ACT
497 of 1980
AN ACT to establish, protect, and enforce by lien the rights of
persons performing labor or providing material or equipment for
the improvement of real property; to provide for certain defenses
with respect thereto; to establish a homeowner construction lien
recovery fund within the department of licensing and regulation;
to provide for the powers and duties of certain state officers;
to provide for the assessments of certain occupations; to prescribe
penalties; and to repeal certain acts and parts of acts.
PART 1
570.1101 Short Title
570.1102 Definitions
570.1103 Definitions
570.1104 Definitions
570.1105 Definitions
570.1106 Definitions
570.1107 Persons Entitled to Construction Liens, Interests Affected,
Vendee or Lessee, Joint Ownership, Limitation of Amount of Liens
570.1108 Notice of Commencement, Service, Posting, Exemption
570.1108a Notice of Commencement, Residential Structure, Service,
Posting
570.1109 Notice of Furnishing, Service
570.1110 Sworn Statement by Contractor, Subcontractor, Owner May
Withhold Payment, Direct Payment, Notice to General Contractor,
Failure to Provide Sworn Statement, Penalties
570.1111 Claim of Lien, Recording, Time
570.1112 Recording, Indexing, Fees
570.1113 Inspection and Copying of Contract, Statement of Amount
Unpaid, Statement of Labor and Material Furnished and Amount Unpaid
570.1114 Contractors License, Notice in Contract
570.1115 Advance Waiver Prohibited, Waivers of Lien, Partial Waivers,
Conditional Waivers, Retainage, Waiver Forms
570.1116 Release Bond, Notice, Objection to Surety
570.1117 Foreclosure Proceedings, Limitations, Notice of Lis Pendens,
Parties, Personal Action
570.1118 Foreclosure Action, Venue, Trial, Attorneys Fees
570.1119 Priorities, Advances from Construction Loans, Retainage
570.1120 Part Performance
570.1121 Judgment, Sale, Redemption, Deficiency Judgment
570.1122 Receiver
570.1123 Completion of Construction or Sale or by Receiver
570.1124 Final Account of Receiver
570.1125 Liens Assignable
570.1126 Limitations on Condominium Liens
570.1127 Discharge of Lien
570.1128 Certificate That No Foreclosure Proceedings Have Been
Commenced
PART
2
570.1201 Homeowner Construction Lien Recovery Fund, Fees
570.1202 Management, Audit
570.1203 Homeowner Affidavit, Recovery from the Fund, Defense
by Attorney General
570.1204 Payments from the Fund
570.1205 Immunity, Recoupment
570.1206 Disciplinary Proceedings
570.1207 False Information, Felony
PART 3
570.1301 Residential Structures, Application of Act, Statement
of Date of Contract, Notice of Furnishing, Definitions
570.1302 Liberal Construction
570.1304 Joint Review Committee
570.1305 Effective Date
MICHIGAN COMPILED LAWS
CHAPTER 570 LIENS
CONSTRUCTION LIEN ACT
PART 1
570.1101 Short Title
Sec. 101. This act shall be known and may be cited as the “construction
lien act”.
570.1102 Definitions
Sec. 102. For the purposes of this act, the words and phrases
defined in sections 103 to 106 have the meanings ascribed to them
in those sections.
570.1103 Definitions
Sec. 103. (1) “Actual physical improvement” means
the actual physical change in, or alteration of, real property
as a result of labor provided, pursuant to a contract, by a contractor,
subcontractor, or laborer which is readily visible and of a kind
that would alert a person upon reasonable inspection of the existence
of an improvement. Actual physical improvement does not include
that labor which is provided in preparation for that change or
alteration, such as surveying, soil boring and testing, architectural
or engineering planning, or the preparation of other plans or
drawings of any kind or nature. Actual physical improvement does
not include supplies delivered to or stored at the real property.
(2) “Co-lessee” a person having an interest in real
property, the nature of which is identical to that of the interest
of the lessee who contracted for the improvement to the real property,
whether the extent of such interest is identical or not.
(3) “Construction lien” means the lien of a contractor,
subcontractor, supplier, or laborer, as described in section 107.
(4) “Contract” means a contract, of whatever nature,
for the providing of improvements to real property, including
any and all additions to, deletions from, and amendments to the
contract.
(5) “Contractor” means a person who, pursuant to a
contract with the owner or lessee of real property, provides an
improvement to real property.
(6) “Co-owner” means a person having an interest in
real property, the nature of which is identical to that of the
interest of the owner who contracted for the improvement to the
real property, whether the extent of such interest is identical
or not.
570.1104 Definitions
Sec. 104. (1) “Court” means the circuit court in which
an action to enforce a construction lien through foreclosure is
pending.
(2) “Department” means the department of licensing
and regulation.
(3) “Designee” means the person named by an owner
or lessee to receive, on behalf of the owner or lessee, all notices
or other instruments whose furnishing is required by this act.
The owner or lessee may name himself or herself as designee. The
owner or lessee may not name the contractor as designee. However,
a contractor who is providing only architectural or engineering
services may be named as designee.
(4) “Fringe benefits and withholdings” means compensation
due an employee pursuant to a written contract or written policy
for holiday, time off for sickness or injury, time off for personal
reasons or vacation, bonuses, authorized expenses incurred during
the course of employment, and any other contributions made to
or on behalf of an employee.
(5) “Fund” means the homeowner construction lien recovery
fund created under part 2.
(6) “General contractor” means a contractor who contracts
with an owner or lessee to provide, directly or indirectly through
contracts with subcontractors, suppliers, or laborers, substantially
all of the improvements to the property described in the notice
of commencement.
(7) “Improvement” means the result of labor or material
provided by a contractor, subcontractor, supplier, or laborer,
including, but not limited to, surveying, engineering and architectural
planning, construction management, clearing, demolishing, excavating,
filling, building, erecting, constructing, altering, repairing,
ornamenting, landscaping, paving, leasing equipment, or installing
or affixing a fixture or material, pursuant to a contract.
(8) “Laborer” means an individual who, pursuant to
a contract with a contractor or subcontractor, provides an improvement
to real property through the individual’s personal labor.
570.1105 Definitions
Sec. 105. (1) “Lessee” means a person, other than
the owner, who holds an interest, other than a security interest,
in real property.
(2) “Lien claimant” means a person having a right
to a construction lien under this act.
(3) “Owner” means a person holding a fee interest
in real property or an equitable interest arising out of a land
contract.
