Legal Question in Real Estate Law in Indiana

Eroneous Lien on Property from Rehab
In early 2006, I purchased an investment property in IN and I live in CA. The property was to be rehabilitated and renters found, then sold. The contractor, which I have only a hand-shake agreement with, performed 75% of the work, but never invoiced me for any of it. Today (Dec. 2008), I received a ''Claim of Lien'' from the county/contractor for $37k. I am happy to pay for the work, but I want proof of the these expenses, since it is more than double the original verbal estimate. What steps should I take?

Asked on 12/26/08, 9:33 pm

2 Answers from Attorneys

Daniel Bakondi The Law Office of Daniel Bakondi

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Re: Eroneous Lien on Property from Rehab

In California, the Statute of limitations (the time limit to sue) for a verbal agreement is 2 years. If he put a lien on based on an unenforceable contract, it may have been improper. Regardless, he should have told you what he believes you owe and not simply placed a lien. If you hired me as your attorney, I would write him a letter and let him know why what he did was improper, and ask him to remove the lien, or else risk more complications if he fails to do so. Hire an attorney though - if you try yourself you may worsen your situation without knowing key details.

Best,

Daniel

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Answered on 12/26/08, 9:44 pm

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