Tuesday, September 7th, 2010, 05:13 am. PST

A Homeowner’s Guide to Preventing Mechanic’s Liens
site admin posted in Construction Law on November 15th, 2005

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Why should you remove an invalid lien?

Even when a contractor, subcontractor or materials supplier doesn’t act to foreclose on your property, the lien stays on the county records as a “cloud” on your property title until you take action to remove it. An invalid lien can make it difficult or impossible to refinance or sell your home.

Steps to remove an invalid lien

Follow the steps below to begin the process of removing an invalid lien:

Send the lien claimant a written request by certified mail. Keep a copy of your letter and the certification as proof of your request. Include:

  • Deviations you’ve identified from the Lien Requirements Checklist.
  • A request for the claimant to remove the lien.
  • Remind the claimant that, if the lien isn’t removed and you have to get an attorney to remove it, the court can award you attorney fees of up to $2,000.

    • Keep your documentation.

    You may need to demonstrate to a court that “the lien claimant is unable or unwilling to execute a release of the lien or cannot, with reasonable diligence, be found.” (Civil Code Section 3154)

    Send the request to the claimant’s last known address. Do your homework to verify that you have the correct last known address. Sometimes, sending the letter is enough to persuade the lien claimant to release the lien.

    Petition to release the property from the lien

    If the lien claimant doesn’t remove the invalid lien, and the time has expired to record the mechanic’s lien and take action to foreclose, you may petition the court for a decree to release the property from the lien. This is a complicated process that may require the services of an attorney. Refer to Section 3154 of the Civil Code for more information.

    Civil Code Section 3154 (f) provides that if you use an attorney and you prevail, you are entitled to attorneys’ fees up to $2,000.

    Minimize your risks and take steps to protect your home

    The mechanic’s lien law is complicated and confusing, and there are real risks involved for homeowners. Don’t risk foreclosure, a cloud on your title, or having to pay twice for the same job. You can take steps to avoid these problems by preparing for the possibility of a lien and employing the safeguards in this booklet to protect your home and your financial stability.
    ————-
    The above article is taken from the California State License Board website.
    You may wish to obtain the services of a lawyer experienced in Mechanic’s Lien issues.
    Please feel free to contact the Law Office of Curtis W. Herron
    email: curtis @ cwhlegal.com

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