My question involves collection proceedings in the State of: NEW YORK
FACTS: Lienholder filed a mechanics lien which is deficient pursuant to section 10 of the lien laws (wrong address, doesn't list lot and block) which allows for it to be discharged under lien law section 19, but the lien is also improperly brought as the underlying construction contract was with tenant, not landlord, who's property the lien is against. This means the property owner could either: (1) file a section 19 summary application to discharge the lien as it doesn't meet the filing standards; or (2) send a section 59 notice forcing lienholder to file for foreclosure within 30 days or face the lien being discharged. at which point the lienholder will lose. 8 months from completion of the work was up last month, so technically if they hadn't filed yet they would be barred.
QUESTION: If the property owner files the section 19 application to discharge the lien for it's filing deficiencies, will the lienholder be allowed to amend, or is the lien discharged permanently as they would not be outside the 8 month window to re-file?
(If they are able to amend, I would think that a section 59 notice would be the way to go because it will challenge, and hopefully discharge the lien, rather than temporarily discharge same until they refile - BUT if they can't amend, a section 19 application would seem the fastest and easiest way to get the lien discharged)
All responses are much appreciated.
FACTS: Lienholder filed a mechanics lien which is deficient pursuant to section 10 of the lien laws (wrong address, doesn't list lot and block) which allows for it to be discharged under lien law section 19, but the lien is also improperly brought as the underlying construction contract was with tenant, not landlord, who's property the lien is against. This means the property owner could either: (1) file a section 19 summary application to discharge the lien as it doesn't meet the filing standards; or (2) send a section 59 notice forcing lienholder to file for foreclosure within 30 days or face the lien being discharged. at which point the lienholder will lose. 8 months from completion of the work was up last month, so technically if they hadn't filed yet they would be barred.
QUESTION: If the property owner files the section 19 application to discharge the lien for it's filing deficiencies, will the lienholder be allowed to amend, or is the lien discharged permanently as they would not be outside the 8 month window to re-file?
(If they are able to amend, I would think that a section 59 notice would be the way to go because it will challenge, and hopefully discharge the lien, rather than temporarily discharge same until they refile - BUT if they can't amend, a section 19 application would seem the fastest and easiest way to get the lien discharged)
All responses are much appreciated.
Liens and Encumbrances: How to Best Dispute a Mechanic's Lien Against Real Estate
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