Lis Pendens for a Mechanic’s Lien
As is commonly recognized, after the recording of a mechanic’s lien, it has a limited shelf life. Within a certain period of time, called a statute of limitations, the lien claimant must bring a lien foreclosure lawsuit in Superior Court (District Court in some jurisdictions). That lawsuit typically has a cause of action to foreclose the mechanic’s lien, along with (as to persons in which you have a direct contractual privity) counts for breach of contract, unjust enrichment, implied-in-fact contract, account stated, and sometimes promissory estoppel.
One of the purposes of a mechanic’s lien is to stop the sale or refinance of the property. In other words, let the world at large know there is a lawsuit pending that would affect title or possession to the property.
Instead of recording a copy of the entire complaint with exhibits, there is a better way of letting the world know about your mechanic’s lien. That is recording a summary or abstract of the lawsuit. This is called a notice of pending action or lis pendens.
It is typically a two page document which indicates the court, parties, property, and case number of the lawsuit to foreclose mechanic’s Lien. It then refers anyone who reads it to the actual court file. The lis pendens also states that the lawsuit affects title or possession of the property and puts all persons on notice that if they buy our loan on the property, it could be subject to the lien foreclosure.
National lien law can help with the filing of the lien foreclosure lawsuit as well as the lis pendens. Or simply call us for a free consultation.