Frequently Asked Questions

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Frequently Asked Questions

What is a Mechanic's Lien and Who can file a Mechanic's Lien?

What is a Mechanic's Lien?

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.

What is a Public Improvement Mechanic's Lien?

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.

Why File a Mechanic's Lien?

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.

Who may file a Mechanic's Lien?

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. **

How much am I owed?

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.

Why hire Speedy Lien to file a Mechanic's Lien?

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

Last date of services

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.

How much time do I have to file a Mechanic's Lien in New York?

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.

How much time do I have to file a Construction Mechanic's Lien Claim in New Jersey?

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.

How much time do I have to file a Mechanic's Lien in Connecticut?

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.

Mechanic's Lien filing must knows

Who gets served when I file a Mechanic's Lien?

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.

Is a Notice of Intent required before filing my Mechanic's Lien?

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.

Visit our Lien Law by State page for more information.

Can I include the legal fees or the filing fee in my Lien amount?

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 paid, how do I Satisfy a Lien?

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.

Attached is the link to submit your Satisfaction of Lien.

Can I get reimbursed for my filing fees?

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.

Can an unlicensed contractor file a Mechanic's Lien in New York?

If the work being performed requires a license, the claimant must be licensed in order to file a mechanics lien in New York.

We are owed money, now what?

Click here to File a Lien Now.

Construction Collections?

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.

Lien Extensions and Enforcement

Can I Extend my Mechanic's Lien?

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.

What is 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.

Can I Foreclose on my Mechanic's Lien?

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.

Filing a Foreclosure for Non-Payment

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.

When to Consider Foreclosure

If the property owner or customer 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.

What is a Bond Discharge?

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.

How would I know if my Lien was Bonded Off?

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.

My Lien was Bonded. Now what?

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.

My Lien was Bonded. Can and should I Extend my Lien?

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.

Can I still foreclose on my Lien after it was Bonded?

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.

We are owed money, now what?

File a Lien with Speedy Lien

Click here to File a Lien Now.

Additional Filings

File a Unpaid Broker's Commission Lien on a Commercial Lease - NY

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 Lien Now.

File a Condo Lien for Unpaid Common Charges - NY

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.

Enforcing a Mechanic's Lien in New York: Filing a Foreclosure for Non-Payment

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

For additional information, please click Lien Law by State to learn about your state’s Lien Laws. If you have any additional questions, please call Speedy Lien to learn more about your Lien rights.

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.

Frequently Asked Questions

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