Frequently Asked Questions - Michigan Mechanics Lien
Michigan Lien Documents are Easy to File with LienItNow.com
What is a Michigan construction lien Claim?
In Michigan, unlike many other states, lien filed on construction projects are known as "construction liens" rather than mechanic's liens. Liens filed on private property or on funds relating to a public project are known as Michigan construction liens or mechanics liens. When a Michigan construction claim of lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. Contractors have no construction lien rights in the State of Michigan on public projects. They do, however, have the right to make bond claims.
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Who can file a Michigan construction lien claim?
Contractors, as well as subcontractors, sub-subcontractors, suppliers and laborers who have a contract with a general contractor or a subcontractor can file a Michigan mechanics lien.
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Are pre-notices for a Michigan construction lien claim required?
Yes. Michigan has several pre-lien notice requirements, also known as preliminary notices or Notice of Furnishing (NOF). Owners and lessees must file a notice of commencement before the commencement of any actual physical improvement. Subcontractors and suppliers must provide a notice of furnishing to the owner and general contractor within 20 days after furnishing the first labor or material to a job. Laborers must provide a notice of furnishing to the owner and general contractor within 30 days after furnishing the first labor or material to a job. General contractors are not required to serve a notice of furnishing.
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Can you file a Michigan construction lien claim without a pre-notice?
Sometimes. A laborer who did not file a notice of furnishing has no Michigan mechanics lien rights.
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When should a Michigan construction lien claim be filed?
Michigan construction liens on private property must be filed within 90 days of the last date the lienor provided materials or services to the Project. .
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How much does it cost to file a Michigan construction lien claim?
LienItNow.com prepares, files and serves Michigan mechanics' liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $290.00.
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Do I need a written contract in order to file a Michigan construction lien claim?
Only on residential projects. On commercial projects, oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are attempting to file the Michigan construction lien.
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How does filing a Michigan construction lien Claim help me get my money?
On a private project, the Michigan mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.
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What is a Michigan Stop Notice and why should it be filed
LienItNow.com prepares and serves Michigan Stop Notices for a fee of $125.00. A Stop Notice is a notification that has the ability to enhance the effectiveness of a construction lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company is requested to withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.
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What is a Michigan Amendment to a construction lien Claim?
LienItNow.com prepares, files and serves Michigan Amendments to mechanics' lien Claims for a fee of $250.00. Amendments to construction lien claim are often needed when something about the claim changes. Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work. Amendments to construction lien claims are not permitted in some States.
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When should a Michigan Discharge of construction lien claim be filed?
LienItNow.com prepares, files and serves Michigan Discharges of mechanics' lien Claims for a fee of $85.00. Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of mechanics' lien Claim should be filed.
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How much does it cost to file a Michigan Extension of a construction lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims for a fee of $85.00. All lien claims expire after a certain period of time, and filing an extension of the mechanics' lien claim prolongs the expiration date. Michigan law, however, does not permit an extension of mechanics' lien claims.
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Can I file a Bond Claim on a Michigan Project?
LienItNow.com prepares, files and serves Michigan Bond Claims for a fee of $275.00. Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants' last date of work. Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.
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Do I need to file a Pre-Notice to make a claim against a Michigan payment bond?
LienItNow.com prepares, files and serves Michigan Pre-Notices for bond claims for a fee of $50.00. Depending on the terms of the payment bond, pre-notices may or may not be required. LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project's bond.
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