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What is the specific language required in a residential owner occupied home remodeling contract to preserve lien rights?

I cannot find the language for the "notice" described in this statement: "In Michigan, prime contractors, subcontractors, laborers, and suppliers are all required to give preliminary notice on all projects except 1 to 4 family residential owner-occupied buildings. For those projects, the “notice” required must be contained within the contract itself between the home improvement general contractor and the owner-occupier." Does not having this in a contract signed in October 2017 prevent us from being able to file a lien?

1 reply

May 1, 2018

It would be helpful to know where that exact language comes from - but it sounds a lot like the language we use in reference to Tennessee's preliminary notice requirements ("Prime contractors, subcontractors, laborers, and suppliers are all required to give preliminary notice on all projects except 1 to 4 family residential owner-occupied buildings. For those projects, the “notice” required must be contained within the contract itself between the home improvement general contractor and the owner-occupier."). Anyway, on Michigan residential projects, a Sworn Statement must be provided to the owner (by a prime contractor) and to the prime contractor (by a subcontractor) before being paid any progress or final payment. The statement lists all subcontractors, sub-subs, suppliers, and laborers, with whom the party has contracted and lists amounts unpaid to them, if any. It does not appear that special language is required for those entering into Michigan residential projects, though. Further, in Michigan, a residential structure is defined as "an individual residential condominium unit or a residential building containing not more than 2 residential units, the land on which it is or will be located, and all appurtenances, in which the owner or lessee contracting for the improvement is residing or will reside upon completion of the improvement." Hope that's helpful!

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