reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.586 - Action to Enforce Lien; Complaint.

570.586 Action to enforce lien; complaint.
Sec. 6.
(1) A person claiming a commercial real estate broker's lien may bring an action to enforce the lien in the circuit court for the county where the commercial real estate is located by filing a complaint and affidavit that the claim of lien has been recorded.
(2) The plaintiff in an action under this section shall name as defendants all persons that, at the time the action is filed, have an interest in the commercial real estate that is the subject of the action that would be divested or impaired by the foreclosure of the lien.
(3) The complaint in an action under this section may include a claim on the contract from which the lien arises.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.587 - Commencement of Action; Time Period.

570.587 Commencement of action; time period.
Sec. 7.
(1) An action under section 6 shall be commenced within 1 year after the date the commercial real estate broker's lien attaches.
(2) Failure to commence an action within the applicable time period under this section extinguishes the lien. A later claim of lien for the same commission or services shall not be made and shall not be the basis of an action filed under section 6.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.588 - Sale of Interest in Commercial Real Estate; Court Order; Order of Foreclosure; Period of Redemption; Order of Deficiency Judgment; Costs.

570.588 Sale of interest in commercial real estate; court order; order of foreclosure; period of redemption; order of deficiency judgment; costs.
Sec. 8.
(1) If the court in an action under section 6 finds that the plaintiff is entitled to the commercial real estate lien and that the amount claimed has not been paid, the court may enter a judgment ordering the sale of any interest in the commercial real estate, or part of the commercial real estate, to which the lien attaches. In the order of foreclosure sale, the court shall set a period of redemption not exceeding 4 months. The order of foreclosure sale shall be recorded. The sale shall be conducted in the same manner as a sale on execution. The sale is final, subject to the period of redemption, on the entry of an order of confirmation by the court. On expiration of the period of redemption, the grantee named in the deed is vested with all right, title, and interest in the commercial real estate that was subject to the lien. Redemption from a foreclosure sale is complete on full payment of the amount in the judgment of foreclosure. If the court determines that the proceeds of the sale are insufficient to satisfy the judgment, the court may enter a deficiency judgment against the person who signed the written agreement to pay the real estate broker.
(2) The court in an action under section 6 may, in its discretion, award costs to a prevailing plaintiff, including reasonable attorney fees, court and litigation costs, and prejudgment interest.
(3) If the court determines that an action under section 6 was frivolous, the court may, in its discretion, award costs described in subsection (2) to the defendant.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.589 - Written Demand on Behalf of Owner of Commercial Real Estate; Service.

570.589 Written demand on behalf of owner of commercial real estate; service.
Sec. 9.
A written demand on behalf of the owner of commercial real estate may be served on a person claiming a commercial real estate broker's lien, demanding that an action be commenced to enforce the lien or that an answer be filed in an action pending between the owner and the lien claimant. If the action is not commenced or the answer is not filed within 30 days after service of the demand, the lien is extinguished without further action. Service of the demand may be by registered or certified mail, return receipt requested, or by personal service.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.590 - Condition Prohibiting Compensation; Release of Lien.

570.590 Condition prohibiting compensation; release of lien.
Sec. 10.
If a claim of lien has been recorded under this act and a condition occurs that prohibits the real estate broker from receiving compensation under the terms of the written agreement on which the claim is based, the real estate broker shall provide a release of lien under section 5 to the owner of record within 10 days after a written demand by the owner of record or the owner's agent.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.591 - Payment of Claim or Failure to Commence Action; Release of Lien.

570.591 Payment of claim or failure to commence action; release of lien.
Sec. 11.
If a claim of lien recorded under this act has been paid, or if an action to enforce the lien has not been commenced within the time limitations of section 7, the real estate broker shall record a release of lien under section 5 within 5 days after a written demand by the owner of record or the owner's agent and provide a copy of the recorded release.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.592 - Partial Payment of Lien Claim; Partial Satisfaction and Release of Lien; Form.

