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Michigan Certificate of Discharge of Lien by Individual

Lansing Michigan Certificate of Discharge of Lien by Individual

Name: Lansing Michigan Certificate of Discharge of Lien by Individual
Brand: US Legal Forms

Category:

Liens - Construction - Mechanics

State:

Michigan

City:

Lansing

Control #:

MI-16-09

Format:

Instant download

Description

Michigan statutes require that when a lien has been fully paid, the lien claimant shall issue to the property owner a certificate stating that the claim has been paid and the lien discharged.

Lansing Michigan Certificate of Discharge of Lien by Individual is a legal document that serves as proof of the release or removal of a lien placed on a property or asset by an individual or a private party. This certificate is essential when it comes to property transactions, as it enables the transfer of ownership free from any encumbrances or claims. Keywords: Lansing Michigan, certificate of discharge of lien, individual, property, asset, release, removal, lien, private party, proof, encumbrances, claims, ownership, transactions. Types of Lansing Michigan Certificate of Discharge of Lien by Individual: 1. Real Estate Certificate of Discharge of Lien by Individual: This type of certificate is used when a lien is placed on a real estate property by an individual, which may include suppliers, contractors, or private lenders. The certificate confirms that the lien has been discharged and the property is now free from any claims. 2. Vehicle Certificate of Discharge of Lien by Individual: This certificate is specific to motor vehicles, such as cars, motorcycles, boats, or recreational vehicles, where an individual holds a lien against the vehicle. The certificate states that the lien has been released, allowing for the transfer of ownership without any lien in place. 3. Personal Property Certificate of Discharge of Lien by Individual: This type of certificate pertains to liens placed on personal property, excluding real estate and vehicles. It is often used to release a claim against valuable assets, such as artwork, jewelry, or equipment, and ensures that the owner has full rights and can sell or transfer the property without any liens attached. In order to obtain a Lansing Michigan Certificate of Discharge of Lien by Individual, the lien holder must file the necessary paperwork with the appropriate authority, such as the county clerk's office or the Michigan Secretary of State, providing proof of the lien's release. The certificate will then be issued, officially clearing the property or asset from any encumbrances. It is crucial to consult with a legal professional familiar with the specific requirements and processes involved in obtaining a Certificate of Discharge of Lien in Lansing, Michigan, to ensure adherence to local laws and regulations.

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FAQ

Discharging an old construction lien in Michigan is a 3-step process: Prepare an Affidavit.Submit the Affidavit to the County Clerk.Record the Certificate.

If there is a lien, it must be released by the lienholder in the appropriate signature space or by attaching a lien termination statement from the financial institution to the title. Never take possession of a vehicle without the title signed by the owner or owners named on the front of the title.

Once you pay off your loan or meet the terms of your loan agreement, your lien will be released. For example, when you pay off your mortgage or switch lenders, the lienholder (the lender) will release the lien on the house.

Michigan lien waivers do not require notarization, only signature by the claimant.

State governments issue car titles, typically through their department of motor vehicles or a similar agency. If you need a replacement car title, you can get one online, in person, or by mail, depending on the state.

PLEASE NOTE: When you sell a vehicle, you do not need to remove a lien from the certificate of title. You can give the original title and the original lien release to the buyer.

After you file After the lien is filed and served, it's valid for 1 (one) year after the filing date in Michigan. Unless you extend it, you have 1 (one) year to enforce the lien if you need to.

If a lien is listed on the certificate of title, a lien release card or notarized lien release must accompany the transfer. If the vehicle is a motorcycle, the engine number must be recorded on the face of the title at the time of transfer. The seller may also be required to make a Report of Sale online.

If there is a lien, it must be released by the lienholder in the appropriate signature space. You also may attach a lien termination statement from the financial institution to the title. Michigan private vehicle sellers must complete their part on the title assignment by signing it and adding: Vehicle mileage.

A lien claimant's bond may be vacated and discharged upon the filing of a cash or surety bond with the county clerk where the property is located. An owner or lessee may also pay the lien claimant directly, bypassing the general contractor, to obtain a discharge of the lien.

