2006 Code of Virginia § 43-4.01 - Posting of building permit; identification of mechanics\' lien agent in building permit; notice to m...

43-4.01. Posting of building permit; identification of mechanics' lienagent in building permit; notice to mechanics' lien agent; effect of notice.

A. The building permit for any one- or two-family residential dwelling unitissued pursuant to the Uniform Statewide Building Code shall be conspicuouslyand continuously posted on the property for which the permit is issued untilall work is completed on the property. The permit shall be posted on theproperty before any labor is performed or any material furnished on theproperty for which the building permit is issued.

B. If, at the time of issuance, the building permit contains the name,mailing address, and telephone number of the mechanics' lien agent as definedin 43-1, any person entitled to claim a lien under this title may notifythe mechanics' lien agent that he seeks payment for labor performed ormaterial furnished by registered or certified mail or by physical delivery.Such notice shall contain (i) the name, mailing address, and telephone numberof the person sending such notice, (ii) the building permit number on thebuilding permit, (iii) a description of the property as shown on the buildingpermit, and (iv) a statement that the person filing such notice seeks paymentfor labor performed or material furnished. A return receipt or other receiptshowing delivery of the notice to the addressee or written evidence that suchnotice was delivered by the postal service or other carrier to but notaccepted by the addressee shall be prima facie evidence of receipt. Aninaccuracy in the notice as to the description of the property shall not bara person from claiming a lien under this title or filing a memorandum orotherwise perfecting or enforcing a lien as provided in subsection C if theproperty can otherwise be reasonably identified from the description.

In the event that the mechanics' lien agent dies, resigns, or otherwisebecomes unable or unwilling to serve during the construction period, theowner or the general contractor shall immediately appoint a successormechanics' lien agent with all the rights, duties, and obligations of thepredecessor mechanics' lien agent. The permit shall be displayed as providedin subsection A. Until such time as the successor is named and displayed asprovided, notice given hereunder to the predecessor mechanics' lien agent atthe address shown shall be deemed good notice, notwithstanding the fact thatthe agent may have died, resigned or become otherwise unable or unwilling toserve.

C. Except as provided otherwise in this subsection, no person other than aperson claiming a lien under subsection B of 43-3 may claim a lien underthis title or file a memorandum or otherwise perfect and enforce a lien underthis title with respect to a one or two family residential dwelling unit ifsuch person fails to notify any mechanics' lien agent identified on thebuilding permit in accordance with subsection B above (i) within thirty daysof the first date that he performs labor or furnishes material to or for thebuilding or structure or (ii) within thirty days of the date such a permit isissued, if such labor or materials are first performed or furnished by suchperson prior to the issuance of a building permit. However, the failure togive any such notices within the appropriate thirty-day period as required bythe previous sentence shall not bar a person from claiming a lien under thistitle or from filing a memorandum or otherwise perfecting and enforcing alien under this title, provided that such lien is limited to labor performedor materials furnished on or after the date a notice is given by such personto the mechanics' lien agent in accordance with subsection B above. A personperforming labor or furnishing materials with respect to a one or two familyresidential dwelling unit on which a building permit is not posted at thetime he first performs his labor or first furnishes his material shalldetermine from appropriate authorities whether a permit of the type describedin subsection B above has been issued and the date on which it is issued. Theissuing authority shall maintain the mechanics' lien agent information in thesame manner and in the same location in which it maintains its record ofbuilding permits issued.

No person shall be required to comply with this subsection as to anymemorandum of lien which is recorded prior to the issuance of a buildingpermit nor shall any person be required to comply with this subsection whenthe building permit does not designate a mechanics' lien agent.

D. Unless otherwise agreed in writing, the only duties of the mechanics' lienagent shall be to receive notices delivered to him pursuant to subsection Band to provide any notice upon request to a settlement agent, as defined in 6.1-2.10, involved in a transaction relating to the residential dwelling unit.

E. Mechanics' lien agents are authorized to enter into written agreementswith third parties with regard to funds to be advanced to them fordisbursement, and the transfer, disbursement, return and other handling ofsuch funds shall be governed by the terms of such written agreements.

F. A mechanics' lien agent as defined in 43-1 may charge a reasonable feefor services rendered in connection with administration of notice authorizedherein and the disbursement of funds for payment of labor and materials forthe construction or repair of improvements on real estate.

(1992, cc. 779, 787; 2001, c. 532.)

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