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can I file a lean on real estate I 've just sold to a private buyer ? please see explanation.

CaliforniaMechanics LienRight to Lien

Buyer deposited part of settlement contract with escrow company for seller's expenses for closing cost. 90 days after settlement date, escrow company is yet to reimburse seller for the extra money deposited.

1 reply

Aug 28, 2018
Mechanics liens are powerful tools to secure the payment. However, the applicability of mechanics liens is limited to work performed or materials furnished for a permanent work of improvement on property. This means, that there must be a "construction" project or some improvement to the property in order for a party to qualify for mechanics lien protection.

In the absence of an improvement; i.e. if a claim solely involves money, or if there was no construction on the property and the claim is related to other aspects related to the property (like a sale or financing), the applicable remedy is something other than a mechanics lien.

This is not to say that recovery is impossible here, though. There may well be some cause of action that will result in payment. To the extent the claim amount is appropriate, there may be the opportunity to file in small claims court in order to avoid the time and expense of a "regular" lawsuit.
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