Legal Question in Construction Law in California

Once the property is sold you will be out of luck if he does not want to pay you. The best way to get paid is to timely file your mechanics lien. That way you will have to be paid out of escrow. Without knowing the facts, the only way a mechanics lien is likely to interfere with a sale is if there is not enough equity in the property to cover all of the liens. If there is a lot of money at stake you should pay for a few hours of a lawyers time to be sure that you take the steps needed to protect yourself.

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If you go the promissory note route, please have a responsible attorney do it. However, it is just a piece of paper saying what is already true, that you are owed money. They might be giving you the run around and telling you stories while protecting their interests. I am fairly aggressive when it comes to demand letters and pursuing money owed to my clients. If you want my help, please send me an email, as I do not have your contact info.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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A mechanics lien will not disturb a sale unless the property has other liens on it and the total more than it is worth. If that's the case, then you won't get paid on any promissory note when it sells either, and you will have blown your lien chance. Mechanics liens are tricky though, especially on a "development" that may have more than one parcel number. If you'd like some help with this, I have over 25 years of construction collections experience, from both sides of the table. Give me a call.

If you have a valid potential lien, by all means do not hold off on recording it in the belief that it might derail the closing. In the first place, your claim is possibly rather inconseqential in the list of items that must be paid off at close of escrow. Therefore, it is unlikely to hold things up. Further, although extending credit to the owner sometimes extends the deadline on a mechanic's lien, you'd need specific attorney advice to be sure you weren't blowing your opportunity to step into the pay-off line. As general advice, I'd recommend filing now.