A subcontractor files a construction lien in Michigan for $25,000. The property owner disputes the claim. Under Act 497, within how many days must the subcontractor file a lawsuit to enforce the lien?
Correct Answer
D) 1 year
Under Michigan's Construction Lien Act 497, a lawsuit to enforce a construction lien must be filed within 1 year of recording the lien.
Why This Is the Correct Answer
Under Michigan's Construction Lien Act (Act 497 of 1980), a party who has recorded a construction lien must file a lawsuit to enforce that lien within 1 year of the date the lien was recorded. Failure to file within this 1-year window causes the lien to expire and become unenforceable. The 1-year period gives the claimant adequate time to pursue litigation without leaving the lien cloud on title indefinitely.
Why the Other Options Are Wrong
Option A: 2 years
2 years is too long — Michigan's Construction Lien Act specifically provides a 1-year enforcement deadline, not 2 years. Confusing the lien enforcement period with a general contract statute of limitations (which can be 6 years for written contracts in Michigan) is a common error.
Option B: 90 days
90 days is a different deadline under Act 497 — it is the timeframe within which the lien must be RECORDED after last furnishing labor or materials, not the period to file a lawsuit to enforce it. Confusing the recording deadline with the enforcement deadline is the most common mistake on this topic.
Option C: 6 months
6 months (approximately 180 days) is not the statutory enforcement period under Act 497. This figure has no basis in Michigan construction lien law for the enforcement deadline.
Memory Technique
Think of it in two steps: '90 days to record, 1 year to fight.' Recording is quick — you must act fast (90 days). Enforcement is slower — you have a full year to go to court. Picture a 90-day sprint to file the paperwork, then a 1-year marathon to litigate.
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