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In any type of case, there are a number of remedies available to the owner. First, if a subcontractor files a lien, an owner, on advice of its attorney, may stop paying the general contractor until the issue is resolved. An owner may also bond the lien or deposit funds into Court to have it removed.
The easiest and most effective way to remove a mechanic's lien on your property is to negotiate with the contractor and settle the lien. If you do not want to pay the contractor money you feel they don't deserve, you can negotiate the conditions of payment.
About New York Notice of Intent to Lien Form No one wants to be forced to file a mechanics lien, and this document gives all of the parties involved one final chance to take care of the payment issues on a project. This form advises the party that a lien will be filed if payment is not received within 10 days.
To discharge a mechanic's lien in this manner, an owner or contractor may file a bond with the public entity or clerk of the county in which the mechanic's lien was filed. The amount of the bond must be 110% of the lien amount, and also include a certificate of qualification issued by the superintendent of insurance.
To enforce a mechanic's lien, it is necessary to commence a lawsuit and file a notice of pendency before it expires. Lien Law § 17. If the lienor fails to foreclose on the lien before it expires, the lien is automatically extinguished, though it may still be possible to commence a lawsuit for breach of contract.
A lien may be discharged in litigation through a motion to dismiss, a motion for summary judgment, or at trial. Lien Law § 39, discussed above, provides one basis for discharge in litigation. A lien may also be discharged if it is proved that the lienor was not owed any payment.
The mechanics lien remains valid for one year provided the affidavit of service of lien is properly completed and filed. The one year time period is measured from filing in the County Clerks Office.
Under New York law, the general rule is that liens have priority in the order that they are recorded first in the public land records which is known as the ?first in time, first in right? rule, but there are many exceptions to the general rule.