Free Michigan Sworn Form in PDF

Instructions on Writing Michigan Sworn

Filling out the Michigan Sworn Statement form is a crucial step ensuring that a real estate improvement project is transparent about financial obligations to subcontractors, suppliers, and laborers. This process helps safeguard property owners and contractors from future legal complications regarding unpaid claims or potential liens. Follow the steps below to accurately complete the form.

1. Begin by entering the State and County at the top of the form where the sworn statement is being made.
2. Fill in your full name where the text reads “.. being duly sworn, deposes and says that ___ is the contractor/subcontractor…” to identify yourself as the declarant.
3. Specify your role in the project by circling either contractor or subcontractor to indicate your position accurately.
4. Under the section describing the real property, enter the Name of the Project and the Address where the improvement is taking place.
5. For every subcontractor, supplier, or laborer involved, list their names in the space provided alongside their role (subcontractor, supplier, laborer), the Type of Improvement they are contributing to, and financial details such as the Total Contract Price, Amount Already Paid, and the Balance Owing.
6. If more space is required than provided in the form, attach additional sheets as necessary, ensuring all information is clearly listed and totals are accurately summed up at the end of the segment.
7. Assert that all entries made are complete and accurate to the best of your knowledge by checking the information you've provided regarding subcontractors and suppliers, acknowledging that no further debts exist for the improvement outside those listed.
8. Sign the statement at "Deponent" line to certify that you are the contractor or agent making this declaration.
9. Have the document notarized – present the completed form to a Notary Public. Fill in the date of signing where it reads “Subscribed and sworn to before me this day of 20___.”
10. The Notary Public will fill in their details, including their name, the expiration of their commission, and will apply their seal or stamp to validate the sworn statement officially.

After completing these steps, your Michigan Sworn Statement will be properly filled out, ready to serve its purpose in the construction project's administrative and legal framework. This document ensures transparency and lays the groundwork for trust among all parties involved, clarifying the financial obligations tied to the project and guarding against potential disputes over payment.

What is a Michigan Sworn Statement?

A Michigan Sworn Statement is a legally binding document that contractors or subcontractors must complete, certifying the amounts due to and paid to all subcontractors, suppliers, and laborers involved in a construction project. This statement ensures that there is a clear record of who is owed money and how much, for the purpose of preventing construction liens against the property.

Why is the Michigan Sworn Statement important?

This document is crucial for protecting property owners or lessees from potential construction liens. It provides a transparent account of the financial transactions related to the labor and materials for a construction project, ensuring that any claims of unpaid work or supplies can be accurately assessed.

Who should fill out the Michigan Sworn Statement?

The primary contractor or subcontractor responsible for the improvement of real property in Michigan should fill out this statement. It is their duty to accurately report all financial dealings with their subcontractors, suppliers, and laborers on the project.

What information is required in the Michigan Sworn Statement?

The statement must include a detailed list of each subcontractor, supplier, and laborer involved in the project, the type of improvement provided, the total contract price, the amount already paid, and the balance remaining. Additionally, the contractor asserts that no other subcontractors or suppliers are involved aside from those listed.

What does it mean if someone provides a false Michigan Sworn Statement?

Providing a false sworn statement with intent to defraud is a criminal offense in Michigan. This means that if a contractor or subcontractor intentionally reports inaccurate information regarding the payment of subcontractors, suppliers, and laborers, they could face legal penalties under the state's construction lien act.

How does the Michigan Sworn Statement protect property owners?

By requiring contractors and subcontractors to disclose outstanding payments to workers and suppliers, the statement helps ensure that property owners are aware of potential lien claims. This allows property owners to address these issues directly, minimizing the risk of liens against their property.

What are the consequences of not filing a Michigan Sworn Statement?

Failure to file a Michigan Sworn Statement, or submitting an incomplete or inaccurate statement, leaves property owners vulnerable to construction liens. These liens can affect the owner's ability to sell or refinance the property and may result in legal disputes to resolve the unpaid claims.

Can a Michigan Sworn Statement be revised?

Yes, if necessary, a Michigan Sworn Statement can be amended to reflect changes such as additional subcontractors, suppliers, or adjustments to the amounts owed. It is essential that any changes are promptly documented and communicated to all relevant parties to maintain transparency and legal compliance.

