Is the title on your home free of Mechanic's Liens? A Mechanic’s Lien on the title of your home can prevent you from selling your home.
The subject of Mechanic’s Lien on a property is a complex one. There are over 200 sections of the California Civil Code that address Mechanic’s Liens.
A Mechanic’s Lien is a security interest on the title to your property, filed by an unpaid contractor, subcontractor, laborer, or material supplier, and is recorded with the county recorder’s office. Legally, the homeowner is ultimately responsible for payment to all subcontractors even if they have already paid their direct contractor.
A Mechanic’s Lien can expire. After a certain date, the lien is no longer enforceable. This means that a claimant (the person who filed the mechanic’s lien) and an owner (the owner of the property that the mechanic’s lien attaches to) both have a ticking clock.
When a Mechanic’s Lien has been filed against your property, you do have legal options.
1. Negotiate with the contractor who placed the lien (the “lienor”) to remove it,
2. Obtain a lien bond to discharge the lien, or
3. File a lawsuit to vacate the lien.
Here are 4 ways to resolve your Mechanic’s Lien, clear your title and get your home sale to the finish line:
1. Pay off outstanding debts immediately.
2. Use your home sale proceeds to cover what you can’t afford.
3. Dispute the lien with the help of an attorney.
4. Take out a bond.
SBG Tip: If you have had work done on your home, be proactive. Check your title report 30 days after job completion and/or full payment has been made to verify that there are no Mechanic’s Liens on your property title.
If you would like more information about Mechanic’s Liens or to find out if your property title is clear, give us a call.