A lien is a claim a company or individual makes against your property due to a debt you owe. We have over twenty-five years experience working with lenders and realtors, so we understand the long list of underwriting requirements specific to manufactured homes and know what it takes to complete a transaction. In a sales or loan transaction with a manufactured home, the process is often frustrating and emotionally draining.
After a mechanics lien claim is partially satisfied, a claimant may wish to partially release the lien to reflect the amount paid. California is especially harsh to unlicensed contractors. The requirements for substantial compliance have been amended. Under the amendment, if the contractor:
“(1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure. A mechanics lien creates a security interest in real property in which labor and materials are furnished. Within 90 days of filing the lien, the contractor has to sue to foreclose. If the work wasn’t completed or if the contractor used supplies that weren’t covered in the contract, the lien may be invalid. Talk to the direct contractor’s references and find out his reputation for honesty before you hire him
It is critical, however, that this procedure is conducted properly or else the owner could be liable for the contractor’s attorney fees and still have the lien left on their property. Kim advanced two theories in support of his argument that he was exempt from the requirement of serving a preliminary notice. The owners ability to avoid the effect of a mechanics lien is dependent on his involvement in the work of improvement. While recording a mechanics’ lien is a straight forward and easy process, the laws for enforcing mechanics liens are complicated and often confusing. On the surface, applying mechanic’s lien laws seems obvious, but case law has dissected and analyzed this to the point that mechanics’ liens are complex and often misunderstood. The reason that we do not make it sound easy, or a quick step by step how-to, is that there are too many important factors that can affect your rights. However, if you do not serve the 20-day notice at all, you will have lost all lien rights. The mechanic’s lien against any individual property must be recorded within 90 days of the completion of the work of improvement unless there is a recorded notice of completion. As a homeowner, you certainly want to remove liens from the title of your property as quickly as possible. As a homeowner, you have a few options for how to respond to a mechanic’s lien. Second, if time is of the essence and you need to sell or refinance your home quickly, you can contact a surety company to obtain a lien bond.
Third, you can attempt to settle with the lienor directly. We already paid the contractor in full for concrete work, but he did not pay the subcontractors or suppliers. Save the notices, so you can keep track of who is owed money and when they are paid. The simplest way to prevent liens is to pay with joint checks. Then, make sure that work was done as described.