What is a Mechanic’s Lien?
A mechanic lien allows a contractor (and others) to file a lien for unpaid work performed on real property. Once properly filed, it allows the contractor to foreclose on the lien and force a sale of the property in order to pay off the amount owed.
How Much does it Cost to File a Mechanic’s Lien?
The Levin Law Group charges $750 plus filing and services fees to prepare, file and serve the mechanic’s lien. The filing and service fees are as follows:
New York
- New York City: $45.00*
- Nassau County: $330.00*
- Suffolk County lien filing fee: $230.00*
- All other NY Counties: $30.00*
* The fees include filing fees for the mechanic’s lien, filing fees for the affidavit of service, and service of notice of mechanic’s lien by certified mail.
New Jersey
- Commercial: $25.00*
- Residential: $25.00* + $825.00 to the American Arbitration Association for approval to file a lien.
* The fees include filing fees for the mechanic’s lien and service of notice of mechanic’s lien by certified mail.
Who Can File a Mechanic’s Lien?
The following individuals or entities may file a mechanic’s lien:
- Contractors
- Subcontractors
- Material Suppliers
- Equipment Lessors
- Laborers
- Architects
- Engineers
- Surveyors
- Design Professionals
- Materialman
- Landscape Gardeners
- Direct Suppliers
Section 3 of the lien law states as follows:
“A contractor, subcontractor, laborer, materialman, landscape gardener, nurseryman or person or corporation selling fruit or ornamental trees, roses, shrubbery, vines and small fruits, who performs labor or furnishes materials for the improvement of real property with the consent or at the request of the owner thereof, or of his agent, contractor or subcontractor, and any trust fund to which benefits and wage supplements are due or payable for the benefit of such laborers, shall have a lien for the principal and interest, of the value, or the agreed price, of such labor, including benefits and wage supplements due or payable for the benefit of any laborer, or materials upon the real property improved or to be improved and upon such improvement, from the time of filing a notice of such lien as prescribed in this chapter. Where the contract for an improvement is made with a husband or wife and the property belongs to the other or both, the husband or wife contracting shall also be presumed to be the agent of the other, unless such other having knowledge of the improvement shall, within ten days after learning of the contract give the contractor written notice of his or her refusal to consent to the improvement. Within the meaning of the provisions of this chapter, materials actually manufactured for but not delivered to the real property, shall also be deemed to be materials furnished.”
How to File a Mechanic’s Lien?
To file a mechanic’s lien, one must file a “Notice of Lien” in the county where the real property is located. The Notice of Lien has to have specific language and meet all of the formalities of the lien law. Failure to follow those requirements will void the lien. That is why using an attorney is vital to preserving your rights under the lien law.
How Much to File Lien for?
The lien amount must be for the actual work performed (and unpaid) as of the date of lien filing. Attorneys fees and interest is not included, but can be requested from the court upon foreclosure of the mechanic’s lien.
Why File a Mechanic’s Lien?
Filing a mechanic’s lien preserves your right to foreclose on the property in question in order to collect the unpaid balance of the amount due.
How Long do I have to File a Mechanic’s Lien?
New York
- One Family Home: 4 months from the date services were last performed.
- All Other Property (not a one family home): 8 months from the date services were last performed
- Retainage: If the unpaid balance is based off retainage, a Mechanic’s Lien may be filed within 90 days of the retainage being due.
New Jersey
- Residential Property: 120 days after the date services were last performed (but after arbitration decision allowing the filing of a lien).*
- Commercial Property: 90 days from the date services were last performed.
* New Jersey first requires the filing of an intent to file a mechanic’s lien, then getting permission from an arbitrator to file such lien, then actually filing such lien. All of this must be done within 120 days from the date services were last performed.
Do I Have to be Licensed to File a Mechanic’s Lien?
In New York, a party must be licensed to file a mechanic’s lien. There is no such requirement in New Jersey.
How Long is a Mechanic’s Lien Valid for?
In New York, a Mechanic’s Lien is valid for one (1) year from the date of filing. Click Here for information on how to Extend a Mechanic’s Lien.
In New Jersey a Mechanic’s lien is valid for one (1) year and CANNOT be extended. The deadline runs not from the date of filing, but from the date services were last performed. The deadline can also be shortened if any party serves a notice requiring the claimant to commence an action. Once such a notice is served, you have thirty (30) days to commence foreclosure.
How to Extend a Mechanic’s Lien?
Please Click Here for information on how to Extend a Mechanic’s Lien.
How to Amend a Mechanic’s Lien?
Please Click Here for information on how to Amend a Mechanic’s Lien.
How to get a Mechanic’s Lien Waiver?
Please Click Here for information on how to get a Mechanic’s Lien Waiver.
How to Release a Mechanic’s Lien?
Please Click Here for information on how to Release a Mechanic’s Lien.
How to Enforce a Mechanic’s Lien?
Please Click Here for information on how to Enforce a Mechanic’s Lien.
How to Dispute a Mechanic’s Lien?
Please Click Here for information on how to Dispute a Mechanic’s Lien.
Feel free to Contact Us for a Free Consultation.