570.1106
Definitions
Sec. 106. (1) “Person” means an individual, corporation,
partnership, sole proprietorship, association, other legal entity,
or any combination thereof.
(2) “Project” means the aggregate of improvements
contracted for by the contracting owner.
(3) “Residential structure” means an individual residential
condominium unit or a residential building containing not more
than 2 residential units, the land on which it is or will be located,
and all appurtenances thereto, in which the owner or lessee contracting
for the improvement is residing or will reside upon completion
of the improvement.
(4) “Subcontractor” means a person, other than a laborer
or supplier, who pursuant to a contract between himself or herself
and a person other than the owner or lessee performs any part
of a contractor’s contract for an improvement.
(5) “Supplier” means a person who, pursuant to a contract
with a contractor or a subcontractor, leases, rents, or in any
other manner provides material or equipment which is used in the
improvement of real property.
(6) “Wages” means all earnings of an employee whether
determined on the basis of time, task, piece, commission, or other
method of calculation for labor or services except those defined
as fringe benefits and withholdings.
570.1107
Persons Entitled to Construction Liens, Interests Affected, Vendee
or Lessee, Joint Ownership, Limitation of Amount of Liens
Sec. 107. (1) Each contractor, subcontractor, supplier, or laborer
who provides an improvement to real property shall have a construction
lien upon the interest of the owner or lessee who contracted for
the improvement to the real property, as described in the notice
of commencement provided for by section 108 or 108a, the interest
of an owner who has subordinated his or her interest to the mortgage
for the improvement of the real property, and the interest of
an owner who has required the improvement. A construction lien
acquired pursuant to this act shall not exceed the amount of the
lien claimant’s contract less payments made on the contract.
(2) A construction lien under this act shall attach to the entire
interest of the owner or lessee who contracted for the improvement,
including any subsequently acquired legal or equitable interest.
(3) Each contractor, subcontractor, supplier, or laborer who provides
an improvement to real property to which the person contracting
for the improvement had no legal title shall have a construction
lien upon the improvement for which the contractor, subcontractor,
supplier, or laborer provided labor, material, or equipment. The
forfeiture, surrender, or termination of any title or interest
held by any owner or lessee who contracted for an improvement
to the property or by any owner who subordinated his or her interest
to the mortgage for the improvement, or by any owner who has required
the improvement shall not defeat the lien of the contractor, subcontractor,
supplier, or laborer upon the improvement.
(4) If the rights of a person contracting for an improvement as
a land contract vendee or a lessee are forfeited, surrendered,
or otherwise terminated, any lien claimant who has provided a
notice of furnishing or is excused from providing a notice of
furnishing pursuant to section 108, 108a, or 109 and who performs
the covenants contained in the land contract or lease within 30
days after receiving actual notice of the forfeiture, surrender,
or termination shall be subrogated to the rights of the contracting
vendee or lessee as those rights existed immediately before the
forfeiture, surrender, or termination.
(5) For purposes of this act, if the real property is owned or
leased by more than 1 person, an improvement to real property
pursuant to a contract which was entered into by an owner or lessee
shall be presumed to have been consented to by any other co-owner
or co-lessee, but the presumption shall in all cases be rebuttable.
If enforcement of a construction lien through foreclosure is sought
and the court finds that the improvement has been consented to
by a co-owner or co-lessee who did not contract for the improvement,
the court shall order the entire interest of that co-owner or
co-lessee, including any subsequently acquired legal or equitable
interest, to be subject to the construction lien. A deficiency
judgment shall not be entered against a noncontracting owner,
co-owner, lessee, or co-lessee.
(6) If the real property of an owner or lessee is subject to construction
liens, the sum of the construction liens shall not exceed the
amount which the owner or lessee agreed to pay the person with
whom he or she contracted for the improvement as modified by any
and all additions, deletions, and any other amendments, less payments
made by or on behalf of the owner or lessee, pursuant to either
a contractor’s sworn statement or a waiver of lien, in accordance
with this act.
570.1108 Notice of Commencement, Service, Posting,
Exemption
Sec. 108. (1) Before the commencement of any actual physical improvements
to real property, the owner or lessee contracting for the improvements
shall record in the office of the register of deeds for each county
in which the real property to be improved is located a notice
of commencement, in the form set forth in this section. If all
improvements relate to a single project only 1 notice of commencement
need be recorded. A subsequent notice of commencement need not
be recorded for an improvement to any real property which currently
has a notice of commencement recorded in the office of the register
of deeds if that recorded notice of commencement contains the
same information as the subsequent notice of commencement.
(2) The notice of commencement shall contain the following information:
(a) The legal description of the real property on which the improvement
is to be made. A description conforming to section 212 or 255
of Act No. 288 of the Public Acts of 1967, being sections 560.212
and 560.255 of the Michigan Compiled Laws, shall be a sufficient
legal description.
(b) The name, address, and capacity of the owner or lessee of
the real property contracting for the improvement.
(c) The name and address of the fee owner of the real property,
if the person contracting for the improvement is a land contract
vendee or lessee.
(d) The name and address of the owner’s or lessee’s
designee.
(e) The name and address of the general contractor, if any.
(f) The following statement:
“To lien claimants and subsequent purchasers:
Take notice that work is about to commence on an improvement to
the real property described in this instrument. A person having
a construction lien may preserve the lien by providing a notice
of furnishing to the above named designee and the general contractor,
if any, and by timely recording a claim of lien, in accordance
with law. A person having a construction lien arising by virtue
of work performed on this improvement should refer to the name
of the owner or lessee and the legal description appearing in
this notice. A person subsequently acquiring an interest in the
land described is not required to be named in a claim of lien.
A copy of this notice with an attached form for notice of furnishing
may be obtained upon making a written request by certified mail
to the above named owner or lessee; the designee; or the person
with whom you have contracted.”
(g) The name and address of the person preparing the notice.
(h) An affidavit of the owner or lessee or the agent of the owner
or lessee which verifies the notice.
(3) Each copy of the notice of commencement shall have a blank
notice of furnishing as described in section 109 attached to it.
The blank notice of furnishing shall be easily detachable from
the copy of the notice and need not be recorded.
(4) Incorrect information contained in the notice of commencement
furnished by or for an owner or lessee shall not affect adversely
the rights of a lien claimants as against the property of that
owner or lessee.
(5) The owner, lessee, or designee, within 10 days after the date
of mailing of a written request by certified mail from a subcontractor,
supplier, or laborer, shall provide a copy of the notice of commencement,
together with an attached blank notice of furnishing form, to
the subcontractor, supplier, or laborer requesting a copy of the
notice of commencement.
