Michigan Residential Builders License Practice Test

Proceedings to foreclose a lien must occur within what time frame after the lien is recorded?

1. 6 months

2. 1 year

3. 2 years

4. 3 years

The correct answer is: 1 year

The correct timeframe for proceedings to foreclose a lien after it has been recorded is 1 year. This timeframe is established under Michigan law, which requires that a lienholder must initiate foreclosure proceedings within one year from the date the lien is recorded. This regulation is important for ensuring that claims against property are resolved in a timely manner, providing both the property owner and the lienholder with a clear understanding of their rights and obligations. Understanding this time limit is essential for anyone in the construction and real estate industries, as it affects how long a lien remains active before it must be addressed legally. If a lien is not acted upon within this one-year period, the lien may become unenforceable, allowing property owners to move forward without the burden of unresolved claims. Thus, knowing the one-year requirement helps in managing legal risks and maintaining compliance with state regulations.