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Can I file suit against the escrow and title company for not disclosing my mechanics lien to the buyer of the property?

I am a contractor in California working on a large (apartment building) construction/rehab project. In the middle of my project, the owner decided to sell the apartment building to another party. Due to lack of payment on the project, I filed and recorded a mechanics lien against the property. The property sold (without my knowledge) the day after I recorded the lien. I am filing a suit against the previous and current owners as my lien expires in several days . Do I also include the title company and the escrow company in my claim? If so, under what statute?

1 reply

Apr 6, 2021

I suggest you review the specific facts with an attorney, but the recordation of a lien does not prevent a sale of real property. It was likely reported by the title company, and their could have been an endorsement to the title policy or a bond posted to facilitate the sale. From what you have stated, I would say that liability on the part of the title company and escrow company appears doubtful, but you should consult with an attorney to determine your best course of action.

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