570.592 Partial payment of lien claim; partial satisfaction and release of lien; form.
Sec. 12.
(1) If a claim of lien recorded under this act has been partially paid, the real estate broker shall provide a partial satisfaction and release of lien in the form provided in subsection (2) within 5 days after written demand by the owner of record or the owner's agent.
(2) A partial satisfaction and release of lien under this section shall meet the requirements of 1937 PA 103, MCL 565.201 to 565.203, and be in substantially the following form:
PARTIAL SATISFACTION AND RELEASE OF LIEN
The claimant named below is the claimant under a claim of commercial real estate broker's lien recorded on ____________ [date] in the office of the register of deeds of _______________ County, Michigan, at Liber _________, Page _________ on the following described property:
[Legal description]
The claimant has been paid $_____________, a portion of the amount of the lien. The remaining amount of the lien is $______.
Therefore, the claimant, for and in consideration of the payment, waives, to the extent of the payment, the claim of or right to a lien under the commercial real estate broker's lien act against the property described above, the building or buildings on the property, and the tenant spaces in the building or buildings.
[Name of Claimant]
By:________________________
Its Authorized Agent
Signed and sworn to before me in ____________ County, Michigan, on ________________, ______[year].
_______________________________
[Notary's name, county, acting
in county, state, and date
commission expires]
Prepared By:
Return To:
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.593 - Priority of Subsequently Recorded Mortgage; Condition.

570.593 Priority of subsequently recorded mortgage; condition.
Sec. 13.
A subsequently recorded mortgage has priority over a commercial real estate broker's lien if the mortgagee did not have actual or constructive knowledge of the lien at the time the mortgagee advanced money under the mortgage.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 201 of 2010 - Commercial Real Estate Broker's Lien Act (570.581 - 570.594) › Section 570.594 - Written Commission Agreement Signed After Effective Date of Act; Applicability.

570.594 Written commission agreement signed after effective date of act; applicability.
Sec. 14.
This act applies to a written commission agreement signed after the effective date of this act.
History:
2010, Act 201, Imd. Eff. Oct. 5, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1101 - Short Title.

570.1101 Short title.
Sec. 101.
This act shall be known and may be cited as the "construction lien act".
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1102 - Meanings of Words and Phrases.

570.1102 Meanings of words and phrases.
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.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1103 - Definitions.

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" means 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.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1104 - Additional Definitions.

570.1104 Additional definitions.
Sec. 104.
(1) "Court" means the circuit court in which an action to enforce a construction lien through foreclosure is pending.
(2) "Design professional" means an individual who is licensed or registered as an architect, professional engineer, or professional surveyor under article 20 of the occupational code, 1980 PA 299, MCL 339.2001 to 339.2014, or a corporation, partnership, limited liability company, or other legal entity that is authorized under article 20 of the occupational code, 1980 PA 299, MCL 339.2001 to 339.2014, to engage in the practice of any of these professions.
(3) "Designee" means a person named by an owner or lessee to receive, on behalf of the owner or lessee, all notices or other instruments required to be furnished under 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) "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.
(6) "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, and installing or affixing a fixture or material, pursuant to a contract.
(7) "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.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982 ;-- Am. 2006, Act 497, Eff. Jan. 3, 2007 ;-- Am. 2010, Act 147, Imd. Eff. Aug. 23, 2010 ;-- Am. 2018, Act 367, Imd. Eff. Dec. 12, 2018
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1105 - Additional Definitions.

570.1105 Additional 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.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1106 - Additional Definitions.

