KRS 376.010: Mechanics' and materialman's liens -- Filing of statement of amount

claimed -- Extent of lien -- Notice to owner, agent, or lessee.

(1) (a) Any person who performs labor or furnishes materials for the erection,

altering, or repairing of a hou se or other structure or for any fixture or

machinery therein, for the excavation of cellars, cisterns, vaults, wells, or for

the improvement in any manner of real property including the furnishing of

agricultural lime, fertilizer, concrete pipe or drainage tile, crushed rock, gravel

for roads or driveways, and materials used in the construction or maintenance

of fences, by contract with, or by the written consent of, the owner, lessee,

contractor, subcontractor, architect, or authorized agent, shall have a lien

thereon, and upon the land upon which the improvements were made, or on

any interest the owner or lessee has therein, to secure the amount thereof with

interest as provided in KRS 360.040, and costs.

(b) When improvements to property are made pursuan t to an agreement or

contract with a lessee, the lessee shall not be deemed the authorized agent of

the owner unless the owner has designated the lessee, in writing, as the

owner's agent for purposes of entering into the agreement or contract.

(c) The lien on the land or improvements shall be superior to any mortgage or

encumbrance created subsequent to the beginning of the labor or the

furnishing of the materials, and the lien, if asserted as hereinafter provided,

shall relate back and take effect from the time of the commencement of the

labor or the furnishing of the materials.

(d) The lien shall not be for a greater amount in the aggregate than the contract

price of the original contractor, and should the aggregate amount of the liens

exceed the price agr eed upon between the original contractor and the owner

there shall be a pro rata distribution of the original contract price among the

lienholders.

(2) (a) The lien shall not take precedence over a mortgage or other contract lien or

bona fide conveyance fo r value without notice, duly recorded or lodged for

record according to law, unless the person claiming the prior lien shall, before

the recording of the mortgage or other contract lien or conveyance, file in the

office of the county clerk of the county wh ere he or she has furnished or

expects to furnish labor or materials, a statement showing that he or she has

furnished or expects to furnish labor or materials, and the amount of the labor

or materials in full.

(b) The lien shall not, as against the holder of a mortgage or other contract lien or

conveyance, exceed the amount of the lien claimed or expected to be claimed

as set forth in the statement.

(c) The statement shall, in other respects, be in the form prescribed by KRS

376.080.

(3) (a) Any lien under this section shall only extend to the right, title, and interest of

the person who contracts for the improvements as the right, title, and interest

exist at the commencement of the improvements or as thereafter acquired in

the real property. When improvem ents to property are made by a lessee in

accordance with an agreement between the lessee and his or her lessor, the

lien shall also extend to the interest of the lessor.

(b) When a lease agreement expressly provides that the interest of the lessor shall

not be subject to liens for improvements made by the lessee, the lessee shall

notify the contractor making any improvements of the provisions in the lease,

and the knowing or willing failure of the lessee to provide this notice to the

contractor shall render the contract between the lessee and the contractor

voidable at the option of the contractor.

(4) (a) A person who has not contracted directly with the owner, the owner's agent,

or the lessee, if applicable, shall not acquire a lien under this section unless he

or she notifies, in writing, the owner of the property to be held liable,the

owner's authorized agent, or the lessee, if applicable, within seventy -five (75)

days on claims amounting to less than one thousand dollars ($1,000) and one

hundred twenty (120) days on claims in excess of one thousand dollars

($1,000) after the last item of material or labo r is furnished, of his or her

intention to hold the property liable and the amount for which he or she will

claim a lien; and

(b) It shall be sufficient to prove that the notice was mailed to the last known

address of the owner of the property upon which t he lien is claimed, or to the

owner's duly authorized agent within the county in which the property to be

held liable is located.

(5) (a) A person who has not contracted directly with the owner or the owner's

authorized agent shall not acquire a lien under this section on an owner -

occupied single or double family dwelling, the appurtenances or additions

thereto, or upon other improvements for agricultural or personal use to the

real property or real property contiguous thereto and held by the same owner,

upon which the owner-occupant's dwelling is located, unless he or she notifies

in writing the owner of the property to be held liable or the owner's authorized

agent not more than seventy -five (75) days after the last item of material or

labor is furnished, of the delivery of the material or performance of labor and

of his or her intention to hold the property liable and the amount for which he

or she will claim a lien.

(b) It shall be sufficient to prove that the notice was mailed to the last known

address of the owner of the property upon which the lien is claimed, or to the

owner's duly authorized agent.

(c) The notice under this subsection is in lieu of the notice provided for in

subsection (4) of this section.

(d) Notwithstanding the foregoing provisions of this subsection, the lien provided

for under this section shall not be applicable to the extent that an owner -

occupant of a single or double family dwelling, or owner of other property as

described in this subsection has, prior to receipt of the notice provided for in

this subsection, paid the contractor, subcontractor, architect, or authorized

agent for work performed or materials furnished prior to such payment.

(e) The contractor or subcontractor cannot be the authorized agent under this

subsection.

(f) This subsection shall apply to the construction of single or double family

homes constructed pursuant to a construction contract with a property owner

and intended for use as the property owner's dwelling.

(6) For purposes of this section, "labor" inclu des but is not limited to all supplies and

work done by teams, trucks, machinery, and mechanical equipment, whether the

owner furnishes a driver or operator or not.

(7) As used in this section:

(a) "Supplies" includes small tools and equipment reasonably n ecessary in

performing the work required to be done, including picks, shovels, sledge

hammers, axes, pulleys, wire cables, ropes, and other similar items costing not

more than fifty dollars ($50) per item, and tires and tubes furnished for use on

vehicles engaged in the performance of the work; and

(b) "Supplies" also includes the cost of labor, materials, and repair parts supplied

or furnished for keeping all machinery and equipment used in the

performance of the work in good operating condition; and shall include the

agreed or reasonable rental price of equipment and machinery used in

performing the work to be done:

1. The lien for rental equipment or machinery shall not be more than the

aggregate sum of six (6) months' rental, and the aggregate amount of

such rental shall not exceed sixty percent (60%) of the agreed value of

the machinery or equipment; and

2. The liens for supplies as defined in this subsection are subordinate to the

liens for labor, material, and supplies as defined in this section.