A. Purpose of Filing A Mechanic'sLien on A Private Improvement

• Jurisdiction: New York

A. Purpose of Filing a Mechanic's Lien on a Private Improvement

A lien may be filed for labor performed and materials furnished for an improvement to real property when payment has not been received within the time provided for such payment, and the work for which payment is sought has been completed.

The primary purpose of filing a lien is to acquire an enforceable security interest type of protection for a person enhancing the value of the real property by virtue of furnishing materials or performing labor with the owner's consent. The commencement or continuation of a pending bankruptcy action by a bankrupt lienor does not automatically stay the lien foreclosure action by virtue of § 362 of the U.S. Bankruptcy Code.⁴²

A secondary purpose is to give notice to subsequent purchasers and encumbrancers that there is a charge on the...