For a contractor, in order to preserve a lien on a private project against the owner and third parties (i.e. mortgage lenders), the Act requires that a claim for lien be filed with the recorder for the county in which the real estate is located within four months after completion of work. After recording, if the lien has not been satisfied, the contractor must file a suit to foreclose the lien within two years after completion of the work. Alternatively, instead of filing a claim for lien, the Act permits a contractor to file a lawsuit to foreclose on the property with a properly recorded lis pendens within four months after completion of work.

If a claim for lien is not filed within four months of completion of work, the contractor may still be entitled to lien rights, but the interests of third parties such as a mortgagee likely would not be affected. Under these circumstances, the contractor may still be able to enforce its lien against the owner as long as the claim for lien and a suit to foreclose the lien are filed within two years after the completion of work.

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VanFleet Law Offices

The VanFleet Law Firm has a strong history in Commercial Litigation, Banking Law and General Business Law matters. Founded by Joseph VanFleet in 1998, the practice has grown and flourished over the years thanks to the talent, expertise and tenacity of the VanFleet legal team. Today, it provides counsel to a broad range of local, regional, national and international clients.

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