Fighting & Removing A Lien on Your Property

An out-of-focus photograph of a neighborhood from an aerial view

When you hire a contractor to work on your property and they don't do the work, it's reasonable to not want to pay them. But some contractors use what is known as a mechanic's lien to try to force you pay. At this point, problems are starting to add up: your house still needs the work done and now there's a lien on it. A lien can make your house difficult or impossible to sell, your ability to get a loan will be reduced, and it can damage your credit score. So what do you do? How do you get a lien removed from your property? Your attorney through our Legal Protection Subscription Plans will be able to walk you through the process in your state for your specific situation at no additional cost, so learn more about all the benefits of membership and read on for more information about getting a lien removed from your property.

A lien is a security interest that is attached to a property to ensure payment. Liens must be satisfied before you can typically sell your house. Contractors and other workers are not the only people who can put a lien on your house; liens can also be obtained through court judgments, and these typically come from the IRS, a former spouse or business partner, a state government, and other types of creditors.

A real estate lawyer is going to be your biggest asset when it comes to disputing a lien. The first thing is to file what is known as a "preliminary objection" with the court. Your attorney will be able to help you with this. This court filing will detail the reasons you believe the lien to be improper, and can include reasons such work not being done, lien filing outside of the permitted time constraints, improper licenses or registration, among others. These are all reasons that the lien may be found by the court to be unenforceable. Different states allow for different types of objections, and your lawyer will be able to give you advice.

Sometimes, it is best to negotiate with the person who filed the lien, even if you believe that it is money that you should not have to pay. If you are in a time crunch, though, sometimes negotiation can get the lien removed quickly and for less money than the lien holder is asking for. Sometimes, the lien holder of a mechanic's lien will offer to do additional work for the full price, as well.

Another option if you need the lien settled quickly is to obtain a lien bond. Also called "bonding off," this means that you get a bond from an insurance company that covers the amount of the lien. These kinds of bonds are called "surety bonds" or “lien discharge bonds," and they work by an insurance company assuring the county clerk that you are able to pay the lien if the courts decide that you have to, and the lien will be legally attached to the bond rather than your property. This should be considered an option only if you are in a hurry to refinance or sell your house; typically, negotiation with the lien holder is a better option, and a court decision is another avenue.

Filing a suit to vacate the lien is the most aggressive choice to fight a lien, and you will need an attorney familiar with real estate, liens, and the laws in your state. The lawsuit will force the lien holder to explain why you owe them money and give you the opportunity to explain why you don't. In an example of the poor, unfinished, or shoddy remodel, you will be allowed to show evidence that the contractor did not complete the work to the scope of the contract or agreement and provide evidence of that fact. If you win, the lien will be removed from your property and you may even be awarded damages. As with all lawsuits, the outcome is unpredictable, and the process can be expensive and time consuming. Whether it is worth it to you and your specific situation to pursue a lawsuit is a question for your attorney.

If you have questions or need advice about getting a lien removed from your property, the lawyers in our network of law firms across the US, Canada, and UK can make the process affordable. For just $29.95 per month, you can have access to legal advice from experienced, dedicated attorneys for all of your legal questions, from liens and real estate to consumer finance, to contracts and agreements, to estate planning and more. Learn more about all the benefits of membership in our Legal Protection Subscription Plans for Individuals & Families or sign up today!