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Releasing Funds for a Lien in Michigan

MichiganLien ReleasesMechanics LienRetainage

a second-tier subcontractor filed a lien on a property Macomb, MI. The current plan is for a check to be written directly to the lien claimant, however, 10% retainage is withheld on the project. Would releasing retainage to the lien claimant violate the Michigan Property Code? Would the owner of the property lose protection the Property Code provided by releasing the retainage?

1 reply

Jul 8, 2020
Michigan doesn't seem to regulate retainage on privately owned projects. So, releasing retainage to a claimant shouldn't violate any retainage or property code laws. If full retainage is released prior to the completion of the project, then the protection retainage provides might not be there. But, that doesn't automatically mean that there will be problems, and that doesn't mean that other tools for protection can't be used.
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