71-3-525. Extent of lien. (1) A construction lien extends to the interest of the contracting owner in the real estate, as the interest exists at the commencement of work or is subsequently acquired in the real estate, subject to the provisions of this section.
(2) (a) If an improvement is located wholly on one or more platted lots belonging to the contracting owner, the lien applies to the improvement and to the lots on which the improvement is located.
(b) If an improvement is not located wholly on one or more platted lots, the lien applies to the improvement and to the smallest identifiable tract or parcel of land on which the improvement is located.
(3) If the improvement is to leased premises, the lien attaches to the improvement and to the leasehold term. Except as provided in subsection (4), it does not attach to the lessor's interest unless the lessor contracted for or agreed to the improvement before it was begun.
(4) (a) A construction lien is not impaired to the extent of the value of the work or improvement that is severable from the real estate if the improvement is to premises held by:
(i) a contracting owner who owns less than a fee simple interest; or
(ii) a lessee and the lease is forfeited by the lessee.
(b) If the work or improvement may be removed without harm to the rest of the real estate, the lienholder may have the value determined, the work or improvement sold separately, and the proceeds delivered to the lienholder to satisfy the construction lien. The purchaser shall remove the work or improvement within 45 days of the sale.
(5) If a contracting owner contracts for improvements on real estate not owned by the contracting owner as part of an improvement on the contracting owner's real estate or for the purpose of directly benefiting the contracting owner's real estate, there is a lien against the contracting owner's real estate being improved or directly benefited in favor of persons furnishing services or materials to the same extent as if the improvement had been on the contracting owner's real estate.
History: En. Sec. 5, Ch. 202, L. 1987; amd. Sec. 2275, Ch. 56, L. 2009.
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