Frequently Asked Questions - New York Mechanics Lien
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If you live or work in New York, you know that it's busy, loud and complicated. New York's notice and lien process isn't any different, and since it can be hard to navigate you need someone who can expedite your lien filings.
When you have a lot of other things to get done on a construction project, you don't want to be spending time and money figuring out how to file a mechanics lien. LienItNow.com provides the construction industry online mechanics lien forms to help contractors, sub-contractors, and material suppliers obtain a security interest in the property owner's land, and secure the payment they've worked for.
In three simple steps, anyone doing construction work in New York can complete a prelien notice or lien in only 10 quick minutes. Once a time-consuming process for New York construction companies, LienItNow.com makes filing your lien claims faster and easier than ever. LienItNow.com can also help you create bond claims, prelien notices and lien releases.
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In New York, liens filed on private property or on funds relating to a public project are known as Mechanic's Liens. A mechanics lien in NY is an instrument created by state statute. These statutes, known as the New York Lien Law, provide specific and detailed instructions on who can file a mechanics lien, when a mechanics lien must filed, and the process by which a mechanics lien is file and served. The New York State (NYS) mechanics lien law allows for three different types of lien: New York private mechanics liens, which are filed on commercial or private projects, New York residential mechanics liens, which are filed on certain residential homes, and New York public mechanics liens, which are filed on government projects.
Each of these types of mechanics liens serve a different purpose and effect, but also have different requirements and time periods for filing. When a mechanics lien in New York is filed with regard to work performed on privately owned property, including both commercial and residential property, it attaches to and encumbers the fee simple ownership of property, which means that encumbers the property, similar to how a mortgage affects property.
When a New York mechanics lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).
One of the hardest questions we are asked is about the timing of when a satisfaction or lien should be filed. Though the question seems easy, filing a discharge or release of lien at the wrong time can lead to a loss of lien rights altogether. Keep in mind that once a satisfaction has been filed, there's little chance of turning back and reinstating the original lien.
In general, a satisfaction or discharge of lien should only be filed when payment is in hand. In many cases, the lien release document is exchanged at the time a certified check or wire transfer is made. If an attorney is involved, they will often hold the satisfaction of lien in escrow until the payment clears.
In general, however, once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of mechanics' lien Claim should be filed.