Construction or Mechinics Lien on my home

1 week ago

I had a contractor we provided me a Pool Plastering Finish that I paid in full to the contractor in Michigan. Now the Subcontractor who did the work is going to place a Mechanics Lien against my home since it appears the Contractor I hired DID NOT pay the Subcontractor who provided the service.

Can the Subcontractor place a Lien on my home even though I paid the Contactor I hired in full? Do I have any legal recourse against the Subcontractor for placing the lien on my home even though I paid the
Contractor in full for the services provided?

Principal Cavanaugh & Quesada, PLC

Hello,

The short answer to your question is Yes, a subcontractor to your pool plastering contractor has a right to record a construction lien if they were not paid by your contractor.

Section 107 of Michigan’s Construction Lien Act provides that “Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property shall have a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property”.

But that doesn’t mean you are without a remedy.

1. Under Section 118a(1) of the Act, “A claim of construction lien does not attach to a residential structure, to the extent payments have been made, if the owner or lessee files an affidavit with the court stating that the owner or lessee has paid the contractor for the improvement to the residential structure according to the contract, indicating in the affidavit the amount of the payment. The owner or lessee shall attach to the affidavit copies of the contract, any change orders, and any evidence of the payment that the owner or lessee has, including, but not limited to, a canceled check or a credit card or other receipt.”

This affidavit would come into play if the subcontractor threatening a lien actually records it and then tries to enforce it through a foreclosure suit. So, right now, this isn’t the best remedy.

2. Contact your contractor, the one you paid in full, and ask him for a lien waiver from the subcontractor threatening the lien. Ask the contractor whether they’ve paid the subcontractor and, if not, why not. There are other legal ramifications for a contractor receiving money from an owner and then not paying a subcontractor. That’s beyond the scope of this post.

Does this help?

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