Menu
Home>Levelset Community>Legal Help>what happens if i file a lien for more than the contract amount?

what happens if i file a lien for more than the contract amount?

MichiganMechanics Lien
Anonymous Contractor

the customer stopped payment on the final payment for $2500.00. So I decided to charge more money.

1 reply

Levelset Admin at Levelset
| 335 reviews
Jul 16, 2020
Under Mich. Comp. Laws §570.1107(1), "A construction lien acquired pursuant to the amount of the lien claimant's contract less payment made on the contract." A Michigan mechanics lien can't exceed the contract price. If the claim is filed for more, and the dispute ends up in court; there are two potential outcomes:
  1. The lien claim will be reduced to the appropriate amount if the error was due to a good faith mistake or miscalculation.
  2. The lien claim will be completely dismissed if the excessive amount was found to be in bad faith.
There is no reason to tempt the fates when it comes to lien amounts, particularly if the entire claim can be thrown out. And on top of that, attorneys fees and court costs are typically awarded to the prevailing party in a foreclosure action, if the claim is thrown out, not only will the claimant not be able to recover, but will also be on the hook for the property owner's attorney's fees.
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such.
Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...
See More...
1 person found this helpful
Helpful