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Pre-Lien Notice to Owner Regarding Potential Mechanic's Lien for...

Michigan Pre-Lien Notice to Owner Regarding Potential Mechanic's Lien for Services to be Provided to General Contractor

Category:

Liens - Construction - Mechanics

State:

Multi-State

Control #:

US-01003BG

Format:

Instant download

Description

A mechanic's lien is a claim created by statute to secure priority of payment for labor performed or materials furnished in the making of improvements on real property. A mechanic's lien covers the land as well as improvements on the land. Mechanics' liens are purely statutory in origin, and a mechanic's lien may not exist unless it is expressly created by the terms of a statute.

Statutes frequently require the potential lienholder to give notice of a claim of lien. Local statutes must be consulted to determine applicable requirements with respect to particular types of lien notices.

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How to fill out Pre-Lien Notice To Owner Regarding Potential Mechanic's Lien For Services To Be Provided To General Contractor?

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FAQ

Note: if the project is residential, a general contractor may only file a lien if there is a written contract with the property owner.

The Michigan Construction Lien ACT (CLA) The CLA allows parties ? such as contractors and subcontractors ? to place a lien on a commercial or residential property they have improved in order to secure payment for their services.

A subcontractor or material supplier has 20 days after beginning work or delivering materials to serve you a Preliminary Notice. If the notice is late, the claimant loses lien rights for work done or materials delivered more than 20 days before the notice.

Requirements and Limitations of Filing a Mechanics Lien in Michigan. In Michigan, Mechanics Liens must be filed within eight months after the last labors or materials are provided. The lien document must include the name and address of the claimant, the description of the property, total amount due, and filing date.

Ing to MCL 570.1119(3) of the Construction Lien Act (?CLA?), a construction lien will have priority over all other interests recorded subsequent to the first actual physical improvement.

There are two basic ways to remove a construction lien. First, if no lawsuit is filed within a year, the homeowner can obtain a certificate from the circuit court clerk confirming that no lawsuit has been filed and the lien is removed by recording the clerk certificate with the register of deeds.

NOTICE OF RIGHT TO LIEN Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic's lien, often referred to as the ?Preliminary Notice?. It must be served on the owner and the general contractor. Unless you are working directly for the general contractor.

The Michigan Construction Lien ACT (CLA) The CLA allows parties ? such as contractors and subcontractors ? to place a lien on a commercial or residential property they have improved in order to secure payment for their services.

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