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Is there a time limit in Michigan to place a lien on a home after filing Notice of Furnishing?

MichiganLien DeadlinesRight to Lien

Is there a time limit in Michigan from the time a Notice of Furnishing is issued by a supplier to a homeowner? And what ramifications may there be to us as homeowners? In September we ordered windows through our general contractor who purchased them from a dealer/supplier (Pella). 50% down was provided. The supplier sent via certified mail a notice of furnishing shortly thereafter. The window order arrived October 19th and our contractor paid Pella the balance due, only to stop payment of his check to them a couple days later due to issues with the order. Two windows were not ordered, or not ordered correctly. The correct windows are sitting in the Pella warehouse, but in order for us to obtain them, we must make the payment whole. In November, Pella and our contractor were willing to make a deal for a reduced price as some incorrect window sizes were due to the Pella Rep's error. We have since parted company with the Contractor after making a complete mess of our home, and after discovering he's not licensed (that is currently being dealt with by the County Building Inspector and Sheriff's Dept). To now get our project going and our house put back together, we have a new contractor. Pella will release the two windows, but for the full amount due under the presumption we will received restitution from the contractor (we are not very positive that will happen). Pella advises they will place a lien on our house if we do not pay for the windows. If we don't pay them for the windows (we've already paid the contractor), can they place a lien on our house? If so, is the lien in place until paid or does it expire? Is there a time period they have to file since they issued a Notice of Furnishing? We truly have a mess, and hopefully the court will resolve it at some point, we're just not sure how or when the outcome may be determined.

1 reply

Apr 1, 2020
Hello, Your post presents a multitude of issues and problems that would take quite some time to unpack and analyze. Let's focus on the Pella windows, however, since that seems to be your primary concern. For windows delivered on October 19, 2019, Pella's time for recording a construction lien has lapsed. Michigan requires that a lien be recorded within 90 days of last furnishing labor and/or materials. However, if the two additional windows are delivered, that may revive Pella's time for recording a lien. And I believe they can record a lien for the full unpaid amount of the window order, including the amount tied to the check your first contractor stopped payment on. That's what I would tell Pella to do. Your pose also raised several questions -- Did the first contractor stop payment for problems with the windows? Were the windows installed notwithstanding any alleged problems? If they were installed, it begs the question of whether there was really any problem with the windows or your first builder just needed the money so he stopped payment. Bottom Line: I think to avoid a lien from Pella, you should either (a) purchase the other two windows from another supplier (not Pella) or (b) arrange to pay Pella for all the windows and pursue a claim against your first builder. Pella may be willing to assign you their rights under a personal guarantee with the first contractor.
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