The state of MISSISSIPPI enacted new lien laws on April 11, 2014. Effective immediately, Subcontractors, Sub-Contractors and Material Suppliers who were unjustly denied construction lien rights in the past were finally awarded those rights like those that General Contractors in the state and contractors of all types in the other 49 states and the District Of Columbia were awarded previously.
Totally new for all contractors MISSISSIPPI Code § 85-7-409 (3) requires on single family construction a Pre-Lien Notice To Owner be sent by a lien claimant to the Owner ten (10) days in advance of recording a MISSISSIPPI Claim Of Lien.
Totally new lien waivers, copied almost word for word using the state of GEORGIA’s statutory lien waivers, take the place of the traditional Conditional Final or Progress and Unconditional Final or Progress waivers. MISSISSIPPI Code § 85-7-433 (1) mandates that a Interim Waiver And Release Upon Payment be used when a partial payment – not the final payment – is promised, or more preferably, received and deposited. If a Claim Of Lien is to be filed later, lien rights can only be for equipment, labor, materials or services provided after the date specified on an Interim Waiver And Release Upon Payment.
MISSISSIPPI Code § 85-7-433 (2) mandates that a Waiver And Release Upon Final Payment be used when a final payment is promised, or more preferably, received and deposited.
Finally, MISSISSIPPI Code § 85-7-419 mandates that a Affidavit Of Nonpayment be used within sixty (60) days of executing the Waiver And Release Upon Final Payment when a final payment is promised but not received, or a check received bounces. A Affidavit Of Nonpayment needs to be filed with the Clerk in the county where the project is located.
PreLien2Lien V.18.05.01 incorporates these new notices.