Changes to Mechanics Lien Law
There have been substantial changes to the Mechanic's Lien Law which take effect 3/31/09. These require strict compliance by the lienor. I have summarized some of the key features below. Some are not totally new but should be followed.
- filing of arbitration satisfies the lien lawsuit requirement within one year
- the one year 365 day period runs from the date of filing the lien
- the lien must be filed within 90 days after completion of work or furnishing of services or materials
- new liens filed after March 31, 2009 shall require additional language pertaining to expiration dates
- in two business days after the lien is recorded a true and correct copy shall be sent with proof of delivery to the property owner and contractor if a Notice of Commencement has been filed
- a Notice of Action shall be filed within 30 days of commencing the lien action
- claimants not in privity with the contractor shall submit a notice to the contractor within 30 days of their intention to provide materials/services to the project
- the interim waiver and release and final payment and release have been modified to allow a 60 day grace period for clearance of checks
- upon failure of funds to clear, an affidavit of non-payment is required to resurrect the lien claim
- a Notice of Contest of Lien has been created shorting the time commence a lien lawsuit to within 90 days after filing of the Notice of Contest of Lien
- This Act is effective on March 31, 2009
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