Governor Andrew Cuomo has just signed into law an amendment to the New York Lien Law which extends the time within which mechanic's liens on private improvement projects may be filed. While a notice of lien must still be filed within eight months of the date when the last item of work was performed or materials were furnished by the lienor (or within four months, if the project involves a single-family dwelling), the Amendment now permits liens for retainage to be filed within ninety (90) days after the date the retainage was due to be released.
Since retainage is often not due until well after a contractor last provided labor or materials to a project, the Amendment is clearly intended to resolve the unenviable choice a contractor previously faced of having to file a lien for its not yet due retainage or risk losing its lien rights when retainage later becomes due but is not paid. Now, with this Amendment, contractors, in most instances, will have more time within which to file their liens for retainage.
However, with this change, it is certain that there will be much disagreement in the future as to when retainage is due to be released under a particular contract.
We hope you find this information helpful. If you have questions pertaining to the material presented in this Client Alert or other legal issues, please contact Joseph P. Asselta, Esq. or any other attorney at Agovino & Asselta, LLP at (516) 248-9880.
Disclaimer
This Client Alert provides an overview of certain aspects of a particular new law. It has been prepared by Agovino & Asselta, LLP for informational purposes only and is not intended to serve as, and should not be considered, legal advice for any specific fact situation.Readers should not act upon the information contained in these publications without the assistance of professional counsel.