(6) A contractor who has been provided with a notice of commencement
from the owner, lessee, or designee, within 10 days after the
date of mailing of a written request by certified mail from a
subcontractor, supplier, or laborer who has a direct contract
with the contractor, shall provide a copy of the notice of commencement,
together with an attached blank notice of furnishing form, to
the subcontractor, supplier, or laborer requesting a copy of the
notice of commencement.
(7) A subcontractor who has been provided with a notice of commencement
from the owner, lessee, designee, contractor, or subcontractor,
within 10 days after the date of mailing of a written request
by certified mail from a subcontractor, supplier, or laborer who
has a direct contract with the subcontractor, shall provide a
copy of the notice of commencement, together with an attached
blank notice of furnishing form, to the subcontractor, supplier,
or laborer requesting a copy of the notice of commencement.
(8) The owner, lessee, or designee shall post and keep posted
a copy of the notice of commencement in a conspicuous place on
the real property described in the notice during the course of
the actual physical improvement to the real property.
(9) The owner, lessee, or designee shall provide a copy of the
notice of commencement to the general contractor, if any. Failure
of the owner, lessee, or designee to provide the notice of commencement
to the general contractor shall render the owner or lessee liable
to the general contractor for all actual expenses sustained by
the general contractor in obtaining the information otherwise
provided by the notice of commencement.
(10) Failure of the owner, lessee, or designee to record the notice
of commencement, in accordance with this section, shall operate
to extend the time Within which a subcontractor or supplier may
provide a notice of furnishing, as described in section 109, until
20 days after the notice of commencement has been recorded.
(11) Failure of the owner, lessee, or designee to provide, upon
written request, the notice of commencement, in accordance with
this section, shall operate to extend the time within which a
subcontractor or supplier may provide a notice of furnishing,
as described in section 109, until 20 days after the notice of
commencement actually has been furnished to the subcontractor
or supplier.
(12) Failure of the owner, lessee, or designee to record the notice
of commencement, in accordance with this section, shall operate
to extend the time within which a laborer may provide a notice
of furnishing, as described in section 109, until 30 days after
the notice of commencement has been recorded, or until the time
in which to provide the notice of furnishing in accordance with
section 109 expires, whichever is later.
(13) Failure of the owner, lessee, or designee to provide the
notice of commencement, in accordance with this section, shall
operate to extend the time within which a laborer may provide
a notice of furnishing, as described in section 109, until 30
days after the notice of commencement has been provided, or until
the time in which to provide the notice of furnishing in accordance
with section 109 expires, whichever is later.
(14) Failure of the owner, lessee, or designee to post or keep
posted a copy of the notice of commencement as provided in subsection
(8) shall render the owner or lessee liable to a subcontractor,
supplier, or laborer who becomes a lien claimant for all actual
expenses sustained by the lien claimant in obtaining the information
otherwise provided by the posting.
(15) Failure of a contractor, who has been provided with a notice
of commencement from the owner, lessee, or designee, to provide
the notice of commencement upon the request of a lien claimant
who has a direct contract with the contractor for an improvement
to property shall render the contractor liable to the lien claimant
for all actual expenses sustained by the lien claimant in obtaining
the information otherwise provided by the notice of commencement.
(16) Failure of a subcontractor, who has been provided with a
notice of commencement from the owner, lessee, designee, contractor,
or subcontractor to provide the notice of commencement upon the
request of a subcontractor, supplier, or laborer who has a direct
contract with the subcontractor shall render the subcontractor
liable to such subcontractor, supplier, or laborer for all actual
expenses sustained by the subcontractor, supplier, or laborer
in obtaining the information otherwise provided by the notice
of commencement.
(17) If the owner, lessee, or designee fails to provide, record,
and post the notice of commencement as provided in this act and
if, after the first actual physical improvement, the contractor
by certified mail makes a written request to the owner, lessee,
or designee to provide, record, and post the notice of commencement
and the owner, lessee, or designee fails within 10 days after
receipt of the request to do so, the owner or lessee shall be
barred from requiring the contractor to hold the owner or lessee
harmless from liens of lien claimants to the extent such lien
claims could have otherwise been avoided through proper payment,
had such request been complied with. If the contractor pays a
valid lien claim at the direction of the owner, lessee, or designee
after the owner, lessee, or designee has failed to comply with
this section, the owner or lessee shall be liable to the contractor
to the extent the lien claim could have otherwise been avoided
through proper payment had such request been complied with. This
subsection shall not apply if the lien claimant appears on a sworn
statement provided to the contractor and the claim of the lien
claimant appearing on the sworn statement could have been avoided
had payment been made in accordance with the sworn statement.
(18) This section shall not apply to an improvement to a residential
structure.
570.1108a Notice of Commencement, Residential Structure,
Service, Posting
Sec. 108a. (1) An owner or lessee contracting for an improvement
to a residential structure shall prepare and provide a notice
of commencement to a contractor, subcontractor, supplier, or laborer
who has made a written request for the notice pursuant to this
section.
(2) The notice of commencement shall contain the following information:
(a) The legal description of the real property on which the improvement
is to be made. A description conforming to section 212 or 255
of Act No. 288 of the Public Acts of 1967, being sections 560.212
and 560.255 of the Michigan Compiled Laws, shall be a sufficient
legal description.
(b) The name, address, and capacity of the owner or lessee of
the real property contracting for the improvement.
(c) The name and address of the fee owner of the real property,
if the person contracting for the improvement is a land contract
vendee or lessee.
(d) The name and address of the owner’s or lessee’s
designee.
(e) The name and address of the general contractor, if any. The
notice of commencement form shall contain the following caption
below the line for the general contractor’s name and address:
(the name of the person with whom you have contracted to provide
substantially all the improvements to the property.)
(f) The following statement in boldface type on the front of the
form:
WARNING TO HOMEOWNER
Michigan law requires that you do the following:
1. Complete and return this form to the person who asked for it
within 10 days after the date of the postmark on the request.
2. If you do not complete and return this form within the 10 days
you may have to pay the expenses incurred in getting the information.
3. If you do not live at the site of the improvement, you must
post a copy of this form in a conspicuous place at that site.
You are not required to but should do the following:
1. Complete and post a copy of this form at the place where the
improvement is being made, even if you live there.
