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I need to know what I need to do next in mechanics lien situation.

I filed a mechanics lien on house in GA for work that myself and my girlfriend did. The owner paid us 9000 out of 25000, do we are still owed 16000. After lien was filed, two weeks later the house was sold and we didn't get rest of money. He is coming up with lies just so he can try to get away from not paying us. A demand letter was sent on our behalf with little response. We are at a stand still, we don't know what step to take next.

1 reply

Oct 31, 2018

Provided the mechanics lien was valid and enforceable prior to the sale of the property, it is likely the case that the lien is still valid and enforceable - provided the enforcement deadline has not yet passed. In Georgia, an action to enforce a mechanics lien must be initiated within 365 days of filing the lien. Also, note that if an entity is required to be licensed by state law, that entity must have a license in order to have valid mechanic lien rights.

A mechanics lien is a claim against the improved property – yes, the owner is involved, but really is just kind of along for the ride. In a case where an innocent third party purchases the property, they will generally be liable to satisfy the lien claim and will need to seek recovery from either the original owner, or, potentially, the title insurance company.

Additionally, to the extent the lien is not valid or enforceable for some reason (or if the claimant doesn't want to enforce a lien against an innocent property owner) there is always the option of filing suit against the former property owners who contracted for the work.

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