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How do we fight this False Lien?

MichiganMechanics Lien
Anonymous Contractor

A mechanics lien was filed on our for sale property a person who wanted to buy the property. He has talked for a year about buying the property but when we let him know we had a cash offer from another buyer he got mad. We offered to sell him the property for $1500 less than the cash offer but he only came back with an offer $5000 less. He had been telling us for the year that he would clean up the backyard while he was getting the deal around. That did happen though he brought in someone with power equipment to do the work. He is claiming $11,000 for research on what need to be done to the property and $890 for the clean up. Or at least we think that is what the charges are for. He did not provide us a copy of the lien except grainy photos. He has not provided any invoices, bills or accounting to explain the amounts claimed. He is not a contractor. We never hired him or ask him to do any work on the property. He did in text messages threaten he was coming for his money. He called our cash buyer yelled and swore at them, Threaten to "call the prosecutor and accuse him of fraud for buy a property he has a lien on." We had to take the grainy photo in the text message to the Reg of Deeds to was able to pull the document number. Our name is spelled wrong on the lien. He is holding our property hostage until we give in to his price. What do we do? Who do we call? Can we request a judge review the lien? How do we do that? Jenny H

2 replies

Lawyer at Olson Law Firm
| 37 reviews
Aug 13, 2021
It is a crime, in Michigan, to file a false claim against property. That includes false liens. Call the police and make out a report. Also, you can sell the property any time by posting a bond to cover the lien. Talk to your title company and your insurance company about bonding over the lien to complete the closing. A bond is like an insurance policy. You will pay a premium in order to get the "coverage". So, it will cost you something. But, you will be able to close.
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John Robertson
Aug 16, 2021
Hi there,
 
Some things to unpack here:
 
1. Sounds like the “person” did improve the property as a “contract laborer” perhaps.
 
2. Person still needs to satisfy the Statute of Frauds to have any kind of contract claim to payment (claims in equity aside). Doesn’t sound like SOF is satisfied.
 
3. Assuming lien rights were preserved in direct relationship with you (home owner), they last only up to (90) days from the last legitimate day of work.
 
4. You can get a copy of the recording history of the property at the County Register of Deeds along with a best copy of the lien.
 
5. Falsely encumbering real property is a big deal exposing the person to potential liability. As is tortiously interfering with a business relationship (e.g. communications to buyer).
 
6. You can go to court for declaratory relief and an order releasing the lien to clear title to your property, and / or other relief against the person as part of legal action on the merits.
 
7. A demand / cease & desist letter to the person is probably the best place to start in anticipation of litigation to present all relevant facts in a comprehensive and favorable light to you as part of preparations for legal action.
 
Good luck!
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