________________
by______________________
Surety
by______________________ _______________________.
15
Judgment of Dissolution
If it appears to the court that no person is entitled to
a lien, or that every lien has been discharged by payment
thereof, judgment shall be entered to the effect that the
lien is dissolved, and a certificate to that effect shall
be sent forthwith by the clerk to the register of deeds.
Such certificate shall be filed and recorded in the manner
provided in sections eight and nine.
17 Interest, Reasonable Value
A claim due absolutely and without condition, although not
payable at the time of determination, shall be allowed with
a rebate of interest to the time when it would become payable.
If the owner has failed to perform his part of the contract
and by reason of such failure the other party is, without
his own default, prevented from completely performing his
part thereof, he shall be entitled to a reasonable compensation
for as much as he has performed, in proportion to the price
stipulated for the whole.
18 Order of Sale
If a lien is established the court shall order a sale of
the property to be made by an officer qualified to serve
civil process. The court may order a sale of a part of the
property sufficient to satisfy the claims allowed, if such
part can be set off from the residue and sold without damage
to the whole.
19 Notice of Sale
The officer shall give notice of the time and place of sale
as provided for sales of land on execution or as ordered
by the court.
20 Redemption
An interest in land sold under this chapter may be redeemed
within ninety days after such sale in the manner provided
for sales of land on execution.
21
Distribution Prorata
If all the claims against the property covered by the lien
were ascertained at the time of ordering the sale and if
the proceeds of the sale are sufficient therefore, the court
may order the officer to distribute them, after deducting
all lawful charges and expenses of such officer, to and
among the several creditors to the amount of their respective
debts, with interest, or, if insufficient, to distribute
the same among the lien creditors pursuant to this chapter
in proportion to the amount due to each, regardless of the
date upon which each such lien creditor filed a notice of
contract. If all the claims were not ascertained at the
time of ordering the sale or other sufficient cause is shown,
the court may order the officer to bring the proceeds of
the sale into court to be disposed of according to its decree.
If the whole cannot be conveniently distributed at one time,
the court may make successive orders of distribution. If
there is a surplus of the proceeds of the sale after making
all payments before mentioned, it shall be paid over to
the owner of the property; but, before it is so paid over,
it may be attached or taken on execution in like manner
as proceeds from a sale on execution. Notwithstanding the
foregoing, proceeds of the sale shall be distributed to
mortgagees entitled to priority pursuant to this chapter
in the amounts given priority thereunder, before proceeds
are distributed to creditors whose liens arise under this
chapter.
22 Costs
Costs shall be in the discretion of the court and shall
be paid from the proceeds of the sale or by any of the parties,
as it may order.
23 Death, Conveyance, Parties
If the person for whom the labor has been performed or furnished
or the material has been furnished dies or conveys away
his estate or interest before the commencement of a civil
action to enforce a lien, it may be commenced and prosecuted
against his heirs or against the persons holding the estate
or interest which he had in the land at the time when the
labor or material was performed or furnished. If the action
was commenced in the lifetime of such person, it may be
prosecuted against his executor, administrator, heirs or
assigns as if the estate or interest has been mortgaged
to secure the debt.
24 Death of Creditor
If the creditor dies without having commenced such action,
it may be commenced and prosecuted by his executor or administrator,
or if he dies after having commenced it, it may be so prosecuted.
25
Estates
If the person for whom the labor has been performed or with
whom the original contract has been entered into for the
whole or any part of the erection, alteration, repair or
removal of a building or structure upon land, or for furnishing
material therefore, has an estate less than a fee simple
in the land or if the property is subject to a mortgage
or other encumbrance, the lien shall bind such person’s
whole estate and interest in the property, and such estate
or interest may be sold and the proceeds applied according
to this chapter.
26 Other Remedies
This chapter shall not prevent a person entitled to a lien
under it from maintaining a civil action as if he had no
lien.
