Mechanics Lien Filing Package — Michigan

Mechanics Lien Filing Package (Michigan)

Quick-Reference Summary

Part A — Pre-Lien Notice (Preliminary Notice / NOI)

A.1 — Notice of Furnishing — MCL § 570.1109

NOTICE OF FURNISHING
(Pursuant to MCL § 570.1109)

To:
[NAME OF DESIGNEE (or owner or lessee) from Notice of Commencement]
[ADDRESS from Notice of Commencement]

To (if applicable):
[NAME OF GENERAL CONTRACTOR from Notice of Commencement]
[ADDRESS]

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 / MATERIAL], in connection with the improvements to the real property described in the Notice of Commencement recorded in Liber [____] on Page [____], [____________] County, Michigan, records.

(or, alternatively, a copy of the Notice of Commencement is attached to this notice.)

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.

[CLAIMANT LEGAL NAME]
[CLAIMANT ADDRESS]
By: _________________________
Name and capacity: [PRINT NAME AND TITLE]
[ADDRESS OF PARTY SIGNING]

Date: [__/__/____]

PROOF OF SERVICE

I, [NAME OF SERVER], state that on [__/__/____] I served this Notice of Furnishing on each person named above by:

☐ Personal delivery
☐ Certified mail (service complete on mailing for a subcontractor or supplier under MCL § 570.1109(1))

_________________________
[SIGNATURE]

A.2 — Request for Notice of Commencement (Optional) — MCL § 570.1108(5)

REQUEST FOR COPY OF NOTICE OF COMMENCEMENT
(MCL § 570.1108)

VIA CERTIFIED MAIL, RRR
[__/__/____]

To: [OWNER / LESSEE / DESIGNEE]
[ADDRESS]

The undersigned has furnished or will furnish labor or material for an improvement to the real property located at [ADDRESS], in [____________] County, Michigan. Pursuant to the applicable Notice of Commencement section, please provide the undersigned with a copy of the Notice of Commencement and attached blank Notice of Furnishing within ten (10) days after the date of mailing of this request. This request is sent by certified mail.

Project classification: ☐ Nonresidential — MCL 570.1108 ☐ Residential structure — MCL 570.1108a

[CLAIMANT NAME, ADDRESS, PHONE]

Part B — Claim of Mechanics Lien

CLAIM OF LIEN
(Pursuant to MCL § 570.1111)

Notice is hereby given that on the [__] day of [____________], [____], the undersigned:

[CLAIMANT LEGAL NAME]
[CLAIMANT ADDRESS]

first provided labor or material for an improvement to:

[LEGAL DESCRIPTION OF REAL PROPERTY FROM NOTICE OF COMMENCEMENT — attach Exhibit A if lengthy]
Commonly known as: [PROPERTY STREET ADDRESS, CITY, MI ZIP]
Parcel No.: [PARCEL ID]

the (☐ Owner ☐ Lessee) of which property is:

[NAME OF OWNER OR LESSEE FROM NOTICE OF COMMENCEMENT]
[ADDRESS]

The last day of providing the labor or material was the [__] day of [____________], [____].

TO BE COMPLETED BY A LIEN CLAIMANT WHO IS A CONTRACTOR, SUBCONTRACTOR, OR SUPPLIER

The lien claimant's contract amount, including extras, is $[CONTRACT AMOUNT]. The lien claimant has received payment thereon in the total amount of $[AMOUNT PAID], and therefore claims a construction lien upon the above-described real property in the amount of $[AMOUNT CLAIMED].

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.

[CLAIMANT LEGAL NAME]
By: _________________________
(Signature of lien claimant, agent, or attorney)
[ADDRESS OF PARTY SIGNING]

Date: [__/__/____]

STATE OF MICHIGAN
COUNTY OF [____________________], ss.

Subscribed and sworn to before me this [__] day of [____________], [____].

