Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM A contractor, subcontractor, laborer, materialman, landscape gardener, nurseryman, who performs labor or furnishes materials for the improvement of real property. Includes design professionals. Kiell v. AAC Employment Corp., 61 Misc. 2d 104, 104,304 N.Y.S.2d 500, 501 (Civ. Ct. 1969) NY LIEN L § 3 DEADLINE TO PERFECT Deadline to file lien depends on whether the property is a single family home construction: • Residential Single Family Home: Notice of lien must be filed within 4 months after the completion of the contract or work, or the final furnishing of the material to the property. • All others: Notice of lien must be filed within 8 months after the completion of the contract or work, or the final furnishing of the material to the property. NY LIEN L § 10 BROKEN PRIORITY Lien date is generally the date at which the notice of lien is filed. EXCEPTIONS: • Conveyances and Mortgages Recorded between Commencement and Deadline to File Mechanics’ Lien: Will be inferior to subsequently recorded mechanics’ lien unless includes language pursuant to NY LIEN L § 13(5) • Advances: Advances under a construction mortgage after mechanics’ lien recordation and which a lender is not obligated to make will be subordinate to mechanics’ lien. NY LIEN L § 13 DURATION OF LIEN The lien will expire 1 year after the filing of the notice of lien unless an action to foreclose the lien is filed and a notice of pendency is filed within the one year period. NOTE: If the notice of pendency expires or is terminated under the civil practice law and rules, the mechanic’s lien is terminated. EXTENSION OF DEADLINE TO ENFORCE: • Non-single family homes: extension can be filed within the 1 year period, which extends the time to file an action by 1 year. • Single family homes and liens which have been extended once: a judicial order may extend the lien for 1 year, up to 2 years in a row. NOTE: When a mechanic’s lien claimant is named as a defendant in an action to enforce a separate mechanic’s lien, that action serves as enforcement of both liens and extends both. NY LIEN L § 17 CONTENTS OF LIEN (1) Verified notice; (2) name and residence of the lienor; and if applicable, names of partners and principal place of business, and name and address of the lienor’s attorney, if any; (3) name of the owner of the real property; (4) name of the person by whom the lienor was employed; (5) labor or materials furnished and the agreed price or value thereof; (6) unpaid amount; (6) time when first and last items of labor or materials were furnished; (7) description of subject property sufficient for ID (if available, street address); and (8) whether a single family dwelling. Substantial compliance required. Lien is sufficient so long as provides adequate notice and secures beneficial interests therein. Corina Assocs., Inc. v. McManus, Longe, Brockwehl, Inc., 39A.D.2d 613, 614, 330 N.Y.S.2d 847, 849(1972) NY LIEN L § 9 NEW YORK NEW YORK – 535 – 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

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