27 Lien for Land Reclamation
A person entering into a written contract with the owner
of land or flats for reclaiming or raising the level thereof
by suction, hydraulic or any other form of dredging, or
for furnishing material therefore, or the trustee or trustees
of any fund or funds, described in section one, providing
coverage or benefits for persons, shall have a lien upon
the interest of the owner in said land or flats as appears
of record at the date when notice of said contract is filed
or recorded in the registry of deeds for the county or district
where such land or flats lie, to secure the payment of all
labor and material which shall thereafter be furnished by
virtue of said contract. Said notice shall be in substantially
the following form:
Notice is hereby given that by virtue of a written contract
dated, between, owner, and, contractor, said contractor
is to furnish labor and material for reclaiming or raising
the level of land or flats described as follows:
28 Subcontractor Notice of Contract, Notice
of Furnishing Labor or Material, Filing, Lien
Whoever, subsequent to the date of the original contract,
furnishes labor or material, or both labor and material,
under a written contract with a contractor contracting as
provided in section twenty-seven, or with a sub-contractor
of such contractor, may file in the registry of deeds for
the county or district where such land or flats lie a notice
of his contract substantially in the following form:
Notice is hereby given that by virtue of a written contract
dated, between, contractor (or sub-contractor), and, said
is to furnish labor or material, or both labor and material,
in the reclaiming or raising the level, by, contractor,
for, owner, of land or flats described as follows:
Upon filing a notice, as hereinbefore provided, and giving
actual notice to the owner of such filing, the sub-contractor
shall have a lien to secure the payment of all labor and
material, which he shall thereafter furnish, upon the interest
of the owner, as appears of record at the time of such filing,
in the lot of land or flats reclaimed or improved in the
manner described in section twenty-seven. Such notice may
also be filed by a person, or his assignee, agent, authorized
representative or third party beneficiary to whom amounts
are due or for whose benefit amounts are computed and due
for or on the basis of that person performing labor under
a written contract with a contractor, or with a subcontractor
of such contractor.
29
Applicable Loss
All the provisions of this chapter relative to liens for
the erection, alteration, repair or removal of a building
or structure or for furnishing material therefore, attaching
under the provisions of section two or four, shall apply,
so far as apt, to liens attaching under section twenty-seven
or twenty-eight.
30
Recording, Indexing
All liens for labor and notices of contract, and instruments
pertaining thereto, filed as provided for in this chapter,
shall be recorded by the register of deeds, who shall enter
the names of the parties affected thereby in the grantor
and grantee indexes. Any notice or other instrument required
or permitted to be filed or recorded by this chapter in
the registry of deeds or in the land registration district
of the land court that is in the form required by this chapter
and executed before a notary public, justice of the peace
or other officer entitled by law to take acknowledgements
with respect to instruments, whether executed within or
without the commonwealth, by a person purporting to hold
the position of president, vice president, treasurer, clerk,
secretary, or any assistant to the foregoing, principal,
partner, proprietor, trustee, attorney or other similar
position, of the entity entitled to record or file such
instruments on behalf of such entity acting in its own capacity
or as a general partner or co- venturer, or as assignee,
agent or authorized representative, shall be binding upon
such entity and shall be entitled to be recorded or filed,
and no vote of the entity affirming such authority shall
be required to permit recording or filing. A certificate
of the acknowledgement or other proof of due execution shall
be endorsed upon or annexed to such instrument, and filed
or recorded with it. Such notices, and all other instruments
required or permitted by this chapter to be filed or recorded
in the registry of deeds, affecting registered land shall
be filed and registered in the manner prescribed by section
seventy-eight of chapter one hundred and eighty-five. Such
notices, and all other instruments required or permitted
by this chapter to be filed or recorded in the registry
of deeds, affecting unregistered land shall be indexed in
a separate book to be kept for that purpose. If registered
land is included with unregistered land in any such notice
or other instrument, an attested copy thereof shall be filed
with the assistant recorder and registered.
31
Insolvency, Enforcement Proceedings, Public Projects
In the event that a general contractor or a subcontractor
on any construction work is adjudged a bankrupt, or makes
a general assignment for the benefit of creditors, or if
a receiver is appointed on account of the insolvency of
the general contractor or of a subcontractor, at a time
when there are sums due or which later become due from the
person contracting for the work on account of the work of
such general contractor or when there are sums due or which
later become due from the general contractor on account
of the work of such subcontractor, each person furnishing
labor or labor and materials to such general contractor
or such subcontractor shall have a lien each in proportion
to the amount of his respective claim on all such sums due
or which later become due in connection with the particular
construction work, provided, that a lien on any such sums
arising out of the recording or filing of a document or
notice in accordance with the provisions of this chapter
or in accordance with any other applicable provisions of
the general laws shall have priority over any lien secured
pursuant to this section, and provided further, that such
lien shall not take effect unless written notice thereof
is given to the person owing such sums. Proceedings to enforce
a lien secured under this section shall be by a civil action
in the superior court within one year after the adjudication
of bankruptcy, or the assignment for the benefit of creditors
or the appointment of a receiver, and the plaintiff shall
bring his action in his own behalf and in behalf of all
other persons in interest who shall become parties. All
other parties in interest may appear and have their rights
determined in such action, and, at any time before entry
of final judgment, upon the suggestion of any party in interest
that any other person is or may be interested in the action,
or of its own motion, the court may summon such person to
appear in said cause on or before a day certain or be forever
barred from any rights thereunder. The court may in its
discretion provide for notice to absent parties in interest.
The other provisions of this chapter shall not apply to
any such civil action. The provisions of this section shall
not apply to any contract with the commonwealth or with
any political subdivision thereof or any other public instrumentality.
