Frequently Asked Questions
What Is a Mechanic’s Lien and Who Can File One?
A Mechanic’s Lien is a legal claim against a property for unpaid work or materials used in construction or improvement of the property. Filing a Mechanics Lien (or construction lien claim) is a way for a contractor, subcontractor, or supplier to secure payment for services and materials provided to a construction project. If the owner of the property or the general contractor fails to pay, the lien provides a means to recover the amount owed through a court action or the sale of the property. Filing a mechanic’s lien can also serve as a warning to potential buyers of the property that there is a claim against it. Mechanic’s Liens provide protection to contractors, vendors, material suppliers and professional services in the construction industry. A Lien is a legal tool to protect yourself, for non-payment.
A Mechanic’s Lien attaches the amount you are owed for materials or services rendered, to the title of the property in question. In other words, it prevents the property owner from selling, transferring title or refinancing said property. For those of you that have a mortgage on your property, your bank has a Lien or an interest for the amount borrowed. By filing a Mechanic’s Lien you will have the same interest a bank does against the property in question.
A Mechanic’s Lien or Construction Lien Claim can be filed by a contractor, subcontractor, supplier, or other person who has provided labor or materials for a construction project but has not been paid.
In general, anyone who provides labor, materials or professional services for the improvement or construction of a property can file a mechanic’s lien, including but not limited to:
- General contractors
- Subcontractors
- Material suppliers
- Architects
- Engineers
- Surveyors
- Laborers
Materialman:
Sells/Rents Construction Related Materials and Equipment.
Including: Lumber, Drywall, Plumbing Materials, Electrical Materials, HVAC, Masonry Materials, Brick, Block, Concrete, Flooring, Sprinklers, Elevator Materials, Steel, Metal, Sewers, Shrubbery, Scaffolding, Dumpsters/Containers, etc.
Laborer:
The Party Installing the Above Materials.
Including: Environmental Remediation, Tank Abatement, Asbestos Removal, Soil Samples, Trucking / Hauling of Materials / Equipment to a Jobsite or Debris from a Jobsite, etc.
Professional Services:
Including: Architect (Licensed) Engineer (Licensed)
Construction Management is allowed in certain counties in New York. **
A Public Improvement Lien attaches the amount you are owed to a property owned by the state, county, city or town. The Municipality withholds payment from the contractor; the agency will hold back 150% of the value of your Public Improvement Lien from the Prime Contractor on the project until your lien has been satisfied.
You have 30 days from the time the project is accepted by the agency – regardless of when your work was finished – to file your Mechanic’s Lien on a public project in New York City.
A Mechanic’s Lien is a powerful tool that initiates the process of recovering your owed money. It becomes a matter of public record, indicating to everyone that the debtor has failed to pay you.
This lien appears in title searches and judgment searches, significantly impacting the debtor’s credit and their ability to obtain financing for current or future projects.
Typically, once the parties are served with the “Notice of Mechanic’s Lien” against them and their property, they promptly take action to settle the debt.
Your Mechanic’s Lien is filed for the exact amount you are owed, strictly for the work performed and rendered to date.
New York is an unpaid balance lien state. The lien is enforceable only for the unpaid portion of the contract. You cannot Lien for work not performed.
Speedy Lien has the expertise and experience to navigate the legal requirements and procedures involved in filing a lien. We can ensure that all the necessary paperwork is filed correctly and on time, minimizing the risk of errors.
Filing a mechanic’s lien can be stressful and time-consuming, especially if you are already dealing with the fallout of an unpaid debt. Hiring a professional company to handle the filing process can give you peace of mind and free up your time to focus on other aspects of your business.
Hiring a Speedy Lien is more cost-effective option than retaining an attorney and pursuing a lawsuit to collect unpaid debts. The filing process can be faster and less expensive than pursuing legal action, which can save you time and money in the long run.
By letting the experts handle the filing process, you can ensure that your legal rights are protected and increase your chances of getting paid what you are owed. Don’t let unpaid debts put your business at risk – contact Speedy Lien, a professional mechanic’s lien filing company, today and take the first step towards securing your payment.