570.1106 Additional definitions.
Sec. 106.
(1) "Person" means an individual, corporation, partnership, association, other legal entity, or any combination of these.
(2) "Professional services" means services that are customarily and legally performed by or under the supervision or responsible control of design professionals in the course of their professional practice, including, but not limited to, programming, planning, surveying, site investigation, analysis, assessment, design, preparation of drawings and specifications, and construction administration services.
(3) "Project" means the aggregate of improvements contracted for by the contracting owner.
(4) "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, in which the owner or lessee contracting for the improvement is residing or will reside on completion of the improvement.
(5) "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.
(6) "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 that is used in the improvement of real property. Supplier does not include a design professional or a person that has a subcontract with a design professional as described in section 107b.
(7) "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 fringe benefits and withholdings.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982 ;-- Am. 2006, Act 497, Eff. Jan. 3, 2007 ;-- Am. 2010, Act 147, Imd. Eff. Aug. 23, 2010 ;-- Am. 2018, Act 367, Imd. Eff. Dec. 12, 2018
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1107a - Construction Lien for Professional Services Contract by Design Professionals; Notice of Contract; Form; Recording; Validity, Effectiveness, and Duration of Notice; Applicability to Other Liens.

570.1107a Construction lien for professional services contract by design professionals; notice of contract; form; recording; validity, effectiveness, and duration of notice; applicability to other liens.
Sec. 107a.
(1) A design professional who enters into a written contract with an owner, or with a person acting as an agent of the owner, to provide professional services relating to the proposed or actual erection, alteration, repair, or removal of a structure on or other improvement to real property may record a notice with the register of deeds for the county in which the property is located. The notice must be in substantially the following form:
NOTICE OF PROFESSIONAL SERVICES CONTRACT
Under a written contract dated ___________________ between ____________________, owner, and ______________________, design professional, the design professional is to furnish or has furnished professional services relating to the proposed or actual erection, alteration, repair, or removal of a structure on or other improvement to real property described as follows:
Insert description of services
The legal description of the real property is as follows:
Insert legal description
(2) A design professional may record a notice under subsection (1) at any time after the written contract is executed regardless of whether the professional services under the written contract have been commenced or completed, and regardless of whether the erection, alteration, repair, or removal of the structure or the other improvement to which the professional services relate has been, or is ever, commenced or completed. However, a design professional shall not record a notice later than 90 days after the design professional, or another person acting by, through, or under the design professional, last performed professional services.
(3) A notice under this section is valid for 1 year after the date it is recorded. The design professional may record a subsequent notice with respect to the written contract. All of the requirements of this section, including the time limitation of subsection (2), apply to a subsequent notice.
(4) If an actual physical improvement is made to the property after a notice is recorded under this section, the notice is only effective from the date of the first actual physical improvement.
(5) This section, or the recording of a notice under this section, does not affect the requirements of this act regarding the creation of a construction lien, including requirements of section 107, the steps necessary to claim a lien, or the manner of enforcing a lien.
History:
Add. 2018, Act 367, Imd. Eff. Dec. 12, 2018
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1112 - Endorsing and Indexing Instrument by Register of Deeds; Recording Fee; Constructive Notice.

570.1112 Endorsing and indexing instrument by register of deeds; recording fee; constructive notice.
Sec. 112.
(1) If a notice of professional services contract, notice of professional services subcontract, notice of commencement, claim of lien, certificate of discharge of lien, or a certificate of a county clerk that no proceedings to enforce a construction lien have been commenced within the period provided by law is recorded in the office of a register of deeds, the register shall endorse on the instrument the date of its recording and properly index the instrument.
(2) The fee for recording an instrument described in subsection (1) is the same as the fee for recording a real estate mortgage under section 2567 of the revised judicature act of 1961, 1961 PA 236, MCL 600.2567.
(3) The recording of a notice of professional services contract, notice of professional services subcontract, notice of commencement, or claim of lien operates as constructive notice to subsequent purchasers or encumbrancers in the same manner as the recording of a real estate mortgage.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 2018, Act 367, Imd. Eff. Dec. 12, 2018
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1113 - Making Available to Lien Claimant Copy of Contract and Statement of Amount Due and Unpaid; Liability of Owner or Lessee; Providing to Owner, Lessee, or Designee Statement of Labor and Material Furnished; Liability of Lien Claimant Failing to Provide Statement; Honoring Request for Payment by Lien Claimant.