2. Make and keep a copy of this form for your own records.
(g) The following statement:
“To lien claimants and subsequent purchasers:
Take notice that work is about to commence on an improvement to
the real property described in this instrument. A person having
a construction lien may preserve the lien by providing a notice
of furnishing to the above named designee and the general contractor,
if any, and by timely recording a claim of lien, in accordance
with law.
A person having a construction lien arising by virtue of work
performed on this improvement should refer to the name of the
owner or lessee and the legal description appearing in this notice.
A person subsequently acquiring an interest in the land described
is not required to be named in a claim of lien.
A copy of this notice with an attached form for notice of furnishing
may be obtained upon making a written request by certified mail
to the above named owner or lessee; the designee; or the person
with whom you have contracted.”
(h) The name and address of the person preparing the notice.
(i) An affidavit of the owner or lessee or the agent of the owner
or lessee which verifies the notice.
(3) Each copy of the notice of commencement shall have a blank
notice of furnishing as described in section 109 attached to it.
The blank notice of furnishing shall be easily detachable from
the copy of the notice and need not be recorded.
(4) Incorrect information contained in the notice of commencement
furnished by or for an owner or lessee shall not affect adversely
the rights of a lien claimant as against the property of that
owner or lessee.
(5) The owner, lessee, or designee, within 10 days after the date
of mailing of a written request by certified mail from a contractor
subcontractor, supplier, or laborer, shall prepare and provide
a copy of the notice of commencement, together with an attached
blank notice of furnishing form, to the contractor, subcontractor,
supplier, or laborer requesting a copy of the notice of commencement.
A contractor, subcontractor, supplier, or laborer who requests
a notice of commencement from an owner or lessee of a residential
structure shall supply a blank notice of commencement form together
with the attached blank notice of furnishing to the owner or lessee
at the time the request is made.
(6) A contractor who has been provided with a notice of commencement
from the owner, lessee, or designee, within 10 days after the
date of mailing of a written request by certified mail from a
subcontractor, supplier, or laborer who has a direct contract
with the contractor, shall provide a copy of the notice of commencement,
together with an attached blank notice of furnishing form, to
the subcontractor, supplier, or laborer requesting a copy of the
notice of commencement. If the contractor has not been provided
a notice of commencement, the contractor shall provide such subcontractor,
supplier, or laborer the name and address of the owner or lessee.
(7) A subcontractor who has been provided with a notice of commencement
from the owner, lessee, designee, contractor, or subcontractor,
within 10 days after the date of mailing of a written request
by certified mail from a subcontractor, supplier, or laborer who
has a direct contract with the subcontractor, shall provide a
copy of the notice of commencement, together with an attached
blank notice of furnishing form, to the subcontractor, supplier,
or laborer requesting a copy of the notice of commencement. If
the subcontractor has not been provided a notice of commencement,
the subcontractor shall provide to such subcontractor, supplier,
or laborer, the name and address of the owner or lessee.
(8) If the owner, lessee, or designee has received a blank notice
of commencement form pursuant to subsection (5) and if the owner
or lessee does not currently reside at the real property described
in the notice of commencement, the owner, lessee, or designee
shall post a copy of the notice of commencement in a conspicuous
place on the real property during the course of the actual physical
improvement to the real property.
(9) Failure of the owner, lessee, or designee to provide, upon
written request, the notice of commencement, in accordance with
this section, shall operate to extend the time within which a
subcontractor or supplier may provide a notice of furnishing,
as described in section 109, until 20 days after the notice of
commencement actually has been furnished to the subcontractor
or laborer.
(10) Failure of the owner, lessee, or designee to provide the
notice of commencement, in accordance with this section, shall
operate to extend the time within which a laborer may provide
a notice of furnishing, as described in section 109, until 30
days after the notice of commencement actually has been furnished
to the laborer, or until the time in which to provide the notice
of furnishing in accordance with section 109 expires, whichever
is later.
(11) Failure of the owner, lessee, or designee to post or keep
posted a copy of the notice of commencement as provided in subsection
(8) shall render the owner or lessee liable to the subcontractor,
supplier, or laborer who becomes a lien claimant for all actual
expenses sustained by the lien claimant in obtaining the information
otherwise provided by the posting.
(12) Failure of a contractor, who has been provided with a notice
of commencement from the owner, lessee, or designee, to provide
the notice of commencement upon the request of the lien claimant
who has a contract with the contractor for an improvement to the
property shall render the contractor liable to the lien claimant
for all actual expenses sustained by the lien claimant in obtaining
the information otherwise provided by the notice of commencement.
Failure of a contractor to provide the name and address of the
owner or lessee in accordance with subsection (6) shall render
the contractor liable to the lien claimant for all actual expenses
sustained by the lien claimant in obtaining the name and address
of the owner or lessee.
(13) Failure of a subcontractor, who has been provided with a
notice of commencement from the owner, lessee, designee, contractor,
or subcontractor, to provide the notice of commencement upon the
request of a subcontractor, supplier, or laborer who has a direct
contract with the subcontractor shall render the subcontractor
liable to such subcontractor, supplier, or laborer for all actual
expenses sustained by the subcontractor, supplier, or laborer
in obtaining the information otherwise provided by the notice
of commencement. Failure of a subcontractor to provide the name
and address of the owner or lessee in accordance with subsection
(6) shall render the subcontractor liable to the lien claimant
for all actual expenses sustained by the lien claimant in obtaining
the name and address of the owner or lessee.
(14) This section shall only apply to an improvement to a residential
structure.
570.1109
Notice of Furnishing, Service
Sec. 109. (1) Except as otherwise provided in sections 108, 108a,
and 301, a subcontractor or supplier who contracts to provide
an improvement to real property shall provide a notice of furnishing
to the designee and the general contractor, if any, as named in
the notice of commencement at the address shown in the notice
of commencement, either personally or by certified mail, within
20 days after furnishing the first labor or material. If a designee
has not been named in the notice of commencement, or if the designee
has died, service shall be made upon the owner or lessee named
in the notice of commencement. If service of the notice of furnishing
is made by certified mail, service is complete upon mailing. A
contractor is not required to provide a notice of furnishing to
preserve lien rights arising from his or her contract directly
with an owner or lessee.
(2) Except as otherwise provided in sections 108 and 108a,, a
laborer who contracts to provide an improvement to real property
shall provide a notice of furnishing to the designee and the general
contractor, if any, as named in the notice of commencement at
the address shown in the notice of commencement, either personally
or by mail, within 30 days after wages were contractually due
but were not paid. If a designee has not been named in the notice
of commencement, or if the designee has died, service shall be
made upon the owner or lessee named in the notice of commencement.