Interesting Questions

More info

The Michigan Realtors®, 720 N. Washington Ave. OWNER INFORMATION AND UNIT DESCRIPTION — Complete all applicable blocks.FIRST LIEN — Complete the FIRST LIENHOLDER INFORMATION section, if applicable. To accomplish this, the claimant records a discharge of lien document in the Register of Deeds in the county where the property is located. To report individual complaints about care and service to the Ombudsman. Municipal Separate Storm Sewer System. If filing in proper person, how do I get started opening a new case? United States. Congress. Senate.

Floor Report No. 3-104, August 30, 2001. “As reported in the U.S. Senate August 30, 2001, Congress had voted 98 to 0 in the House to make it easier for homeowners to receive payment from private contractors that clean storm drains. The Senate amendment by Sen. Roy Blunt, R-Mo., became S. Res. 516 on April 24. The issue of homeowners' claim processing has drawn fire from both federal and state entities. In a letter to Senate sponsor U.S. Sen. Christopher Dodd, D-Conn., FEMA Administrator Craig Fug ate wrote, 'The National Flood Insurance Program, which is the principal means by which homeowners have access to the funds owed or owed them by private contractors hired by municipalities and counties, could face significant administrative challenges, including the need for an effective way to provide for these claims (efficiently).

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The materials in this section are taken from public sources. We disclaim all representations or any warranties, express or implied, as to the accuracy, authenticity, reliability, accessibility, adequacy, or completeness of any data in this paragraph. Nevertheless, we make every effort to cite public sources deemed reliable and trustworthy.

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Certificate of Discharge of Lien by Individual

Note: This summary is not intended to be an all-inclusive discussion of Michigan's construction or mechanic's lien laws, but does include basic provisions.

What is a construction or mechanic's lien?

Every state permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. While some states differ in their definition of improvements and some states limit lien claims to buildings or structures, most permit the filing of a document with the local court that puts parties interested in the property on notice that the party asserting the lien has a claim. States differ widely in the method and time within which a party may act on their lien. Also varying widely are the requirements of written notices between property owners, contractors, subcontractors and laborers, and in some cases lending institutions. As a general rule, these statutes serve to prevent unpleasant surprises by compelling parties who wish to assert their legal rights to put all parties who might be interested in the property on notice of a claim or the possibility of a claim. This by no means constitutes a complete discussion of construction lien law and should not be interpreted as such. Parties seeking to know more about construction laws in their state should always consult their state statutes directly.

Who can file a lien in this state?

Michigan law permits any contractor, subcontractor, supplier, or laborer, who provides an improvement to real property to claim a lien. The value of the lien may not exceed the amount of the claimant's contract less payments made on the contract. M.S.A. Â§ 570.1107.

How long does a party have to file a lien?

A contractor, subcontractor, laborer, or supplier, must file a Claim of Lien form in the register of deeds office within ninety (90) days after the lien claimant's last furnishing of labor or material. M.S.A. Â§ 570.1111.

By what method is a lien filed in this state?

Michigan statutes provide a form with which a lien claimant may record a Claim of Lien in M.S.A. Â§ 570.1111. The required form sets out names or interested parties as well as the labor or material provided and the amount due and owed. Proof of service of a Notice of Furnishing is required to be attached to a lien claim filed by a subcontractor, supplier, or laborer. M.S.A. Â§ 570.1111

How long is a lien good for?

Proceedings for the enforcement of a construction lien may not be brought later than one (1) year after the date the claim of lien was recorded. M.S.A. Â§ 570.1117

Are liens assignable?

Yes. A lien may be assigned to another party who shall have the same power to enforce the lien and shall be subject to the same obligations. M.S.A. Â§ 570.1125.

Does this state require or provide for a notice from subcontractors and laborers to property owners?

Yes. Michigan law requires a subcontractor or supplier who provides improvements to real property to issue a Notice of Furnishing to the designee and the general contractor, if any, named in the Notice of Commencement. Service must be made by personal delivery or certified mail within twenty (20) days after furnishing the first labor or material. While failure to file a Notice of Furnishing timely does not defeat a lien claimant's right to a lien, it may affect a lien claimant's right to pursue payment for work done prior to the filing of the notice. The form used must be substantially similar to the one set out in M.S.A. Â§ 570.1109.