Lien Law Time Frame by State
Your last date of services at the job site is critical to being able to file your Mechanic’s Lien claim. See below for the time limits to file your Mechanic’s Lien based on the state Lien Law.
New York Lien Law:
(New York Liens, NY Liens, New York Construction Lien Claims)
Services/Materials Rendered to:
Single Family Homes, Single Condominium Apartments – Your lien must be filed no later than 4 months from the last date of service.
Multi-Family Buildings, Cooperative Buildings, Commercial Buildings – Your lien must be filed no later than 8 months from the last date of service.
If the unpaid balance is based off retainage, a Mechanic’s Lien may be filed within 90 days of the retainage being due.
New Jersey Lien Law:
(New Jersey Liens, NJ Liens, New Jersey Construction Lien Claims)
Your lien must be filed no later than 90 days from the last date of service to all commercial properties.
Due to the New Jersey Lien Law, residential properties have very specific requirements to file a Lien. We are unable to assist with Residential properties.
Connecticut Lien Law:
(Connecticut Mechanic’s Liens, CT Liens, Connecticut Construction Lien Claims)
Your lien must be filed no later than 90 days from the last date of service to all properties. **A Notice of Intent is required if you did not directly contract with the property owner.** The Notice of Intent must be served upon the property owner and general contractor.
Details on Mechanic’s Lien Filing
A mechanic’s lien is served upon the property owner and any party involved in the matter, such as the general contractor, party who hired you and any lenders who have a financial interest in the property.
- The Owner of the Property.
- The Party that hired you.
- The General Contractor, if you were a Sub-Contractor to a Sub-Contractor.
Failure to properly serve the Mechanic’s Lien can result in the lien being invalid and unenforceable.
Certain states require a Notice of Intent (NOI) or a Pre-Lien Notice.
New York does not require a NOI. New Jersey Commercial Lien Claims do not require a NOI.
Connecticut and Pennsylvania both have a Notice of Intent requirement. Speedy Lien handles the filing and service of the Notice of Intent.
Your Mechanic’s Lien is filed for the exact amount you are owed, strictly for the work performed and rendered to date.
You are not allowed to include legal fees or the cost to file your Lien, in the amount you are owed.
Once your lien has been paid, you must remove the lien from the title of the property. Note that there is a filing fee for this process.
After the debt has been paid and settled, you must satisfy your Mechanic’s Lien. According to lien law, the lienor is required to file a Satisfaction of Lien in a timely manner after the balance is paid.
Submit your Satisfaction of Lien here.
The party filing the Lien (the Lienor) is responsible for the filing fee to file your Lien in addition to Satisfying your Lien.
You can request reimbursement for the filing fees. The other party is not required to reimburse the fees.
If the work being performed requires a license, the claimant must be licensed in order to file a mechanics lien in New York.
Before retaining a construction collection company, the first step is filing your Mechanic’s Lien.
Once your Lien is filed, IF you are not paid, you can retain a construction collections company to enforce your Lien. Once the Lien is filed on the title, a collection agency can assist with Lien enforcement.
We Are Owed Money. Now What?
File a Mechanic’s Lien with Speedy Lien here.
Lien Extensions and Enforcement
In New York, you have the ability to Extend a Mechanic’s Lien. The initial Lien is valid for 1 calendar year from the date of filing. Your deadline to file an Extension of Lien is within one year of filing your Lien claim. Failure to file your Extension prior to the deadline will cause the lien to expire.
Liens filed against commercial properties in New York can be extended three additional years. The last two Extensions must be filed via a signed Court Order Extension.
Liens filed against residential properties in New York can be extended two additional years. Both Extensions must be filed via a signed Court Order Extension.
A Signed Court Order Extension is presented by an attorney, reviewed by a judge and upon approval of the judge’s order, the Extension is signed off and extended via Court Order for an additional year.
Liens filed against commercial properties in New York can be extended three additional years. The last two Extensions must be filed via a signed Court Order Extension.
Liens filed against residential properties in New York can be extended two additional years. Both Extensions must be filed via a signed Court Order Extension.
A Mechanic’s Lien can be foreclosed upon to enforce payment of the debt. Filing a foreclosure action is the strongest way to enforce your Mechanic’s Lien Claim. If the debt remains unpaid, the lien claimant may be able to foreclose on the lien and take ownership of the property.
