Session of 1998
SENATE BILL No. 653
By Senator Gooch
2-12
9
AN ACT concerning civil procedure; relating to
liens for labor and ma-
10 terials; real
property; amending K.S.A. 60-1101, 60-1103 and 60-1103a
11 and repealing the
existing sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section 1. K.S.A.
60-1101 is hereby amended to read as follows:
15 60-1101. Any person furnishing labor,
equipment, material, or supplies
16 used or consumed for the improvement of
real property, under a contract
17 with the owner or with the trustee, agent
or spouse of the owner, shall
18 have a lien upon the property for the
labor, equipment, material or sup-
19 plies furnished, and for the cost of
transporting the same, except that such
20 person shall no longer have a lien upon
the property once the owner has
21 paid in full the amount contracted to
pay for such labor, equipment, ma-
22 terial or supplies. The lien shall
be preferred to all other liens or encum-
23 brances which are subsequent to the
commencement of the furnishing
24 of such labor, equipment, material or
supplies at the site of the property
25 subject to the lien. When two or more such
contracts are entered into
26 applicable to the same improvement, the
liens of all claimants shall be
27 similarly preferred to the date of the
earliest unsatisfied lien of any of
28 them.
29 Sec. 2. K.S.A.
60-1103 is hereby amended to read as follows: 60-
30 1103. (a) Procedure. Any supplier,
subcontractor or other person furnish-
31 ing labor, equipment, material or supplies,
used or consumed at the site
32 of the property subject to the lien, under
an agreement with the con-
33 tractor, subcontractor or owner contractor
may obtain a lien for the
34 amount due in the same manner and to the
same extent as the original
35 contractor except that:
36 (1) The lien statement
must state the name of the contractor and be
37 filed within three months after the date
supplies, material or equipment
38 was last furnished or labor performed by
the claimant;
39 (2) if a warning
statement is required to be given pursuant to K.S.A.
40 60-1103a, and amendments thereto, there
shall be attached to the lien
41 statement the affidavit of the supplier or
subcontractor that such warning
42 statement was properly given;
and
43 (3) a notice of intent
to perform, if required pursuant to K.S.A. 60-
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1 1103b, and amendments thereto, must
have been filed as provided by
2 that
section .; and
3 (4) no lien
shall be obtained as provided in this subsection, if the
4 owner of the property has paid in
full the amount contracted to pay to
5 the original contractor.
6 (b) Owner
contractor is defined as any person, firm or corporation
7 who:
8 (1) Is the fee
title owner of the real estate subject to the lien; and
9 (2) enters into
contracts with more than one person, firm or corpo-
10 ration for labor, equipment, material or
supplies used or consumed for
11 the improvement of such real property.
12 (c) Recording and
notice. When a lien is filed pursuant to this section,
13 the clerk of the district court shall enter
the filing in the general index.
14 The claimant shall (1) cause a copy of the
lien statement to be served
15 personally upon any one owner and any party
obligated to pay the lien in
16 the manner provided by K.S.A. 60-304, and
amendments thereto, for the
17 service of summons within the state, or by
K.S.A. 60-308, and amend-
18 ments thereto, for service outside of the
state, (2) mail a copy of the lien
19 statement to any one owner of the property
and to any party obligated to
20 pay the same by restricted mail or (3) if
the address of any one owner or
21 such party is unknown and cannot be
ascertained with reasonable dili-
22 gence, post a copy of the lien statement in
a conspicuous place on the
23 premises. The provisions of this subsection
requiring that the claimant
24 serve a copy of the lien statement shall be
deemed to have been complied
25 with, if it is proven that the person to be
served actually received a copy
26 of the lien statement.
27 (d) Rights and
liability of owner. No lien shall be obtained as
provided
28 in this subsection, if the owner of the
property has paid in full the amount
29 contracted to pay to the original
contractor. The owner of the real prop-
30 erty shall not become liable for a greater
amount than the owner has
31 contracted to pay the original contractor,
except for any payments to the
32 contractor made:
33 (1) Prior to the
expiration of the three-month period for filing lien
34 claims, if no warning statement is required
by K.S.A. 60-1103a, and
35 amendments thereto; or
36 (2) subsequent to the
date the owner received the warning statement,
37 if a warning statement is required by
K.S.A. 60-1103a, and amendments
38 thereto.
39 The owner may discharge any
lien filed under this section which the
40 contractor fails to discharge and credit
such payment against the amount
41 due the contractor.
42 Sec. 3. K.S.A.
60-1103a is hereby amended to read as follows: 60-
43 1103a. (a) As used in this section,
``improvement of residential property''
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1 means:
2 (1) Improvement of
a preexisting structure in which the owner re-
3 sides at the time the claimant first
furnishes labor, equipment, material
4 or supplies and which is not used or
intended for use as a residence for
5 more than two families or for
commercial purposes or improvement or
6 construction of any addition, garage,
fence, swimming pool, outbuilding
7 or other improvement appurtenant to
such a structure; or
8 (2) any
construction upon real property which is (A) owned or ac-
9 quired by an individual at the time
the claimant first furnishes labor,
10 equipment, material or supplies; (B)
intended to become and does be-
11 come the principal personal residence of
that individual upon completion;
12 and (C) not used or intended for use as a
residence for more than two
13 families or for commercial purposes.
14 (b) A lien for the
furnishing of labor, equipment, materials or supplies
15 for the improvement of residential property
may be claimed pursuant to
16 K.S.A. 60-1103 and amendments thereto only
if the claimant has:
17 (1) Mailed to any one of
the owners of the property a warning state-
18 ment conforming with this section; or
19 (2) in the claimant's
possession a copy of a statement signed and dated
20 by any one owner of the property stating
that the general contractor or
21 the claimant had given the warning
statement conforming with this sec-
22 tion to one such owner of the property.
23 (c) The warning
statement provided for by this section, to be effec-
24 tive, shall contain substantially the
following statement:
25 ``Notice to owner: (name of
supplier or subcontractor) is a supplier or
26 subcontractor providing materials or labor
on Job No. ________ at (res-
27 idence address) under an agreement with
(name of contractor). Kansas
28 law will allow this supplier or
subcontractor to file a lien against your
29 property for materials or labor not paid
for by your contractor unless you
30 have a waiver of lien signed by this
supplier or subcontractor. No lien
31 shall be obtained by the subcontractor
if you have paid in full the amount
32 contracted to pay to the original
contractor. If you receive a notice of
33 filing of a lien statement by this supplier
or subcontractor, you may with-
34 hold from your contractor the amount
claimed until the dispute is set-
35 tled.''
36 (d) The warning
statement provided for by this section shall not be
37 required if the claimant's total claim does
not exceed $250.
38 Sec. 4. K.S.A.
60-1101, 60-1103 and 60-1103a are hereby repealed.
39 Sec. 5. This act
shall take effect and be in force from and after its
40 publication in the statute book.
41