N.Y. Lien Law Section 7
Liability for advance payments, collusive mortgages and incumbrances

Any payment by the owner, contractor or subcontractor upon a contract for the improvement of real property, made prior to the time when, by the terms of the contract, such payment becomes due, for the purpose of avoiding the provisions of this article, shall be of no effect as against the lien of a subcontractor, laborer, or materialman under such contract, created before such payment actually becomes due. A conveyance, mortgage, lien or incumbrance made by an owner of real property, for the purpose of avoiding the provisions of this article, with the knowledge or privity of the person to whom the conveyance is made or in whose favor the mortgage, lien or incumbrance is created, shall be void and of no effect as against a claim on account of the improvement of such real property, existing at the time of the making of the conveyance or the creation of such mortgage, lien or incumbrance. Nothing in this chapter shall subject the title of a purchaser of real property for value whose conveyance is recorded prior to the filing of a lien pursuant to this chapter to any such lien, provided the instrument of conveyance contains the provisions mentioned in subdivision five of section thirteen.

Source: Section 7 — Liability for advance payments, collusive mortgages and incumbrances, https://www.­nysenate.­gov/legislation/laws/LIE/7 (updated Sep. 22, 2014; accessed Oct. 25, 2025).

3
Mechanic’s lien on real property 4
Extent of lien 4–A
Insurance proceeds liable for demands 5
Liens under contracts for public improvements 6
Liens for labor on railroads 7
Liability for advance payments, collusive mortgages and incumbrances 8
Terms of contract may be demanded 9
Contents of notice of lien 10
Filing of notice of lien 11
Service of copy of notice of lien 11–A
Notice of completion and acceptance may be demanded 11–B
Copy of notice of lien to a contractor or subcontractor 11–C
Copy of notice of lien to a contractor or subcontractor with respect to public improvements liens 12
Notice of lien on account of public improvements 12–A
Amendment 13
Priority of liens 14
Assignment of lien 15
Assignments of contracts and orders to be filed 16
Assignment of contracts and orders for public improvement to be filed 17
Duration of lien 18
Duration of lien under contract for a public improvement 19
Discharge of lien for private improvement 20
Discharge of lien after notice of lien filed by payment of money into court 21
Discharge of lien for public improvement 21–A
Vacating lien for a public improvement, by order of court 22
Building loan contract 23
Construction of article 24
Enforcement of mechanic’s lien 25
Priority of liens and assignments under contracts for public improvements 26
Subordination of liens after agreement with owner 28
Lien of certain judgments postponed 29
Subordination of liens to subsequent mortgage 30
Subordination of notices of lis pendens 31
Discharge of liens on sale of real property 32
Certain liens and claims not to be affected 33
Certain sections not to apply to laborers’ liens 34
Waiver of lien 35
Waiver of arbitration 37
Bond to discharge all liens 38
Itemized statement may be required of lienor 39
Lien wilfully exaggerated is void 39–A
Liability of lienor where lien has been declared void on account of wilful exaggeration 39–C
Repossession of materials not used
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Verified:
Oct. 25, 2025

Last modified:
Sep. 22, 2014

§ 7. Liab. for advance payments, collusive mortgages & incumbrances's source at nysenate​.gov

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