The foreclosure process is handled through an attorney. Speedy Lien can refer you to an attorney specializing in Lien Enforcement and Foreclosure.
The Lien foreclosure process is similar to when a bank forecloses on a mortgage for non-payment.
A Bond Discharge (also known as Bonding off a Mechanic’s Lien) is a mechanism for temporarily removing a Mechanic’s Lien from the title of the property. The property owner or contractor can file a Bond against the Mechanic’s Lien. A Bond deposits 110% the value of the Lien with the courts.
The bond guarantees the Lienor any payment that is still due to them with interest should they win the case in a court of law.
If a Mechanic’s Lien was Bonded, the other party (the Petitioner – filing the Bond), must serve you with Notice of the Bond. The Notice would be sent to the address listed on your Mechanic’s Lien.
If a Bond is filed against your Mechanic’s Lien, you can initiate a “Bond Claim” or begin an action against the Bond. This process would be handled through an attorney.
If your Lien is Bonded off, you still have the ability to Extend your Mechanic’s Lien. If your Lien is not Extended, you lose your Lien Rights in the property.
Section 17 of the Lien Law provides that even after a lien is bonded, the Lien must still be renewed to continue your Lien Rights.
If a Lien was Bonded off, the Lienor still has the right to file a Foreclosure Action in the same manner as a Lien that has not been Bonded. The Bond does not cancel the Lien.
Filing a Foreclosure Action is a very strong tool to enforce your Lien. The bond guarantees the Lienor any payment that is still due to them with interest should they win the case in a court of law.
Additional Filings
In New York a real estate broker or sales agent can file a Mechanic’s Lien to collect an unpaid commission on a commercial lease only, pursuant to New York Lien Law § 10. The lease must be over 36 months.
The Lien may be filed within eight months after the final payment is due, but in no event later than a date five years after the first payment was made.
Click here to File a Broker’s Lien Now.
The New York Condominium Act grants a Condo Board or Homeowner’s Association (HOA) lien for unpaid common charges and unpaid assessment. The following can be included in the Lien: common charges, unpaid assessments, attorney’s fees and costs for filing the Lien, fines and various other charges, as well as interest.
Click here to File a Condo Lien for Unpaid Common Charges.
If you are owed money for retainage, you can file a Lien within ninety (90) days after the date the retainage was due to be released.
Click here to File a Lien now.
If a Lien has been filed against you, you can File a Bond Discharge against the Mechanic’s Lien. New York Lien Law § 19(4) allows a lien to be discharged by filing a bond securing up to 110% of the amount claimed.
Click here to File a Bond Discharge against a Mechanic’s Lien now.
A Bond Discharge or Bonding off a Lien is a mechanism for temporarily removing a Mechanic’s Lien from the title of the property. The bond guarantees the Lienor any payment that is still due to them with interest should they win the case in a court of law.
A Mechanic’s Lien can be discharged by payment into the court by depositing with the county clerk a sum of money equal to the amount, with interest.
Per New York Lien Law § 20, after such deposit is made and the lien is discharged, the county within ten days will send a notice by mail to the Lien that such lien has been discharged by deposit.
Click here to File a Bond Discharge against a Mechanic’s Lien now.
We can perform Mechanic’s Lien searches and Docket Reports.
Contact Skyler, Skyler@SpeedyLienInc.com for your request. EXT 108, 516-679-6702 or 212-203-7420.
Enforcing a Mechanic’s Lien in New York: Filing a Foreclosure for Non-Payment
Mechanic’s liens are powerful tools for contractors, subcontractors, and suppliers in the construction industry. They ensure that those who contribute labor or materials to a project are compensated for their work. However, simply filing a mechanic’s lien is sometimes not enough to secure payment. In New York, if the lien is not satisfied voluntarily, you may need to take the additional step of filing a foreclosure to enforce your mechanic’s lien.
Understanding the Mechanic’s Lien in New York
A mechanic’s lien is a legal claim against a property for unpaid work or supplies. In New York, the process for filing a mechanic’s lien involves several steps:
- Notice of Lien: File a Notice of Lien with the county clerk in the county where the property is located within eight months of completing the work (four months for single-family dwellings).
