Page 14 - State Law Summary of Mechanic's Lien Law

Georgia GA

What is the statutory authority?
OCGA §§ 44-14-360 to 44-14-369.
What is the Attachment Date of the Mechanic’s Lien?
A mechanic’s lien attaches and has priority as of the date any material is first
delivered or work commences under the contract for the construction project.
OCGA § 44-14-361.
What constitutes visible commencement of construction?
There is no visible commencement rule in Georgia.
What is the priority of the insured construction mortgage/
deed of trust?
A construction loan deed to secure debt recorded before work has commenced
and before a notice of lien is recorded or suit commenced on a notice of lien has
priority over mechanic’s liens. OCGA § 44-14-2 and 3 and OCGA § 44-14-361.1(c).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.
When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
Under OCGA § 44-14-361.1, a mechanic’s lien must be filed in the office of the clerk of
superior court in the county where the property is located within ninety (90) days
after completion of labor, services or materials furnished.

What is the period of enforcement of a filed mechanic’s lien?
Under OCGA § 44-14-367, the lien is unenforceable 365 days after the date the lien
is recorded or if no statutory notice of commencement of lien action is filed within
395 days from the date the lien was recorded.

Is there a procedure to bond over the mechanic’s lien(s)?
Pursuant to OCGA § 44-14-364, the owner of the real estate or the contractor
employed to improve the property may, before or after foreclosure proceedings
are instituted, discharge the lien upon the approval of a bond by the clerk of
superior court. The bond is required to be double the amount claimed under the
lien, except in cases involving a lien against the owner’s domicile, in which event
the bond shall be in the amount claimed under the lien.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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