~ NEW YORK LIEN LAW PROVISIONS AMENDED ~
Chapter 288 and Chapter 324 of the New York Session Laws of 2000 were signed
into law by the Governor on August 23rd of this year and amend three sections of
New York's Lien Law (Sections 10, 17 and 18).
Chapter 288 amends Subdivision 1 of Section 10 of the New York Lien Law which
establishes when notices of mechanics liens must be filed. Section 10 provides as
follows:
"1. Notice of lien may be filed at any time during the progress of the work
and the furnishing of the materials, or, within eight (8) months after the completion
of the contract, or the final performance of the work, or the final furnishing
of the materials, dating from the last item of work performed or materials furnished;
provided, however, that where the improvement is related to real property improved
or to be improved with a single family dwelling, the notice of lien may be filed
at any time during the progress of the work and the furnishing of the materials,
or, within four (4) months after completion of the contract, or the final performance
of the work, or the final furnishing of the materials, dating from the last item
of work performed or materials furnished..."
The recently enacted amendment of Section 10 modifies the definition of the terms
"single family dwelling" and "developer". The amended portion of Section 10 now
provides:
"... For purposes of this Section, the term 'single family dwelling' shall
not include a dwelling unit which is part of a subdivision that has been filed
with a municipality in which the subdivision is located when at the time the lien
is filed, such property in the subdivision is owned by the developer for purposes
other than his personal residence. For purposes of this Section, 'developer' shall
mean and include any private individual, partnership, trust or corporation which
improves two or more parcels of real property with single family dwellings pursuant
to a common scheme or plan." [amended language underlined]
These revisions to Section 10 the New York Lien Law became effective October
22, 2000.
Pursuant to Chapter 324 of the Session Laws of 2000 Sections 17 and 18 of the
Lien Law have also been amended. Section 17 of the New York Lien Law establishes
the duration of a mechanics lien once it is filed. It provides as follows:
"No lien specified in this article shall be a lien for a longer period than
one (1) year after the notice of lien has been filed, unless within that time
an action is commenced to foreclose the lien, and a notice of the pendency of
such action, whether in a court of record or in a court not of record, is filed
with the county clerk of the county in which the notice of lien is filed, containing
the names of the parties to the action, the object of the action, a brief description
of the real property affected thereby, and the time of filing the notice of lien;
or unless an extension to such lien, except for a lien on real property improved
or to be improved with a single family dwelling, is filed with the county clerk
of the county in which the notice of lien is filed within one (1) year from the
filing of the original notice of lien, ... No lien shall be continued by such
extension for more than one (1) year from the filing thereof. In the event an
action is not commenced to foreclose the lien within such extended period, such
lien shall be extinguished unless an order be granted by a court of record or
a judge or justice thereof, continuing such lien, ..."
The amended portion of Lien Law Section 17 reads as follows:
"A lien on real property improved or to be improved with a single family dwelling
may only be extended by an order of a court of record, or a judge or justice thereof.
No lien shall be continued by court order for more than one (1) year from the
granting thereof, but a new order and entry may be made in each of two successive
years..." [amended language underlined]
This recent amendment of Lien Law Section 17 therefore limits a lienor's ability
to extend a mechanics lien on real property improved by a single family dwelling
or to extend an already once extended mechanics lien on property other than a single
family dwelling for more than a one (1) year period at a time by court order with
a maximum possible lien extension of two (2) successive one year periods.
Chapter 324 also amends New York Lien Law Section 18 which addresses the duration
of liens under contracts for public improvement. Liens for labor done or materials
furnished for public improvements now have a duration of one (1) year. Before amendment,
the lien period for public improvements was only six (6) months. Public improvement
liens can be extended for one additional one (1) year period without court order,
but, similar to the Section 17 amendment, additional extended one lien periods must
now be granted by court order for one (1) year at a time with the maximum total
extended lien period being two (2) successive one year periods.
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