As with other liens, the homeowner is unable to sell the property until the lien no longer exists, and this may also cause complications when acquiring a mortgage or other financial outlets. Removing the lien is important but knowing why it exists is crucial so that another lien does not take its place in the future to cause further problems for the homeowner.
It is most often when a homeowner hires a construction company that he or she will face a mechanic’s lien. The contractor may hire a subcontractor, receive payment for the work but then not pay the subcontractor or agency the additional work comes from in the project. Then, the other party will place a lien on the property until payment is given. Other instances may include when the homeowner does not pay the contractor for work that is not complete. The contracting company may only finish so much before the time limit on the contract, and then the homeowner may face additional charges from this agency.
Understanding the Lien
A mechanic’s lien is often not a proper lien when placed on the property from a contracting or subcontracting company that has already received payment. In these instances, the individual that owns or will one the house or building needs to contact a professional to determine what routes are available from this situation. Knowing who placed the lien on the property is important. Then, the homeowner needs to become aware of all the factors and how to remove the lien. Sometimes, this does lead to legal assistance to fight the lien. The fees he or she needs to pay are generally in the range of thousands.
Removing the Lien
Restructures to the California Mechanic’s Lien occurred in 2012. This requires any contractors and subcontractors used to update forms and use different processes for enforcing the mechanic’s lien on a property. When using the previous form, this caused problems for contractors. The primary purpose of this type of lien is to ensure that homeowners are unable to obtain benefits to the property without paying for them. It may assist in recouping in losses for contractors and subcontractors. However, when placed on a property incorrectly, it is important for a homeowner to remove it quickly. Generally, this requires the assistance of a lawyer.
The homeowner may petition the courts under Civil Code Section 8480 in California to remove the mechanic’s lien when it is not timely issued or recorded. A lawsuit is usually necessary to file it against the owner by the contractor or subcontractor. Before the petition to the courts by the homeowner, he or she must sever the contractor with a written notice that provides ten days to remove the lien voluntarily. This is in accordance with the Civil Code Section 8100 to 8116. It is significantly beneficial to hire a lawyer to ensure these processes are valid, complete and strictly in adherence.
The Time Limit and the Contractor
It is usually through a contractor that the mechanic’s lien is put on the property where the homeowner must either pay again or ensure that proper payment for services rendered occurs. So, for the specific civil code within the state, the contractor needs to follow the protocol which requires the ten days. If this time passes, the contractor may face penalties when not removing the lien. It is then that a Petition will lead to a hearing date for the homeowner. This Petition served to the contractor must happen no less than fifteen days before the set hearing date.
By following this process fully, the homeowner may ensure that the mechanic’s lien is no longer attached to the home. This will provide a removal and any costs for the court process and lawyer fees that are reasonable in this process. The unnecessary or improper mechanic’s lien should not attach to the property when the homeowner can prove he or she already paid for the services. This is part of the civil code process in California, and the courts determine the contractor will face penalties for the improper use of the lien.
Legal Support in California for the Mechanic’s Lien
The homeowner needs to hire a lawyer to guarantee that the proper civil code applies in California. By hiring legal representation in this state, it is possible to remove the lien and free up the property for sale or other loans. With a lawyer, it is possible to Petition the court and file it through the state.
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