- Serving the Owner: Serve a copy of the lien on the property owner within five days before or 30 days after filing the lien.
- Validity Period: The lien is valid for one year from the filing date. If not extended or foreclosed upon, the lien will expire.
When to Consider Foreclosure
If the property owner does not pay the amount due within the lien’s validity period, you may need to enforce the lien through foreclosure. Foreclosure is the legal process of selling the property to satisfy the debt.
Steps to File a Foreclosure Action
- Prepare the Complaint: Draft a complaint to initiate the foreclosure action. This document should detail the work performed, the amount owed, and the basis for the lien.
- File the Complaint: File the complaint with the appropriate New York State Supreme Court. The foreclosure action must be initiated within one year from the date the lien was filed.
- Serve the Defendants: Serve the property owner and any other parties with an interest in the property (such as mortgage holders) with a copy of the complaint and a summons.
- Lis Pendens: File a Notice of Pendency (Lis Pendens) with the county clerk. This serves as public notice that the property is subject to a foreclosure action.
- Court Proceedings: The court will schedule hearings to review the case. The property owner and other defendants will have the opportunity to respond to the complaint.
- Judgment of Foreclosure: If the court finds in your favor, it will issue a judgment of foreclosure and sale. This order allows the property to be sold at a public auction.
- Public Auction: The property is sold at a public auction, and the proceeds are used to satisfy the debt. If the sale proceeds exceed the amount of the lien, any surplus is returned to the property owner. If the proceeds are insufficient, you may seek a deficiency judgment for the remaining amount owed.
Practical Considerations
- Legal Assistance: Navigating the foreclosure process can be complex. It is advisable to seek the assistance of an attorney experienced in New York lien law.
- Costs: Be aware of the costs associated with filing a foreclosure, including court fees, attorney fees, and other expenses.
- Timing: The foreclosure process can be lengthy. Be prepared for the possibility of a protracted legal battle.
Conclusion
Filing a foreclosure to enforce a mechanic’s lien in New York is a serious step that requires careful preparation and legal knowledge. It can be an effective way to secure payment for your work, but it is not without challenges. By understanding the process and seeking appropriate legal counsel, you can increase your chances of successfully enforcing your lien and receiving the compensation you are owed.
Condo Liens for Unpaid Common Charges
What is a Lien for Unpaid Common Charges otherwise known as Condo Lien? The New York Condominium Act grants Condo Boards or Homeowner’s Association (HOA) the ability to file a Condo Lien for unpaid common charges & unpaid assessment.
Filing a Condo Lien is the same instrument as a Mechanic’s Lien filed against a title of a property. You will have a legal interest attached to the title of the property, specifically the unit in question.
In New York, the Board of Managers can file a lien for unpaid common charges against a unit owner if the charges are more than 60 days overdue
Condominium board of managers and homeowners associations have the right to file a Condo Lien.
Charges including unpaid assessments, attorney’s fees and costs, fines and various other charges, as well as interest.
The Condominium Board or HOA, may assess Unit Owners a late charge of $150 per month for Common Charges which remain unpaid for more than 10 days after the date when due, and interest at the highest rate permitted by Law (not to exceed 16% per annum)(less any “late charges” theretofore collected), plus all expenses of collection, including but not limited to attorneys’ fees, costs and disbursements.
Read more about Collection and Lien for Non-Payment under the provisions of Section 339-z of the New York Real Property Law and the By-Laws of the condominium.
The unit owner. If there are any additional parties associated with the title, they should be put on Notice of the Lien Claim.
In New York, a Condo Lien lasts for six years from the date of filing or until the designated unpaid charges are fully paid (with interest).
When the condominium unit owner has fully paid their unpaid charges, they must be provided certification as to their completed payment.
Click here to start the process to Satisfy your Lien.
Within the six-year deadline from filing the Lien, the Condo Board or HOA, may initiate a foreclosure proceeding on the unit in question. The process is similar to a foreclosure proceeding brought by a mortgagee for non-payment.
File a Condo Lien for Unpaid Common Charges with Speedy Lien.
