A Michigan contractor files a construction lien for $25,000. Under the Construction Lien Act 497, within how many days must the contractor commence legal action to enforce the lien?
Correct Answer
C) 365 days
Under Michigan's Construction Lien Act 497, legal action to enforce a construction lien must be commenced within one year (365 days) of filing the lien.
Why This Is the Correct Answer
Michigan's Construction Lien Act 497 gives a lien claimant one year (365 days) from the date the lien was recorded to commence a civil action to enforce it. Failure to file suit within this period causes the lien to expire and become unenforceable, eliminating the contractor's security interest in the property.
Why the Other Options Are Wrong
Option A: 120 days
120 days is not the enforcement deadline under Michigan's Construction Lien Act. This figure may be confused with other construction law timeframes (such as notice periods), but it is not the statutory window for filing suit to enforce a lien.
Option B: 180 days
180 days (6 months) is not the correct period. Some candidates associate this with other states' lien laws or with the Notice of Furnishing timeline. Michigan's Act 497 sets a full one-year window for enforcement actions.
Option D: 90 days
90 days is not the enforcement deadline. While 90 days is a commonly referenced period in construction law (such as the time to file a lien after last furnishing labor/materials), it does not govern how long a contractor has to sue to enforce the lien after filing.
Memory Technique
Two timelines to memorize for Michigan liens: '90 days to FILE, 365 days to FIGHT.' File the lien within 90 days of your last work; then you have one full year from filing to take it to court.
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