Home Buying in Rosamond>Question Details

Paul, Home Buyer in Rosamond, CA

I recently purchased a home in Rosamond CA from a tract housing developer. After my closing I received a

Asked by Paul, Rosamond, CA Thu Dec 20, 2007

letter that there is a lien on my property. Is this legal, since the lien is on the developer and I now own the house?

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Here in Calif I was cautioned concerning buying an unfinished house ( no work done for 9 months ) that the subs wait till escrow closes or somehow are able to circumvent title insurance before putting on their liens. They do this because the amount of the liens are such that no new buyer could be found if all the liens were seen.
But it would seem like there would be some California required time period had passed since the last work was done, then they are just trying to scare someone into paying with unenforceable liens.

I do believe that there are many California specific mechnaics lien procedures and that any out of state advice, beyond working with the title company, could be very wrong.
0 votes Thank Flag Link Wed Sep 30, 2009
It could be a mechanic's lien. If a subcontractor is not paid for materials or labor, they have the right to go after those who now benefit from their work or labor (you). Unfortunately, under CA law, a situation may arise in which the time subcontractor has to put a lien on the property starts and ends over a longer time period than a new buyer purchases a house and gets title insurance. Whether or not you are responsible depends on when the subcontractor's time window was valid for them to place a lien on the property. If the lien was filed after your title insurance expired, then you are responsible. The is some more information about mechanic's lien on a CA state website for contracting. Be careful about when the lien was originally placed on the property. Chances are you are not responsible, but in these economic times, the insurance and developer may give you a run-around and try to get out of it. There are others who have fallen into this situation.
0 votes Thank Flag Link Sat Jan 31, 2009
Paul, As Durenda stated, your title company should be able to handle this for you. If the lien was placed there prior to the close of escrow, the lien should have been picked up by them to begin with. I would assume that in California you wouldn't have closed without a title company. Title insurance is just for this- insurance that there are no liens, judgments, past due taxes, llis penance, silent owners or other things against your property when you purchase it. Contact your agent and ask them to get title on it right away. Your agent was paid to handle your transaction, and this should fall within their customer service to you.

Good luck, I hope it is cleared up very quickly!

Patti Phillips
800-680-9133
0 votes Thank Flag Link Thu Dec 20, 2007
Paul

When you closed on your transaction, did you get an owner's title insurance policy?

If so, contact the title agent about this, and any other liens from the developer's non payment, that may come forward

The title agnet will get that handled for you.

Best of luck
0 votes Thank Flag Link Thu Dec 20, 2007
Yes - it is probably from a subcontractor who is owed moeny for a task they completed - I would take it to the developer and it should get resolved quickly
0 votes Thank Flag Link Thu Dec 20, 2007
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