Bonding a Mechanic’s Lien
New York Lien Law § 19(4), a Bond Discharge is a mechanism for temporarily removing a Mechanic’s Lien from the title of the property. The property owner or contractor can file a Bond against the Mechanic’s Lien. A Bond deposits 110% the value of the Lien with the courts.
The bond guarantees the Lienor any payment that is still due to them with interest should they win the case in a court of law.
The filing of a mechanic’s lien can help contractors secure their right to payment. However, it can also cause hardship for owners and higher-tier contractors if the lien claim is unjustified. The New York Lien Law provides several mechanisms to discharge a mechanic’s lien before or during litigation.
I. Bond to Discharge a Lien
Under New York Lien Law, a lien can be discharged by filing a bond securing up to 110% of the amount claimed. A mechanic’s lien discharge bond is executed by the principal, who requests the bond, and the surety, a financial services company that guarantees payment if the lien claim is proved.
When a mechanic’s lien is discharged by the filing of a bond, the bond stands in place of the real property or fund against which the lien was filed. An owner, who would be a necessary party in a lien foreclosure action, is not a necessary party once the lien has been bonded. Instead, the lienor may name the surety as a defendant, ensuring there is a solvent party to pay the judgment if the lien claim is proved.
When a lien has been bonded, the commencement of an action to foreclose is sufficient to continue the lien, as well as the liens of other lienors properly joined as defendants. It is not necessary or proper to file a notice of pendency once a lien has been bonded, per Lien Law § 17. If a notice of pendency has been filed, the owner is entitled to an order canceling it.
Due to their speed and simplicity, lien discharge bonds are perhaps the most common method of discharging a lien. When a lien is filed, but an action is not promptly commenced to foreclose, a bond-and-wait strategy is often optimal. Lienors often fail to foreclose on mechanic’s liens, as it is simple and cheap to file a notice of lien but complicated and costly to prove the lien claim through a lawsuit. If the lienor fails to foreclose on its lien, the lien and bond become nullities, and the principal who procured the bond can get back any collateral paid to the surety.
If a Mechanic’s Lien was filed against you; one option you have is to file a Bond Discharge against the Mechanic’s Lien. The Bond temporarily removes a Mechanic’s Lien from the title of the property. This gives the owner the ability to continuing financing the project.
Once a Surety Bond is obtained, Speedy Lien handles the filing of the Bond with the proper jurisdiction and service upon the parties.
Upon filing of the Bond, the Lien is removed from the property and now “attached” to the Discharge Bond. A Discharge of a Lien by bond or deposit is not an admission of guilt or fault.
A Lien Discharge Bond is the most common and effective way of discharging a Lien.
If a Lien was filed against you, you have the right to file a Bond Discharge a/k/a “Bonding Off” to temporarily remove the Lien Claim.
Bonding off a Mechanic’s Lien is a two step process.
The first step is obtaining the actual surety bond. This is handled through a surety company. The surety company will be able to advise on the cost to receive the actual bond.
Once the Surety Bond is issued, Speedy Lien handles the filing of the actual Bond with the courts.
If a Lien was Bonded, the Lienor still has the right to file a Foreclosure Action in the same manner as a Lien that has not been Bonded.
An owner, who would be a necessary party in a lien foreclosure action, is not a necessary party once the lien has been bonded. Instead, the lienor may name the surety as a defendant, ensuring there is a solvent party to pay the judgment if the lien claim is proved.
Click here to file a Bond Discharge with Speedy Lien.
Once the Lien is Bonded off, the property title is free and clear of the Mechanic’s Lien.
A Discharge of a Lien by bond or deposit is not an admission of guilt or fault and the lienor is not automatically entitled to payment. Additionally, the Lien must be enforced via enforcement for the lienor to recover from the fund.
We are not a law firm and our employees are not acting as your attorney. The information contained in the Site is general legal information and should not be construed as legal advice to be applied to any specific factual situation.
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Filing a New Jersey Lien
Filing a Connecticut Lien
What Is a Mechanic’s Lien?
How to Get the Money You’re Owed
How to File a Mechanic’s Lien
New Jersey Filing Process
Why File a Mechanic’s Lien
How Much Time to File
Mechanic’s Lien Filing Process
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