I am often asked as a Nassau County Business Attorney about the two types of mechanic liens. There are two types of mechanic''s liens. The first one is a private improvement lien. This is a mechanic''s lien that is used by the general contractors and tradesmen. It lasts for one year once it's placed on there and it has to be renewed. Successive duration''s of that lien have to be court ordered.
The second type of lien is called a public improvement lien. I advise clients as a Business Attorney that this is where the contractor might do work at a hospital or on a public roadway owned by the city or the government. The ultimate consequence of a mechanic''s lien is that the property gets sold. Now, in the normal course of dealings in this area, properties don't normally get sold. Court litigation usually results in the parties getting some money at the end. With a church or a hospital or a railroad or a public entity owned piece of real property, you don't ultimately sell that property. What the lien attaches to in a public improvement job is the funds that are earmarked by the government agency to the general contractor for that job. The lien gets attached to the pool of money associated with that project.
If you have questions about the many types of mechanics liens, contact our experienced Nassau County Business Attorney's.