Real Property Notes Blog
Construction Lien Act amended
Public Act 367 of 2018, effective December 12, 2018, now provides for persons providing professional services to a construction project may record a notice and claim a lien. Professional services includes, but is not limited to "programming, planning, surveying, site investigation, analysis, assessment, design, preparation of drawings and specifications, and construction administration services.”
If the design professional has entered into a written contract with the owner or the owner’s agent, the professional may record a notice with the register of deeds; the notice is valid for one year. Professional subcontractors may also record a notice if the subcontractor’s engagement has been approved in writing by the owner or the owner’s agent.
The requirements regarding the recording of a construction lien remain in effect.
Homeowners Insurance does not cover “business pursuits"
In Memberselect Ins. Co. v Guzman, an unpublished Michigan Court of Appeals opinion, the homeowner engaged in a window washing business and also performed periodic property maintenance and repairs. One of his employees was injured as the employee was helping the homeowner load a lawn mower into the homeowner’s truck to take to a property he was maintaining for another. The homeowner’s auto policy had elapsed, so claim was made against his homeowners insurance. The insurance company filed suit seeking a determination that the injury was not covered because of the business pursuits exclusion under the policy. The trial court denied the insurance company’s motion for summary disposition, finding there was an issue of fact becasue of the episodic and periodic nature of the homeowner’s property maintenance pursuits. The insurance company appealed.
The Court of Appeals reversed, finding that the fact that the homeowner’s work was on an as needed or on call basis did not create an issue of fact that, at the time of the incident, the lawn mower was being loaded so that the homeowner could perform business work. Because the definition of work under the policy included part-time work, the exclusion applied.