New York Certificate of Satisfaction of Mechanic's or Construction Lien

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Multi-State
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US-01032BG
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Word; 
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Description

A mechanic's (or construction) lien is a claim created by statute to secure priority of payment for labor performed or materials furnished in the making of improvements on real property. A mechanic's lien attaches to the land as well as improvements on the land. Mechanics' liens are purely statutory in origin, and a mechanic's lien may not exist unless it is expressly created by the terms of a statute. This form is a sample of a certificate of a lienholder that the debt secured by the release has been paid and stating that the lien should be marked discharged in the appropriate land records.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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How to fill out Certificate Of Satisfaction Of Mechanic's Or Construction Lien?

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FAQ

In New York, a lienor creates a mechanic's lien by filing a notice of mechanic's lien in the office of the county clerk where the improved property is located.

New York Lien Law § 19(4) allows a lien to be discharge by filing a bond securing up to 110% of the amount claimed. A mechanic's lien discharge bond is executed by the principal, which requests the bond, and the surety, a financial services company which guarantees payment if the lien claim is proved.

An extension of the mechanic's lien can be obtained by filing the appropriate paperwork with the clerk of the county in which the Notice of Mechanic's Lien was filed. The extension must be filed within one year of the filing of the original Notice of Mechanic's Lien.

Pursuant to New York Lien Law § 3, an unpaid contractor, laborer, or materialman may file a mechanic's lien against privately owned real property for the value of the labor or material furnished. Mechanic's liens cannot be filed against publicly owned real property.

However, a copy of the lien must be served to the owner either five days before or within 30 days after filing the notice of lien. Proof of service must also be submitted to the court within 35 days of filing the lien. Likewise, the service of process in NY should be done by a certified process server.

New York's deadline to enforce a mechanics lien is one year after filing the lien claim. Failure to take action within that time period will cause the lien to expire. If your lien expires, it will no longer be enforceable. But in some cases, you might need some more time to make the decision to litigate.

New York Lien Law § 20 provides that an owner may discharge a mechanic's lien by the payment of money into court. Before a lien foreclosure action is commenced, the discharge is effectuated by depositing with the county clerk a payment equal to the amount claimed in the lien, with interest to the time of the deposit.

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.

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New York Certificate of Satisfaction of Mechanic's or Construction Lien