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I fired my GC and he filed a mechanics lien on my property, what can I do to remove this lien?

CaliforniaBonding Off LienMechanics Lien

I am a property owner and fired my GC and he in return filed a mechanics lien on my property. All the work that they had performed was paid in full, they stopped midway the project so the rest of the work scope was not done, therefore, not paid. He filed an initial lien for $130k, then amended the lien to $30k, and when I filed a complaint with the CSLB, he then filed a new lien of $130k. I want to sell this property asap but I am not sure of what I can do at this point to remove the lien. I have reached out to them in order to mediate and come to an agreement but they have not responded. I fired them in March, they filed the first lien right away, then amended it in July and placed in a new lien in August. What can I do in this case?

1 reply

Oct 6, 2020

Good morning! From what you've mentioned, it would appear they would not have a lien right (since you have paid for all labor and materials furnished). In addition, it sounds like there could be a timing issue since they apparently still haven't filed suit on the original lien (regardless of the amendment) -- and another possible timing issue with respect to whether the new lien was timely (need to know precise dates). To release the liens, you have a couple of options --- one may be to record a release bond to free up title --- but you should consult with construction counsel to determine if it makes more sense to be aggressive with the potentially improperly recorded liens before you bond around them and give them potential avenues for recovery.

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