I would like to have some details on this process.
1 reply
Jan 22, 2020
First, it's worth mentioning that most states - including New York - prohibit the terms of a contract blocking mechanics lien claims. So, even if a contract has a clause prohibiting mechanics lien, filing a mechanics lien, in and of itself, typically won't result in an actual breach. Levelset discusses that here: No Lien Clauses: A 50-State Overview for the Construction Industry.
How to file a New York mechanics lien
Filing a New York mechanics lien claim is generally as simple as filling out the correct mechanics lien form, sending notice of the lien to the property owner, and filing the lien claim at the county recorder's office.
Of course, there are a lot of details that go into making a lien claim. And, it can be helpful to get insight into different parts of the form. This article from Levelset has got you covered on that front: How to File a New York Mechanics Lien – Step By Step Guide to Get You Paid.
Recovering payment without actually filing a New York mechanics lien
With all of the above being said, it's important to note that there are some tools other than a mechanics lien filing that can help you get paid. So, if the mechanics lien deadline isn't closing in, then there may be time to pursue the other tools before going forward with a lien claim.
Invoice reminders
Sometimes, something as simple as an invoice reminder can be enough to get you paid. An invoice reminder acts as a gentle nudge in the right direction, rather than a full-blown claim or threat. Sometimes, that's all that's needed to get paid.
Demand letters
Escalating things a bit with a payment demand letter can lead to payment, too. Demand letters let recipients know that nonpayment or slow payment isn't an option, and they'll typically include specific legal threats and set a deadline for making payment.
Notice of Intent to Lien
Because mechanics liens are so powerful in forcing payment, the mere threat of a lien claim will often lead to claimants getting paid. By sending a document like a Notice of Intent to Lien to the customer and/or the property owner, a claimant lets everyone know that there's a serious payment dispute at hand, and that a lien claim will soon be filed if it isn't resolved. More on that here: What Is a Notice of Intent to Lien and Should You Send One?