SENATE, No. 1859

The Commonwealth of Massachusetts

In the Year Two Thousand and Seven.

AN ACT RELATIVE TO NOTICE OF CONTRACT; IDENTIFICATION OF PROPERTY OWNERS

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Said chapter 254 is hereby amended by striking out section 12 and inserting in place thereof the following section:-
Section 12. Any person, including the owner, in interest in connection with a written contract covered by section two or section four may cause to be recorded in the registry of deeds in the county or district where the land lies a bond of a surety company authorized to do a surety business in Massachusetts and in a penal sum equal to the contract sum or, if the contract does not contain a contract sum, in a penal sum equal to that person's fair estimate of the contract sum, all as set forth in the certificate on the bond. The bond shall name the owner of the land or other interest in real property which is the subject of such contract and shall describe the land or other interest in such detail as is required in a common conveyance of land, and shall be in the following form:-

Know All Men By These Presents:

That we .... of .... in the County of .... and Commonwealth of Massachusetts, as principal, and .... a surety company organized under the laws of .... and authorized to do business in the Commonwealth as a surety company, are holden and stand firmly bound and obliged unto.... Register of Deeds for the .... District, County of...., in the principal sum of .... Dollars ($ ) to be paid unto said Register and his successors in said office, to which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
Whereas, said principal is interested in the erection, alteration, repair or removal of a building, structure or other improvement on a certain lot of land situated within the .... Registry District in the Commonwealth, for ....... as owner of the land or other interest in real property, bounded and described as follows:

(Insert description)

and desires to free said land from liens for all labor and all labor and materials entitled to lien protection under chapter 254 and amendments thereto;

NOW, THEREFORE, the condition of this obligation is such that if the Principal shall pay for all labor and for all labor and materials entitled to lien protection under chapter 254 and amendments thereto under the contract referred to in the Certificate in this bond, irrespective of any agreement made between him and the owner or any other persons now interested or who may hereinafter be interested therein, then the above written obligation shall be null and void, otherwise to remain in full force and effect.

This bond is made for the use and benefit of all persons entitled to file the documents for lien protection as provided in Massachusetts General Laws, chapter 254 and they and each of them are hereby made Obligees hereunder, and in case of the failure of the principal to carry out the provisions of this bond made for their use and benefit they and each of them may sue hereon in their own name.

Signed, sealed and delivered this .... day of ...., (insert year).
... Principal
By...
... Surety
By...
Certificate
..., principal on the above bond, hereby certify that the (estimated) contract price for the proposed work to be performed on the land described in the above bond under a written contract between .... and .... dated ...., ...., (insert year), is .... Dollars ($).
... (Signed)

After the recording of any such bond no lien under this chapter shall thereafter attach in favor of any person entitled to the benefit of such bond and not named as a principal thereon for labor or for labor and materials performed under the contract in respect to which such bond is given. The register of deeds shall refuse to record the said bond if it be defective in form or substance, but no party to any such bond shall be discharged by any defect therein as against any party who has in good faith allowed his lien to be dissolved by lapse of time in reliance on the bond. The bond may be enforced by a civil action in the superior court or district court brought by any party in interest. An attested copy of the complaint shall be filed and recorded in the registry of deeds. No suit or action on the bond shall be commenced after the expiration of ninety days after the claimant filed the statement required by section 8. Such bond shall not create any rights which the claimant would not have had, or impair any defense which the obligors would have had, in an action to enforce a lien.

SECTION 2. Said chapter 254 is hereby further amended by striking out section 14 and inserting in place thereof the following section:-Section 14. Any person in interest may dissolve a lien under this chapter by recording or causing to be recorded in the registry of deeds in the county or district where the land lies, a bond of a surety company authorized to do business in Massachusetts and in a penal sum equal to the amount of the lien sought to be dissolved conditioned for the payment of any sum which the claimant may recover on his claim for labor or labor and materials. Upon the recording of the bond, the lien shall be dissolved. Notice of the recording shall be given to the claimant by serving on the claimant a copy of the notice of recording together with a copy of the bond by an officer qualified to serve civil process or by delivering the same to the claimant. The claimant may enforce the bond by a civil action commenced within ninety days after the later of the filing of the statement required by section 8 or receipt of notice of recording of the bond, but such bond shall not create any rights which the claimant would not have had, or impair any defense which the obligors would have had, in an action to enforce a lien. Upon the recording of the bond the register shall make note of it on the notice of contract by marginal reference.

The bond shall be in the following form:

Know All Men By These Presents:

That we, __________ as principal and __________ duly organized to transact business as a surety within the Commonwealth of Massachusetts, as surety, are holden and stand firmly bound and obliged unto __________ in the penal sum of __________ Dollars ($__________), to the payment of which we bind ourselves, our heirs, successors and assigns, jointly and severally by these presents.
Whereas, under date of __________, the said obligee recorded a notice of contract in the registry of deeds, as Instrument #__________, in Book __________
at Page __________ upon premises more fully described in said notice, and

Whereas, the principal desires to dissolve said lien in accordance with the provisions of section fourteen of chapter two hundred and fifty-four of the General Laws.

Now, therefore, the condition of this obligation is such that if the said principal shall pay to the said obligee all sums which shall be adjudged in favor of the said obligee in an action brought under the provisions of said section fourteen, this obligation shall be void, otherwise to remain in full force and effect.
In witness whereof, the aforesaid principal and surety have executed this instrument under seal this __________ day of __________ (insert year).

Principal _________________________by ______________________ Surety by ______________________________________________.