A subcontractor completes work on June 1st but doesn't file their construction lien until October 15th. Under Michigan lien law, is this lien valid?
Correct Answer
C) No, filed too late
Michigan Construction Lien Act 497 requires liens to be filed within 90 days of last furnishing labor or materials. October 15th is beyond the 90-day deadline from June 1st.
Why This Is the Correct Answer
Under Michigan's Construction Lien Act (Act 497 of 1980), a subcontractor must file a claim of lien within 90 days after the last date they furnished labor or materials to the project. Counting 90 days from June 1st brings the deadline to approximately August 30th. Filing on October 15th is well beyond this deadline, rendering the lien invalid and unenforceable.
Why the Other Options Are Wrong
Option A: Valid but with reduced priority
Michigan lien law does not recognize a concept of 'reduced priority' for late-filed liens. A lien filed after the statutory deadline is simply void — there is no mechanism to preserve it with reduced standing.
Option B: Yes, filed within the deadline
October 15th is not within the 90-day deadline from June 1st. The 90-day window closes around August 30th. This answer incorrectly counts the deadline or confuses it with a longer period.
Option D: Valid only if Notice of Furnishing was served
While the Notice of Furnishing is an important requirement under Michigan's Construction Lien Act (it must be served within 20 days of first furnishing), it does not extend the 90-day lien filing deadline. Even with a proper Notice of Furnishing, the lien filed on October 15th is still too late.
Memory Technique
Remember '90 days or you pay.' A lien must be filed within 90 days of your last day working. June 1 + 90 days = ~August 30. October is way past August — the lien is dead.
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