Michigan Claim of Lien - Corporation or LLC
Definition and meaning
The Michigan Claim of Lien - Corporation or LLC is a legal document that allows a corporation or limited liability company to assert a lien against a property.
This lien serves as security for payment due for labor, services, or materials provided for improvements to that property. It is crucial for contractors, subcontractors, or material suppliers to understand how to properly file this claim to protect their financial interests.
How to complete a form
To complete the Michigan Claim of Lien form accurately, follow these steps:
- Enter the date you first provided labor or materials.
- List the name and address of the corporation or LLC making the claim.
- Provide a detailed legal description of the property, including any relevant identification numbers.
- Indicate the owner or lessee of the property, along with their address.
- Fill in the total contract amount and the amount already paid.
- Calculate and state the claimed lien amount.
- Sign and date the form.
Who should use this form
This form is suitable for entities such as:
- Corporations that have provided services or materials for property improvements.
- Limited liability companies that wish to secure payment for their contributions.
- Subcontractors and suppliers who have not received full compensation for their work.
If you fall into any of these categories, filing the Michigan Claim of Lien may be necessary to protect your rights.
State-specific requirements
In Michigan, it is necessary to adhere to certain specific requirements when filing a claim of lien:
- The form must be filed within a specified time frame following the last day labor or materials were provided.
- It must include a complete legal description of the property.
- A copy of the Notice of Furnishing must be attached.
Being aware of these requirements can help ensure that your claim is valid and enforceable.
Benefits of using this form online
Utilizing the Michigan Claim of Lien form online comes with several advantages:
- Convenience: Users can access and complete the form at their own pace.
- Accessibility: Online forms often include helpful prompts and guidelines to ensure accurate completion.
- Speed: Online submission can expedite the filing process.
Overall, using this form online simplifies the process and increases efficiency in securing your lien rights.
Common mistakes to avoid when using this form
There are several pitfalls to be aware of when filing a Michigan Claim of Lien:
- Failing to provide a complete legal property description.
- Not meeting the filing deadlines.
- Omitting the necessary attachments, such as the Notice of Furnishing.
- Incorrectly calculating the lien amount.
Avoiding these common errors can enhance the likelihood of a successful claim.
What documents you may need alongside this one
When filing the Michigan Claim of Lien, you may also need the following documents:
- A copy of the contract or agreement.
- The Notice of Furnishing.
- Any correspondence related to payments or billing.
Gathering these documents can provide comprehensive support for your claim.
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FAQ
Subject to some exceptions, a lien for materials, services, or wages may be registered any time up to 45 days from the day the last materials, services, or wages were provided, or since the contract was abandoned. After those 45 days elapse, the lien expires.
Judgment liens last for five years. But, a creditor can renew the lien until your judgment expires. Most judgments in Michigan expire after 10 years.
You cannot file a lien, you cannot enforce a lien you have filed if you are an unlicensed contractor, Courtade, the attorney, said.It is illegal for anyone to work as a contractor in Michigan without a license. If they do, they face fines and possible jail time.
A contractor's lien (often known as a mechanic's lien, or a construction lien) is a claim made by contractors or subcontractors who have performed work on a property, and have not yet been paid.After all, contractors would rather work out a deal than go through the hassle of filing a lien against your property.
A judgment lien in Michigan will remain attached to the debtor's property (even if the property changes hands) for five years.
When your efforts to collect a bill from a business that owes you money have been unsuccessful, you can place a lien on the assets of the business. As a lienholder, you gain legal rights to the company's property and the authority to sell the property and use the proceeds to repay what is owed to you.
In Alberta, for example, your lien is valid for 180 days from the date the lien was placed. In Ontario, liens are only valid for 90 days from the date of last on site working.
Under Michigan law, general contractors are not required to serve a notice of furnishing. You must file a Construction Lien within 90 days after you have last provided materials or services on a project. Once you receive the outstanding payment, you should file a Release and Discharge of Lien form.