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Who should be served with a construction lien copy?

Who should be served with a construction lien copy?

Full question:

I understand that when filing a construction lien, it is filed in the County in which the property is located. Who else should be served with a copy of that lien, if anyone?

Category: Judgment Liens
Date: 04/07/2025
State: Michigan

Answer:

Before starting a construction project, the Owner must file a Notice of Commencement with the Local Registrar of Deeds in the county where the project is located. This notice should include a description of the property and the names and addresses of the legal parties involved, such as the Customer, Owner, General Contractor, and Lender.

A General/Prime Contractor does not need to file a Notice of Furnishing if they have a direct contract with the Owner. However, a Subcontractor without a direct contract with the Owner must file a Notice of Furnishing within twenty days after providing labor, materials, or services to the jobsite. This notice should be served to all legal parties involved in the project.

After the last day labor was provided or materials were delivered, you have ninety days to file a Claim of Lien in the county where the project occurred. All legal parties must be notified by certified mail or personal delivery of the Claim of Lien within fifteen days of its filing. Note that a Claim of Lien cannot be filed for warranty work.

To perfect a Claim of Lien, you must initiate a foreclosure action within one year of the lien being recorded. Along with the foreclosure filing, a Notice of Lis Pendens must be filed with the Registrar of Deeds to document that legal action has begun against the property. If the Claim of Lien is not perfected within one year, it is automatically discharged.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How do liens work in Washington state?

In Washington state, a lien is a legal claim against a property to secure payment for work performed or materials supplied. Contractors and suppliers can file a lien if they have not been paid for their services. To enforce the lien, they must file it within 90 days of the last work or materials provided. After filing, they must notify the property owner and other parties involved. If the debt remains unpaid, the lienholder can initiate foreclosure proceedings to recover the owed amount through the sale of the property. Always consult with a legal professional for specific guidance.

What is a lien placed on the property without consent of the owner called?

A lien placed on a property without the owner's consent is often referred to as an involuntary lien. This type of lien can arise from various circumstances, such as unpaid taxes, court judgments, or mechanics' liens for unpaid work. Involuntary liens can affect the owner's ability to sell or refinance the property until the debt is resolved. It's important for property owners to address these liens promptly to avoid complications.

Can someone put a lien on my house without a contract?

Yes, someone can place a lien on your house without a direct contract under certain circumstances. For example, a contractor or supplier may file a mechanics' lien if they have provided services or materials to your property, even if there was no formal contract with you. However, they must follow specific legal procedures, including notifying you of the lien. It's advisable to address any such liens quickly to protect your property rights.

Can you have a lien on your house and not know it?

Yes, it is possible to have a lien on your house without your knowledge. Liens can be filed for various reasons, such as unpaid debts or court judgments, and you may not be immediately aware of them. Property owners can check public records or consult with a title company to discover any existing liens on their property. Regularly monitoring your property's status can help you stay informed.

Can a contractor put a lien on my house without me knowing?

Yes, a contractor can place a lien on your house without your knowledge, particularly if they have not been paid for their work. They are required to follow legal procedures, which typically include notifying you of the lien after it has been filed. To avoid this situation, it's important to maintain clear communication with contractors and ensure that all payments are made as agreed.

How to fight a construction lien?

To fight a construction lien, you should first review the lien documents for accuracy and ensure it was filed correctly. If you believe the lien is invalid, you can file a motion to have it removed in court. Additionally, negotiating with the lien claimant may resolve the issue without legal action. It’s advisable to consult with a legal professional to understand your options and the best course of action based on your specific situation.