Legal Question in Real Estate Law in Michigan

Purchased condo, last minute mechanics lien placed on property

I purchased a condo and was scheduled to close may 2. Days before I was informed that a mechanics lien was against the property. Now my Mortgage lock has expired, the deal is dead and I still don't have my money back yet. I have no place to live since my house sold on may 2. Do I have any recourse regarding the costs for the mortgage company that I still have to pay and my living expenses since I was in a hotel for a great deal of the time? Also how long should it take for them to return my deposit?


Asked on 5/31/05, 9:24 am

3 Answers from Attorneys

Joseph Murray Joseph M. Murray, Esq.

Re: Purchased condo, last minute mechanics lien placed on property

Mechanic's lien should not have stopped the sale as it could have been paid out of the seller's net proceeds. Retain an attorney to review all documents and facts with you.

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Answered on 6/02/05, 4:54 pm
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Re: Purchased condo, last minute mechanics lien placed on property

Usually the proceeds to cover such a lien come from the transaction - that is the seller gets less, and the mechanic's lien gets paid. Moreover, this should have come out when the title was searched. So something is missing in your description.

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Answered on 5/31/05, 12:03 pm

Re: Purchased condo, last minute mechanics lien placed on property

There is something missing in your description. A Mechanics Lien should not have stopped the sale as it could have been paid at closing, unless there were insufficient proceeds from the sale after paying the mortgage.

It is highly unlikely the seller is responsible for your costs as a result of a title issue. No one can give you responsible advice without reviewing your Purchase and Sale Agreement.

As to the timing of your deposit's return, the broker (assuming there is one) is probably trying to get the consent of the Seller to release the funds. You should get the funds back within 30 days unless the Seller is contesting the release.

I suggest you contact an attorney if you do not get your deposit back shortly.

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Answered on 5/31/05, 5:17 pm


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