_________________________
Notary Public — State of Michigan
County of [____________]
My commission expires: [__/__/____]
[SEAL]

Attachment (subs/suppliers/laborers only): Proof of Service of Notice of Furnishing under MCL § 570.1109 (required by § 570.1111(4)).

Part C — Notice of Filing Lien Claim to Owner

SERVICE OF RECORDED CLAIM OF LIEN
(Pursuant to MCL § 570.1111(5))

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
(service complete on mailing per MCL § 570.1111(5))

To:
[DESIGNEE (or Owner/Lessee, if no designee) — from Notice of Commencement]
[ADDRESS — from Notice of Commencement]

Courtesy copies, if counsel directs:
[GENERAL CONTRACTOR / CONSTRUCTION LENDER / OTHER]

Re: Service of Recorded Claim of Lien
Property: [PROPERTY STREET ADDRESS, CITY, MI ZIP]
Parcel No.: [PARCEL ID]

Dear [DESIGNEE/OWNER]:

Please find enclosed a true and correct copy of the Claim of Lien recorded by the undersigned, [CLAIMANT LEGAL NAME], in the Office of the Register of Deeds of [____________] County, Michigan, on [__/__/____], Liber [____], Page [____] (Instrument No. [____________]), in the amount of $[AMOUNT CLAIMED]. A copy of the proof of service of the Notice of Furnishing recorded in connection therewith is also enclosed.

This service is made within fifteen (15) days of recording, pursuant to MCL § 570.1111(5).

Very truly yours,

[CLAIMANT LEGAL NAME]
By: _________________________
[PRINT NAME, TITLE]

Enclosures: Recorded Claim of Lien; Recorded Proof of Service of Notice of Furnishing

PROOF OF SERVICE

The undersigned states that on [__/__/____], the foregoing was served on the parties listed above by ☐ certified mail RRR (service complete on mailing) ☐ personal delivery.

_________________________
[NAME OF SERVER]

Part D — Suit to Foreclose

STATE OF MICHIGAN
IN THE CIRCUIT COURT FOR THE COUNTY OF [____________]

Case No.: [____________] - CH
Hon. [____________]

COMPLAINT TO FORECLOSE CONSTRUCTION LIEN AND FOR BREACH OF CONTRACT

NOW COMES Plaintiff, [CLAIMANT LEGAL NAME], by and through its attorneys, [LAW FIRM NAME], and for its Complaint against Defendants, states:

JURISDICTION, PARTIES, AND VENUE

1. This action is brought under the Michigan Construction Lien Act, MCL § 570.1101 et seq.
2. Plaintiff is a [ENTITY TYPE] with its principal place of business at [CLAIMANT ADDRESS].
3. Defendant [OWNER NAME] is the record owner of the Property at issue.
4. The remaining Defendants are joined because they hold or may hold record or contract-chain interests in or relating to the Property.
5. This Court is the circuit court for a county where the Property is located. MCL 570.1118(1) places this equitable foreclosure action in that circuit court; MCL 600.1605(c) also identifies a county where the property lies as a proper venue for foreclosure of a real-property lien.

