Legal Question in Construction Law in California
mechanical lien
We recently moved to Hemet CA. Our home closed escrow on 5-27-07. We were served a summons on 9-1-07, for the concrete company not being paid for new constuction work done in Dec. 2006. I was not the owner of the house then, it was still under constuction. We bought the home in May 2007. We moved from Utah in May 2007. How can we be responsible for the builder/owner's unpaid bills? We never signed with the contractor.
We were not even living in CA when the work was done. Please Help.
Thank You
3 Answers from Attorneys
Re: mechanical lien
The lien is against the property, not a particular individual, and if you buy property subject to a lien and the lien isn't paid off, it still adheres to the property. This lien should have shown up on your title report. I suggest as a first step that you contact your buyer's broker who represented you; if none, or the broker isn't helpful, refer the matter to your title insurance company and ask if they will assume your defense and/or pay the demand. In any case, be sure to answer the complaint on or before 9/30, when you would be in default.
Re: mechanical lien
THE BAD NEWS IS THAT The property, not you as an individual, is responsible to pay for improvements to it. Unfortunately, this means that you have to pay the lien if you want to avoid having the property sold out from under you.
THE GOOD NEWS IS THAT the lien needed to be filed within 90 days after the project was completed. If the project was completed prior to approximately February 25, 2007, then the lien needed to be filed prior to the close of escrow and should have been picked up by the title company prior to close of escrow. Demand that the title company defend you in this matter. In any event, you must be sure that an answer is filed prior to October 1, 2007.
E. LEONARD FRUCHTER
Re: mechanical lien
Help is by filing the appropriate motions in court to dismiss the complaint against you. Contact a local attorney.
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