Filling out the Michigan Sworn Statement requires precision and full attention to detail to ensure compliance with legal mandates and to avoid the common pitfalls that can complicate construction projects. One fundamental mistake often observed is the misidentification of the contractor or subcontractor role. The form demands clear delineation regarding whether the submitting party is acting as a contractor or a subcontractor. This distinction is critical as it determines responsibility and liability for the project, influencing the subsequent legal and financial actions that may be required.

Another commonly encountered mistake involves inaccuracies in listing subcontractors, suppliers, and laborers. The form requires a comprehensive enumeration of all parties involved along with their respective contributions and the financial dealings concerning them. Errors or omissions in this section not only undermine the document's validity but may also lead to potential disputes or claims of construction liens, which could hinder the progress of the project and result in legal complications.

Furthermore, inaccurately reporting the financial details such as the total adjusted contract price, amount already paid, and the balance owing is a significant error. These details are essential for maintaining transparency and trust among all parties involved. Providing erroneous financial information can lead to disputes, misunderstandings, and might result in severe monetary repercussions against the interests of the contractor or subcontractor.

Failure to update the form with current information is another prevalent mistake. The dynamic nature of construction projects implies that financial obligations and partnerships can evolve. As such, the Michigan Sworn Statement should reflect the most recent data regarding payments and involvements with subcontractors, suppliers, and laborers. Not updating this information can falsely depict the project's financial and operational status, potentially misleading stakeholders and legal authorities.

Often overlooked is the importance of the declaration section, where one asserts that no additional material has been procured or subcontractors engaged beyond those listed. Neglecting to accurately complete this section can lead to assumptions of financial stability or project completion that are not accurate, subsequently affecting the legal protections afforded by the document. This omission might imply potential liabilities and future claims that aren't disclosed, endangering the project's successful completion and the financial wellbeing of all parties involved.

Lastly, an error frequently made pertains to the oversight in providing notices as per the requirement under Section 109 of the Construction Lien Act. The form includes stern warnings regarding the necessity of issuing notices of furnishing, which are essential for protecting the rights of laborers and suppliers under the law. Ignoring this legal requirement can inadvertently expose the property to liens, disrupting the project and placing unnecessary burdens on the owner or lessee. Compliance with notice requirements is crucial for maintaining a lien-free project status and ensuring smooth project completion.

When dealing with construction projects in Michigan, especially those requiring the completion of a Michigan Sworn Statement, individuals may need several other forms and documents to ensure compliance with state laws and to protect all parties involved in the project. These documents work in tandem with the Sworn Statement to provide a comprehensive view of the financial and contractual engagements of a construction project. Each document plays a critical role in the construction lien process, offering clarity and legal protection.

• Notice of Commencement: This legal document is filed by the property owner or lessee before starting any improvement on the property. It provides critical information about the project, including the property's legal description, the name of the owner or lessee, and the contractor's identification. It's a foundational document that informs all subcontractors and suppliers about whom they should notify regarding their involvement in the project.
• Proof of Service: This form documents that a Notice of Commencement has been served to all necessary parties, including subcontractors and suppliers. It is essential for establishing the timestamp of when the notification was given, ensuring the legal timeline for lien activities is adhered to.
• Waiver of Lien: Subcontractors or suppliers use this to declare that they waive rights to a lien against the property in question, typically in exchange for payment. There are conditional and unconditional waivers, each serving different phases of payment (partial or full).
• Claim of Lien: This document is filed by a subcontractor or supplier who has not received payment for services or materials provided. It is a legal claim against the property for the amount owed, serving as a crucial protection for laborer and supplier rights.
• Lien Release: This is filed once a Claim of Lien has been satisfied through payment. It releases the property from the lien, indicating that the owed amount has been settled.
• Notice of Furnishing: Subcontractors and suppliers must provide this notice to the property owner and general contractor to protect their lien rights. It details the services or materials provided, ensuring that these parties are aware of all contributions to the project.
• Construction Contract: This outline of the agreement between the property owner and the contractor specifies the work to be done, materials to be used, timelines, payment schedules, and other important project details. It serves as the foundation for all subsequent legal documents and actions within the project scope.