FACTS

6. The Property is located at [PROPERTY STREET ADDRESS], Parcel No. [PARCEL ID], legally described in Exhibit A.
7. The applicable Notice of Commencement is attached as Exhibit B. It was ☐ recorded under MCL 570.1108 for a nonresidential improvement at Liber [____], Page [____] / Instrument [____] ☐ provided under MCL 570.1108a for a residential-structure improvement, and identifies [DESIGNEE/OWNER/LESSEE] and [GENERAL CONTRACTOR].
8. On or about [DATE], Plaintiff and [HIRING PARTY] entered into a contract whereby Plaintiff agreed to provide [SCOPE] for $[CONTRACT AMOUNT] (Exhibit C).
9. Plaintiff first furnished labor or materials on [____] and last furnished labor or materials on [____].
10. After all just credits and offsets, $[AMOUNT CLAIMED] remains due and unpaid.
11. If applicable, Plaintiff provided a Notice of Furnishing under the claimant-specific timing, recipient, and delivery rule in MCL 570.1109 on [__/__/____] (Exhibit D). The applicable route is: ☐ subcontractor/supplier under subsection (1) ☐ unpaid wages for a laborer under subsection (2) ☐ fringe benefits/withholdings for a laborer under subsection (3) ☐ statutory exception or extension stated in Exhibit D.
12. On [__/__/____], within 90 days of last furnishing, Plaintiff recorded a Claim of Lien with the [____________] County Register of Deeds, Liber [____], Page [____] (Exhibit E).
13. Within 15 days thereafter, Plaintiff served a copy of the recorded Claim of Lien on the designee (or owner/lessee) per MCL § 570.1111(5) (Exhibit F).
14. This action is commenced within one (1) year of the recording of the Claim of Lien, as required by MCL § 570.1117(1).
15. At commencement of this action, Plaintiff recorded a notice of lis pendens in the office of the Register of Deeds for [____________] County, as required by MCL 570.1117(2) (Exhibit G).
16. Each person known at filing to have an interest in the Property that would be divested or impaired by foreclosure is named as a party, subject to amendment after counsel's title and party review. MCL 570.1117(4).
17. If Plaintiff is a contractor or subcontractor and a sworn statement was requested or required, the Owner or Lessee was provided the sworn statement on [__/__/____] (Exhibit H). MCL 570.1117(7).

COUNT I — FORECLOSURE OF CONSTRUCTION LIEN

18. Plaintiff incorporates Paragraphs 1–17.
19. Plaintiff holds a valid and subsisting construction lien under MCL § 570.1107 in the amount of $[AMOUNT CLAIMED] upon the interest determined under the Act.
20. Plaintiff seeks foreclosure under MCL 570.1117-.1118. Priority and sale relief are subject to MCL 570.1119 and 570.1121 and the evidence presented to the Court.

COUNT II — BREACH OF CONTRACT (against [HIRING PARTY])

21. Plaintiff incorporates Paragraphs 1–10.
22. [HIRING PARTY] materially breached the attached contract by failing to pay $[AMOUNT CLAIMED] when due, subject to the defenses, conditions, credits, and offsets established in the evidence.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff respectfully requests that this Court:

A. Determine the amount, if any, secured by Plaintiff's construction lien and the relief available under the Act; award reasonable attorney fees only if and as the Court permits under MCL 570.1118(2);
B. Determine the priority of all liens and encumbrances under MCL § 570.1119;
C. Enter appropriate foreclosure and sale relief under MCL 570.1121, subject to superior interests and the Court's findings;
D. Enter judgment in personam against [HIRING PARTY] for breach of contract;
E. Grant such other relief as is just and equitable.

Dated: [__/__/____]

Respectfully submitted,

[LAW FIRM NAME]
By: _________________________
[ATTORNEY NAME] (P[____])
[ADDRESS]
[PHONE] | [EMAIL]
Attorneys for Plaintiff

Exhibits: A — Legal description; B — Notice of Commencement; C — Contract; D — Notice of Furnishing and proof, if applicable; E — Recorded Claim of Lien; F — Service of recorded Claim per § 570.1111(5); G — Recorded lis pendens; H — Sworn statement, if requested or required.

Part E — Pre-Filing Checklist

Project classification and threshold issues

☐ Confirmed whether the project is a "residential structure" under MCL 570.1106(4): an individual residential condominium unit or a residential building with no more than two residential units, together with the land and appurtenances, where the contracting owner or lessee resides or will reside on completion.
☐ If Claimant is the contractor on a residential structure, confirmed the written contract, written amendment/addition, licensing-statement, and license-number requirements in MCL 570.1114.
☐ Confirmed property is privately owned (not public). Public projects use payment-bond procedures, not the CLA.
☐ Notice of Commencement obtained from owner or Register of Deeds; designee identified.

