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10  AN ACT concerning civil procedure; relating to liens for material and
11    labor; amending K.S.A. 60-1102 and 60-1103 60-1103a and K.S.A.
12    1996 Supp. 60-1103b and repealing the existing sections.
13
14  Be it enacted by the Legislature of the State of Kansas:
15    Section 1.  K.S.A. 60-1102 is hereby amended to read as follows: 60-
16  1102. (a) Filing. Any person claiming a lien on real property, under the
17  provisions of K.S.A. 60-1101, and amendments thereto, shall file a verified
18  statement with the clerk of the district court of the county in which prop-
19  erty is located,fsi:
20    (1)  Within four months after the date material, equipment or sup-
21  plies, used or consumed was last furnished or last labor performed under
22  the contract a verified statement showing for residential property; or
23    (2)  within six months after the date material, equipment or supplies,
24  used or consumed was last furnished or last labor performed under the
25  contract for nonresidential property.
26    (b)  Statement. Such verified statement shall show:
27    (1)  The name of the owner,;
28    (2)  the name and address sufficient for service of process of the claim-
29  ant,;
30    (3)  a description of the real property,; and
31    (4)  a reasonably itemized statement and the amount of the claim, but
32  if the amount of the claim is evidenced by a written instrument, or if a
33  promissory note has been given for the same, a copy thereof may be
34  attached to the claim in lieu of the itemized statement.
35    (b) (c)  Recording. Immediately upon the receipt of such statement
36  the clerk of the court shall index the lien in the general index by party
37  names and file number.
38    Sec. 2.  K.S.A. 60-1103 is hereby amended to read as follows: 60-
39  1103. (a) Procedure. Any supplier, subcontractor or other person furnish-
40  ing labor, equipment, material or supplies, used or consumed at the site
41  of the property subject to the lien, under an agreement with the con-
42  tractor, subcontractor or owner contractor may obtain a lien for the
43  amount due in the same manner and to the same extent as the original
HB 2041--Am.
                                     

 1  contractor except that:
 2    (1)  The lien statement must state the name of the contractor and be
 3  filed within: (A) three months after the date supplies, material or equip-
 4  ment was last furnished or labor performed by the claimant if such prop-
 5  erty is residential property; or (B) six months after the date supplies,
 6  material or equipment was last furnished or labor performed by the claim-
 7  ant if such property is nonresidential property;
 8    (2)  if a warning statement is required to be given pursuant to K.S.A.
 9  60-1103a, and amendments thereto, there shall be attached to the lien
10  statement the affidavit of the supplier or subcontractor that such warning
11  statement was properly given; and
12    (3)  a notice of intent to perform, if required pursuant to K.S.A. 60-
13  1103b, and amendments thereto, must have been filed as provided by
14  that section.
15    (b)  Owner contractor is defined as any person, firm or corporation
16  who:
17    (1)  Is the fee title owner of the real estate subject to the lien; and
18    (2)  enters into contracts with more than one person, firm or corpo-
19  ration for labor, equipment, material or supplies used or consumed for
20  the improvement of such real property.
21    (c)  Recording and notice. When a lien is filed pursuant to this section,
22  the clerk of the district court shall enter the filing in the general index.
23  The claimant shall (1) cause a copy of the lien statement to be served
24  personally upon any one owner and any party obligated to pay the lien in
25  the manner provided by K.S.A. 60-304, and amendments thereto, for the
26  service of summons within the state, or by K.S.A. 60-308, and amend-
27  ments thereto, for service outside of the state, (2) mail a copy of the lien
28  statement to any one owner of the property and to any party obligated to
29  pay the same by restricted mail or (3) if the address of any one owner or
30  such party is unknown and cannot be ascertained with reasonable dili-
31  gence, post a copy of the lien statement in a conspicuous place on the
32  premises. The provisions of this subsection requiring that the claimant
33  serve a copy of the lien statement shall be deemed to have been complied
34  with, if it is proven that the person to be served actually received a copy
35  of the lien statement.
36    (d)  Rights and liability of owner. The owner of the real property shall
37  not become liable for a greater amount than the owner has contracted to
38  pay the original contractor, except for any payments to the contractor
39  made:
40    (1)  Prior to the expiration of the three-month period for filing lien
41  claims, if no warning statement is required by K.S.A. 60-1103a, and
42  amendments thereto; or
43    (2)  subsequent to the date the owner received the warning statement,
HB 2041--Am.
                                     

 1  if a warning statement is required by K.S.A. 60-1103a, and amendments
 2  thereto.
 3    The owner may discharge any lien filed under this section which the
 4  contractor fails to discharge and credit such payment against the amount
 5  due the contractor.
 6    Section 1.  K.S.A. 60-1103a is hereby amended to read as fol-
 7  lows: 60-1103a. (a) As used in this section, ``improvement of resi-
 8  dential property'' means:
 9    (1)  Improvement of a preexisting structure in which the owner
10  resides at the time the claimant first furnishes labor, equipment,
11  material or supplies and which is not used or intended for use as
12  a residence for more than two families or for commercial purposes
13  or improvement or construction of any addition, garage, fence,
14  swimming pool, outbuilding or other improvement appurtenant to
15  such a structure; or
16    (2)  any construction upon real property which is (A) owned or
17  acquired by an individual at the time the claimant first furnishes
18  labor, equipment, material or supplies; (B) intended to become
19  and does become the principal personal residence of that individ-
20  ual upon completion; and (C) not used or intended for use as a
21  residence for more than two families or for commercial purposes.
22    (b)  A lien for the furnishing of labor, equipment, materials or
23  supplies for the improvement of residential or nonresidential prop-
24  erty may be claimed pursuant to K.S.A. 60-1103 and amendments
25  thereto only if the claimant has:
26    (1)  Mailed to any one of the owners of the property a warning
27  statement conforming with this section; or
28    (2)  in the claimant's possession a copy of a statement signed
29  and dated by any one owner of the property stating that the gen-
30  eral contractor or the claimant had given the warning statement
31  conforming with this section to one such owner of the property.
32    (c)  The warning statement provided for by this section, to be
33  effective, shall contain substantially the following statement:
34    ``Notice to owner: (name of supplier or subcontractor) is a supplier or subcon-
35  tractor providing materials or labor on Job No. ______ at (residence address) under
36  an agreement with (name of contractor). Kansas law will allow this supplier or
37  subcontractor to file a lien against your property for materials or labor not paid for
38  by your contractor unless you have a waiver of lien signed by this supplier or sub-
39  contractor. If you receive a notice of filing of a lien statement by this supplier or
40  subcontractor, you may withhold from your contractor the amount claimed until
41  the dispute is settled.''
42    (d)  The warning statement provided for by this section shall
43  not be required if the claimant's total claim does not exceed $250.
HB 2041--Am.
                                     

