A Property Transfer Can Defeat a Later Mechanic’s Lien: V.A.L. Floors

Reviewed September 7, 2026.

In V.A.L. Floors, Inc. v. Marson Contracting Co., Inc., 110 AD3d 504 (1st Dept 2013), a subcontractor filed against a condominium unit after the developer had conveyed it to buyers. The deed contained the trust-fund covenant required by Lien Law § 13(5). The court held that the later lien was not valid against the deed.

The court also relied on § 4, which addresses the owner’s interest existing when the notice is filed, and the condominium rules concerning work outside the unit. The buyers had not consented to the work that formed the overwhelming majority of the claim.

Check title before waiting

A statutory filing period is an outside deadline, not a guarantee that the same property interest or available funds will remain throughout it. Review current ownership, the deed, the work and any condominium restrictions before filing. Do not assume every transfer defeats every lien; the governing documents, timing and statutory protections require analysis.

A lost lien remedy does not necessarily eliminate the debt. Contract claims and qualifying Article 3-A trust claims may remain, subject to their own elements and deadlines. Sale proceeds, trust status and any individual liability must be established; a corporate officer is not automatically liable simply because a lien failed.

Kushnick Pallaci PLLC assists clients throughout New York with mechanic’s lien enforcement and defense. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.