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New California Laws To Go Into Effect On July 1, 2012

The State of California has passed some new laws regarding construction notices. Confusion exists as to the effective date of these new laws. Previous laws relating to verbiage on Mechanic’s Liens went into effect on 1/1/11, so there is a misunderstanding that the new laws went into effect on 1/1/12. They will not start until 7/1/12.

Most of the changes are minor and intended to standardize and simplify the California lien laws into a new subdivision–Civil Codes §§ 8100-8118. Additionally, Code §§ 8120-8138 requires new waiver and release forms to be created/used.

Since we are on top of this, PreLien2Lien will have a free upgrade available to annual subscribers with these changes in June 2012.

Future blog postings will address in detail the additional changes coming up.

New TEXAS Waiver And Release Notices Ready For January 1, 2012

Effective January 1, 2012, pursuant to subchapter L, Chapter 53, TEXAS Property Code, statutory forms are required for any waiver and release of a lien or payment bond claim. An excellent reference for these changes can be found on the TEXAS Construction Association website at the following link: http://www.texcon.org/index.php/resources

The following notices have significant new updates:
-Conditional Waiver And Release Upon Final Payment
-Conditional Waiver And Release Upon Progress Payment
-Unconditional Waiver And Release Upon Final Payment
-Unconditional Waiver And Release Upon Progress Payment

Current customers EAST TEXAS REFRIGERATION and LEHIGH-HANSON gave us external reminders recently about the upcoming change. While we are always working hard to proactively be informed about pending law changes, I always appreciate that our customers expect our software solution to work reliably and be legal so that they can count on it when needed.

The new PreLien2Lien V. 16.01.01, to be released on Friday, December 30th, will have these notices in the software. Word document versions for $12.95 each were uploaded to our online store today.

Use of a Notary for these Waivers is highly suggested. Additionally, use of added language, through dates, special instructions, invoice numbers and other added text is strongly discouraged, as any variation in text will deviate from the statuatory language. While you might not have a problem 99% of the time, the time your added language gets challenged in a lawsuit could make you learn a very difficult lesson. Our opinion is always to keep a document as clean, brief and statuatory as possible. Don’t give someone an opening to challenge you.