A subcontractor completes work on March 15th but doesn't file a construction lien until June 20th. The property owner received a Notice of Furnishing on March 10th. Is the lien valid under Michigan law?
Correct Answer
D) No, filed too late
Michigan Construction Lien Act requires liens to be filed within 90 days of last furnishing labor or materials. June 20th is 97 days after March 15th, making the lien invalid.
Why This Is the Correct Answer
Michigan's Construction Lien Act (Act 497) requires that a lien be filed within 90 days of the claimant's last day of furnishing labor or materials. March 15 to June 20 is 97 days — 7 days past the deadline. Even though all preliminary notice requirements were met, missing the 90-day filing deadline renders the lien void and unenforceable.
Why the Other Options Are Wrong
Option A: Yes, filed within the statutory period
The lien was NOT filed within the statutory period. Counting carefully: March has 16 remaining days after the 15th (days 1–16), April adds 30 (days 17–46), May adds 31 (days 47–77), and June 20 brings the total to 97 days — 7 days too late.
Option B: No, Notice of Furnishing was invalid
The Notice of Furnishing received on March 10th (5 days before last furnishing on March 15th) is not the reason for invalidity. The NOF timing issue is a distractor; the lien fails solely because it was filed after the 90-day window.
Option C: Yes, but only for materials
Michigan's Construction Lien Act does not distinguish between labor and materials for lien filing purposes. A lien covers both if properly filed. Partial validity for materials only is not a recognized outcome under Act 497.
Memory Technique
Remember '90 days or no pay.' From last day of work, you have 90 days to file the lien or you lose all lien rights — no exceptions for timing of preliminary notices.
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XYZ Contractors failed to pay a subcontractor and the sub filed a construction lien. The project owner wants to release the lien by posting a bond. Under Michigan law, the bond amount must be what percentage of the lien amount?
