Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-27
ASSOCIATION ASKS |
LIEN LAW CHANGES
Property Owners Risk of
Dual Payments for Materials
Cited in Resolution.

A demand for changes in existing
mechanics lien laws lin favor of prop
erty owners" comes from the National
Association of Real Estate Boards in a
resolution passed by the convention
delegate body of the organization, in
session at Boston.
The resolution, which is the. first
instance in which the association has
expressed its policy on mechanics lien
laws, voices protest against the tenta-
tive standard mechanics lien law
drafted by the standard State mechan-
les lien act committee appointed by the
Department of Commerce. The COM
mittee in 1927 prepared a first tenta-
tive draft of uniform mechanics lien
act and presented it to the National
Conference of Commissioners on Uni
form Laws, which returned the proposed
measure to the Department of Com
MERGE committee with recommendations
as to changes. A second draft of the
tentative act was again submitted in
1928. This draft was returned to the
committee without Endorsement. The
tentative act is to be submitted again to
the conference at an early date.
Unanimously Adopted.
Following is the realtors resolution
on mechanics lien laws, which was
unanimously adopted:
Mechanics lien laws obtain in this
country only by virtue of statutory law.
Originally the only lines recognized in
such laws were for labor. Later, due
principally to the fact that there was
no contractual relation existing between
the person furnishing materials and
the owner of the property being erected
or improved, the provisions Of such
laws were extended generally to become
so broad, comprehensive and compli-
Gated as to be burdensome and to work
hardships upon property owners.
1T commonly is provided in these
laws that if the owner does not comply
with certain prescribed procedure, or If
he makes payments to the contractor
after notice of liens, he may be obliged
to pay second time for the benefit of
such lien claimants as were not paid by
the contractor.
Subjected to Dual Risk.
"By reason of the modern credit con-
ditions prevailing generally throughout
the States and of the facilities avail
able for obtaining credit information,
there no longer remains any impelling
reason why the property owner should
be subjected to any risk of dual pay
ments for materials. except in those
cases where the existence of the lien
Is mace dependent upon Une material
man giving the property owner notice
of his intention to claim such lien
prior to any payment on account.
Therefore, in consideration of these con-
ditionS, be it
Resolved. That it is the sense of the
National Association of Real Estate
Boards that mechanics lien laws should
be simplified SO far as possible by re-
ducing, rather than increasing, the
classes of persons entitled to such liens
and by minimizing the duties that de-
volve upon the property owner in order
to protect himself against such liens
While it is recognized that a lien for
labor should and will continue to be
provided for in such laws. the right of
a material man or any other class of
lienerS to subject the owner of build
ing being erected or improved to dual
payments should be permitted only If
and when such person has given notice
direct to such owner of his intention to
claim such lien prior to the first pay
ment to the contractor"