Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Each contractor, subcontractor, supplier, or laborer who contracts with owner/lessee to improve real property. Includes design professionals. MI COMP L § 570.1107 MI COMP L § 570.1104 DEADLINE TO PERFECT Claim of lien must be filed within 90 days after lien claimant’s last furnishing of labor or material. MI COMP L § 570.1111 MI COMP L § 570.1107A(2) (for design professionals) BROKEN PRIORITY Lien dates relate back to the date of first physical improvement made (including grading, paving, etc.). NOTE: • For design professionals, lien date relates back to date claimant records notice of lien. However, if an actual physical improvement is made, the notice is only effective from the date of said improvement. MI COMP L § 570.1107A • An advance under a mortgage, but subsequent to first physical improvement, can have priority if requisite consent obtained from contractors/subcontractor s pursuant to MI COMP L § 570.1119(4). MI COMP L § 570.1119 DURATION OF LIEN Action to enforce lien must be brought within 1 year after the date the claim of lien is recorded. MI COMP L § 570.1117 CONTENTS OF LIEN (1) Subscribed and sworn statement; (2) date of first furnishing/performance; (3) name and address of lienor; (4) legal description of property sufficient for ID; (5) name of owner/lessee; (6) date of last furnishing/performance; and (7) amount of claim, amount paid, amount outstanding. Substantial compliance required. Should not prejudice purpose of statutory scheme. Northern Concrete Pipe, Inc. v. Sinacola Companies-Midwest, Inc. (1999) 603 N.W.2d 257, 461 Mich. 316. MI COMP L § 570.1111 MI COMP L § 570.1107A (design professionals content requirements – largely same) MICHIGAN MICHIGAN – 525 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

RkJQdWJsaXNoZXIy ODI0NDE4