Dissolution of Lien

  1. Law
  2. Georgia Code
  3. Property
  4. Mortgages, Conveyances to Secure Debt, and Liens
  5. Liens
  6. Mechanics and Materialmen
  7. Dissolution of Lien

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  1. The special lien specified in subsection (a) of Code Section 44-14-361 shall be dissolved if the owner, purchaser from owner, or lender providing construction or purchase money or any other loan secured by real estate shows that:
    1. The lien has been waived in writing by lien claimant; or
      1. They or any of them have obtained the sworn written statement of the contractor or person other than the owner at whose instance the labor, services, or materials were furnished, or the owner when conveying title in a bona fide sale or loan transaction, that the agreed price or reasonable value of the labor, services, or materials has been paid or waived in writing by the lien claimant; and
      2. When the sworn written statement was obtained or given as a part of a transaction:
        1. Involving a conveyance of title in a bona fide sale;
        2. Involving a loan in which the real estate is to secure repayment of the loan; or
        3. Where final disbursement of the contract price is made by the owner to the contractor

        there was not of record, at the time of the settlement of the transaction a valid preliminary notice or claim of lien which had not been previously canceled, dissolved, or expired.

  2. As used in paragraph (2) of subsection (a) of this Code section, the term:
    1. "Person other than the owner" shall not include a subcontractor.
    2. "Final disbursement" of the contract price means payment of the agreed price between the owner and contractor for the improvements made upon the real estate or the reasonable value of the labor, services, and materials incorporated in the improvements upon the real estate and shall include payment of the balance of the contract price to an escrow agent.

(Code 1981, §44-14-361.2, enacted by Ga. L. 1983, p. 1450, § 1; Ga. L. 1984, p. 22, § 44.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1999, "has" was substituted for "have" near the end of subparagraph (a)(2)(A).


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