Full question:
A contractor who is not licensed, filed a lien on property we (a trust) received back after we had sold the property on a land contract. The property was sold again, but the title co. to get the lien off put money in escrow. Now the money is tied up and this contractor who was hired by the owner of the land contract wants money. Is there an easy way to release this money being held, since the original lien was not valid? Do we have to file a lawsuit in order to release this money? I think this contractor is very shady. He is not licensed in Michigan, plus he says he wants to meet with us to talk, tells us we owe him $10,000 but fails to give us an invoice (the former owner says he was paid for the work he did) but continues to have secret meetings with this contractor. It appears they may be trying to work against us. I feel there must be a way to get this settled quickly. Please Advise.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Michigan
Answer:
Washington law requires a "Potential lien claimant" to be registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington.
A properly executed and recorded lien remains on property until released. Upon payment and acceptance of the amount due to the lien claimant and upon demand of the owner or the person making payment, the lien claimant shall immediately prepare and execute a release of all lien rights for which payment has been made, and deliver the release to the person making payment.
A landowner may file a lawsuit to compel deliverance of the release thereafter in which the court determines the delay was unjustified, the court shall, in addition to ordering the deliverance of the release, award the costs of the action including reasonable attorneys' fees and any damages.RCW 60.04.071
Further more, if the landowner believes the lien was filed inappropriately, he or she may file a frivolous claim action.
Frivolous claim -- Procedure.
(1) Any owner of real property subject to a recorded claim of lien under this chapter, or contractor, subcontractor, lender, or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause, or clearly excessive may apply by motion to the superior court for the county where the property, or some part thereof is located, for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant, and show cause, if any he or she has, why the relief requested should not be granted. The motion shall state the grounds upon which relief is asked, and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based.
(2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released, with prejudice, and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys' fees.
(3) If no action to foreclose the lien claim has been filed, the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee of thirty-five dollars. If an action has been filed to foreclose the lien claim, the application shall be made a part of that action.
(4) If, following a hearing on the matter, the court determines that the lien is frivolous and made without reasonable cause, or clearly excessive, the court shall issue an order releasing the lien if frivolous and made without reasonable cause, or reducing the lien if clearly excessive, and awarding costs and reasonable attorneys' fees to the applicant to be paid by the lien claimant. If the court determines that the lien is not frivolous and was made with reasonable cause, and is not clearly excessive, the court shall issue an order so stating and awarding costs and reasonable attorneys' fees to the lien claimant to be paid by the applicant.
(5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise. RCW 60.04.081
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