If service of the notice of furnishing is made by mail, service
is complete upon mailing by first class mail with postage prepaid.
(3) Except as otherwise provided in sections 108 and 108a, a laborer
who provides an improvement to real property shall provide a notice
of furnishing to the designee and the general contractor, if any,
named in the notice of commencement at the address shown in the
notice of commencement, either personally or by certified mail,
by the fifth day of the second month following the month in which
fringe benefits or withholdings from wages were contractually
due but were not paid. If a designee has not been named in the
notice of commencement, or if the designee has died, service shall
be made upon the owner or lessee named in the notice of commencement.
If service of the notice of furnishing is made by certified mail,
service is complete upon mailing.
(4) The notice of furnishing, if not given on the form attached
to the notice of commencement, shall be in substantially the following
form:
NOTICE OF FURNISHING
To: ____________________________________(name of designee (or
owner or lessee) from notice of commencement)
__________________________________________________________________________(address
from notice of commencement)
Please take notice that the undersigned is furnishing to ___________________________________________(name
and address of other contracting party)
certain labor or material for ____________ (describe type of work)
in connection with the improvement to the real property described
in the notice of commencement recorded in liber ____, on page
____ , ____________ (name of county) records,___________________________________or
(a copy of which is attached hereto)
WARNING TO OWNER: THIS NOTICE IS REQUIRED BY THE MICHIGAN CONSTRUCTION
LIEN ACT. IF YOU HAVE QUESTIONS ABOUT YOUR RIGHTS AND DUTIES UNDER
THIS ACT, YOU SHOULD CONTACT AN ATTORNEY TO PROTECT YOU FROM THE
POSSIBILITY OF PAYING TWICE FOR THE IMPROVEMENTS TO YOUR PROPERTY.
____________________________(name and address of lien claimant)
by _________________(name and capacity of party signing for lien
claimant)
___________________(address of party signing)
Date: __________
(5) The failure of a lien claimant to provide a notice of furnishing
within the time specified in this section shall not defeat the
lien claimant’s right to a construction lien for work performed
or materials furnished by the lien claimant after the service
of the notice of furnishing.
(6) The failure of a lien claimant, to provide a notice of furnishing
within the time specified in this section shall not defeat the
lien claimant’s right to a construction lien for work performed
or materials furnished by the lien claimant before the service
of the notice of furnishing except to the extent that payments
were made by or on behalf of the owner or lessee to the contractor
pursuant to either a contractor’s sworn statement or a waiver
of lien in accordance with this act for work performed or material
delivered by the lien claimant. This subsection does not apply
to a laborer.
(7) The failure of a laborer to provide a notice of furnishing
to the designee as required by subsection (2) shall defeat the
laborer’s lien for those wages for which the notice of furnishing
is required.
(8) The failure of a laborer to provide a notice of furnishing
to the designee as required by subsection (3) shall defeat the
laborer’s lien for those fringe benefits and withholdings
for which the notice of furnishing is required.
(9) The failure of a laborer to provide a notice of furnishing
to the general contractor within the time specified in subsection
(2) or (3) shall not defeat the laborer’s right to a construction
lien, but the laborer shall be liable for any actual damages sustained
by the general contractor as a result of the failure.
(10) One or more laborers may authorize an agent to prepare and
serve a notice of furnishing in the manner provided in this section.
Notice of furnishing under this section may contain the notice
of furnishing of more than 1 laborer and shall contain the information
required in subsection (4) as to each laborer for whom it is prepared.
The notice of furnishing of each lien claimant under this subsection
shall be considered by the court on its own merits.
570.1110 Sworn Statement by Contractor, Subcontractor,
Owner May Withhold Payment, Direct Payment, Notice to General
Contractor, Failure to Provide Sworn Statement, Penalties
Sec. 110. (1) A contractor shall provide a sworn statement
to the owner or lessee in each of the following circumstances:
(a) When payment is due to the contractor from the owner or lessee
or when the contractor requests payment from the owner or lessee.
(b) When a demand for the sworn statement has been made by or
on behalf of the owner or lessee.
(2) A subcontractor shall provide a sworn statement to the owner
or lessee when a demand for the sworn statement has been made
by or on behalf of the owner or lessee.
(3) A subcontractor shall provide a sworn statement to the contractor
when payment is due to the subcontractor from the contractor or
when the subcontractor requests payment from the contractor.
(4) The sworn statement shall list each subcontractor and supplier
with whom the person issuing the sworn statement has contracted
relative to the improvement to the real property. The sworn statement
shall contain a list of laborers with whom the person issuing
the sworn statement has contracted relative to the improvement
to the real property and for whom payment for wages or fringe
benefits and withholdings are due but unpaid and the itemized
amount of such wages or fringe benefits and withholdings. The
sworn statement shall be in substantially the following form:
SWORN STATEMENT
State of Michigan
) ss.
County
of _________)__________, being duly sworn, deposes and says: That
_______ is the (contractor) (subcontractor) for an improvement
to the following described real property situated in ____________
County, Michigan, described as follows:___________________________
(insert legal
description of property)
That the following is a statement of each subcontractor and supplier
and laborer, for which laborer the payment of wages or fringe
benefits and withholdings is due but unpaid, with whom the (contractor)
(subcontractor) has (contracted) (subcontracted) for performance
under the contract with the owner or lessee thereof, and that
the amounts due to the persons as of the date hereof are correctly
and fully set forth opposite their names, as follows:
Name of
Type of
Total
Amount
Amount
Balance
Amount
Amount of
subcontractor,
improvement
contract
already
currently
to complete
of laborer
laborer
supplier,
furnished
price
paid
owing
(optional)
wages
fringe
or laborer
due
benefits and
but unpaid
withholdings
due but
unpaid
___________________________________________________________________
Totals
(Some columns are not applicable to all persons listed)
That the contractor has not procured material from, or subcontracted
with, any person other than those set forth above and owes no
money for the improvement other than the sums set forth above.
Deponent further says that he or she makes the foregoing statement
as the (contractor) (subcontractor) or as _______ of the (contractor)
(subcontractor) for the purpose of representing to the owner or
lessee of the above-described premises and his or her agents that
the above-described property is free from claims of construction
liens, or the possibility of construction liens, except as specifically
set forth above and except for claims of construction liens by
laborers which may be provided pursuant to section 109 of the
construction lien act, Act No. 497 of the Public Acts of 1980,
as amended, being section 570.1109 of the Michigan Compiled Laws.
