Legal Question in Construction Law in California

Re: Invalid Mechanic Lien by Unlicensed Contractor

I agree with Ms. Scholefield's response and to which I would add a couple of other things. One, there is a summary procedure to get the lien off fairly quickly. If you can find an experienced attorney who is also readily available, he can likely get the lien off in under a week if he can get an order to shorten the amount of time in which to hear the proceeding, but it would require a couple of trips to the courthouse. This summary procedure has a built in attorney's fees clause of up to $2000. There is, however, a provision in the law that will also allow you up to $10,000 in attorney's fees (last time I looked) for any legal work necessary against a person who is unlicensed. The problem, of course, is that so many unlicensed contractors are deadbeats so it may be very difficult collecting from them.

The quickest way around the lien, though, is to bond around it as Ms. Scholefield suggested.

Re: Invalid Mechanic Lien by Unlicensed Contractor

First of all just go get a good real estate attorney. That attorney will probably be able to fend off the unlicensed contractor. And give you advice is to the liabilities of the homeowners association Board of Directors. Hopefully you're not on Board because if you are you all screwed up big-time. Malfeasance, breach of duty, breach of fiduciary duty, at a whole bunch of other good stuff that I haven't even mentioned. If you down the Board of Directors find out what you can do to protect your rights and the monies that they have expanded which are really yours.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Re: Invalid Mechanic Lien by Unlicensed Contractor

Send him a letter demanding release because he is unlicensed and not entitled to lien. If he files suit to foreclose on the lien, then he could be liable for slander of title for foreclosing on a knowingly false lien.

Yes, you can purchase a release bond to bond around the lien. The face value has to be 125% of the amount listed in the lien. Just as important, though, you should sue him for the money you have paid. Even if you knew at the time you entered into the contract that he was not licensed, you can recover ALL MONEY paid to him under Business & Professions Code section 7031(b). If there is an attorney fee provision in your contract, you can recover what you spend to sue him. Even if the contract itself is found void, the attorney fee provision remains.

Good Luck! Feel free to contact me directly should have any other questions: 619-544-0086; [email protected].