CONSTRUCTION ISSUE SERIES: Beware Contractors - Requirements for Mechanic’s Liens and Collections

Contractors must be aware of some legal prerequisites when considering filing a mechanic’s lien or collection litigation.

By way of background, any corporation or LLC doing business in New York must be a New York corporation or New York LLC or if it’s a non-New York entity then it must be “authorized to do business in New York” via the New York State Division of Corporations.

While being a New York corporation or LLC or “authorized to do business in New York” may not technically be a requirement to file a mechanic’s lien, it is necessary to bring an action to foreclose that lien or institute any litigation.

Moreover, in New York, on a County by County basis there are various consumer protection rules and home improvement contractor licensing requirements.

It is necessary for contractors to follow these rules and procedures and a) get a license in every relevant jurisdiction, b) display that license number as required and include it on the contract documents. If they fail to do so, they will be unable to collect outstanding accounts in Court and could be subject to treble damages.

The attorneys at the Bachman Law Firm understand your business and formulate creative legal solutions to enable you to reach and exceed your goals. You can reach us at 845-639-3210 or Judith@thebachmanlawfirm.com.