Filing a mechanic’s lien in New York?
A mechanic’s lien, also known as a construction lien, a materialman’s lien, or a supplier’s lien, is a security interest in the title to property for the benefit of those who provided labor or materials that improved the property.
Filing a mechanics lien in New York is an extra remedy offered to those who have improved real property but have not been paid.
The laws relating to the filing and enforcement of mechanics liens are found in New York’s Lien Law.
Strict compliance with the law is required. Failure to meet the deadlines set forth and strictly adhere to the law will cause you to lose any lien rights you might have had and, in some instances, jeopardize your ability to get paid from the owner of the real property.
Who May File a Mechanics Lien in New York:
If you are a general contractor, supplier, subcontractor, or subcontractor to a subcontractor working on and improving real property and have not been paid, in whole or in part, you may be eligible to file a mechanics lien in New York. The lien will attach to the property. The lien, if filed timely and extended in accordance with the statute, can provide additional security and is a great tool to help you get paid.
How do you File a Mechanics Lien in New York:
The time you have to file a mechanics lien is determined by the type of underlying property. The time frame is absolute and cannot be extended.
In order to file a valid lien. The Notice of Mechanics Lien Notice Under Mechanic’s Lien Law must be prepared , served and filed within the allowable time and is good for one year. The lien may be extended several times. Actions to foreclose the lien must be brought within the extended lien period to avoid the lien becoming extinguished.
Should I file a Mechanics Lien?
You may be entitled to file a mechanics lien in New York if you improved real property, regardless of who hired you for the job. New York enacted the Lien Law to help general contractors, suppliers, subcontractors, and subs to subs get paid for their work from the owner of real property. If you are a creditor as defined by the lien law and have the opportunity to file a mechanics lien, you should consider filing a lien.
Will the mechanic’s lien be valid until I am paid?
A mechanics lien is valid for one year. New York’s Lien Law allows you to continue the lien for a few years It must be extended or foreclosed upon prior to the date the lien is scheduled to expire.
If you wish to enforce your lien, you must foreclose on the lien before the term expires.
What if I decide not to file a mechanic’s lien?
Should you decide not to file a mechanics lien, you have remedies outside of the lien process. If you supplied goods or services, you can file a claim and bring a New York debt collection civil case to recover monies owed to you. You have six (6) years to sue for services rendered and four (4) years for goods sold. Partial payments will extend the time frame to sue. Your NY debt collection case would be brought against the party that requested the goods or services.