Legal Question in Real Estate Law in Wisconsin
lien waiver
My husband and I bought a house in November of 2006 in St. Francis. This was a new house but we didn't close on the house until it was done being built. We did not take out any construction loans and we did not hire any of the contractors. My husband and I worked with a real estate agent and a seperate mortgage lender. We had a seperate closing company and title insurance company.
My husband was served with papers (an amended summons) on 1/31/2008 and our names have been added as Defendants to a lawsuit between one of the contractors and the company that built our house.
I called our title insurance company but the title insurance company indicated that our title policy would not cover this claim because the closing company did not obtain the necessary paperwork and the paperwork that wass completed was not completed properly.
I thought I was protected since I paid my closing costs and I paid for my title insurance and we did not close until the house was done being built.
I have to provide a written response within 20 days and I'm not sure how to respond. The judgement for money is for approximately $6,000.
1 Answer from Attorneys
Suit Against Home Buyer for Unpaid Construction Bills, Lien Waivers, Theft by Contractors
Suit Against Home Buyer for Unpaid Construction Bills, Lien Waivers, Theft by Contractors
You need to retain an experienced civil litigation/real estate lawyer as soon as possible, since you may have defenses to this claim which must be asserted promptly or waived. You also might be able to move to reopen the judgment , or have a claim against your title insurer, depending upon how well your lawyer protected your rights at closing. If I were representing you at closing, I would have seen to it that the title insurer issued an endorsement which would have covered such later lien claims for you. It is possible that you already have such a "gap" endorsement in your title insurance policy. Generally speaking, a home builder who does not pay his suppliers or subcontractors out of home sale proceeds (resulting in liens against the homeowner) can be charged with felony theft by contractor under WI law. Such charges create a powerful incentive for the contractor to pay the lien, since he is faces prison if convicted. Hence, you may also want to call your local sheriff's department and file a criminal complaint in this matter.
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