WARNING TO OWNER: AN OWNER OR LESSEE OF THE ABOVE-DESCRIBED PROPERTY
MAY NOT RELY ON THIS SWORN STATEMENT TO AVOID THE CLAIM OF A SUBCONTRACTOR,
SUPPLIER, OR LABORER WHO HAS PROVIDED A NOTICE OF FURNISHING OR
A LABORER WHO MAY PROVIDE A NOTICE OF FURNISHING PURSUANT TO SECTION
109 OF THE CONSTRUCTION LIEN ACT TO THE DESIGNEE OR TO THE OWNER
OR LESSEE IF THE DESIGNEE IS NOT NAMED OR HAS DIED.
____________________Deponent
WARNING TO DEPONENT: A PERSON, WHO WITH INTENT TO DEFRAUD, GIVES
A FALSE SWORN STATEMENT IS SUBJECT TO CRIMINAL PENALTIES AS PROVIDED
IN SECTION 110 OF THE CONSTRUCTION LIEN ACT, ACT NO. 497 OF THE
PUBLIC ACTS OF 1980, AS AMENDED, BEING SECTION 570.1110 OF THE
MICHIGAN COMPILED LAWS.
Subscribed and sworn to before me this ______ day of _____, 19
__.
_________________________
Notary Public, ____ County, Michigan.
My commission expires: ____________ .
(5) The contractor or subcontractor shall not be required to list
in the sworn statement material furnished by the contractor or
subcontractor out of his or her own inventory, and which has not
been purchased specifically for the purpose of performing the
contract.
(6) After the contractor or subcontractor provides the sworn statement,
the owner or lessee may withhold or upon written demand from the
contractor shall withhold from the amount which is due or to become
due to the contractor or to the subcontractor for work already
performed, an amount sufficient to pay all sums which are due
to subcontractors or to suppliers or to laborers, as shown by
the sworn statement, or which is due to lien claimants who have
provided a notice of furnishing pursuant to section 109. From
the amount withheld, the owner or lessee may directly pay subcontractors,
suppliers, or laborers the amount they are due as shown by the
sworn statement. If the contract provides for payments by the
owner to the general contractor, if any, in the normal course
of construction, but the owner elects to pay lien claimants directly
pursuant to this section, the first time the owner elects to make
payment directly to a lien claimant he or she shall provide at
least 5 business days’ notice to the general contractor
of the intention to make direct payment. Subsequent direct disbursements
to lien claimants need not be preceded by the 5-day notice provided
in this section unless the owner first returns to the practice
of paying all sums to the general contractor. As between the owner
or lessee and the contractor or subcontractor, all payments made
pursuant to this subsection shall be considered the same as if
paid directly to the contractor or subcontractor. If an amount
is withheld pursuant to this subsection from the contractor or
subcontractor, the owner or lessee, upon request, shall prepare
and provide to the contractor or subcontractor an itemized statement
of the sums withheld. If an amount is paid directly to a lien
claimant pursuant to this section, the owner or lessee shall,
if requested by the contractor or subcontractor, provide to the
contractor or subcontractor an itemized statement of the sums
paid.
(7) An owner, lessee, designee, mortgagee, or contractor may rely
on a sworn statement prepared by a party other than himself or
herself to avoid the claim of a subcontractor, supplier, or laborer
unless the subcontractor, supplier, or laborer has provided a
notice of furnishing as required by section 109 or unless the
notice of furnishing is excused pursuant to section 108 or 108a.
(8) If a contractor fails to provide a sworn statement to the
owner or lessee prior to the recording of the contractor’s
claim of lien, the contractor’s construction lien shall
not be invalid. However, the contractor shall not be entitled
to any payment, and a complaint, cross-claim, or counterclaim
may not be filed to enforce the construction lien until the sworn
statement has been provided.
(9) If a subcontractor fails to provide a sworn statement pursuant
to subsection (2) to the owner or lessee prior to the recording
of the subcontractor’s claim of lien, the subcontractor’s
construction lien shall not be invalid. However, a complaint,
cross-claim, or counterclaim may not be filed to enforce the construction
lien until the sworn statement has been provided.
(10) A contractor or subcontractor who, with intent to defraud,
gives or causes to be given to any owner or lessee, when he or
she desires to draw money, a sworn statement as required by this
section, which is in fact false, is guilty of a misdemeanor if
the statement involved is for $100.00 or less and a felony if
it is for more than $100.00.
570.1111
Claim of Lien, Recording, Time
Sec. 111. (1) Notwithstanding section 109, the right of a contractor,
subcontractor, laborer, or supplier to a construction lien created
by this act shall cease to exist unless, within 90 days after
the lien claimant’s last furnishing of labor or material
for the improvement, pursuant to the lien claimant’s contract,
a claim of lien is recorded in the office of the register of deeds
for each county where the real property to which the improvement
was made is located. A claim of lien shall be valid only as to
the real property described in the claim of lien and located within
the county where the claim of lien has been recorded.
(2) A claim of lien shall be in substantially the following form:
CLAIM OF LIEN
Notice is hereby given that on the ____ day of _____, 20, __ (name)___________________________(address)
first provided labor or material for an improvement to _______________________________,
the (legal description of real property from notice of commencement)
(owner) (lessee) of which property is _______________________(name
of owner or lessee from notice of commencement) The last day of
providing the labor or material was the _____ day of _____, 20__
TO BE COMPLETED BY A LIEN CLAIMANT WHO IS A CONTRACTOR, SUBCONTRACTOR,
OR SUPPLIER:
The lien claimant’s contract amount, including extras, is
$ _______ The lien claimant has received payment thereon in the
total amount of $_____, and therefore claims a construction lien
upon the above-described real property in the amount of $__________
TO BE COMPLETED BY A LIEN CLAIMANT WHO IS A LABORER:
The lien claimant’s hourly rate, including fringe benefits
and withholdings, is $_____. There is due and owing to or on behalf
of the laborer the sum of $______ for which the laborer claims
a construction lien upon the above-described real property.
________________________(lien claimant)
by ______________________(signature of lien claimant, agent, or
attorney)
_________________________(address of party signing claim of lien)
Date: _______________
State of Michigan
ss. County of ________________)
Subscribed and sworn to before me this ____ day of ______, 19__
______________________________________Signature of Notary Public
_________________
My commission expires: ___________________
Prepared by: _____________________________(name and address of
party)
(3) If the claim of lien has been assigned, the claim of lien
shall state: “The construction lien having been assigned,
this claim of lien is made by ________ as assignee thereof”.
