ArkansasHB12712025 Regular SessionHouse

TO AMEND THE LAW CONCERNING MECHANICS' AND MATERIALMEN'S LIENS; AND TO CLARIFY THE PRIORITY OF LIENS IN MORTGAGE CONSTRUCTION LOANS.

Sponsored By: Clint Penzo (Republican), Les Warren (Republican)

Enacted

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

New lien rules for construction loans

Arkansas law sets which property claims rank first for owners, construction lenders, contractors, and suppliers. Liens for labor, materials, or fixtures attach to the improvement but rank behind property claims existing before work begins. Those earlier claims also rank first when they fund construction or repair. If construction starts before a construction mortgage or other security document is recorded, only liens for labor, materials, or supplies provided before recording rank ahead of it. A lender acquiring such a mortgage can rely conclusively on a sworn statement describing the property and inspection time. The statement must confirm that work had not begun and materials had not been placed on-site when inspected. A licensed appraiser, architect, surveyor, or engineer can prepare it. For existing or planned one-to-four-family homes, a lender employee, lender designee, or licensed title agent can also prepare it. The statement must be filed within four business days before or after the security document is recorded. Its facts are presumed true at inspection and recording; changing lien priority by challenging them requires proof of actual fraud by the statement's author. Anyone providing a false statement is responsible for resulting losses or damage to parties whose rights are harmed.

Sponsors & Cosponsors

Sponsors

  • Clint Penzo

    Republican • Senate

  • Les Warren

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 220 • No: 0

House vote • 4/1/2025

House Vote - Tuesday, April 1, 2025 2:17:18 PM

Yes: 98 • No: 0

Senate vote • 3/19/2025

Senate Vote - Wednesday, March 19, 2025 4:53:32 PM

Yes: 32 • No: 0 • Other: 1

House vote • 1/30/2025

House Vote - Thursday, January 30, 2025 11:48:44 AM

Yes: 90 • No: 0 • Other: 3

Actions Timeline

  1. Notification that HB1271 is now Act 479

    4/8/2025House
  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/2/2025House
  3. TO BE ENROLLED

    4/1/2025House
  4. Senate amendment # 1 read and concurred in.

    4/1/2025House
  5. Returned by the Committee with the recommendation that it do pass, concur in Senate Amendment No. 1

    3/31/2025House
  6. Re-referred to the Committee on INSURANCE & COMMERCE- HOUSE

    3/19/2025House
  7. Returned from Senate as passed, as amended # 1

    3/19/2025House
  8. Returned to the House as passed as amended # 1 .

    3/19/2025Senate
  9. Read the third time and passed.

    3/19/2025Senate
  10. Returned by the Committee, with the recommendation that it Do Pass

    3/18/2025Senate
  11. Re-referred to INSURANCE & COMMERCE - SENATE

    3/13/2025Senate
  12. REPORTED CORRECTLY ENGROSSED

    3/13/2025Senate
  13. Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.

    3/13/2025Senate
  14. Withdrawn from Committee and placed on 2nd reading for purpose of amendment # 1

    3/13/2025Senate
  15. Re-referred to INSURANCE & COMMERCE - SENATE

    3/12/2025Senate
  16. Returned by the Committee, with the recommendation that it Do Pass

    2/4/2025Senate
  17. Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE

    1/30/2025Senate
  18. Received from the House.

    1/30/2025Senate
  19. Read the third time and passed and ordered transmitted to the Senate.

    1/30/2025House
  20. Returned by the Committee Do Pass

    1/29/2025House
  21. Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE

    1/27/2025House
  22. Filed

    1/27/2025House

Bill Text

  • HB1271 - Introduced

    1/27/2025

  • Act Version

Related Bills

Back to State Legislation