New Bill Would Require Builders to Present License When Recording Construction Lien

On April 20, 2021, Rep. Tommy Brann (R. Wyoming) introduced a new bill, which would require lien claimants to present their contractor's license and drivers license, or attach a copy of them, when recording a construction lien under the Michigan Construction Lien Act. Contractors who violate this requirement would be guilty of a misdemeanor (up to 90 days in jail) and incur a $500 fine.

H.B. 4668 would amend Section 114 of the Construction Lien Act (MCL 570.1114), by adding four new subsections. 

Section 114(2) would require contractors to display (present) their builder's license and some form of personal identification, such as a drivers license, when recording a claim of lien in person.

Section 114(3) would require prohibit a register of deeds from accepting a claim of lien for recording without seeing or attaching a copy of the contractor's license and personal identification to the claim of lien. 

Section 114(4) outlines the penalties for violation. A contractor who violates Section 114 would be guilty of a misdemeanor and face a fine of up to $500, or both. 

Section 114(5) outlines five different forms of "personal identification" that would be acceptable.

Comment: The Michigan Construction Lien Act already includes safeguards against unlicensed builders trying to enforce their construction liens. Section 114a(3) for instance requires that a person who brings an action to enforce a construction lien, who is required to have a license, allege and prove that he (or she) is properly licensed. Section 114a(1) allows an owner of residential property (Homeowner) to bring an action to discharge a construction lien recorded by an unlicensed builder, and recover actual attorney fees and costs.   

For more information about the Michigan Construction Lien Act, contact Peter Cavanaugh or Gary Quesada at (248) 543-8320.  Or visit our website - www.MichiganConstructionLaw.com