I found out about a lien filed on a property by a contractor several days after we closed on the investment property. I’d never received the notice of the lien.
Jun 29, 2018
That's an unfortunate situation, and breaking down the rules for sending notice that a lien was filed might be helpful here. In Georgia, lien claimant must send a copy of their lien claim to the owner of the property. However, if the owner's address can't be found, it may be sent to the prime contractor (as an agent of the owner). Notice must be sent within 2 days of filing the lien. If a lien has been filed and no notice was given, an owner may likely challenge the filed lien based on the failure to provide proper notice. Unfortunately, for parties other tan the lien claimant, releasing a mechanics lien is not as simple as the mere submission of a form. One option to remove a lien will be to file a Notice of Contest if No Notice of Commencement of Lien Action Filed pursuant to § 44-14-368 of the Georgia lien statute. This document, if filed, will shorten the time during which a claimant can enforce the lien. Another option to discharge the property from a lien will be to bond off the lien, pursuant to § 44-14-364 of the Georgia mechanics lien statute. Finally, the most sound option may be to consult a local real estate or construction attorney to review the situation and provide a path for moving forward. They'll be able to look into your circumstances and determine how best to refute an improperly filed lien.