hello -
who exactly is served with the lien if there is an owner and a tenant? or is it both?
Is the owner of the property ultimately responsible and then has to get the funds from the tenant?
Determining who's responsible for a New York mechanics lien on a tenant improvement will come down to whether the tenant's interest or the owner's interest is being liened. We discuss that in-depth here: Can You File a New York Mechanics Lien When Working for a Tenant?
Who must receive notice of the lien filing will ultimately come down to who's property interest has been liened. If the lien is against the underlying property, then notice would likely need to go to the owner. If the lien is against the tenant's interest, then the lien would likely need to go to the tenant. Because the term "owner" can refer to either the fee owner of the property or a lessee of that property under § 2(3) of the state's lien statute, who must receive notice will vary on a case by case basis.
However, it's generally a good idea to send notice to both the property owner and the tenant for whom work was performed. This is because when more parties are aware of the debt, more parties will be available to either pay on the debt or to put pressure on the other party or parties to make payment. Plus, that way all bases are covered.
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...