(4) A claim of lien by a subcontractor, supplier, or laborer shall
have attached to it a proof of service of a notice of furnishing
described in section 109.
(5) Each contractor, subcontractor, supplier, laborer, or agent
of a group of laborers authorized under subsection (6) recording
a claim of lien, within 15 days after the date of the recording,
shall serve on the designee personally or by certified mail, return
receipt requested, at the address shown on the notice of commencement,
a copy of the claim of lien and a copy of any proof of service
recorded in connection with the claim of lien. If a designee has
not been named in the notice of commencement, or if the designee
has died, service shall be made upon the owner or lessee named
in the notice of commencement. If the service is made by certified
mail, service is complete upon mailing. Proof of making the service
shall be attached to any complaint, cross-claim, or counterclaim
filed to enforce a construction lien.
(6) One or more laborers may authorize an agent to prepare, record,
and serve a claim of lien in the manner provided in this section.
A claim of lien under this section may contain the claim of lien
of more than 1 laborer and shall contain the information required
in subsection (2) as to each laborer for whom it is prepared.
The claim of lien of each lien claimant under this subsection
shall be considered by the court on its own merits.
570.1112
Recording, Indexing, Fees
Sec. 112. (1) If a notice of commencement, claim of lien, certificate
of discharge of lien, or a certificate of a county clerk that
no proceedings to enforce a statement or claim of lien have been
commenced within the period provided by law is recorded in the
office of a register of deeds, the register shall endorse thereon
the date of its recording and shall properly index the instrument.
(2) The fee for recording an instrument described in subsection
(1) shall be the same as the fee that is provided by law for the
recording of a real estate mortgage.
(3) The recording of a notice of commencement or a claim of lien
shall operate as constructive notice to subsequent purchasers
or encumbrancers in the same manner as the recording of a real
estate mortgage.
570.1113
Inspection and Copying of Contract, Statement of Amount Unpaid,
Statement of Labor and Material Furnished and Amount Unpaid
Sec. 113. (1) An owner or lessee who contracts for an improvement,
upon receipt of a written demand by a lien claimant, shall make
available for inspection and copying to the lien claimant, within
10 days after receipt of the written demand, a copy of the contract
for the improvement between the owner or lessee and the contractor,
and a written statement of the amount due and unpaid on that date
on the contract. Any owner or lessee who fails to make available
for inspection and copying a copy of the contract and the written
statement of the amount due and unpaid, within 10 days after receipt
of a written demand, shall be liable to the lien claimant for
all actual damages sustained by the lien claimant due to the failure.
(2) Each lien claimant, upon receipt of a written demand by an
owner, lessee, designee, or contractor, shall provide to the owner,
lessee, designee, or contractor, within 10 days after receipt
of the written demand, a written statement of the amount of labor
and material furnished to the date of the statement in connection
with the improvement for which a construction lien is claimed,
any amount remaining due for the labor and material furnished,
and the contractual amount of any work remaining to be performed.
A lien claimant who fails to provide a statement within 10 days
after receipt of a written demand shall be liable to the owner,
lessee, or contractor for actual damages sustained by the owner,
lessee, or contractor due to the failure. In addition, the owner,
lessee, or contractor, after the expiration of the 10-day period
without receipt of the requested statement, shall not be required
to honor a request for payment by the lien claimant until the
statement has been received by the person who requested it.
570.1114 Contractors License, Notice in Contract
Sec. 114. A contractor shall not have a right to a construction
lien upon the interest of any owner or lessee in a residential
structure unless the contractor has provided an improvement to
the residential structure pursuant to a written contract between
the owner or lessee and the contractor and any amendments or additions
to the contract also shall be in writing. The contract required
by this section shall contain a statement, in type no smaller
than that of the body of the contract, setting forth all of the
following:
(a) That a residential builder or a residential maintenance and
alteration contractor is required to be licensed under article
24 of Act 299 of the Public Acts of 1980, as amended, being sections
339.2401 to 339.2412 of the Michigan Compiled Laws. That an electrician
is required to be licensed under Act No. 217 of the Public Acts
of 1956, as amended, being sections 338.881 to 338.892 of the
Michigan Compiled Laws. That a plumber is required to be licensed
under Act No. 266 of the Public Acts of 1929, as amended, being
sections 338.901 to 338.917 of the Michigan Compiled Laws.
(b) If the contractor is required to be licensed to provide the
contracted improvement, that the contractor is so licensed.
(c) If a license is required, the contractor’s license number.
570.1115
Advance Waiver Prohibited, Waivers of Lien, Partial Waivers, Conditional
Waivers, Retainage, Waiver Forms
Sec. 115. (1) A person shall not require, as part of any contract
for an improvement, that the right to a construction lien be waived
in advance of work performed. A waiver obtained as part of a contract
for an improvement is contrary to public policy, and shall be
invalid, except to the extent that payment for labor and material
furnished was actually made to the person giving the waiver. Acceptance
by a lien claimant of a promissory note or other evidence of indebtedness
from an owner, lessee, or contractor shall not of itself serve
to waive or discharge otherwise valid construction lien rights.
(2) A lien claimant who receives full payment for his or her contract
shall provide to the owner, lessee, or designee a full unconditional
waiver of lien.
(3) A lien claimant who receives partial payment for his or her
contract shall provide to the owner, lessee, or designee a partial
unconditional waiver of the lien for the amount which the lien
claimant has received, if the owner, lessee, or designee requests
the partial unconditional waiver.
(4) A partial conditional waiver of lien or a full conditional
waiver of lien shall be effective upon payment of the amount indicated
in the waiver.
(5) For purposes of this act, retainage which is not payable under
a contract until the happening of a certain event in addition
to the providing of an improvement, is not due as of the date
of the providing of the improvement.
(6) A waiver of a lien under this section shall be effective when
a person makes payment relying on the waiver unless at the time
payment was made the person making the payment has written notice
that the consideration for the waiver has failed.
(7) An agent who is authorized to prepare and serve a notice of
furnishing on behalf of a laborer or group of laborers or an agent
who is authorized to prepare, record, and serve a claim of lien
on behalf of a laborer or group of laborers is automatically authorized
to provide waivers of lien, unless or until the laborer or group
of laborers notifies the designee in writing that someone other
than a previously authorized agent is duly authorized to provide
appropriate waivers. An agent who is authorized to prepare and
serve a notice of furnishing or a claim of lien on behalf of a
laborer or group of laborers shall be responsible for providing
waivers on behalf of such laborer or laborers pursuant to this
section. An agent who is authorized to prepare and serve a claim
of lien on behalf of a laborer or group of laborers shall be responsible
for providing waivers of lien on behalf of such laborer or laborers
pursuant to this section. An individual laborer may also provide
waivers pursuant to this section instead of the agent.
