If a due date is not until 7/3/2020. But Level set wants to send a "Notice of Intent to Lien" is it best to send these before the due date or after the due date has passed? For example, New York.
Since a Notice of Intent to Lien isn't required in the state of New York, this is ultimately a business decision. It's important, however, to keep your NY lien deadlines in mind. Which are 8 months from the last date of furnishing labor or materials to the project; or 4 months if a single-family residential project. Sending a Notice of Intent will not extend this deadline.
However, the best practice is to send a notice after the payment becomes due. Sending the notice beforehand may be a little premature since the payment problem hasn't technically arisen yet since payment isn't due. It may come off as assuming that the party isn't going to pay.
We do recommend a few steps before filing a lien claim. Once payment becomes past due is to first send a friendly invoice reminder. If that doesn't work, escalate the issue by sending a payment demand letter. And lastly, if neither of those options produces the payment; then sending a notice of intent to lien stating that if payment isn't made within x amount of days, a lien will be filed against the property.
Here are some other resources you may find helpful:
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such. Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...See More...
With that being said, a Notice of Intent to Lien should certainly be sent before the mechanics lien deadline. Generally, at the very least, a Notice of Intent should be sent with enough time to negotiate payment before a lien would have to be filed. Many claimants opt to send one with a minimum of 10 days before the lien deadline.
However, if there's a serious payment dispute at hand, if the slow payment is creating problems, or if your customer is proving hard to work with, then sending a Notice of Intent to Lien earlier may be warranted. Ultimately, the timing is a business decision that every claimant will have to make themselves based on their customers, the relationships involved, and their appetite for risk.
Finally, if you have questions about the Levelset platform, feel free to reach out to the Levelset Support team or to your account manager. Currently, the Expert Center is designed for construction law and construction payment questions in general.
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...
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