Michigan Advance Damage Release (Construction)
Description
How to fill out Advance Damage Release (Construction)?
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FAQ
Under existing Michigan law, MCL 691.991 prohibits agreements in connection with construction projects from requiring one party (the ?indemnitor?) to indemnify another party (the ?indemnitee?) for damages arising out of bodily injury to persons or damage to property,where those damages are caused by or resulting from ...
(1) When any claim of lien has been fully paid, the lien claimant shall deliver to the owner, lessee, or other person making payment a certificate, witnessed and acknowledged in the same manner as a discharge of mortgage, that the claim has been paid and is now discharged.
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.
You must file a complaint to foreclose the lien within one year of recording of claim of lien. The complaint must be filed in the circuit court for the county in which the project property is located.
Note: if the project is residential, a general contractor may only file a lien if there is a written contract with the property owner.
108. (1) Before the commencement of any improvements to real property, the owner or lessee contracting for the improvements shall record in the office of the register of deeds for each county in which the real property to be improved is located a notice of commencement, in the form set forth in this section.
In all cases, the recorded Claim of Lien has a one-year life span; meaning that a lawsuit to enforce or foreclose the lien must be filed within one year after the date the Claim of Lien is recorded. If no lawsuit is filed within the one year, the lien claim dies.
