How to File a Mechanic's Lien in New York
What is a Construction Lien Claim or Mechanic's Lien?
A Construction Lien Claim (also known as aMechanic's Lien) is a legal claim against a property for unpaid work or materials used in construction or improvement of the property. Filing a Mechanics Lien (or construction lien claim) is a way for a contractor, subcontractor, or supplier to secure payment for services and materials provided to a construction project. If the owner of the property or the general contractor fails to pay, the lien provides a means to recover the amount owed through a court action or the sale of the property. Filing a mechanic’s lien can also serve as a warning to potential buyers of the property that there is a claim against it. Mechanic's Liens provide protection to contractors, vendors, material suppliers and professional services in the construction industry. A Lien is a legal tool to protect yourself, for non-payment.
A Mechanic's Lien attaches the amount you are owed for materials or services rendered, to the title of the property in question. In other words, it prevents the property owner from selling, transferring title or refinancing said property. For those of you that have a mortgage on your property, your bank has a Lien or an interest for the amount borrowed. By filing a Mechanic's Lien you will have the same interest a bank does against the property in question.
Section 38 Demand for an Itemized Statement
A lienor who has filed a notice of lien shall, on demand in writing, deliver to the owner or contractor making such demand a statement in writing which shall set forth the items of labor and/or material and the value thereof which make up the amount for which he claims a lien, and which shall also set forth the terms of the contract under which such items were furnished. The statement shall be verified by the lienor or his agent in the form required for the verification of notices in sectionnineof this chapter. If the lienor shall fail to comply with such a demand within five days after the same shall have been made by the owner or contractor, or if the lienor delivers an insufficient statement, the person aggrieved may petition the supreme court of this state or any justice thereof, or the county court of the county where the premises are situated, or the county judge of such county for an order directing the lienor within a time specified in the order to deliver to the petitioner the statement required by this section. Two days' notice in writing of such application shall be served upon the lienor. Such service shall be made in the manner provided by law for the personal service of a summons. The court or a justice or judge thereof shall hear the parties and upon being satisfied that the lienor has failed, neglected or refused to comply with the requirements of this section shall have an appropriate order directing such compliance. In case the lienor fails to comply with the order so made within the time specified, then upon five days' notice to the lienor, served in the manner provided by law for the personal service of a summons, the court or a justice or judge thereof may make an order cancelling the lien.
Were You Served with a Section 38 Demand?
Section 38 of the New York Lien Law allows property owners to request a verified, itemized statement from contractors, subcontractors, or materialmen who have filed a lien.The statement must be provided in writing within five days of the request.It should include:
- A line-by-line breakdown of the lien
- The value of labor and materials
- The terms of the contract
- Verification by the lienor or their agent
The statement can help property owners determine if the lien is excessive and may allow them to discharge the lien by challenging the response.If the lienor doesn't comply with the request, the property owner can:
- File a petition in the court where the property is located
- Request an order that the lienor provide a proper statement
- If the lienor doesn't comply within the specified time period, file notice of their intent to seek an order to vacate or cancel the lien
If you received a Section 38 Demand for an Itemized Statement, you must act and react quickly.
For additional information, please click Lien Law by State to learn about your state’s Lien Laws. If you have any additional questions, please call Speedy Lien to learn more about your Lien rights.
We are not a law firm and our employees are not acting as your attorney. The information contained in the Site is general legal information and should not be construed as legal advice to be applied to any specific factual situation.
