Full question:
I was a buyer in a short sale of a house. After the contract was written and submitted to the bank a pipe separated and did damage. So as not to cause further damage I had a Co come in and take care of the moisture and remove the carpets. In the mean time the first and second cannot agree, its over. Can I file a lien on the house to get my $1400 returned, ins won't pay?
- Category: Contracts
- Date:
- State: Arizona
Answer:
The ability to file a lien depends on the ownership of the home at the time the damage occurred and the terms of the contracts involved. If the house had not yet been transferred to you, the current owner may argue that you were unauthorized to make repairs. However, you may be able to seek compensation under the principle of unjust enrichment. This principle states that one should not benefit at another's expense without compensating them. Generally, if you made a payment based on a mistaken belief that a valid contract existed, you might recover that payment if the contract is later canceled due to fraud or mistake, provided that innocent parties' rights have not intervened.
If you are not the owner and you obtain a judgment that remains unpaid, you can request a judgment lien on the property. A judgment lien is created when a court grants a creditor an interest in the debtor's property based on a court judgment. To file a lien, you must first obtain a judgment through a lawsuit. If the judgment remains unpaid, you can then request a lien on the debtor's property, including real estate, to secure payment.
To establish a valid lien, the claimant must have ownership or a right to it, and the lien must arise from an agreement, either express or implied. A judgment lien is not valid against property the judgment debtor does not own. If a lien is filed wrongfully, it can be voided by filing a release of lien with the county recorder's office. If the filing party refuses to release the lien voluntarily, they may face costs and attorney fees if a court order is needed to release it.
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.