Also, a lien claimant must provide to the property owner who requests in writing, a statement of the amount of labor and material furnished to the date of the statement, any amount remaining due, and the contractual work remaining to be done. (Please see MI-13-09, MI-15-09). M.S.A. Â§ 570.1113(2).

Does this state require or provide for a notice from the property owner to the contractor, subcontractor, or laborers?

Yes. Michigan law requires a property owner to provide a copy of the contract between the contractor and the owner, as well as a statement of the amount due and unpaid on that contract to any lien claimant who makes a written request for same. (Please see MI-12-09, MI-14-09). M.S.A. Â§ 570.1113(1).

Does this state require a notice prior to starting work, or after work has been completed?

Yes. Michigan law requires the property owner to record a Notice of Commencement in the office of the register of deeds prior to the commencement of any actual physical improvements to real property. The Notice must be posted in a conspicuous place on the property. Any party with an interest in the property may request that the owner, contractor, or subcontractor, provide them with a copy of the Notice. Failure to do so will result in the party failing to honor the request being held liable for any damages that result from the failure. Failing to record the Notice as required will extend the time under which individual lien claimants can file their Notice of Furnishing. Please note that these requirements do not apply to improvements to a residential structure. M.S.A. Â§ 570.1108.

An owner of a residential structure being improved need only supply a Notice of Commencement if a contractor, subcontractor, supplier, or laborer has made a written request. Michigan law sets out the form that must be used in M.S.A. Â§ 570.1108a.

Every Notice of Commencement should have a blank Notice of Furnishing attached. M.S.A. Â§ 570.1108a.

At the completion of work, when payment is due, the contractor is required to provide the owner with a Sworn statement which details the parties who worked on the project and how much they are still owed. Michigan statutes require the sworn statement to be substantially in the same form as provided in M.S.A. Â§ 570.1110. The property owner, after receiving the sworn statement, may withhold on his own initiative, or at the request of the contractor, an amount sufficient to pay all sums which are due to subcontractors, suppliers, or laborers. A contractor is not entitled to any payment or to file a suit to enforce his lien until the statement is filed. M.S.A. Â§ 570.1110(6)-(8).

Does this state permit a person with an interest in property to deny responsibility for improvements?

No. Michigan does not appear to have a Notice of Non Responsibility provision as in some other states.

Is a notice attesting to the satisfaction of a lien provided for or required?

Yes. Michigan statutes contain several versions of a waiver form. These forms are used by a contractor and delivered to the property owner as payments on the construction project are received, and in that way act as a receipt of payment. There are four waiver forms provided: Partial Unconditional, Partial Conditional, Full Unconditional, Full Conditional. All forms permit a contractor to attest in writing that either part or all of a contractor's lien claim is being waived. Further, the contractor can use the partial forms to only release part of his claim in response to a partial payment and may use the conditional forms to only waive part or all of a claim conditional upon a payment being made. M.S.A. Â§ 570.1115.

By what method does the law of this state permit the release of a lien?

Michigan statutes state that when any claim of lien has been fully paid, the lien claimant shall deliver to the owner or his representative a certificate, witnessed and acknowledged in the same manner as a discharge of mortgage, that the claim has been paid and is now discharged. M.S.A. Â§ 570.1127(1).

Also, if the time within which to enforce a lien has elapsed, any party with an interest in the property may make an affidavit to the county clerk attesting to the fact that time has elapsed. If the affidavit is on order, the clerk should issue a certificate to that effect that may be recorded rendering the lien ineffective. M.S.A. Â§ 570.1128.

Does this state permit the use of a bond to release a lien?

Yes. Michigan statutes permit a lien to be vacated and discharged if a bond in the amount of twice the lien amount is filed with the county clerk and a copy provided to the lien claimant. The bond may be either in cash or surety form. M.S.A. Â§ 570.1116.