FINAL BILL REPORT

SSB 6569

                                  C 270 L 88

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators West, Warnke and Anderson)

Providing consumers with information on construction liens.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Individuals and families who build or buy new houses or who have substantial remodeling done to their homes are often unaware of the hazards of construction liens which can cause them to pay for part or all of the job twice.  Several techniques for protection are available but require a basic understanding of construction liens and how to use the protective techniques.

SUMMARY:

Real property lenders which include banks, savings and loan associations, savings banks, credit unions, mortgage companies, must provide information to all residential mortgage loan applicants and contractors must provide information to their customers which will provide the applicant or customer with basic knowledge of construction lien laws and certain available safeguards.  The protection methods of obtaining lien release documents, using joint payee checks, lender supervision, and requiring the contractor to disclose potential lien claimants, must be covered by the material.

Responsibility for composing the educational brochure is delegated to the Department of Labor and Industries.  The state and real property lenders are insulated from suit based on the provisions of the bill.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 93   0(House amended)

      Senate    41     0 (Senate concurred)

EFFECTIVE:July 1, 1989