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How does a property owner remove a lien that is not valid?

Property owner obtained a proposal for work on property but did not enter into contract. Property owner did provide 20% down to schedule project, however project never scheduled. Property owner informed business did not wish to proceed with work by business before project scheduled.

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Aug 23, 2019

Once a mechanics lien has been filed on project property, there are a few ways to have the lien removed from the property title, including having the claimant release the lien, bonding off the lien, and challenging the validity of the lien. But, before diving into the different potential options, here's an article I think will be helpful here: A Mechanics Lien Was Filed on My Property – What Do I Do Now? Having a lien claimant release their own lien When a mechanics lien is improperly filed, it might be possible to convince that claimant to release the filed lien on their own accord. For one, improper mechanics liens won't be enforceable - and, if an owner has to fight that lien to have it removed, the lien claimant could even end up being liable for the owner's costs associated with having that lien removed. Plus, if the lien was fraudulently filed, the lien claimant might face even worse circumstances. With all of that in mind - an owner sending a mechanics lien claimant a demand to remove their filed lien could be really effective, especially since the claimant may facing a legal battle and the potential for paying for damages. Demanding that a claimant release their improper lien may be a good option, especially when the demand is sent via an attorney. Bonding off the lien When a mechanics lien is filed but needs to be quickly removed from the property title, bonding off the lien might be a good option. When a mechanics lien is bonded off, the lien claim doesn't disappear - but it is removed from the property title. Instead of affecting the title, the claim would essentially be transferred to the surety bond that's secured. Note, though, that securing a mechanics lien bond can be expensive. You can learn more about that option here: Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien. Challenging the lien Finally, when an improper mechanics lien has been filed, an owner may decide to force the discharge of the mechanics lien claim, themselves by filing suit to dispute the validity of the claim. This can be particularly effective when there are obvious flaws with a lien claim - like a claim for work that wasn't actually performed, a claim that exaggerates the amount of the claim, or some other issue.

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