Legal Question in Real Estate Law in California
i am refinancing and the loan originator did a thorough title search and noticed a lien placed in 2001 ago by my ex wife's attorney to insure he would get paid by her. We finally settled in 2003. I refinanced in 2003 and her name is off the title. I was told it must have been a quick title search because nothing was mentioned at the time about her attorney's lien. I assume he has been paid but her lawyer did not release / reconvey his lien on the title. I addressed this issue with him 2 weeks ago and he has not responded back. How do i get him to settle this so that i can refinance.
2 Answers from Attorneys
I'd say the lien is no longer valid. The lien was probably one created pursuant to Family Code sections 2033 and 2034, which I suggest you look up and review. The law states that the encumbrance attaches only to the encumbering party's interest in the property. That would be your ex-wife's interest. When you refinanced in 2003 and took her off title, I'd think that'd also KO her lien.
Also, liens are unenforceable after the right to sue on the primary obligation expires, see Civil Code section 2911(1), which for anyone suing on a written contract is four years from the date of breach per Code of Civil Procedure, section 337 (the statute of limitations for suits on written contracts). Try these theories out on your lender's law department.
If for any reason I'm mistaken, try the following steps with the lawyer who recorded the lien: (1) Check with the State Bar Web site to be sure he's still engaged in the practice of law and that you have his correct phone number; (2) Make several calls at various time in the business day, leaving detailed messages if you don't reach him personally; and if necessary (3) contact the State Bar by phone and talk to one of their client-complaint staffers about making a formal complaint against him.
I disagree with Mr. Whipple. Liens don't go away just because the person deeded property to someone else. If they are not paid, they remain a lien on the property. I think an attorney would want to sit down and review this to find out if there is a statutory demand that needs to be done, and whether or not someone at a title company messed up by not catching this before.