The New York Legislature has made some recent changes to the law governing mechanics’ liens.[1] Specifically, under Section 9(7), Article 2 of the NY Lien Law, a Notice Under Mechanic’s Lien Law now requires a statement as to “whether the property subject to the lien is real property improved or to be improved with a single family dwelling or not.”[2]
The justification for this addition can be found in the legislative history. Prior to the change in law, Notices Under Mechanic’s Lien Law were not “required to distinguish between a residential or a non-residential property.”[3] However, distinguishing between residential and non-residential properties is essential since the renewal of mechanic’s liens filed against residential and non-residential properties are treated differently.
Mechanic’s liens on single family dwellings must be filed within four months[4] from the last date of work and remain valid for one year from the date of filing.[5] “A lien on a single family dwelling may not be self-extended; it may be extended only by court order.”[6]
With respect to non-residential property, a mechanic’s lien must be filed within eight months[7] from the last date of work and remains valid for one year from the date of filing.[8] However, with respect to non-residential property, a mechanic’s lien “may be extended for one year by the filing and service of an extension of lien within one year of the original notice of lien.”[9] Furthermore, “[i]f an additional one-year extension is needed, a lienor, upon good cause shown, may obtain an order from a court of record to continue the lien.”[10]
The Legislature determined that without requiring a mechanic’s lien to specify the type of property “has opened the door for a lien to be filed on a residential property and then the assertion to be made that the lien can be extended into a second year.”[11] The Legislature determined that: “[r]equiring that mechanics’ liens specify whether they are on residential or non-residential propert[ies] will ensure that liens filed in New York State are filed against the correct property classification and that New York families are better protected.”[12] As a result of this amendment, the Legislature is attempting to limit the extension of mechanic’s liens against single family dwellings and to protect New York families from mechanic’s liens.
For further information or guidance regarding mechanics’ liens and how they may affect you, please contact Christopher E. Vatter.
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* This article was authored by Christopher E. Vatter, Esq., with the assistance of Mr. Michael P. Miata.
Mr. Vatter is a partner with Jaspan Schlesinger LLP and focuses his practice in the areas of complex commercial litigation, construction law, and banking litigation. He represents property owners and real estate developers in the negotiation of construction-related contracts and in litigation arising from construction projects. Mr. Vatter also has extensive experience in all phases of litigation on behalf of both public and private entities, and represents financial institutions in foreclosure actions, collection matters, and loan workouts.
Mr. Miata is a law clerk in Jaspan Schlesinger LLP’s Summer Law Clerk Program. Michael is entering his third year at Maurice A. Deane School of Law at Hofstra University.
[1] New York Mechanic’s Lien Law allows persons such as contractors and subcontractors who provide work, labor, services, or materials, for the improvement of real property, to file a mechanic’s lien against the real property to secure their payment. See e.g., NY Lien Law § 3.
[2] NY Lien Law § 9(7).
[3] 2019 Legis. Bill Hist. NY A.B. 4766.
[4] NY Lien Law § 10.
[5] NY Lien Law § 17.
[6] William J. Postner & Robert A. Rubin, New York Construction Law Manual § 9.32 (2d ed. 2006) citing NY Lien Law § 17; Cook v. Carmen S. Pariso, Inc., 287 A.D.2d 208 (4th Dep’t 2001).
[7] NY Lien Law § 10.
[8] NY Lien Law § 17.
[9] William J. Postner & Robert A. Rubin, New York Construction Law Manual § 9.32 (2d ed. 2006) citing NY Lien Law § 17.
[10] Id.
[11] 2019 Legis. Bill Hist. NY A.B. 4766.
[12] Id.