Property Ownership

A Michigan homeowner receives a Notice of Furnishing from a subcontractor. This notice is significant because:

AIt obligates the homeowner to pay the subcontractor directly
BIt preserves the subcontractor's right to file a construction lien if not paid✓ Correct
CIt cancels the general contractor's lien rights
DIt means the project is complete and payment is due

Explanation

Under Michigan's Construction Lien Act, a subcontractor must provide a Notice of Furnishing to the owner (and lender) to preserve their right to file a construction lien. This alerts the owner that a sub is on the project and may file a lien if unpaid.

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