Home>Levelset Community>Legal Help>Good morning: If an individual loans $ to a company for Operating Capital, can we place a mechanics lien on the properties?

Good morning: If an individual loans $ to a company for Operating Capital, can we place a mechanics lien on the properties?

New YorkMechanics Lien Right to Lien

Anonymous Contractor

A. Leon Eastmond owns a bunch of buildings in the Bronx, NY. Lisa Giaquinto, who is an individual (not a company), loaned $500,000 to EASCO for operating capital on June 7, 2019 so they can continue to purchase steel, make payroll, etc. Can we place a lien on all of Leon's buildings?

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,000 reviews

Jun 24, 2019

That's a good question, and I'm sorry to hear you've had some trouble with this business. However, mechannics liens are available for those who perform construction work and go unpaid for their work, and these liens attach to the project property that's improved by the work. So, if a would-be claimant hasn't provided construction work, and if the property being liened wasn't improved by that construction work, filing a mechanics lien likely would not be appropriate.

Of course, some other security interest might be available if allowable under contract, or if a judgment is obtained against a party who's failed to make payment. Though, that'd be a separate process altogether.

For more information on New York mechanics liens, including who can file a New York mechanics lien, this is a great resource: New York Mechanics Lien Overview

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