These documents, used collectively with the Michigan Sworn Statement, create a network of legal safeguards ensuring that all parties in a construction project are protected. Proper management of these forms is critical to maintaining clear communications, legal compliance, and the timely progression of construction projects in Michigan. By understanding and correctly utilizing these documents, individuals can significantly reduce the risk of financial and legal complications arising from construction activities.

The Affidavit of Payment of Debts and Claims is a document similar to the Michigan Sworn Statement in that it also requires the declarant to affirm that all parties involved, particularly subcontractors and suppliers, have been paid for their services. It acts as a declaration to ensure that the property is free from any claims or liens arising from unpaid services, similar to the way the Michigan Sworn Statement provides assurance against construction liens.

A Mechanics Lien Waiver or Release Form has certain similarities with the Michigan Sworn Statement as well. This document is typically used in construction to indicate that a subcontractor or supplier has received payment and waives their right to place a lien on the property. Similar to the Sworn Statement, it serves to protect property owners from claims of lien by ensuring that all parties have been compensated.

The Contractor's Final Release and Waiver of Lien is another document resembling the Michigan Sworn Statement. Upon completion of a project, this document is signed by the contractor to declare that all subcontractors and suppliers have been paid and that the contractor releases any claim of a lien against the property. This parallels the Sworn Statement’s intention to signify that all due payments are settled, mitigating the risk of liens.

The Subcontractor Affidavit regarding Payment of Debts and Claims is quite similar, as well. This affidavit is specifically for subcontractors to affirm that they have paid all laborers, suppliers, and any other parties involved under them. Like the Michigan Sworn Statement, it ensures the property owner that the property is at a reduced risk of facing construction liens due to unpaid labor or supplies.

A Notice of Commencement Form, while serving a different primary purpose, shares some resemblances with the Michigan Sworn Statement. It is usually filed by the property owner or contractor at the beginning of a project to officially announce its start. It affects the lien process as it spells out legal timelines for subcontractors and suppliers to assert their rights. The Michigan Sworn Statement similarly interacts with the construction lien process, aiming to clarify the status of payments and potential claims.

The Partial Waiver of Lien is a document that parallels the Michigan Sworn Statement in part. It is used during the construction process when a payment is made but not in full, indicating that the signing party waives their rights to the lien for the partial payment received, but not for the remaining balance. Like the Michigan Sworn Statement, it deals with detailing payments to suppliers and subcontractors, thereby minimizing lien risks.

A Notice to Owner (NTO) form, although it serves a precautionary purpose for subcontractors and suppliers, also has elements in common with the Michigan Sworn Statement. An NTO is sent to inform the property owner of the subcontractor’s or supplier’s involvement in the project, protecting their right to file a lien if not paid. The Michigan Sworn Statement complements this by accounting for all such claims transparently.

Conditional and Unconditional Lien Waivers are integral to the construction payment process, akin to the Michigan Sworn Statement. Whether conditional upon the receipt of payment or unconditional following payment, these waivers indicate the relinquishment of the right to file a lien, clear communication of financial transactions, and claim settlements, echoing the purposes of the Sworn Statement.

The Construction Field Report is another document that, although primarily used for different purposes – tracking daily activities, progress, and issues on the construction site – shares an attribute of documenting and ensuring clarity in operations related to the project. By analogy, the Michigan Sworn Statement ensures clarity and transparency but focuses on financial transactions and lien risks, essential for the legal and smooth execution of property improvements.

Filling out the Michigan Sworn Statement is a crucial step when dealing with construction projects. It not only helps ensure that all finances are transparent and accounted for but also provides protection against potential legal issues. Below are some guidelines to help you navigate the process smoothly.

Do's:

• Verify all the details: Before you submit the sworn statement, make sure all the information provided is accurate. This includes the names of subcontractors and suppliers, the type of improvement made, and the financial details such as the total adjusted contract price and the balances owing.
• Update all amounts: Ensure that the statement reflects the most current amounts due to subcontractors, suppliers, and laborers. It should include any recent payments made and adjust the balance accordingly.
• Sign in the presence of a Notary Public: The sworn statement requires notarization; therefore, it must be signed in front of a Notary Public. This step is crucial as it validates the authenticity of the statement.
• Keep a copy for your records: After the statement is notarized and submitted, keep a copy for your own records. This can be invaluable in case of disputes or for future reference.

