I filed a lien and the property sold a month later and i was not paid
1 reply
Jan 5, 2021
A mechanics lien doesn't procedurally stop the property from being sold. Generally, it's not impossible to sell property when there's a mechanics lien attached to it. So, if everyone involved in the transaction is ok with it, then the sale can proceed.
With that being said, if there's an active mechanics lien against a property, most buyers, mortgage companies, and title companies will want to clear up the title before they proceed. It's pretty common for a lien to actually stop a sale, at least temporarily.
In a situation where a lien was filed in one month then sold in the next month, it's absolutely possible that the seller, their title company, or their mortgage company dropped the ball and didn't discover the mechanics lien claim that was filed. That would be one explanation for how the property ended up being sold. Granted, the seller would have had an obligation to disclose the filed lien claim, and withholding that information could be seriously problematic for them. But, it's also possible that the buyer was aware of and comfortable with the lien.
In any event, property being sold after a lien is filed shouldn't invalidate the lien, by itself. A lien claim attaches to the property, not the owner of that property. So, it's entirely possible that there's a valid and enforceable mechanics lien against the land, regardless of the change in ownership. And, if that's the case, notifying the seller, the buyer, the title company, and the mortgage company of the lien's presence could actually be an extremely effective way of forcing payment.
For the mortgage company, a mechanics lien would threaten their investment. For the title company, they could be on the hook if they've made a mistake. For the new owners, their new property title is being put into question. And, for the seller, they could face legal ramifications for failing to disclose a lien on their property. Meaning, there could be a number of highly motivated parties working to resolve the dispute - which could help the lien claimant get paid.