570.1113 Making available to lien claimant copy of contract and statement of amount due and unpaid; liability of owner or lessee; providing to owner, lessee, or designee statement of labor and material furnished; liability of lien claimant failing to provide statement; honoring request for payment by lien claimant.
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.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1114 - Construction Lien on Interest of Owner or Lessee in Residential Structure; Providing Improvement Under Written Contract Required; Statement; Contents.

570.1114 Construction lien on interest of owner or lessee in residential structure; providing improvement under written contract required; statement; contents.
Sec. 114.
A contractor does not have a right to a construction lien on the interest of an owner or lessee in a residential structure unless the contractor has provided an improvement to the residential structure under a written contract between the owner or lessee and the contractor and any amendments or additions to the contract are also in writing. The contract required under this section shall contain a statement, in type no smaller than that of the body of the contract, stating 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 the occupational code, 1980 PA 299, MCL 339.2401 to 339.2412. That an electrician is required to be licensed under article 7 of the skilled trades regulation act, MCL 339.5701 to 339.5739. That a plumbing contractor is required to be licensed under article 11 of the skilled trades regulation act, MCL 339.6101 to 339.6133. That a mechanical contractor is required to be licensed under article 8 of the skilled trades regulation act, MCL 339.5801 to 339.5819.
(b) If the contractor is required to be licensed to provide the contracted improvement, that the contractor is licensed and the contractor's license number.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982 ;-- Am. 2006, Act 497, Eff. Jan. 3, 2007 ;-- Am. 2016, Act 415, Eff. Apr. 4, 2017
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1114a - Construction Lien Recorded by Unlicensed Person.

570.1114a Construction lien recorded by unlicensed person.
Sec. 114a.
(1) The owner of residential property on which a construction lien has been recorded by a person who was not licensed as described in section 114, or any person affected by the lien, may bring an action to discharge the lien.
(2) If the court in an action under subsection (1) determines that the person who recorded the lien was not licensed as required, the person is liable to the person who brought the action for all damages that result from the recording and any attempts to enforce the lien, including actual costs and attorney fees.
(3) A person who brings an action to recover for the performance of an act or contract for which a license is required as described in section 114 shall allege in the complaint and has the burden of proving that he or she was properly licensed.
History:
Add. 2006, Act 497, Eff. Jan. 3, 2007
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1117 - Action for Enforcement of Construction Lien Through Foreclosure; Notice of Lis Pendens; Agent Appointed to Represent Laborers; Parties; Action on Contract by Lien Claimant; Enforcement of Lien by Cross-Claim or Counterclaim Where Lien Claimant Party; Sworn Statement.

570.1117 Action for enforcement of construction lien through foreclosure; notice of lis pendens; agent appointed to represent laborers; parties; action on contract by lien claimant; enforcement of lien by cross-claim or counterclaim where lien claimant party; sworn statement.
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.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1118 - Action to Enforce Construction Lien Through Foreclosure; Circuit Court; Equitable Nature of Action; Enforcement of Lien by Cross-Claim or Counterclaim Filed in Pending Action; Duties of Court; Attorneys' Fees.

570.1118 Action to enforce construction lien through foreclosure; circuit court; equitable nature of action; enforcement of lien by cross-claim or counterclaim filed in pending action; duties of court; 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 is 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 an action to enforce a construction lien through foreclosure, the court shall examine each claim and defense that is presented and determine the amount, if any, due to each lien claimant or to any mortgagee or holder of an encumbrance and their respective priorities. The court may allow reasonable attorneys' fees to a lien claimant who is the prevailing party. The court also may allow reasonable attorneys' fees to a prevailing defendant if the court determines the lien claimant's action to enforce a construction lien under this section was vexatious.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982 ;-- Am. 2010, Act 147, Imd. Eff. Aug. 23, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1118a - Attachment of Claim to Residential Structure; Affidavit; Rebuttable Presumption of Payment by Owner or Lessee to Contractor.

