Kushnick | Pallaci PLLC Attorney At Law
You must file a mechanic’s lien against a commercial property within four (4) months of the last time that they provided labor and materials to the project.
You must file a mechanic’s lien against a public project within thirty (30) days of the time that the project is accepted by the public entity.
A mechanic’s lien is valid for a period of one (1) year. Commercial liens may be extended once without a court order by filing an extension of lien before the original Notice of Mechanic’s Lien expires. Liens on residential and public projects cannot be extended without a Court order.
The mechanic’s lien only provides you with a secured interest in the project or the public fund that the mechanic’s lien was filed against. If you want to use your mechanic’s lien to get paid, you must “foreclose” on the mechanic’s lien. Lien foreclosure involves filing a lawsuit to enforce your lien rights. If you would like more information on the foreclosure process please contact us.
A mechanic’s lien may be “bonded” under the Lien Law by the owner or the general contractor in order to remove the lien from the real property or the public fund. A bond involves posting a discharge bond in the amount of 110% of the face value of your mechanic’s lien. The mechanic’s lien then is removed from the real property or the public fund and is attached to the discharge bond. The discharge bond does not extinguish your lien: it simply moves the lien from the property or the public fund to the bond. You can still enforce your mechanic’s lien after it has been bonded by foreclosing upon the lien. Your lien will also still expire if it is not extended or foreclosed upon within the proper time frame.
My subcontractor filed a mechanic's lien against a project we are working on and I do not know what the subcontractor thinks he is owed. How can I find out what the amount of his lien is made up of?
Pursuant to Lien Law §38, you are permitted to demand that your subcontractor (the lienor) provide you with a verified statement itemizing the mechanic’s lien within five (5) days. Take note that Lien Law §38 has very particular service requirements. Contact us for more information on serving a demand pursuant to Lien Law §38.
The subcontractor has two options. First, the subcontractor can serve a demand on the general contractor pursuant to Lien Law §76 and demand either a verified statement of the books and records for the project or demand an opportunity to personally inspect the books and records. Second, the subcontractor can serve a demand pursuant to Lien Law §8 upon the owner and demand the terms of the contract between the owner and the general contractor as well as demand a statement of the amount left due thereunder. Both Lien Law §76 and §8 have very particular service requirements. Contact us for more information on serving a demand pursuant to Lien Law §76 or Lien Law §8.
Can a foreign corporation that supplied materials to a project within the State of New York file a mechanic's lien within New York even if the corporation is not registered in New York?
Absolutely. Foreign corporations can file mechanic’s liens on commercial, residential or public projects within the State of New York. However, the foreign corporation, if it does not maintain an office within the State of New York, must list the name of its attorney, who must have an office within the State of New York, on the mechanic’s lien.
Can a foreign corporation that supplied materials to a project within the State of New York enforce a mechanic's lien that is filed within New York even if the corporation is not registered in New York?
Yes. However, in order to proceed with the lien foreclosure action the foreign corporation must register with the New York Secretary of State
Have a question about a New York mechanic’s lien that is not answered here? Contact our attorneys now to to discuss your situation.
Kushnick | Pallaci PLLC Attorney At Law
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