Legal Question in Construction Law in California

Multiple Mechanics Liens

I was just about to sign for closing my mortgage this week when the mortgage company notified me that my contractor has placed a lien on my house.

(A malicious and punitive action that I'm addressing seperately.)

I went to the County Recorders Office today to see the lien and I discovered he has recorded it twice. He recorded the lien on Dec 19th for $52,700 then recorded it again on Dec 20th for $52,835.

I'm confused of course, so my points are,

1. Can he just keep placing liens on my property as many times as he wants for as many amounts without restriction?

2. I was in the process of obtaining a Lien Release Bond to release the lien from my title so that I could finalise my mortgage. However I'm worried that when I do that he'll just record another lien.

Regards

Alan


Asked on 1/03/07, 9:35 pm

2 Answers from Attorneys
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Multiple Mechanics Liens

Check with bond co to see if it will issue one bond to cover both liens. Also, you need to check with Mortgage/Title Company to see what they need or will accept. You may need to file two bonds!!! Also, bond must be 150% of lien. Contractor can file and file and file without restriction since recorder has no choice but to record when requested. You may have to go to court to get an injunction to stop the antics. Lots of luck

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Answered on 1/04/07, 7:13 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Multiple Mechanics Liens

The liens are probably not cumulative. It looks as though one is replacing the other, perhaps as the interest accumulates or as he corrects it to account for overlooked items or additional work.

My suggestion is to confer with your bond broker as to the breadth of the bond you're negotiating. Perhaps it can be, or will be, written so as to have a $100K face amount, or at least more than $53,000, to take into account likely small increases.

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Answered on 1/03/07, 11:44 pm


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