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Does my contract have to include mcl 570.1114 for me to file a lien?

MichiganMechanics Lien

my contract with a residential home owner does not have to mcl 570.1114 language but does have my license number

1 reply

Dec 30, 2021

MCL 570.1114 requires a written contract for improvements to residential structures. This section includes certain statutory language to be copied verbatim into the contract. Section 114 also requires the contractor to include his or her license number. 

The absence of the statutory language in MCL 570.1114 will not prevent you from recording a construction lien, but it may be an impediment to enforcing your lien through a foreclosure action. 

That you have a written contract is a plus. And that you are licensed and include the license number in the contract is another plus. The absence of the statutory language, however, is a defense that a homeowner can raise in opposition to your lien in a foreclosure action. Different courts view the missing language differently. Some courts have dismissed a forclosure claims summarily because the contract was missing the "magic words" from the statute. Other courts apply the substantial compliance test and consider the inclusion of your builder's license as sufficent.

So, the register of deeds won't refuse to record your lien because your written contract doesn't fully comply with MCL 570.1114, but if the homeowner has a savvy attorney, they will raise the issue as an affirmative defense and try to dismiss your lien foreclosure claim.  

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