What's the fastest way to remove a fraudulent mechanic's lien

11 months ago

I had a fraudulent mechanic’s lien placed on a home I flipped. We just got buyers (closing in less than 30days). Is there a way to remove the lien THEN sue them for damages? We don’t want to hinder the sale/closing of the home

Senior Legal Associate Levelset
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The fastest way to have a mechanics lien removed from the property title is to bond off the filed mechanics lien. While this won’t make the claim disappear and won’t serve as an official challenge to the lien claim, it will free up the project property. When a lien claim is bonded off, the lien is discharged from the property and instead a lien claimant would end up having to enforce their lien claim (via lawsuit) against the bond in order to proceed.

While bonding off a lien claim isn’t the cheapest or most favorable option for battling a lien claim, it will often be the fastest way to push the dispute aside so a deal can be closed on the property. Plus, the property owner may still take whatever other steps they deem necessary to challenge the claim after the lien is bonded off.

More on bonding off liens here: Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien.

Having a lien claimant release their own lien claim may be even faster than bonding off the lien

If a property owner can clearly show a lien claimant that their lien claim is flawed or even fraudulent, that owner may be able to convince the lien claimant to release their own lien in order to avoid more serious penalties down the line. By threatening to file suit, challenging the lien – and by spelling out what damages would be sought – an owner may be able to convince a lien claimant to release their lien, particularly when the claim is baseless.

Further, I think this article may be helpful when facing a filed mechanics lien claim: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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