How do I file a construction lien in Michigan?

Michigan's Construction Lien Act is at MCL §§ 570.1101 to 570.1305.

1. Who Can File

Contractors, subcontractors, suppliers, laborers, design professionals (architects, engineers, surveyors), and equipment providers furnishing improvements to real property (MCL §§ 570.1103, 570.1107).

2. Preliminary / Pre-Lien Notice

After an owner files a Notice of Commencement, every contractor (other than the one with direct contract with the owner) must serve a Notice of Furnishing on the designee within 20 days of first furnishing labor or materials (MCL § 570.1109). Late notice limits the lien to work performed within 20 days before notice.

3. Recording the Lien

Record a verified Claim of Lien with the register of deeds in the county where the property lies within 90 days after the last furnishing of labor or materials (MCL § 570.1111). Required contents: claimant, owner, contract date, property description, amount, dates of first/last furnishing, and statement of compliance with the Act.

4. Service on Owner

Within 15 days of recording, serve a copy of the Claim of Lien and Proof of Service on the owner (or designee), via personal service or certified mail (MCL § 570.1111(4)).

5. Suit to Foreclose

File foreclosure within 1 year after the date the lien was recorded (MCL § 570.1117). Suit must be by complaint in circuit court of the county where the property lies.

6. Priority

Liens take priority from the date the first actual physical improvement is made on the property; pre-existing mortgages keep priority as to land value (MCL § 570.1119).

7. Bond Release

A claim of lien may be vacated by recording a cash deposit or surety bond for the lien amount, plus interest and attorney's fees (typically 125%) under MCL § 570.1116.

8. Homestead / Residential

For residential structures, a lien is limited to the amount the owner owes the contractor if the owner has paid the contractor in full and has the affidavits required by MCL § 570.1203 (the Homeowner Construction Lien Recovery Fund was abolished in 2010, replaced by stricter sworn-statement and waiver protections).

9. Fraudulent Lien Penalties

A willfully exaggerated lien is void; § 570.1110 makes wrongful failure to provide sworn statements a misdemeanor and exposes claimants to damages and attorney's fees under § 570.1118.

This is legal information, not legal advice.