Full question:
My husband and I built a home in Minn last year. closed on our house May 7 2010. after we moved in we received 3 mechanics lien notices - these are all filed with the county we live in. We paid for our home - the builder walked away with around 7K of our money plus he did not pay the subs. as home buyers do we have any protection? and can we get these liens removed? I appreciate your help! One other point - our builder went out of business and skipped town.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Minnesota
Answer:
If a mechanic's lien has been filed against your property, you have several options. You can wait for the lienholder to file a lawsuit to enforce the lien. If they do, you can raise defenses in your response. If no lawsuit is filed within one year, the lien becomes unenforceable.
If you believe the lien is unjustified, you can file a lawsuit to have it removed. This is known as an action to determine "adverse claims" in real estate. This may be necessary if you want to sell your home before the one-year deadline. Consulting a private attorney can help you decide if you need to file this action.
There are ways to settle a lien after a lawsuit begins. You might settle out of court, ensuring that the lienholder removes the Notice of Lis Pendens and files a Satisfaction of Mechanic's Lien with the county registrar. If the case goes to court, a judgment will take precedence over the lien, and the lien will be removed if the court rules in your favor. However, if the court finds for the lienholder, it may order the sale of your property to satisfy the lien.
If the lienholder does not follow the necessary steps, they may still pursue recovery through a civil action against the contractor or you, the property owner.
For one hundred twenty days after all work is completed, you can withhold payment from the contractor to cover subcontractors unless you have lien waivers from them. Minnesota law does not provide a specific way to release a lien, except for automatic dissolution if a lien statement is not filed within one hundred twenty days of work completion or if a lawsuit is not filed within one year.
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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.