What lien rights does a builder have when there is no recorded notice of commencement.

2 weeks ago

State of Michigan – homeowner has a bathroom renovation completed.

There is no Notice of Commencement recorded.

House is being sold….title company is aware that there is an outstanding invoice for work . Invoice is dated from June 2019. Homeowner refuses to pay full invoice, alleging that the builder went beyond the original scope of the project and charged more without authorization or acknowledgment from the homeowner.

No mechanics liens filed at this time, but builder is threatening to do so. Does the builder have a leg to stand on…..concern is that there is no document of record that establishes a timeline for this project and when a lien could be recorded and enforced.

Senior Legal Associate Levelset
95 reviews

An owner’s failure to file a Michigan Notice of Commencement shouldn’t have any adverse effect on their contractor’s ability to lien. Levelset actually discusses that on its Michigan Notice of Commencement FAQs: Does the notice of commencement affect my lien rights?

It’s natural to worry about establishing the proper timelines for a project. However, considering the Michigan mechanics lien deadline runs from the last furnishing date on the project, it should be relatively easy for a contractor to prove that their lien was timely filed.

Certainly, it will make things less complicated if a mechanics lien is filed against the owner who authorized the work on the relevant project. However, know that, generally, mechanics liens may be filed even if the project property is sold prior to the lien filing – and this is especially true where the purchaser is aware of the debt and potential lien before they purchase the property.

Additional Michigan mechanics lien resources

Finally, these resources may be helpful to you:

– Michigan Mechanics Lien Guide and FAQs
– How to File A Michigan Mechanics Lien – Step By Step Guide To Get You Paid

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