§ 14-203. Liens created by breaches of contract
West's Annotated Code of MarylandReal PropertyEffective: October 1, 2011
Effective: October 1, 2011
MD Code, Real Property, § 14-203
§ 14-203. Liens created by breaches of contract
(a)(1) A party seeking to create a lien as the result of a breach of contract shall, within 2 years of a breach of contract, give written notice to the party against whose property the lien is intended to be imposed.
(ii) Posting notice in a conspicuous manner on the property by the party seeking to create a lien or the party's agent in the presence of a competent witness. In the instance of a contractual lien on a building, the notice shall be posted in a conspicuous manner on the door or other front part of the building.
(b) A notice under subsection (a) of this section shall include:
(c)(1) A party to whom notice is given under subsection (a) of this section may, within 30 days after the notice is served on the party, file a complaint in the circuit court for the county in which any part of the property is located to determine whether probable cause exists for the establishment of a lien.
(d) If a complaint is filed, the party seeking to establish the lien has the burden of proof.
(e) The clerk of the circuit court shall docket the proceedings under this section, and all process shall issue out of and all pleadings shall be filed in a single action.
(f) Before any hearing held under subsection (c) of this section, the party seeking to establish a lien may supplement, by means of an affidavit, any information contained in the notice given under subsection (a) of this section.
(g)(1) If a complaint is filed under subsection (c) of this section, the court shall review any pleadings filed, including any supplementary affidavit filed under subsection (f) of this section, and shall conduct a hearing if requested under subsection (c)(3) of this section.
(h)(1) If the court orders a lien to be imposed under subsection (g) of this section, or if the owner of the property against which a lien is intended to be imposed fails to file a complaint under subsection (c) of this section the party seeking to create the lien may file a statement of lien among the land records of each county in which any portion of the property is located.
(3) Unless the party seeking to create the lien and the owner agree otherwise, if the party seeking to create the lien fails to file the lien statement within 90 days after the expiration of the applicable time period described in paragraph (2) of this subsection, the party seeking to create the lien may:
(i)(1) Until an order is entered by the court either establishing or denying a lien, the action shall proceed to trial on any matter at issue.
(j)(1) Subject to paragraph (2) of this subsection, a statement of lien is sufficient for purposes of this subtitle if it is in substantially the following form:
STATEMENT OF LIEN
This is to certify that the property described as _______________ is subject to a lien under Title 14, Subtitle 2 of the Real Property Article, Maryland Annotated Code, in the amount of $______. The property is owned by ____________________.
I hereby affirm under the penalty of perjury that notice was given under § 14-203(a) of the Real Property Article, and that the information contained in the foregoing statement of lien is true and correct to the best of my knowledge, information, and belief.
(name of party claiming lien)
(ii) In addition to satisfying the requirements of paragraph (1) of this subsection, a statement of lien is sufficient for purposes of this subtitle if the statement includes specific information about the amount of the regular monthly assessments, or the equivalent of the regular monthly assessments, for common expenses in substantially the following form:
The amount of the regular monthly assessments, or the equivalent of the regular monthly assessments, for common expenses, that is the basis of the priority portion of this lien as provided in § 11-110(f) or § 11B-117(c) of the Real Property Article, is $______. This sum represents ____ months of unpaid regular assessments, at $______ per month.
Added by Acts 1985, c. 736, § 1, eff. July 1, 1985. Amended by Acts 1989, c. 383; Acts 1990, c. 6 § 2; Acts 1991, c. 293; Acts 2011, c. 387, § 2, eff. Oct. 1, 2011.
HISTORICAL AND STATUTORY NOTES
Acts 2011, c. 387, § 3, provides:
“SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to apply only prospectively and may not be applied or interpreted to have any effect on or application to any first mortgage or first deed of trust on a condominium unit or a lot in a homeowners association that is recorded before the effective date of this Act.”
MD Code, Real Property, § 14-203, MD REAL PROP § 14-203
Current through legislation effective June 1, 2019, from the 2019 Regular Session of the General Assembly.
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