Can a Subctractor Put a Lien on Property or a Lease for Seismic Testing Services in New York?
Full Question:
Answer:
Yes, it is possible. The question will be the type of lien involved, whether it may be a mechanic lien or judgment lien. If the testing was done in connection with an improvement to the property, it is possible a mechanics lien may be filed on the property. If not, a judgment lien may be placed on the property and rents/payments due if the creditor wins a court judgment and it reamains unpaid.
Mechanics liens are typically filed in relation to work done to improve real property. In cases where a contract of another type is breached by failure to pay for the item, typically a breach of contract lawsuit is filed. If a judgment is won but isn't paid, that unpaid judgment may be used to request a lien on assets of the losing party.
There are several types of liens, all of which could cloud the title and prevent the seller from conveying marketable title to the buyer. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles.
In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. If a lien were placed on a home, the judgment creditor would then seek to foreclose on the property, in the same way a mortgage holder such as a bank would foreclose if it were not paid. Laws regarding judgment liens vary by jurisdiction, so local laws should be consulted for specific requirements.
A judgment lien is created when a plaintiff gets a judgment for money damages against a defendant and records that judgment in the county where land of the defendant is located. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. If a lien were placed on a vehicle, the judgment creditor would then seek to sell the vehicle, in the same way a mortgage holder such as a bank would foreclose if it were not paid.
A judgment creditor may also request that the court issue a writ for garnishment of the debtor's wages. If granted, the court order for garnishment is served directly upon the debtor's employer, who must comply with its terms. Wage garnishment is a legal procedure governed by
state law in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt and paid directly to the judgment creditor by the debtor's employer. There are different types of garnishments, as defined by state laws, which vary by state. A garnishment may be made on a one-time or continuing basis. Some kinds of income are exempt, which means that they cannot be garnished at all by creditors for consumer debts, including welfare, unemployment, veterans benefits, Social security, workers' compensation, pensions, and child support payments that you receive. For ordinary garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25 percent of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage.
Liens that arise in construction situations include construction liens, contractor liens, mechanic liens, attorney liens, architect liens and other liens applicable in your state. Contractors, subcontractors, material suppliers, and laborers can place liens against property for the value of work or materials installed on that property. The filing requirements and statutes of limitation for these liens vary according to the law of each state. In some states, contractors and subcontractors must notify the property owner prior to filing a lien, but in other states such liens can be filed without any notification to the owner. Lien claimants who are contractors or subcontractors are protected under this legal doctrine because all their materials and labor are "buried" in the real estate, having become part of it. Unlike mortgage liens, however, the liens of these claimants cannot force a foreclosure.
A lien is the right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as the payment of lawful charges for work done on the property. The right of lien generally arises by operation of law, but in some cases it is created by express contract. Liens that arise in construction situations include construction liens, contractor liens, mechanic liens, attorney liens, architect liens and other liens applicable in your state. By virtue of express statutes in most states, mechanics and material men or persons who furnish materials for the erection of houses or other buildings, are entitled to a lien or preference in the payment of debts out of the houses and buildings so erected and to the land, to a greater or lessor extent, on which they are erected. It is used to enforce payment in order to clear the title to the property, because property with a lien on it cannot be easily sold until the lien is satisfied (paid off). In some states, a claim must be filed in the office of the clerk of the court or a suit brought within a limited time. On the sale of the building these liens are to be paid pro rata. In some states no lien is created unless the work done or the goods furnished amount to a certain specified sum, while in others there is no limit to the amount.
Please see the following definition of improvement to property to qualify for a mechanics lien is NY:
" Improvement. The term "improvement," when used in this chapter,
includes the demolition, erection, alteration or repair of any structure
upon, connected with, or beneath the surface of, any real property and any
work done upon such property or materials furnished for its permanent
improvement, and shall also include any work done or materials furnished in
equipping any such structure with any chandeliers, brackets or other
fixtures or apparatus for supplying gas or electric light and shall also
include the drawing by any architect or engineer or surveyor, of any plans
or specifications or survey, which are prepared for or used in connection
with such improvement and shall also include the value of materials
actually manufactured for but not delivered to the real property, and shall
also include the reasonable rental value for the period of actual use of
machinery, tools and equipment and the value of compressed gases furnished
for welding or cutting in connection with the demolition, erection,
alteration or repair of any real property, and the value of fuel and
lubricants consumed by machinery operating on the improvement, or by motor
vehicles owned, operated or controlled by the owner, or a contractor or
subcontractor while engaged exclusively in the transportation of materials
to or from the improvement for the purposes thereof and shall also include
the performance of real estate brokerage services in obtaining a lessee for
a term of more than three years of all or any part of real property to be
used for other than residential purposes pursuant to a written contract of
brokerage employment or compensation."