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New York Lien Law Section 4 - Extent Of Lien.

Legal Research Home > New York Lawyer > Lien > New York Lien Law Section 4 - Extent Of Lien.

    § 4. Extent of lien. (1) Such lien shall extend to the owner's right,
  title or interest in the real property and improvements, existing at the
  time of filing the notice of lien, or  thereafter  acquired,  except  as
  hereinafter  in  this article provided. If an owner assigns his interest
  in such real property  by  a  general  assignment  for  the  benefit  of
  creditors,  within  thirty  days  prior  to  such filing, the lien shall
  extend to the interest thus assigned. If any part of the  real  property
  subjected  to  such lien be removed by the owner or by any other person,
  at any time before the discharge thereof, such removal shall not  affect
  the  rights  of  the  lienor,  either  in  respect to the remaining real
  property, or the  part  so  removed.  If  labor  is  performed  for,  or
  materials   furnished   to,   a   contractor  or  subcontractor  for  an
  improvement, the lien shall not be for a sum greater than the sum earned
  and unpaid on the contract at the time of filing the notice of lien, and
  any sum subsequently earned thereon. In  no  case  shall  the  owner  be
  liable  to pay by reason of all liens created pursuant to this article a
  sum greater than the value or agreed price of the  labor  and  materials
  remaining unpaid, at the time of filing notices of such liens, except as
  hereinafter provided.
    (2) Such lien shall not extend to the owner's right, title or interest
  in  real  property  and improvements, existing at the time of filing the
  notice of lien if such lien arises from the failure of a lessee  of  the
  right  to  explore,  develop  or produce natural gas or oil, to pay for,
  compensate or render value for improvements made with the consent or  at
  the  request of such lessee by a contractor, subcontractor, materialman,
  equipment operator  or  owner,  landscaper,  nurseryman,  or  person  or
  corporation   who   performs   labor  or  furnishes  materials  for  the
  exploration, development,  or  production  of  oil  or  natural  gas  or
  otherwise  improves  such leased property. Such lien shall extend to the
  improvements made for the exploration, development and production of oil
  and natural gas, and the working interest held by a lessee of the  right
  to explore, develop or produce oil and natural gas.
    (3)  Notwithstanding  subdivision  two  if  a property owner is also a
  developer of oil and gas resources and is a party to an agreement with a
  person or firm authorized to perfect a lien arising out of  the  failure
  of  such developer to compensate or render value for improvements to the
  property upon which an oil or gas well is drilled  or  established,  the
  lien  shall  extend  to  the  owners'  right  or  interest  in such real
  property.

Last modified: August 24, 2006