Here are some of the most common questions asked by clients of Emalfarb Law and National Lien & Bond about Mechanics Lien requirements in New York. These are intended to provide general information about New York’s Mechanics Lien requirements and may not reflect recent changes to New York law. For answers to your questions about a specific matter in New York, contact National Lien & Bond at 800.423.7799, or click here to schedule a free consultation with one of our experienced construction law attorneys.
Who Has a Right to File a Mechanics Lien in New York?
In New York, a contractor, subcontractor, sub-subcontractor, laborer, or materials supplier that supplies materials to the owner, contractor, or subcontractor (but not to a sub-subcontractor) may file a mechanics lien concerning a private construction or improvement project.
Do I Need to Provide a Preliminary Notice in Order to Protect My Mechanics Lien Rights in New York?
New York, unlike some other states, has no preliminary notice requirement when it comes to mechanics liens. There is no specific requirement in New York that any subcontractor or materials supplier involved in a project notify the owner or any other party in advance that the contractor or supplier is involved in the project.
Must I Provide Any Other Information?
A subcontractor or material supplier should notify the project property owner of any unpaid amounts due or to become due within 90 days of when the work is completed or the material delivered. The notice should be sent:
- registered or certified mail,
- return receipt requested,
- and may follow the format suggested by New York statute 770 ILCS 60/24.
While this notice is not necessary when the contractor has already identified the subcontractor or material supplier in the preliminary notice provided to the owner, there is no harm in giving this second notice when money is owed.
In addition, the owner of the property affected by your mechanics lien may demand that you bring a lawsuit to enforce it. In that case, you have 30 days from when the demand is served on you to do so.
When Can I File a Mechanics Lien if I’ve Not Been Paid for Work or Materials?
Under New York law, a mechanics lien can be filed at any time while a project is still being worked on and up to 8 months from when the contractor, subcontractor, or materials supplier has completed their work or delivered the materials. This period is reduced to 4 months, with the project related to a single-family home.
Where Must I File the Mechanics Lien?
Mechanics liens must be filed with the clerk of the county where the project is located.
What Information Must a Mechanics Lien Contain?
New York law requires a mechanics lien to include very specific information, including:
- The name and address of the party that is filing the lien
- Their attorney’s information
- The name of the property owner whose property is affected by the mechanics lien
- The name of the party that the work was done for, or that the materials were supplied to
- A description of the work that was performed or materials supplied and the agreed price for the work or materials
- The unpaid amount that is owed
- When the last work was performed, or materials were delivered
- A detailed description of the property that is subject to the mechanics lien (such as street address or section, block, and lot number)
Failure to provide the required information can result in a mechanics lien being rejected by the county clerk or make the lien unenforceable.
Are Public Projects Different? If So, How?
Many public projects in New York have payment bonds in place that are intended to guarantee payment to contractors, subcontractors, and suppliers involved in the project. Mechanics liens are typically unavailable in these cases, but claims can be made against the project’s payment bond. National Lien & Bond regularly helps clients involved in publicly-owned projects collect against these types of bonds.
In other public project cases, it may be possible to file a lien against the money the state appropriates for the project. There are different requirements for this type of lien, including where it’s filed and how long the lien is valid before a lawsuit is filed to enforce it. National Lien & Bond can also help you collect what you’re owed.
What Happens After I File My Mechanics Lien?
Two things happen once you file your mechanics lien with the local county clerk.
- First is a lien against the project’s property for the total amount of the lien. This can make it more difficult for the property owner to use the property as collateral for loans, and in some cases, may breach the terms of existing loans.
- Second, you can then sue to “foreclose” the lien to collect what you’re owed. The suit must be filed within one year after the notice of mechanics lien is filed with the county clerk; in some cases, this can be extended.
While a mechanics lien doesn’t guarantee you’ll be paid what you’re owed, it can be a powerful tool to help make that happen.
National Lien & Bond can help you with questions you might have about the mechanics lien enforcement process in New York.
What if I Have Other Questions?
National Lien & Bond works with a network of more than 150 boutique Construction Law firms located in the US and in other countries to help construction clients get paid for their work or for the materials they provide for construction projects.
We have helped tens of thousands of clients recover over $9 billion in project fees and are ready and eager to help you with your collection issues.
Contact National Lien & Bond today at 800.432.7799 or schedule a free consultation with an experienced construction law attorney to learn more about how we can help.