570.1118a Attachment of claim to residential structure; affidavit; rebuttable presumption of payment by owner or lessee to contractor.
Sec. 118a.
(1) A claim of construction lien does not attach to a residential structure, to the extent payments have been made, if the owner or lessee files an affidavit with the court stating that the owner or lessee has paid the contractor for the improvement to the residential structure according to the contract, indicating in the affidavit the amount of the payment. The owner or lessee shall attach to the affidavit copies of the contract, any change orders, and any evidence of the payment that the owner or lessee has, including, but not limited to, a canceled check or a credit card or other receipt.
(2) If there is no written contract between the owner or lessee and the contractor as required by section 114, the filing of an affidavit under this section creates a rebuttable presumption that the owner or lessee has paid the contractor for the improvement. The presumption may be overcome only by a showing of clear and convincing evidence to the contrary.
History:
Add. 2010, Act 147, Imd. Eff. Aug. 23, 2010
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1120 - Failure of Owner or Lessee to Perform Contract; Compensation and Additional Damages.

570.1120 Failure of owner or lessee to perform contract; compensation and additional damages.
Sec. 120.
If a lien claimant, by reason of the failure of an owner or lessee to perform the contract, and without fault on the part of the lien claimant, has been prevented from completely performing the contract, the lien claimant shall be entitled to compensation for as much as was performed by the claimant under the contract, in proportion to the price stipulated for complete performance of the whole contract, less any payments made to the lien claimant and also to any additional damages which the lien claimant may be entitled to as a matter of law.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1122 - Appointing Receiver in Action to Enforce Construction Lien Through Foreclosure or in Action to Foreclose Mortgage; Petition; Motion; Finding; Appointment; Nominations by Mortgagee and Lien Claimant; Fiduciary Responsibility; Appointment of Receiver for Residential Structure or Certain Apartment Buildings Prohibited; Power of Receiver.

570.1122 Appointing receiver in action to enforce construction lien through foreclosure or in action to foreclose mortgage; petition; motion; finding; appointment; nominations by mortgagee and lien claimant; fiduciary responsibility; appointment of receiver for residential structure or certain apartment buildings prohibited; power of receiver.
Sec. 122.
(1) If the improvement to the real property is not completed as of the date of commencement of an action in which enforcement of a construction lien through foreclosure is sought or in any action to foreclose a mortgage on the real property on which the incomplete improvement exists, any lien claimant or mortgagee may petition the court for the appointment of a receiver. The petition shall be heard as a motion. A receiver may be appointed by the court upon finding that a substantial unpaid construction lien exists, or that the mortgage on the real property is in default and that the lien claimant, the mortgagee, or both, are likely to sustain substantial loss if the improvement is not completed.
(2) When making an appointment of a receiver under this section, the court shall give consideration to the nominations of the mortgagee and the lien claimant. Any receiver appointed under this section shall be deemed a fiduciary for the benefit of all persons having or claiming interests in the real property, and shall exercise his or her office accordingly.
(3) A receiver shall not be appointed under this section for any residential structure, nor for any apartment building containing 4 or less apartments.
(4) The receiver shall be entitled to possession of the real property upon his or her appointment. Unless otherwise limited by the court, and subject to his or her fiduciary responsibility as provided in this act, the receiver shall have all powers generally exercised by a receiver in a court of equity, including the right to be compensated for his or her services and those of his or her agents and attorneys.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1123 - Petition by Receiver for Authority to Complete Construction of Improvements, Borrow Money, Grant Security, or Sell Real Property Under Foreclosure; Sale; Redemption Period; Purchase of Real Property by Lien Claimant or Mortgagee; Right, Title, and Interest Vested in Grantee.

