Legal Question in Real Estate Law in California

Re: Lis Pendens & mechanics lien removal...

If a Lis Pendens has been recorded, that means that you are involved in a lawsuit (a lawsuit must have been filed before a Lis Pendens can be filed with the court and recorded). The two ways of removing a Lis Pendens are: (i) bring a motion to expunge the Lis Pendens; or (ii) convince the person or persons who recorded it to voluntarily withdraw it. If the lawsuit concerns title to the property, you may have a tough time getting it expunged.

As for the mechanics' lien, the person or persons who recorded the lien must release it. However, a mechanics' lien cannot be foreclosed upon after six months from its recordation, so if it has been of record for six months or more, then it has no effect on the property. Of course, you may have a hard time convincing a title company of that and you may wind up having to sue the person or persons who recorded the lien if they refuse to voluntarily remove it.

Re: Lis Pendens & mechanics lien removal...

Speak to the lien holders and see what can be done as to their claims. Point out that if their claims proof without merit they are subject to damages for several tort actions which would allow you to collect damages for pain and suffering, so it is to everyone's best interest to try to settle all the matters now [will cost you a lot less in attoney fees]. Since it seems that the sales price will cover the first and second mortgages on the house, you might suggest that if the title insurance company will go along with it, that any money above the two mortgages and your closing costs, up to a maximum of the amount of the liens in dispute will be placed in trust to be distributed upon court order or a stipulation by all parties involved as to how the money should be distributed, in return for clear title so the property can be sold. point out to them the market is going down and if you have to continue paying interest on the property the profit might be so reduced as to not be able to satisfy their claims.

Going to Court to try to quash the liens will take much more time and will cost more.

Re: Lis Pendens & mechanics lien removal...

Lis Pendens is Latin for suit pending. It has to be settled, or concluded.

As to the mechanics liens, negotiate and attempt to remove them.

Mr. Hoffman, and Mr. Shers have given you excellent advice.

Re: Lis Pendens & mechanics lien removal...

To have a Lis Pendens removed, you have to resolve the litigation. It can sometimes be removed by Motion. A foreclosure of a mechanics lien has to be filed within 90 days of its recordation. Please call me if you have any questions.