CHAPTER 498

AN ACT TO AMEND TITLE 25, CHAPTER 27, DELAWARE CODE, RELATING TO MECHANICS' LIENS AGAINST AN OWNER WHO PAYS THE CONTRACTOR FOR ALTERATIONS OR REPAIRS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend Title 25, Chapter 27, Delaware Code, by adding a new section 2707 to read as follows:

§ 2707. Payment of contractor by owner of land for alterations or repairs to said owner's residence as a defense

No lien shall be obtained under the provisions of this chapter upon the land and/or structure of any owner which is used solely as a residence of said owner, when the owner has made full payment to the contractor, in good faith, with whom he contracted for the alteration or repair thereof; provided, however, that if the said owner has not made full payment, in good faith, to such contractor, the lien may be obtained in accordance with the provisions of this chapter, but it shall be a lien only to the extent of the balance of the payment due such contractor, which balance shall be payable prorate among the claimants who perfect liens. Payments made to the contractor by the owner after service of process as provided in Section 2715 of this chapter shall not be deemed to be "in good faith".

Approved June 3, 1970.