A homeowner disputes a construction lien filed under Michigan Act 497. The lien was filed 85 days after completion and includes proper notices. What is the likely outcome?
Correct Answer
C) Lien is valid if properly filed
Since the lien was filed within the 90-day statutory period and proper notices were given, the lien is valid. The homeowner's dispute doesn't automatically invalidate a properly filed lien.
Why This Is the Correct Answer
Under Michigan's Construction Lien Act 497, a lien filed within the 90-day window (85 days here) with all required preliminary notices properly served is a valid, enforceable lien. A homeowner's dispute or objection does not automatically invalidate the lien — they must challenge it through the courts, but the lien itself stands as properly filed.
Why the Other Options Are Wrong
Option A: Lien is automatically void
A lien does not become automatically void simply because a homeowner disputes it. Automatic voidance only occurs for statutory defects such as missing notices or filing outside the deadline. Here, both timing and notices are compliant.
Option B: Lien requires court approval
A lien does not require prior court approval to be valid. The lien attaches to the property upon proper filing. Court involvement happens only if the lien is challenged through a formal legal action or if the contractor needs to foreclose on the lien.
Option D: Lien is invalid due to timing
85 days is within the 90-day statutory filing period. The timing is not a defect. Describing this lien as 'invalid due to timing' is incorrect — 5 days of buffer remain under the statute.
Memory Technique
Think of the lien as a padlock on the property title. Filing it properly within 90 days with proper notices snaps that padlock shut. The homeowner can argue, but the padlock stays until a court removes it.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A subcontractor completed work worth $25,000 on March 15th but was not paid by the general contractor. Under Michigan lien law, what is the last day to file a construction lien if the project was substantially completed on April 30th?
Next Question
A Michigan contractor fails to maintain required insurance coverage during an active project. What enforcement action can LARA take?