Michigan Waiver of Construction Lien
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FAQ
Note: if the project is residential, a general contractor may only file a lien if there is a written contract with the property owner.
The Michigan Construction Lien ACT (CLA) The CLA allows parties ? such as contractors and subcontractors ? to place a lien on a commercial or residential property they have improved in order to secure payment for their services.
Ing to MCL 570.1119(3) of the Construction Lien Act (?CLA?), a construction lien will have priority over all other interests recorded subsequent to the first actual physical improvement.
In all cases, the recorded Claim of Lien has a one-year life span; meaning that a lawsuit to enforce or foreclose the lien must be filed within one year after the date the Claim of Lien is recorded. If no lawsuit is filed within the one year, the lien claim dies.
There are two basic ways to remove a construction lien. First, if no lawsuit is filed within a year, the homeowner can obtain a certificate from the circuit court clerk confirming that no lawsuit has been filed and the lien is removed by recording the clerk certificate with the register of deeds.
2 An unlicensed builder is not entitled to claim a lien against the property. In addition, unless your written contract contains other language required by Michigan Construction Lien Act, MCL 570.110 et seq., that, too, may bar you from recording a claim of construction lien.
Subcontractors of any tier have mechanics lien rights On residential projects (with 2 or less units), a general contractor only has lien rights if there is a written contract with the property owner.
Even though sending a Notice of Intent to Lien is an optional (not required) step in the state of mi, they are frequently successful at producing payment (without having to take the next step of filing a lien).