Don'ts:

• Omit any subcontractor or supplier: Failing to include any subcontractors, suppliers, or laborers you've contracted with can result in inaccuracies and potentially legal issues. Ensure every party involved is listed.
• Guess or estimate figures: Inputting inaccurate financial amounts, whether by guessing or estimating, can lead to disputes and undermine the integrity of the statement. Always use exact figures.
• Sign without reviewing: Do not rush the process by signing the document before carefully reviewing every detail. This sworn statement is a legal document, and inaccuracies can lead to legal ramifications.
• Ignore the deadlines: Be aware of any submission deadlines for the sworn statement. Submitting late can delay the project and affect relationships with subcontractors and suppliers.

By following these guidelines, you'll contribute to a smoother operation and execution of construction projects, reinforcing trust among all parties involved and ensuring compliance with Michigan laws.

When it comes to the Michigan Sworn Statement, there are several misconceptions that can create confusion. Here’s a look at five common ones, debunked for clarity.

• It's Only a Formality: Some believe the Sworn Statement is just a procedural step without much significance. However, it serves a key legal purpose in providing transparency about the financial dealings in construction projects. It ensures that all subcontractors and suppliers are properly listed and that their payment status is accurately reported.
• It Covers All Payments: There's a misconception that once the Sworn Statement is submitted, it confirms all payments have been made. In reality, it documents amounts due to subcontractors, suppliers, and laborers for work performed up to a certain date. It doesn't guarantee future payments or cover any transactions happening after the date of the statement.
• All Parties Are Aware of It: Assuming that all involved parties are aware of or have seen the Sworn Statement can be misleading. The contractor or subcontractor submits it to the property owner or lessee, but not necessarily to every listed subcontractor, supplier, or laborer. Awareness and communication among all parties are essential.
• It Eliminates the Risk of Liens: Some people mistakenly believe that filing a Sworn Statement removes the risk of construction liens. While it provides a declaration of current financial obligations, it doesn't protect against future claims or liens that could arise if subsequent payments to subcontractors or suppliers fail to be made.
• It's Only Necessary at Project Completion: Another common misconception is that the Sworn Statement is only required once, at the completion of a project. Depending on the project's duration and the agreement between the parties, interim sworn statements may be necessary to update the property owner on the financial status of the project, including payments to subcontractors and suppliers.

Understanding the true purpose and requirements of the Michigan Sworn Statement helps individuals and companies navigate the complexity of construction project payments, ensuring transparency and reducing the risk of financial disputes.

Understanding the Michigan Sworn Statement is crucial for anyone involved in a construction or improvement project within Michigan.

The Sworn Statement requires complete transparency from the contractor or subcontractor regarding their engagements with suppliers, laborers, and subcontractors.

It is mandatory for the contractor/subcontractor to list all parties they have contracted with, including the type of work performed, and the current payment status of these contracts.

• Accuracy is paramount when filling out the Sworn Statement; any erroneous information can lead to legal implications due to the declaration that all the information provided is true under oath.
• The form plays a critical role in protecting property owners and lessees from potential liens against their property by ensuring all parties involved have been accounted for financially.
• Legal consequences are warned against in the form for anyone who attempts to defraud through providing false information.
• The document must be acknowledged in the presence of a Notary Public to certify its authenticity.
• The Sworn Statement serves as a certification by the contractor or subcontractor that there are no outstanding payments owed to suppliers, laborers, or subcontractors, other than those listed.
• Owners and lessees are cautioned about relying solely on this statement for assurance against liens. They are warned about additional actions they must take to fully protect themselves.
• Part of the form's purpose is to assert that the property involved is free from the risk of construction liens, or to make clear any potential claims.
• Specific reference is made to the Michigan Construction Lien Act, underscoring the legal foundation governing the process and potential penalties for non-compliance.
• It includes a warning regarding the responsibility of the owner or lessee to not solely rely on this document for the avoidance of sub-contractor, supplier, or laborer claims.
• The deadline by which the Notary Public's commission expires is also documented, ensuring the notarization is valid at the time of the declaration.

This comprehensive approach ensures all parties in a construction or improvement project understand their rights and responsibilities, providing a layer of financial and legal protection against unpaid work and the potential for liens on the property.