 1    Sec. 2.  K.S.A. 1996 Supp. 60-1103b is hereby amended to read
 2  as follows: 60-1103b. (a) As used in this section, ``new residential
 3  property'' means a new structure which is constructed for use as
 4  a residence and which is not used or intended for use as a resi-
 5  dence for more than two families or for commercial purposes.
 6  ``New residential property'' does not include any improvement of
 7  a preexisting structure or construction of any addition, garage or
 8  outbuilding appurtenant to a preexisting structure.
 9    (b)  A lien for the furnishing of labor, equipment, materials or
10  supplies for the construction of new residential or nonresidential
11  property may be claimed pursuant to K.S.A. 60-1103 and amend-
12  ments thereto after the passage of title to such new residential or
13  nonresidential property to a good faith purchaser for value only if
14  the claimant has filed a notice of intent to perform prior to the
15  recording of the deed effecting passage of title to such new resi-
16  dential or nonresidential property. Such notice shall be filed in the
17  office of the clerk of the district court of the county where the
18  property is located.
19    (c)  The notice of intent to perform and release thereof pro-
20  vided for in this section, to be effective, shall contain substantially
21  the following statement, whichever is applicable:
22                                                NOTICE OF INTENT TO PERFORM
23  ``I _______________________________________________________________________________________________________________
24  ``I (name of supplier, subcontractor or contractor)
25  of _______________________________________________________________________________________________________________
26  of (address of supplier, subcontractor or contractor)
27  do hereby give public notice that I am a supplier, subcontractor or contractor or
28  other person providing materials or labor on property owned by ____________ and
29  having the legal (name of property owner) description as follows: ________________________________________________
30  __________________________________________________________________________________________________________________
31  _______________________________________________________________________________________________________________.''
32                                         RELEASE OF NOTICE OF INTENT TO PERFORM No.
33                                              ____________ AND WAIVER OF LIEN
34    ``I ____________ (name of supplier, subcontractor or contractor) of __________________________________________
35  (address of supplier, subcontractor or contractor) do hereby acknowledge that I
36  filed notice of intent to perform no. ______ covering property owned by __________________________________________
37  (name of property owner) and having the legal description as follows: _____________________________________________
38  __________________________________________________________________________________________________________________
39  __________________________________________________________________________________________________________________
40  In consideration of the sum of $____________, the receipt of which is hereby ac-
41  knowledged, I hereby direct the clerk of the district court of ____________, Kansas
42  to release the subject notice of intent to perform and do hereby waive and relin-
43  quish any statutory right to a lien for the furnishing of labor, equipment, materials
HB 2041--Am.
                                     

 1  or supplies to the above-described real estate under the statutes of the state of
 2  Kansas.''
 3    (d)  When any claimant who has filed a notice of intent to per-
 4  form has been paid in full, such claimant shall be required to file
 5  in the office in which the notice of intent to perform was filed, and
 6  to pay any requisite filing fee, a release of such notice and waiver
 7  of lien which shall be executed by the claimant, shall identify the
 8  property as set forth in the notice of intent to perform, and state
 9  that it is the intention of the claimant to waive or relinquish any
10  statutory right to a lien for the furnishing of labor or material to
11  the property. Upon such filing, the notice of intent to perform
12  previously filed by such claimant shall be of no further force or
13  effect, and such claimant's right to a lien under K.S.A. 60-1101 and
14  60-1103, and amendments thereto, shall be extinguished.
15    (e)  Any owner of the real estate upon which a notice of intent
16  to perform has been filed, or any owner's heirs or assigns, or an-
17  yone acting for such owner, heirs or assigns, and after payment in
18  full to the claimant, may make demand upon the claimant filing
19  the notice of intent to perform, for the filing of a release of the
20  notice and waiver of lien as provided for in subsection (d), unless
21  the same has expired by virtue of the provisions set forth in sub-
22  section (f).
23    (f)  Notwithstanding the requirements of subsections (d) and
24    (e), a notice of intent to perform shall be of no further force or
25  effect after the expiration of 18 months from the date of filing the
26  same, unless within such time the claimant has filed a lien pursuant
27  to K.S.A. 60-1101 and 60-1103, and amendments thereto.
28    Sec. 3.  K.S.A. 60-1102 and 60-1103 60-1103a and K.S.A. 1996
29  Supp. 60-1103b are hereby repealed.
30    Sec. 4.  This act shall take effect and be in force from and after its
31  publication in the statute book.