Expands mechanic's liens on real property to include certain legal work for attorneys and design work for engineers and architects which relates to permits and zoning approvals for such real property.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8346
SPONSOR: Brown K PURPOSE OR GENERAL IDEA OF BILL:
Expands mechanics' liens on real property to include attorneys, engi-
neers, and architects.
SUMMARY OF PROVISIONS:
Section 1: amends section 3 of the lien law, as amended by chapter 137
of the laws of 1985.
Section 2: Identifies effective date.
JUSTIFICATION:
Guaranteeing the timely and complete compensation for contractual work
is one of the principal components of any high-trust, functional, and
efficient economy. For this reason, mechanic's or contractor's lien has
been in place in this state for over a Century. In fact, Thomas Jeffer-
son first introduced this concept as a law in Maryland to facilitate the
rapid development of our nation's capital. Liens are designed to protect
contractors, subcontractors and suppliers who have not been paid for
work performed or materials supplied related to work performed on a
piece of real property. Once a claim has been filed and enforced, the
party who has failed to pay their contractual obligations will be
prompted to fulfill them or face the foreclosure of their property.
Again, this provides contractors with the confidence to conduct their
work, with assurance of their payment.
However, as New York State law currently stands, attorneys, engineers,
and architects are not included in this lien law, despite the potential
for these professionals to improve real property, just as a mechanic or
other contractor does. An attorney is commonly involved in the process
of acquiring permits and/or zoning approvals, as are architects and
engineers who complete design work related to said approvals. Approxi-
mately five percent of property or construction projects experience
payment disputes; however, attorneys, engineers, and architects unfortu-
nately lack the same mechanisms to secure their guaranteed compensation
as contractors. These workers should enjoy the same lien rights as
mechanics and other contractors because of the essential nature of their
work related to the development, expansion, and creation of real proper-
ty. Additionally, any lack of confidence in eventual payment that may
prevent the development of particular areas and properties can be
dispelled with the expansion of the mechanic's lien, benefiting the
economy and property development of New York State.
This bill would amend the lien law, in relation to expanding mechanic's
liens on real property to include attorneys, engineers and architects
who imprOve real property by acquiring permits and/or zoning approvals.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8346
2025-2026 Regular Sessions
IN ASSEMBLY
May 13, 2025
___________
Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the lien law, in relation to expanding mechanic's liens
on real property to include attorneys, engineers and architects
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3 of the lien law, as amended by chapter 137 of the
2 laws of 1985, is amended to read as follows:
3 § 3. Mechanic's lien on real property. A contractor, subcontractor,
4 laborer, [materialman] material supplier, landscape gardener, [nursery-
5 man] owner or operator of a nursery or person or corporation selling
6 fruit or ornamental trees, roses, shrubbery, vines and small fruits, who
7 performs labor or furnishes materials for the improvement of real prop-
8 erty, attorney who improves real property by obtaining permits and/or
9 zoning approvals, or an engineer or architect who performs design work
10 relating to securing permits or zoning approvals on real property, with
11 the consent or at the request of the owner thereof, or of [his] such
12 owner's agent, contractor or subcontractor, and any trust fund to which
13 benefits and wage supplements are due or payable for the benefit of such
14 [laborers] persons, shall have a lien for the principal and interest, of
15 the value, or the agreed price, of such labor, legal work, or design
16 work, including benefits and wage supplements due or payable for the
17 benefit of any laborer, [or] materials upon the real property improved
18 [or], to be improved, or related to legal or design work and upon such
19 improvement or legal or design work, from the time of filing a notice of
20 such lien as prescribed in this chapter. Where the contract for an
21 improvement is made with a [husband or wife] person and the property
22 belongs to [the other or both] such person's spouse or both such person
23 and their spouse, [the husband or wife] such person contracting shall
24 also be presumed to be the agent of the other, unless such other having
25 knowledge of the improvement shall, within ten days after learning of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11589-05-5
A. 8346 2
1 the contract give the contractor written notice of [his or her] their
2 refusal to consent to the improvement. Within the meaning of the
3 provisions of this chapter, materials actually manufactured for but not
4 delivered to the real property, shall also be deemed to be materials
5 furnished.
6 § 2. This act shall take effect immediately.
