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Do I have to be registered in NY as a materail supplier in order to register a mechanics lien?

New YorkLicenses Mechanics Lien Right to Lien

I have heard that in order to have lien rights in NY my company would have to be registered with the state but as a materail supplier I was wondering if this provision still applied as we do not install our own doors on site and therefore do not require any additional work permits.

1 reply

Feb 27, 2020

Out of state material suppliers may generally still file mechanics liens in New York. And, the state's lien statute specifically allows for foreign corporations to file mechanics liens there at Section 12 of the mechanics lien statute. Under that section, as well as Section 9 a foreign corporation may file a lien in New York as long as a principal place of business within the state of New York is provided. However, not having a principal place of business won't block a claimant from filing a New York mechanics lien. Rather, case law in New York has established that the claimant can include the contact information for a New York attorney where the claimant can be served.

Business registration, "doing business" in New York, and mechanics lien rights

As for whether the business must be registered with the state, specifically - foreign (non-New York) corporations must generally register their business there - but only if the corporation is actually "conducting business in the state." And, that term isn't as obvious as it may seem - singular or sporadic transactions in a state won't always result in a corporation "doing business" in New York. This article should help with sorting out what activities rise to the level of doing business (and thus, needing registration): Doing Business in New York: An Introduction to Qualification, General Guidelines. If registration is required for the given business - then a failure to have the required registration would prevent the use of a lawsuit to collect payment. So, that'd mean a mechanics lien filed in New York might not be enforceable under those circumstances. For an in-depth analysis on whether your business must be registered to file a valid and enforceable mechanics lien, it'd be wise to consult a New York construction attorney, such as Vincent Pallaci. They'll have much more knowledge about business registration requirements in New York and the availability of lien rights.

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