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Can an individual file a lien on a property?

I deposited earnest monies with a builder for construction of a home. I lost my income and now don't qualify for a loan. Builder stated would refund earnest money upon sale of home. How can I guarantee I will get my money when he sells the property without a lien?

1 reply

Mar 26, 2020

Mechanics lien rights are really only available for those who perform work on a property but go unpaid for that work - typically, lien rights will be available to construction businesses. Other types of debts - like the promise of returning earnest money - won't give rise to lien rights. A prospective buyer and a builder could enter into an agreement to secure payment via a lien on the house - but that lien would need to be agreed upon by the builder. And, it'd hardly be surprising if they refused, especially since having a lien present would make it harder to sell the property. Asking them to secure that debt by placing a lien on the property might be a bit aggressive - though, it's possible they might agree to that. But, having a written contract agreeing to the release of earnest money might be a more attainable goal. And, if the original contract for the build stated that earnest money must be returned, then executing an additional agreement might not be necessary.

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