Legal Question in Real Estate Law in California

You have a variety of protections but ultimately most of them come down to after the fact relief if a false mechanics lien is actually recorded. There may also be options for working around the issue with the title company. You say the person has "started the process of filing a lien," which really doesn't make much sense. Other than filling in the blanks and going down or mailing it to the county recorder there is no "process" to filing a mechanics lien. So either one has been recorded or one is threatened. In either case, however, I suggest you talk to knowledgeable construction counsel directly about this. Feel free to give me a call if you are in the Bay Area or Sacramento.