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Lien

California

I'm doing an owner builder with my neighbor who is a retired contractor we had a written contract that he would get 10% to oversee the project but now we had a falling out and I was thinking about terminate the contract I paid him up to now can he put a lien on my house for the rest of the contract even though he's not finishing it

2 replies

Feb 6, 2021
If your neighbor is a retired contractor, meaning he no longer has a contractor's license, he has no right to claim compensation or record a mechanic's lien. You can find out licensing status by accessing the Contractors State License Board website. If he is currently licensed, you are going to need to submit the agreement to a lawyer to determine what your potential liability exposure may be.
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Feb 9, 2021
Legally he can’t lien for more than the value of the work he’s done on your house so far.  This means that the lien amount can’t include work he hasn’t done yet.  If he does lien the property for more However, even without the lien he could still sue you to recover his lost profit on the job that you aren’t allowing him to finish if he doesn’t agree to the termination.  This can get tricky.  I suggest you consult with an experienced construction attorney before you terminate the contractor.
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