Arkansas Lien Laws Changes Go Into Effect August 1st

NACM wants to remind its members that on August 1, 2009, new amendments to Arkansas’ mechanic’s and materialmen’s lien statutes will go into effect. In March of this year, Arkansas Governor Mike Beebe signed into law Act 454, which began its legislative journey as H.B. 1549, sponsored by Arkansas House Majority Leader Steve Harrelson (D), Representative Bruce Maloch (D) and Senator Jim Luker (D).

Some of the amendments going into effect include that every contractor, subcontractor, material supplier, architect, engineer, surveyor, landscaper, abstractor or title insurance agent putting in soil, drain pipe or drainage tile shall have a lien for each 40 acres or less on which the pipe is placed and the notice requirements will be the same as §§18-44-114 and 115.

Section §§18-44-108 is amended pertaining to the penalties for contractors or subcontractors for refusing to provide an owner of the property a list of all parties doing work or furnishing materials on the project and the amount due to each. It also covers certification that the owner has received an actual preliminary notice. Contractors and subcontractors have five days to provide this information to the owner or face fines up to $2,500.

The law will also trigger changes to §§18-44-113 and 118 that state that the owner must receive the actual notice within 30 days of assignment.

And, under §§18-44-115 will be amended so that no lien upon a residential property containing less than four units will be accepted unless the owner is accurately notified and if the residential contract fails to give notice, they are barred from bringing further action to enforce any provision of the residential contract. The penalty for failing to give notice is a fine of up to $1,000. At the same time, the new statute will allow any lien notice by any subcontractor or material supplier provided before the commencement of work shall be effective for all subcontractors and other claimants.

The full text of the law can be found here.

Matthew Carr, NACM staff writer. Follow us on Twitter @NACM_National

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