Removing Mechanics' Liens

Upon satisfactory payment of lien amount

When you exercise your mechanics' lien rights, you also have the obligation to remove or release the lien that you placed on real property after you have settled.

Once you have been paid for your goods or services, the owner has met their obligation to you, and you no longer have any mechanics' lien rights.

Unenforceable, Invalid or Stale Liens

If you did not foreclose (file a lawsuit) on the recorded lien within 90 days, the lien is invalid.

or
If you recorded the lien for goods and/or services that did not go into the work of improvement, the lien is invalid.

or
If for some reason it is determined that you, the contractor is not properly licensed, the lien may be invalid.

or
If you did not follow the noticing procedures and deadlines, your lien may be invalid.

When the lien is not removed it clouds the title. This makes it difficult for the property owner to sell or refinance the property.

If you recorded the lien, you need to take steps to be sure the lien is removed otherwise you may be liable for up to $2000 in attorney fees for the property owner to get it removed.

If you are the property owner, and the contractor does not voluntarily remove the lien, it may be necessary to enlist the aid of an attorney to petition the court to have the lien removed. There are specific steps that need to be performed in order to do this. This may be the only way, especially if the contractor is no longer in business or cannot be located.

Pursuant to Civil Code §3154, as a minimum, you will need to provide the following information in a verified petition to the court:
(1) the date that the lien was recorded;
(2) a description of the property; and
(3) allegations that no action to foreclose the lien has been taken, no extension of credit has been recorded, the lien claimant is unwilling to execute a release and the owner has not filed for bankruptcy.

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