Legal Question in Construction Law in California
Lien placed on my property
I hired a contractor to do some remolding to my home, he then hired a contractor to help him out, and to my knowledge this wasnt the first time they worked together. Apparently they now have a dissagreement over wages and the contractors helper put a lien on my house for 400.00 in unpaid wages. I was warned in advance that this might happen by the contractor I hired and he stated he has made several attempts to pay him to avoid all this but the guy refuses the money and insisted on taking action. To make matters worse I found out hes an Unlicensed Contractor and still contracting. Should I report him to the BBB or State License Board or will that do any good at all? Any Advice would be appreciated.
2 Answers from Attorneys
Re: Lien placed on my property
Lien is good, however, his actions in not releasing lien is not. Provide payment to the individual and have the contractor reimburse you. Use certified funds and the lien should be removed. If not you have an action to pursue. If contractor not cooperate, go to licensing board. May want to do this anyway. Should have provided license info when contracted. Call to discuss 800-685-6950
Re: Lien placed on my property
DO NOT PAY ANY MORE AT THIS POINT IF YOUR CONTRACTOR IS NOT LICENSED OR IS USING INDEPENDENT UNLICENSED CONTRACTORS TO WORK ON YOUR HOUSE. If the total amount of the project was over $500.00, then all work must have been done with licensed contractors, or your contractor, if licensed, can use bona fide employees (meaning he had workers comp insurance for them, pays employment taxes for them,etc.) It is not clear whether or not the contractor you hired was the unlicensed one, or if it was the helper that was not licensed. Under the Contractors State License Law (Business & Professions Code section 7031) you do NOT have to pay for any work performed by an unlicensed contractor for projects over $500.00 and his liens are not enforceable. Also, you can sue the unlicensed contractor and recover ALL the amounts you paid to him thus far. As far as the lien, if anyone records a mechanic's lien against your property, they must file a law suit to enforce it within 90 days of recording the lien. If they do not, it will be void. If no law suit is filed within 90 days, then there is an expedited procedure under the law that allows a court to decree that the mechanic's lien is released. Unless the lien is affecting your ability to sell or refinance, I would wait out the 90 days, then hire an attorney who is familiar with the decree for release process and get the lien released that way. There is a provision to recoup up to $1000.00 in attorney fees from the lien claimant, plus you can recoup your filing costs if the lien claimant refuses to remove the lien after the 90 days and you have to file a petition in court for the release decree. This is a fairly easy procedure and should not cost you more than the $1000.00 in attorney fees to have it done for you. If the contractor is a member of BBB file a complaint with them, but they are a non-profit watch group that is not a government agency and thus, they have no power to enforce any laws. Also file a complaint with the Contractor's State License Board, they are somewhat backed up in processing complaints, but if this unlicensed contractor is still contracting, the CSLB probably wants to know about it. They have complaint forms on their website (www.cslb.ca.gov). Good Luck and feel free to call if you have questions.619-544-0086: www.construction-laws.com