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GEORGIA

Tuesday, June 17, 2008

A lien can only be filed if the party filing the lien -- general contractor, subcontractor, supplier, etc. -- has substantial compliance in the contract with the owner. Also, a lien must be filed with the clerk of the superior court of the county where the property is located within three months after completion of the work.

When filing a lien, the claimant must send a copy of the lien by registered or certified mail to the owner of the property or the contractor as the agent of the owner. The party filing the lien has 14 days to file the lien with the clerk of the superior court in the county where the property is located. This notice must refer to the then-owner of the property against which the lien was filed and referring to a deed or other recorded instrument with the chain of title of the affected property.

If the contractor or subcontractor shall abscond or die or leave the state within 12 months from the date such services, labor, supplies or material are furnished to him, so that the personal jurisdiction cannot be obtained on the contractor or subcontractor or if the contractor or subcontractor shall be adjudicated a bankrupt, the claimants on the lien do not have to file a claim against the contractor or subcontractor as a prerequisite to enforcing a lien against the property improved by the contractor or subcontractor. The claimant may enforce the lien against the property so improved in an action against the owner if filed within 12 months from the time the lien becomes due. The notice shall identify the court wherein the action is brought; the style and number of the action, including the names of all parties thereto; the date of the filing of the action; and the book and page number of the records of the county wherein the subject lien is recorded.

Liens rank in importance according to the date they were filed -- first liens being more important than last liens. Liens are inferior to liens for taxes, to the general and special liens of laborers, to the general lien of landlords of rent when a distress warrant is issued out and levied, to claims for purchase money due persons who have only given bonds for titles.