Mechanic's Lien delivered without notice of intent

Allentown, Pennsylvania
Legal & Legislation
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Mechanic's Lien delivered without notice of intent

Jordan Sachs
Member since 2022 · 32 posts · 17 votes

My friend's husband owns a property in Bethlehem. He's used the same management company for years. He owes them some money for work that they did and they filed a mechanic's lien on his property 3 weeks after he received the bill which was also one business day before he was scheduled to sell/close on the property. (he was able to close because the title search had already been done before the lien was registered) 


According to him he has never not paid them for previous work and he never said he wasn't going to pay them but as soon as they found out he was selling they filed. They gave him no notice of intent to lien and clearly were trying to mess up his sale. Now the property has been sold and it has a lien on it. He still intends to pay the mgmt company. Is this lien legal even though they gave him no notice? They couldn't have given him a 30 day notice if they wanted to because it hadn't even been that long since he received the invoice. Does he need an attorney or should he just pay the invoice in full? Thoughts? TIA!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y

not sure why one would ask this question if the intent is to pay it.. only reason I can think is they want to try to wiggle out of it.

reality is anyone can file a lien.. And just because title is run the title company is on the hook for it.. As they should have done a date down and caught it.. at least on the west coast they would have.  so the title company if they have to pay it is going to be not so nice to the seller.

the reality is if you dont do the intent to lien then yes you can get it removed usually though has to be done through the court title company wont take the risk.. Then once you spend the money for that.. then the contractor will simply file a UNJUST Enrichment claim so your back to square one.. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y

    Not an attorney but it's my understanding a notice of lien must be filed prior but why not just pay it and get the issue resolved 

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  • Jordan Sachs
    OP
    Member since 2022 · 32 posts · 17 votes
    1y

    Well I think he was planning to pay it but it wasn't long overdue so he certainly wasn't expecting a lien to be placed on the house one day prior to sale. He is still planning to pay but there is now a lien against a house that someone else owns and he's wondering if it's actually valid given the lack of notice. Also, the amount the placed on the lien don't even match the invoice amount that is actually due.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    not sure why one would ask this question if the intent is to pay it.. only reason I can think is they want to try to wiggle out of it.

    reality is anyone can file a lien.. And just because title is run the title company is on the hook for it.. As they should have done a date down and caught it.. at least on the west coast they would have.  so the title company if they have to pay it is going to be not so nice to the seller.

    the reality is if you dont do the intent to lien then yes you can get it removed usually though has to be done through the court title company wont take the risk.. Then once you spend the money for that.. then the contractor will simply file a UNJUST Enrichment claim so your back to square one.. 

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1y

    @Jordan Sachs There is more to this fact pattern that's not being shared. Earlier in your post you shared that your friend planned to pay the contractor invoice but at the end of your post you ask whether your friend should pay the invoice in full.....and this is after selling the property and presumably being recapitalized.  Doesn't add up....

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  • Jordan Sachs
    OP
    Member since 2022 · 32 posts · 17 votes
    1y

    I'm getting the info from my friend not her husband so it is possible something is missing however, I think she's mostly concerned that there is now a lien on the new owner's property and less about paying the actual bill. The attorney isn't answering them so she's not sure how to get the lien removed once they pay the bill. I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Jordan Sachs:

    I'm getting the info from my friend not her husband so it is possible something is missing however, I think she's mostly concerned that there is now a lien on the new owner's property and less about paying the actual bill. The attorney isn't answering them so she's not sure how to get the lien removed once they pay the bill. I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing.


    she needs to contact whoever wrote the title insurance.. the attorney is just an agent for the insurance carrier.. that should fast track.. this happens I have had it happen to me by crooks/criminals literally who put a mortgage on a property 15 minutes before my title company recorded my mortgage so when my title policy came out i was in second position not first position as my escrow instructions stated I needed to be ..  Title company went after the crook and cleaned up my  title.  now in this case which is not as nefarious.. they just need to pay the bill.. get proof it was paid and get a lien release signed by the people your paying then show said lein release to title company and then a satisfaction of lien will be recorded that will clean up the title. The only way this is a bummer for your friend is if they refuse to pay it then they will get a nasty gram from buyer and buyers title company
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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    1y
    Quote from @Jordan Sachs:

    I'm getting the info from my friend not her husband so it is possible something is missing however, I think she's mostly concerned that there is now a lien on the new owner's property and less about paying the actual bill. The attorney isn't answering them so she's not sure how to get the lien removed once they pay the bill. I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing.

    This is being made all too complicated.  The seller signed an affidavit at closing attesting there were no outstanding liens, invoices, etc. on the property.  He obviously signed a false statement.
    The buyer has a claim against the title company to pay the lien - and the title company has a claim against the seller.  
    The easiest thing to do is for the seller to contact the title company, pay the lien amount to title company, the title company will pay the lien off and obtain a release of lien.  It’s done all the time.  

    The people the seller should have this discussion with is the title company and or legal counsel.  Sounds a lot like this that I hear from dead beats all the time “ I was going to pay you but now that you demanded payment I’m insulted and not going to pay”.  

    I don’t know what’s going on of course, but I can offer the possibility that the seller tried to negotiate the bill down and the contractor realized he was being squeezed so he took action.  Of course another possibility that the work done was subpar and the seller has a legit issue with the billing amount.  But to close without revealing the debt places the issue squarely on the shoulders of the seller.  
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  • Jordan Sachs
    OP
    Member since 2022 · 32 posts · 17 votes
    1y

    Thanks for the info and thoughts! I'm sure they will just pay it and get it sorted out but I think the last minute complication threw them for a loop!

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  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    1y

    If the lienor failed to follow the statutory requirements to perfect the lien, the title insurer will probably advise the management company of the problem and request they record a release.  If they refuse or fail to do so, I suspect the insurer will tell its insured, the lien appears to be unenforceable and to notify them (the insurer) if a suit is filed to enforce it.  I doubt the insurer will simply pay the lien amount since the insurer has no way of knowing if the amount demanded is actually owed.  If a suit isn't timely filed, the lien will fall off after the expiration of the statute of limitations.  The insurer will probably also tell your friend (s)he appears to be in breach of the averments in the seller's affidavit and will be held responsible for any loss the insurer suffers as a result.  Assuming your friend has a contract with the management company it sounds like (s)he may be in breach of that and could possibly be sued for damages.

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