570.1123 Petition by receiver for authority to complete construction of improvements, borrow money, grant security, or sell real property under foreclosure; sale; redemption period; purchase of real property by lien claimant or mortgagee; right, title, and interest vested in grantee.
Sec. 123.
(1) The receiver may petition the court for authority to complete construction of improvements to the real property in full or in part, to borrow money to complete the construction, and to grant security, by way of mortgage or otherwise, for the borrowings. The priority of the security shall be determined by the court. A petition for authority to complete construction of improvements shall not be granted unless the court finds that the value added to the real property which will result from the construction is likely to exceed the cost of the additional construction, including all estimated overhead and administrative costs, together with interest on any funds that are to be borrowed for the construction. The receiver also may be authorized by the court to borrow funds for other purposes, including such purposes as preserving and operating the real property.
(2) The receiver may petition the court for authority to sell the real property interest under foreclosure for cash or on other terms as may be ordered by the court. The sale may be by private or public sale and shall be held in the manner directed by the court. A sale under this subsection shall become final upon the entry of an order of confirmation by the court, unless the court allows a period for redemption. The redemption period, if allowed, shall not exceed 4 months.
(3) Any lien claimant or mortgagee may purchase the real property at a sale on foreclosure or a sale by the receiver, and may apply on the purchase price any sums which would be payable to him or her from the proceeds of the sale.
(4) Pursuant to section 119(3) and subject to section 121(1), a sale by the receiver, upon becoming final, shall vest in the grantee named in the deed all the right, title, and interest in the real property which the owner, co-owner, lessee, or co-lessee whose interest is being foreclosed had at the date of the execution of the contract for the improvement or at any time thereafter.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 191, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1124 - Final Account of Receiver; Final Order Directing Distribution of Assets; Order of Priority; Deficiency Judgment; Notice of Hearing.

570.1124 Final account of receiver; final order directing distribution of assets; order of priority; deficiency judgment; notice of hearing.
Sec. 124.
(1) Upon the completion of the sale of the real property, the receiver shall prepare and submit a final account for examination and approval by the court. The court shall enter a final order directing the distribution of all funds or other assets held by the receiver. Repayment of funds borrowed by the receiver, under court authority, for the completion of improvements, or for any other purpose shall have priority in the distribution, unless a different priority has been ordered by the court. The next priority shall be that of funds expended by the receiver, including his or her fees and those of his or her attorneys and agents. The remaining funds shall be distributed to the parties in the order of the priority of their respective liens, encumbrances, or other rights as determined by the court. The court shall adjudicate the right, if any, to a deficiency judgment against any contracting party.
(2) Each person who appeared in the foreclosure action shall receive a notice of hearing on any court action concerning the receivership.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1125 - Assignability of Construction Lien; Powers and Obligations of Assignee.

570.1125 Assignability of construction lien; powers and obligations of assignee.
Sec. 125.
A construction lien which arises under this act is assignable. Proceedings for the enforcement of the lien may be maintained by, and in the name of, the assignee. In that case, the assignee shall have the same power to enforce the construction lien, and shall be subject to the same obligations, as if the proceedings were being taken by, and in the name of, the lien claimant.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1126 - Construction Lien Concerning Condominium; Limitations; Definitions.

570.1126 Construction lien concerning condominium; limitations; definitions.
Sec. 126.
(1) A construction lien, concerning a condominium, arising under this act is subject to the following limitations:
(a) Except as otherwise provided in this section, a construction lien for an improvement furnished to a condominium unit or to a limited common element shall attach only to the condominium unit to which the improvement was furnished.
(b) A construction lien for an improvement authorized by the developer of a condominium project and performed upon the common elements shall attach only to condominium units owned by the developer at the time of recording of the claim of lien.
(c) A construction lien for an improvement authorized by the association of coowners of condominium units shall attach to each condominium unit only to the proportional extent that the coowner of the condominium unit is required to contribute to the expenses of administration, as provided by the condominium documents.
(d) A construction lien shall not arise or attach to a condominium unit for work performed on the common elements, if the work was not contracted for by the developer or the association of coowners of condominium units.
(2) This section shall be subject to the definitions and limitations of Act No. 59 of the Public Acts of 1978, being sections 559.101 to 559.272 of the Michigan Compiled Laws.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1127 - Full Payment of Claim of Lien; Certificate; Discontinuance or Dismissal of Action to Enforce Lien Through Foreclosure and to Discharge Notice of Lis Pendens; Documents; Providing Discharges of Lien and Other Documents.