Notice of Furnishing (subs / suppliers / laborers)

☐ NOF served on designee (and GC) within 20 DAYS of first furnishing — by certified mail (service complete on mailing) or personal delivery.
☐ Laborers: NOF served within 30 DAYS after wages contractually due; fringe-benefit notice by 5th day of 2nd month.
☐ Proof of service retained and prepared for attachment to Claim of Lien (§ 570.1111(4)).
☐ Direct contractors with the owner — confirmed NOF is NOT required.

Sworn Statement (where applicable)

☐ Contractor provides a sworn statement when owner/lessee payment is due or requested and on owner/lessee demand; subcontractor duties and enforcement gates were reviewed under MCL 570.1110.

Claim of Lien content (§ 570.1111(2))

☐ Claimant name and address.
☐ First-furnishing date.
☐ Last-furnishing date.
☐ Legal description of real property (from Notice of Commencement) and parcel ID.
☐ Owner / lessee name and address (from Notice of Commencement).
☐ Contract amount, payments received, amount claimed.
☐ Verified before a notary.
☐ Proof of service of NOF attached (subs/suppliers/laborers only).

Recording and Service

☐ Claim of Lien recorded with the Register of Deeds of EACH county where the improved property lies, within 90 DAYS of last furnishing.
☐ Within 15 DAYS of recording, copy of recorded Claim of Lien (and any recorded proof of service) served on designee/owner/lessee by personal delivery or certified mail RRR (service complete on mailing).
☐ Service documentation preserved for use as exhibit to any complaint/cross-claim/counterclaim.

Foreclosure

☐ One-year suit deadline (from recording) calendared (§ 570.1117).
☐ Lis pendens to be recorded at commencement under MCL 570.1117(2).
☐ Every person whose interest would be divested or impaired at filing identified and joined under MCL 570.1117(4).

Waivers / Bond

☐ No unconditional waiver in lieu of payment that would defeat the claim.
☐ Bond-discharge possibility considered under MCL 570.1116: county-clerk filing, Claimant as obligee, twice-the-lien penal sum, notice and surety-objection process, clerk certificate, and recording.

Sources and References

• Michigan Construction Lien Act (Act 497 of 1980), MCL § 570.1101 et seq. — https://legislature.mi.gov/Laws/MCL?objectName=mcl-act-497-of-1980
• MCL § 570.1108 (Notice of Commencement) — https://legislature.mi.gov/Laws/MCL?objectName=mcl-570-1108
• MCL § 570.1109 (Notice of Furnishing) — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-570-1109
• MCL § 570.1110 (Sworn Statement) — https://legislature.mi.gov/Laws/MCL?objectName=mcl-570-1110
• MCL § 570.1111 (Claim of Lien; 90-day recording; § 570.1111(5) service) — https://legislature.mi.gov/Laws/MCL?objectName=mcl-570-1111
• MCL § 570.1114 (residential contractor written-contract requirements) — https://www.legislature.mi.gov/documents/mcl/pdf/mcl-570-1114.pdf
• MCL § 570.1115 (statutory waivers) — https://www.legislature.mi.gov/documents/mcl/pdf/mcl-570-1115.pdf
• MCL § 570.1116 (discharge bond) — https://www.legislature.mi.gov/documents/mcl/pdf/mcl-570-1116.pdf
• MCL § 570.1117 (Action to enforce; one year) — https://legislature.mi.gov/Laws/MCL?objectName=mcl-570-1117
• MCL § 570.1118 (Procedure; attorney fees) — https://legislature.mi.gov/Laws/MCL?objectName=mcl-570-1118
• MCL § 570.1119 (priority) — https://www.legislature.mi.gov/documents/mcl/pdf/mcl-570-1119.pdf
• MCL § 570.1121 (foreclosure judgment and sale) — https://www.legislature.mi.gov/documents/mcl/pdf/mcl-570-1121.pdf