Home>Levelset Community>Legal Help>If I have filed a lien against our customer but the property has been sold to a bank do I now file a lien against the bank?
If I have filed a lien against our customer but the property has been sold to a bank do I now file a lien against the bank?
We have a project that we filed a lien against but it has been sold to a bank. Do I now need to go after the bank?
1 reply
Mar 9, 2020
A mechanics lien is filed against the project property, not against any one individual or business. So, when a property is sold after a mechanics lien is filed, that lien will generally run with the property. Though, usually, a purchaser or lender will be scared off by a recent lien claim. Regardless - when a new owner takes control of the property, a mechanics lien claim filed prior to that sale will generally remain valid and there's generally no need to file a different lien - especially against property where work wasn't performed.
But, it's possible that an owner could sell their property even with a lien claim attached to it. If that happens, then the lien claimant would likely need to make themselves known to the new owner of the property and begin collection efforts with the new owner. Of course, it might also be helpful to keep the prior owner involved in recovery talks, too.
For more information on collecting on a lien claim: The 4 Steps to Take After Filing a Mechanics Lien.