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When a property is seized and placed in receivership as a General contractor do I have lien rights?

CaliforniaMechanics LienRight to Lien

We are a General contractor in CA. We were getting ready to start a remodel project on a commercial building for a new owner. About a week before we started the building had a flood. The new owners need help to deal with this so we jumped in to help. No contract in place we provided contact to Servpro to do water removal & dry out. "Servpro contracted directly with the new building owner. we only provided emergency electrical repair. A day before we were to start the demolition portion of the project we were informed the all of the new owners corporation and this building had just been seized by the Federal Trade Commission and place in receivership.

1 reply

Dec 4, 2018
That's a good question, and I'm not entirely sure what the answer will be - this is a pretty rate situation. However, it's worth noting that the actual filing of the lien - that is, placing the lien for record with the county recorder - can very likely still be accomplished. Whether that lien would be effective to compel payment is another issue altogether. However, a lien filing can likely at least make the debt known, and in most cases, having a lien filed is better than having an unsecured debt. But, when property has been seized by the federal government, recovery via mechanics lien would certainly become less likely.
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