Michigan Design Professionals: Record your Notice upon Execution of your Contract
Michigan's Construction Lien Act was amended by the State Legislature effective December 12, 2018 to allow a design professional to record a notice with the County of Register of deeds where a project is located informing any other parties with an interest in the property of the design professional's own interest.
Public Act 367 defines "design professional" as an individual who is licensed or registered as an architect, professional engineer, or professional surveyor under State law or a corporation licensed under State law to perform these services.
The new amendment entitles design professionals to record a notice detailing the contracted work with the applicable county register of deeds as soon as the contract for the project is executed.
It must be filed within 90 days of the contract's execution and is valid for 1 year after recording. If a physical improvement is made to the subject property after the filing of the notice, the 1-year term still runs only from the date of filing of the first such notice.
All other requirements for the filing of a valid construction lien under Michigan State law must still be complied with.
The lien created by the proper filing of this notice takes priority over all competing construction liens filed or claimed after its recording. It does not take priority over liens perfected prior to its recording date.
The Bottom-Line for Design Professionals Regarding Construction Liens:
Design professionals should be aware not only of their right to file such a notice but also of potential requests for lien waivers or affidavits from general and sub-contractors employing them moving forward.
Attorney John Hilla would be pleased to discuss related services with either brand of professional. Contact Us Here, or call (866) 674-2317.