570.1127 Full payment of claim of lien; certificate; discontinuance or dismissal of action to enforce lien through foreclosure and to discharge notice of lis pendens; documents; providing discharges of lien and other documents.
Sec. 127.
(1) When any claim of lien has been fully paid, the lien claimant shall deliver to the owner, lessee, or other person making payment a certificate, witnessed and acknowledged in the same manner as a discharge of mortgage, that the claim has been paid and is now discharged. If an action to enforce the construction lien through foreclosure is pending, the lien claimant also shall furnish, upon request, those documents which are necessary to effect a discontinuance or dismissal of the action and a discharge of any notice of lis pendens filed in connection with the action.
(2) 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 discharges of lien and other documents described in subsection (1), 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 the appropriate documents. 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 discharges of lien and the other documents described in subsection (1) 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 discharges of lien and the other documents described in subsection (1) on behalf of such laborer or laborers pursuant to this section. An individual laborer may also provide discharges of lien and the other documents described in subsection (1) pursuant to this section instead of the agent.
History:
1980, Act 497, Eff. Jan. 1, 1982 ;-- Am. 1982, Act 17, Eff. Mar. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-1 - Part 1 (570.1101...570.1128) › Section 570.1128 - Failure to Commence Proceedings to Enforce Lien Within Time Provided by Law; Certificate; Recording; Affidavit Showing Time Statement or Claim of Lien Recorded.

570.1128 Failure to commence proceedings to enforce lien within time provided by law; certificate; recording; affidavit showing time statement or claim of lien recorded.
Sec. 128.
If any statement or claim of lien has been recorded in the office of a register of deeds, and the time within which proceedings to enforce the lien through foreclosure has elapsed without commencement of the proceedings, a person with an interest in the real property affected by the lien, or that person's agent or attorney, may make and present to the county clerk of the county in which the statement or claim of lien was recorded, an affidavit showing the time when the statement or claim of lien was recorded and the names of the parties to the statement or claim of lien. The county clerk shall examine the records of his or her office, and if it appears that proceedings to enforce the lien have not been commenced with the time provided by law, the county clerk shall execute and deliver to the owner a certificate of that fact, bearing the seal of the circuit court. The certificate may be recorded in the office of the register of deeds for the county where the statement or claim of lien was recorded, after which the statement or claim of lien shall have no effect.
History:
1980, Act 497, Eff. Jan. 1, 1982
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-2 - Part 2 (570.1201...570.1207) › Section 570.1201-570.1207 - Repealed. 1010, Act 147, Imd. Eff. Aug. 23, 2010.

570.1201-570.1207 Repealed. 1010, Act 147, Imd. Eff. Aug. 23, 2010.
Compiler's Notes:
The repealed sections pertained to the homeowner construction lien recovery fund.
2023 Michigan Compiled Laws › Chapter 570 - Liens › Act 497 of 1980 - Construction Lien Act (570.1101 - 570.1305) › 497-1980-3 - Part 3 (570.1301...570.1305) › Section 570.1301 - Repealed. 2018, Act 367, Imd. Eff. Dec. 12, 2018.

570.1301 Repealed. 2018, Act 367, Imd. Eff. Dec. 12, 2018.
Compiler's Notes:
The repealed section pertained to laws governing rights to construction liens.