Frequently asked questions
What is a lien?
A Mechanic's Lien is the most powerful weapon for general contractors and subcontractors to get paid fast! It allows you to attach the property where you did the work, and force its sale. It also stops payment to the general contractor if you are a subcontractor. A lien allows you to sue the owner of the property. In the case of a public city or state project, it freezes the monies financing the project in an amount one and one-half the lien amount. Liens can also be filed by material suppliers, architects, and designers.
How does a lien help me?
A Mechanic's Lien helps you get paid fast and protects your payment. You have now attached the property where you did the work, or restrained the funds financing a public improvement project.
Filing Deadlines
A lien on a commercial property must be filed within 8 months from the last date you provided labor/materials.
On a 1 family house, condo or co-op, you must file the lien within 4 months from the last date you provided labor/materials.
A Notice of Lien on Account of Public Improvement must be filed within 30 days of completion and acceptance of the contract by the city or state agency.
What is lien foreclosure?
A lien foreclosure means a lawsuit that forces the sale of the property so you get paid from the proceeds of the sale. After filing the lien, you don't have to wait for someone else to sell the property. Like a mortgage you can put the property in foreclosure!
What if they bond the lien?
Do not be intimidated if they tell you they will bond off your lien. You should still file a mechanic's lien. If your lien is bonded, you are not hurt in any way. All this means is that if you obtain a judgment of foreclosure, instead of selling the property, the bonding company pays you.
Can I extend the lien?
A mechanic's lien on a commercial property can be extended for an additional year as of right. The lien can be extended after the first extension by court order. On a 1 family house, condo, or co-op, the lien can be extended by court order. A public improvement lien can also be extended for 1 year. Starting a lien foreclosure action, and filing a lis pendens, extends the lien for 3 years.
Can I lien a public-city job?
Yes. A Notice of Lien on Account of Public Improvement restrains the monies financing the project. For example, the lien would be filed with the New York City Department of Finance, the Housing Authority, School Construction Authority, DASNY, etc. The public lien restrains monies one and one-half times the lien amount. Liens are filed with Department of Parks, HPD, DDC, SUNY, etc.
What is a Lis Pendens?
A Lis Pendens, or Notice of Pendency, is filed with the Court when a lien foreclosure action is started. It puts all on notice that there is a legal action against the property. The Lis Pendens extends the mechanic's lien for 3 years from the date of filing.
Can I lien a federal job?
No. The Federal Miller Act requires the prime contractor to obtain a Payment Bond for the protection of subcontractors. There are strict time limits to start a lawsuit against the Surety issuing the Payment Bond so do not hesitate to take action.