(8) The following forms shall be used in substantially the following
format in executing waivers of construction liens:
(a)PARTIAL UNCONDITIONAL WAIVER
I/we have a contract with ________ to provide _____ for the (other
contracting party) improvement to the property described as ________,
and hereby waive my/our construction lien to the amount of $_______,
for labor/materials provided through ________________ (date) This
waiver, together with all previous waivers, if any, (circle one)
does not cover all amounts due to me/us for contract improvement
provided through the date shown above.
_______________________________(signature
of lien claimant)
Signed on: (date) _____________
Address: ____________________
Telephone: __________________
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(b)PARTIAL CONDITIONAL WAIVER
I/we have a contract with ____________ to provide _________ for
the (other contracting party improvement to the property described
as ____________, and hereby waive my/our construction lien to
the amount of $_______, for labor/materials provided through _________________
(date) This waiver, together with all previous waivers, if any,
(circle one) does not cover all amounts due to me/us for contract
improvement provided through the date shown above. This waiver
is conditioned on actual payment of the amount shown above.
___________________________________(signature of lien claimant)
Signed on: .(date) _____________________
Address: ____________________________
Telephone: __________________________
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(c) FULL UNCONDITIONAL WAIVER
My/our contract with ____________to provide ______ for the (other
contracting party) improvement of the property described as: ________________
having been fully paid and satisfied, all my/our construction
lien rights against such property are hereby waived and released.
___________________________________(signature of lien claimant)
Signed on: (date) _______________
Address: _______________________
Telephone: ___________________
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(d) FULL CONDITIONAL WAIVER
My/our contract with ____________ to provide ________ for the
(other contracting party) improvement of the property described
as: _______ having been fully paid and satisfied, all my/our construction
lien rights against such property are hereby waived and released.
This waiver is conditioned on actual payment of _____________
____________________________________________________(signature
of lien claimant)
Signed on: _______________
Address: ________________
(date) _______________
Telephone: _______________
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
570.1116
Release Bond, Notice, Objection to Surety
Sec. 116. (1) The claim of lien of a contractor, subcontractor,
supplier, or laborer may at any time be vacated and discharged
if a bond, with the lien claimant as obligee, is filed with the
county clerk for the county in which the property covered by the
lien is located and a copy is given to the obligee lien claimant.
The bond shall be in the penal sum of twice the amount for which
the lien is claimed and shall be conditioned on the payment of
any sum for which the obligee in the bond may obtain judgment
on the claim for which the claim of lien was filed. The bond may
be either a cash bond executed by a principal, or a surety bond
executed by a principal and a surety company authorized to do
business in this state.
(2) Within 10 days after receiving the bond, the county clerk
shall notify each lien claimant that a bond has been filed and
indicate the amount of the bond and the name of the surety on
the bond. The lien claimants shall have 10 days after being notified
of the bond within which to file an objection to the sufficiency
of the surety on the bond, in which case the county clerk shall
not approve the bond until the surety has appeared before the
county clerk and answered under oath those questions asked by
or on behalf of the lien claimant touching on the surety’s
financial responsibility. If an objection to the surety is not
filed within the 10 days after being notified of the bond or if
the county clerk approves the bond after the questioning of the
surety, the county clerk shall at once give to the principal and
the obligee named in the bond a certificate that a good and sufficient
bond has been filed in accordance with this act. The certificate
shall state the names of the obligor and obligee, the amount of
the bond, and the description of the property covered by the claim
of lien being discharged. Upon the recording of the certificate
in the office of the register of deeds where the claim of lien
was recorded, the claim of lien of the obligee lien claimant named
in the claim of lien shall be discharged. If because of the pendency
of proceedings to enforce the claim of lien, a notice of lis pendens
has been recorded, the recording of the certificate shall also
operate as a discharge of the notice of lis pendens. The obligee
may make any obligor on the bond a party to an action to enforce
a claim under the bond, and a judgment may be recovered in the
action against all or any of the obligors.
(3) In an action brought in connection with the claim of the obligee,
the court may do 1 or more of the following:
(a) Order the amount of the bond to be reduced.
(b) Order other or additional surety to be provided.
(c) Grant any other relief the court considers to be equitable.
570.1117 Foreclosure Proceedings, Limitations,
Notice of Lis Pendens, Parties, Personal Action
Sec. 117. (1) Proceedings for the enforcement of a construction
lien and the foreclosure of any interests subject to the construction
lien shall not be brought later than 1 year after the date the
claim of lien was recorded.
(2) At the time of commencing an action for the enforcement of
a construction lien through foreclosure, the plaintiff shall record
a notice of lis pendens with respect to the action in the office
of the register of deeds for the county in which the real property
involved in the action is located.
(3) As provided in section 111(6), an action to foreclose on a
construction lien may be maintained by an agent appointed to represent
laborers.
(4) Each person who, at the time of filing the action, has an
interest in the real property involved in the action which would
be divested or otherwise impaired by the foreclosure of the lien,
shall be made a party to the action.
(5) In connection with an action for foreclosure of a construction
lien, the lien claimant also may maintain an action on any contract
from which the lien arose.
(6) Except as otherwise provided in subsection (1), a lien claimant
who has been made a party to an action for foreclosure of a construction
lien may enforce his or her own construction lien in the action
by a cross-claim or counterclaim, and the owner or lessee may
timely join other or potential lien claimants in the action.
(7) In an action brought by a contractor or subcontractor to enforce
a construction lien through foreclosure, the complaint, cross-claim,
or counterclaim must show that the owner or lessee was provided
a sworn statement, if a sworn statement was requested or required,
pursuant to section 110.
570.1118 Foreclosure Action, Venue, Trial, Attorneys
Fees
Sec. 118. (1) An action to enforce a construction lien through
foreclosure shall be brought in the circuit court for the county
where the real property described in the claim of lien is located.
If the real property is located in more than 1 county or judicial
circuit, the action may be brought in any of the counties where
the real property is located. An action to enforce a construction
lien through foreclosure shall be equitable in nature. A construction
lien also may be enforced by a cross-claim or counterclaim timely
filed in a pending action involving title to, or foreclosure of
mortgages or encumbrances on, real property.
(2) In each |