32
Waivers, Enforceability, Partial Waivers and Subordinations
A covenant, promise, agreement of understanding in, or in
connection with or collateral to, a contract or agreement
relative to the construction, alteration, repair or maintenance
of a building, structure, appurtenance and appliance or
other improvement to real property, including moving, demolition
and excavating connected therewith, purporting to bar the
filing of a notice of contract or the taking of any steps
to enforce a lien as set forth in this chapter or purporting
to subordinate such rights to the rights of other persons
is against public policy and is void and unenforceable,
but this section shall not apply to:
(1) waivers of liens given by any person named as a principal
on a lien bond provided under section twelve in connection
with an interim or final payment received by such persons;
(2) statements by persons entitled to file documents under
this chapter of amounts due or paid to them;
(3) dissolutions of liens under section ten;
(4) partial waivers and subordinations of liens given by
persons who have filed or recorded notices of contract under
section two substantially in the following form with no
material deviation therefrom:
Partial Waiver and Subordination of Lien
COMMONWEALTH OF MASSACHUSETTS: Date:___________________
_______________COUNTY Application for Payment No:_____
OWNER:_______________
CONTRACTOR:_______________
LENDER/MORTGAGEE:_______________
1. Original Contract Amount: $_________
2. Approved Change Orders: $_________
3. Adjusted Contract Amount: $_________ (line 1 plus 2)
4. Completed to Date: $_________
5. Less Retainage: $_________
6. Total Payable to Date: $_________ (line 4 less line 5)
7. Less Previous Payments: $_________
8. Current Amount Due: $_________ (line 6 less line 7)
9. Pending Change Orders: $_________
10. Disputed Claims: $_________
The undersigned who has a contract with______for furnishing
labor or materials or both labor and materials or rental
equipment, appliances or tools for the erection, alteration,
repair or removal of a building or structure or other improvement
of real property known and identified as_______ located
in____________(city or town),__________County, Commonwealth
of Massachusetts and owned by______, upon receipt of_____($_____)
in payment of an invoice/requisition/application for payment
dated______does hereby:
(a) waive any and all liens and right of lien on such real
property for labor or materials, or both labor and materials,
or rental equipment, appliances or tools, performed or furnished
through the following date:______________ (payment period),
except for retainage, unpaid agreed or pending change orders,
and disputed claims as stated above; and
(b) subordinate any and all liens and right of lien to secure
payment for such unpaid, agreed or pending change orders
and disputed claims, and such further labor or materials,
or both labor and materials, or rental equipment, appliances
or tools, except for retainage, performed or furnished at
any time through the twenty-fifth day after the end of the
above payment period, to the extent of the amount actually
advanced by the above lender/mortgagee through such twenty-fifth
day.
Signed under the penalties of perjury this_____________
day of_____________, _____________.
The giving of a partial waiver and subordination of lien
by any contractor under this section shall not affect the
lien rights of any other person claiming a lien under any
section of this chapter.
33
Right to Withhold Financing
Except with respect to any construction project containing
or designed to contain at least one but not more than four
dwelling units, the filing or recording of documents claiming
a lien under section two, or the filing or recording of
a statement pursuant to section eight in furtherance of
a lien arising pursuant to section one, shall not itself
be grounds for a mortgagee to withhold sums for the funding,
financing or payment for the labor or labor and materials
for which any such notice or statement is filed or recorded
or to require dissolution of such notice or statement before
providing further funding, financing or payments, and any
covenant, promise, agreement or understanding relative to
the improvement or alteration to real property to withhold
such funding, financing or payment or to require dissolution
of such notice or statement before providing further funding,
financing or payments solely on that ground is against public
policy and void and unenforceable; provided, however, that
nothing contained in this chapter shall obligate a mortgagee
to disburse sums for the funding, financing or payment for
the labor or labor and materials for which any such notice
or statement is filed or recorded unless such mortgagee
has received an accurately completed and valid partial waiver
and subordination of lien in the form set forth in clause
(3) of section thirty-two from the person who filed or recorded
such notice or statement; provided, further that nothing
in this chapter shall in any manner limit or restrict the
right of any mortgagee to withhold any and all sums for
the funding, financing, or payment for labor or labor and
materials based upon: (a) the failure of the owner to comply
with any other terms, conditions or requirements in any
agreement providing for the funding of the loan, the repayment
of the loan or of any mortgage securing any such agreement
or (b) the filing or recording of documents claiming a lien
under section four, if the right to withhold is contained
in any agreement providing for the funding of the loan,
the repayment of the loan, or any mortgage securing such
agreement, except that such right to withhold shall not
be effective to bar the filing of a notice of contract or
the taking of any steps to enforce a lien.
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