When a contractor, subcontractor, or supplier provides labor or materials for a construction project, they expect to be paid. However, payment disputes are common in the industry. Filing a lien in New York is a legal process that allows these professionals to secure unpaid dues by placing a claim on the property. This often encourages the owner to settle the outstanding balance. However, filing a lien requires careful attention to legal procedures and deadlines. This step-by-step guide for filing a lien in New York will explain the process, eligibility requirements, and important factors to consider.
What is a Lien and How Does It Work?
A lien is a legal claim placed on a property to secure unpaid debts. In the construction industry, a mechanics lien is used to ensure that contractors, subcontractors, and suppliers receive payment for their work. When a lien is filed, it becomes a public record, which can impact the property owner’s ability to transfer ownership or obtain financing. In New York, liens are regulated by specific laws that dictate who can file, what deadlines must be met, and how the process should be carried out.
Who Can File a Lien in New York?
The following parties are eligible to file a lien for unpaid work:
- General Contractors – Those hired directly by the property owner for construction projects.
- Subcontractors – Companies or individuals working under a general contractor.
- Material Suppliers – Businesses that provide construction materials for the project.
- Laborers – Workers who contribute physical labor to the project.
- Design Professionals – Engineers, architects, and surveyors involved in the project.
If any of these professionals remain unpaid after completing their work, they have the right to proceed with filing a lien in New York to recover their compensation.
Step-by-Step Guide for Filing a Lien in New York
Step 1: Confirm Your Eligibility and Deadline
Before filing a lien, ensure that you meet the eligibility criteria and file within the required timeframes. Failing to file within these deadlines will result in the loss of lien rights.
Step 2: Gather the Required Information
To file a valid lien, you must collect the following details:
- Property Owner’s Name and Address – This information is required to ensure the lien is correctly filed.
- Description of the Work Performed – A clear and detailed explanation of the services or materials provided.
- Total Amount Owed – The outstanding balance for unpaid work.
- Legal Property Description – The official description of the property can be found in county records.
- Date of Last Work Performed – The final date you provided services or materials.
Step 3: Prepare the Lien Document
The lien document must include all the collected details and be formatted according to New York State requirements. This document must be signed and sworn before a notary public to confirm its accuracy.
Step 4: Serve a Copy of the Lien to the Property Owner
New York law requires that the property owner be notified of the lien within 30 days of filing. This notification can be sent through:
- Certified Mail with Return Receipt – Provides proof that the owner received the document.
- Personal Delivery – Ensures direct receipt by the owner.
Failure to notify the owner within this timeframe can invalidate the lien.
Step 5: Monitor the Lien and Seek Payment
After filing, many property owners take steps to resolve the outstanding payment and remove the lien. If the owner does not respond, you may need to enforce the lien through legal action.
Step 6: Enforce the Lien If Necessary
A lien in New York remains valid for one year from the date of filing. If the debt is still unpaid, you must initiate a foreclosure lawsuit before the lien expires. If no action is taken, the lien becomes unenforceable, and you lose your claim against the property.
If you receive payment before the deadline, you must release the lien by filing a Lien Release with the county clerk.
Conclusion
For construction professionals dealing with unpaid invoices, filing a lien in New York is a powerful tool to secure payment. By following this step-by-step guide for filing a lien in New York, contractors, subcontractors, and suppliers can take the necessary lawful actions to protect their financial interests. It is important to act quickly, follow all legal requirements, and ensure that the lien is filed correctly. By doing so, you improve your chances of receiving the payment you are owed.
