Legal Question in Real Estate Law in California

If the lien or related debt was not properly disclosed, I would start by writing an attorney letter to the agent to pay off the amount owed, and go from there.

Best,

Daniel Bakondi

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The contractor's filing is probably proper. Most likely, the fault lies with the agent (and his or her broker) and ultimately, with the seller (assuming this was the seller's agent). You have a right to receive clean title, free from liens like this.

There's an old saying in the title industry that title insurance is always less than meets the eye. This, however, might be one of those unusal cases where there is real coverage. I can't say for sure without reviewing your policy, but this would be a situation that is probably covered. I recommend that you send a demand letter to the seller's agent, the seller if you know where to send it, and the seller's agent's managing broker (it will be listed in the agent's record on the Cal. Dept. of Real Estate website), demanding the lien be cleared, and concurrently tender a claim to your title insurance carrier.