Page 4 - State Law Summary of Mechanic's Lien Law

Alabama AL

What is the statutory authority?
Ala. Code § 35–11–210 to § 35–11–234.
What is the Attachment Date of the Mechanic’s Lien?
A mechanic’s lien attaches as of the date work commences. Ala. Code § 35-11-211.

What constitutes visible commencement of construction?
Commencement is the moment when work is visibly underway allowing anyone to
observe work on the project has begun. Additionally, the delivery of materials for
construction at the site also mark the official commencement of work.
What is the priority of the insured construction mortgage/
deed of trust?
All liens, mortgages, and incumbrances created prior to the commencement of
work on a building or improvement has priority over all liens for such work. Ala.
Code § 35-11-211(a).

However, a mechanic’s lien that attaches subject to a recorded mortgage has
priority over the mortgage as to the building if the building both is separable
from the land; and can be removed without impairing the land’s value or the prior
mortgage’s security. Ala. Code § 35-11-211(b).

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?
A lien will be lost unless a verified statement is filed within the required time
frames under Alabama Code § 35-11-213. An original contractor must file within
six months, journeymen and day laborers within thirty days and all other eligible
individuals within four months after the date the last work was performed or the
last materials, fixtures or equipment were provided for a building, improvement
on land or repair or renovation. This applies to contracts made with the property
owner, their agent, architect, trustee, contractor or subcontractor. Ala. Code § 35-
11-215.
What is the period of enforcement of a filed mechanic’s lien?
Any action for the enforcement of the lien must be commenced within six months
after the maturity of the entire indebtedness secured thereby.
Ala. Code § 35-11-221.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. Any mechanic’s lien claimed on real property may be transferred by any
person. A mechanic’s lien on real property can be transferred to other security
by anyone with an interest in the property or the contract under which the lien is
claimed. They must first file a copy of the recorded lien with the court under which
the action is brought and either deposit a sum of money with the court or provide
a bond issued by a licensed surety insurer in Alabama. The amount must equal the
lien claim plus three years interest at eight percent per year along with $100 for
potential court costs. Ala. Code § 35-11-233.

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

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