Help With Lien Procedures?

Da Vinci

Has anyone had to perfect a lien before? We had a job in June (only one through Service Magic, but that's another story), the realtor hired us, needed it done within 2 weeks because house was going on the market.

She accepted bid, we got the job done on time, on budget. Sent an invoice to find out there's no money in budget, have to wait until house sells.

Filed a lien in July. Still no payment. California Law states I have 90 days to perfect the lien by filing a lawsuit, or I might be able to extend the lien until house sells (closed bids - not opened until Oct 8, 2 days before my lien would expire). We do excellent work, have a great reputation, and have had to file only 2 liens in 24+ years, the this being one, the other being almost 20 years ago.

Has anyone else been through this before? Any suggestions would be greatly appreciated.

The contract was not huge, just a quick $3400 paint job. But the principle of the thing is what gets me angry...

Oh, and yes we followed procedure. Filed a preliminary notice within deadline period- sent it certified mail. Gave them week to respond- heard nothing.

Thanks guys,
Bay Area Painting Contractor

KentWhitten

I'd say it's time for a lawyer. You sound like you've done just about everything you possibly could. It's now time for someone who knows how to handle this.

If I were you I'd send a letter off to the present homeowner. I'd say something like "I was hired by your realtor and have not gotten paid. I will be forced to start foreclosure proceedings if not heard from in 5 days" (or whatever) Don't delay, do as you say you will do. And make sure you tell them that when you start, you will be forced to continue to the end for you will lose money if not.

Don't give them an inch and keep pressure on them. Send one to the bank also that holds the note. Don't let any of this slide if you want to see any of your money.

__________________
If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

L. B. Condulet

I've filed liens on so many properties I've lost count, certainly over one hundred. A lawyer will not talk to you for less than $5000 so you are on your own. To perfect the lien simply file a small claims action.

Big Bob

http://www.courtinfo.ca.gov/selfhelp...ollectlien.htm

This site might help.

A properly placed lien will need to be satisfied, before new owner can get clear title. Be ready for title lawyer to threaten to bring suit against you(for hindering the sale) unless you provide a release . LOL, be sure all your ducks are lined up.

L. B. Condulet

Actually a lien can be "bonded around". A bonding company assumes the liability and the property becomes lien free.

KentWhitten

yup. so so true. sounds like you've run across that one also.

__________________
If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

Chris Johnson

Small Claims Court - fairly quick 3-6 weeks, keep everyone involved knowing you have a lien, bank, real estate agent, owner, potential purchasers or bidders on the auction. When the lawyer calls and threatens to sue you tell him you are going to sue him back for harrassment.

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Chris

Big Bob

"bonded around" dang, I hope that's just a California thing.
I'll check into FL law. 25+ years and only 2 liens and one intent to lien filed.

Chris Johnson

I believe bonding around a lien is pretty much standard anywhere, mind you the bond is double the lien amount, so whoever is doing the bonding better make damn sure the guy they are covering is right and not liable for this invoice. It happened to a friend of mine 18 months ago, developer owes him 300k and the developers bank wanted the project done so they supplied bonding for 600k, developer is now on the verge of bankruptcy and who knows where this is going.

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Chris

tnt specialty

Yes...small calims is the quickest.

The "bond -around" thing is typically an idle threat tactic.....
If they "bond around" as the say...That's all the better for YOU! The funds are secure!

It's not easy to get a bond "after-the-fact". The GC/owner would typically have to put up 1.5 - twice the amount of the lien.

Da Vinci

Thanks everyone for the great advice, this thing has sounded fishy since right after the completion of the job. I can only guess that they are going to try and bond around me since they haven't responded yet. Dang it! What is the point of a Lien if they can just bond around?

I have had an attorney contact me from this site who works with a contractors collection firm. They typically take care of the collections for about 30% of invoice. No charge if they don't collect.

Sounds like I'm going to lose money either way, unless I take it to small claims. Drat! It's not that great of a sum, but it's principle for me...

Bay Area Painting Contractor

Big Bob

Just a little unclear here, was your contract (meeting of the minds) with the home owner, the real estate agent, or real estate broker?

What terms of payment if any were discussed?


the oops, it's now not in the budget, has me puzzled.

You might have a theft of service by fraud thing going on.

Da Vinci

Well, it was a bit unusual. I got the bid through SM. I met with the Realtor who said the house was being put on the market in 2 weeks- court referee had approved monies to fix it up and sell it.

It was a high profile murder case 2 years back here in Bay Area, mother killed her husband and is in jail for life. Referee told realtor (I have copies of emails verifying) to get work done so house could be cleaned up and sold (it had been sitting vacant for 2 years).

I gave her an estimate - she passed it to him, he approved. We painted, I turned in invoice. Then realtor called saying the referee put in charge by the courts had stepped down that week. New referee said there was no money to pay any subs. Apparently the old referee lied about securing a 2nd mortgage to fix it up.

I know, sounds like a soap opera.

It was our first referral from SM- I wanted to get a good rating so I bent over backwards to meet her schedule.

All I hear are apologies- not the sound of someone writing a check...

Bay Area Painting Company