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We have filed a LIEN on a property. What's next if they don't pay?

MichiganLien Foreclosure

We have filed a LIEN on a commercial property thru Levelset (thanks!). Can you please tell me what the next course of action is if they don't pay?

3 replies

Jan 30, 2023

If you filed a lien you must serve it on the prime contractor (if you are a sub) and the OWNER (typically by first class mail -- keep copies of cover letters and the lien). Your company then has 1 year from the date of filing to foreclose on the lien by filing a lawsuit. The Michigan Construction Lien Act allows the company to add your attorneys fees if it wins. Therefore I highly suggest you contact a knowledgeable construction law attorney to represent your company from now on.  

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Jan 30, 2023

Lindsay, I agree with what Jim said except it has to be handed to the owner or sent by certified mail return receipt requested.  

MCL 570.1111(5) "Each contractor, subcontractor, supplier...., within 15 days after the date of the recording, shall serve on the designee personally or by certified mail, return receipt requested, at the address shown on the notice of commencement, a copy of the claim of lien and a copy of any proof of service recorded in connection with the claim of lien. If a designee has not been named in the notice of ommencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If the service is made by certified mail, service is complete upon mailing. Proof of making the service shall be attached to any complaint, cross-claim, or counterclaim filed to enforce a construction lien. "

The above response is provided as a courtesy and does not establish an attorney-client relationship. If you would like to contact me directly for a consultation, I am located in Port Huron (810) 987-3970. Since 1975.

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Jan 30, 2023

Thank you! This was the direction I felt we would be headed, thank you bnoth for confimring. I appreciate your time greatly! 

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