This subsection shall not apply where labor, materials or services are performed or furnished to the premises for a business, commercial or industrial purpose unless the owner resides on the premises affected.

SUMMARY

The mechanic's lien law permits a subcontractor or material supplier to collect from a residential customer directly when that subcontractor or material supplier has not been paid by the general contractor, even if the residential customer has paid the general contractor. Thus, the residential customer may end up paying twice for services or materials, but only if the residential customer is given prior notice of the possibility that that customer may have to pay twice. There is no requirement that nonresidential customers be given such prior notice. This bill eliminates the nonresidential exemption to the prior notice requirement.