Fradulent Mechanics Lien/slander Of Title

I have a property in escrow-buyer fully funded and was supposed to close today-my tenent who is bitter since he could not buy it has done everything he can think of to stop the sale-threatend to burn building-filed police report, threatened to kill new owner-filed police report, harassing phone calls-filed police report, posed as a legit buyer to realtor-realtor caught him, now he hurried up and went down to the title company with a mechanics lien and stopped escrow-he is not a contractor, no contract was signed (says its for 64k) no prelim notice given so it is a fradulent mechanics lien with the intent to maliciously stop the sale-I have left a message with my lawyer, not got back to me yet, but the first step is to petition the court to remove the lien right? Then I want to sue him for slander of title for myself if I lose this sale-any thoughts?

Comments(4)

  • InActive_Account3rd August, 2005

    At an additional cost, have the title company list the bogus"mechanics lien" as an exception to coverage then have them issue an indemnity bond, insuring all parties, (themselves,the lender,and the buyer)against any lost that may occur as a result of litigation pertaining to the lien. Next, close the deal.

    Quote:
    On 2005-08-02 19:39, meegusmaster wrote:
    I have a property in escrow-buyer fully funded and was supposed to close today-my tenent who is bitter since he could not buy it has done everything he can think of to stop the sale-threatend to burn building-filed police report, threatened to kill new owner-filed police report, harassing phone calls-filed police report, posed as a legit buyer to realtor-realtor caught him, now he hurried up and went down to the title company with a mechanics lien and stopped escrow-he is not a contractor, no contract was signed (says its for 64k) no prelim notice given so it is a fradulent mechanics lien with the intent to maliciously stop the sale-I have left a message with my lawyer, not got back to me yet, but the first step is to petition the court to remove the lien right? Then I want to sue him for slander of title for myself if I lose this sale-any thoughts?
    [ Edited by Darryle-CA on Date 08/03/2005 ]

  • Palmguy3013th March, 2005

    O.k., here are your options. Dispute the deposit being returned and your agent cannot return the deposit by law. Then, it is up to the seller to sue you in small claims court over this deposit. not get financing. The burden of proof will be on himMost of the time, people do not hire attorneys for small claims court because the legal fees are too costly for it to be worth it (my wife is an atty). Once you go to small claims court, he must PROVE that he could not get financed. A letter from his wife will probably not be sufficient. However, you must know that it is not too hard to "not get financed." This is the risk you run anytime you accept a contract with a financing contingency. I always require a final approval letter within 10 business days.

  • curtbixel13th March, 2005

    Thank you for your reply. If I do go to court, can I get stuck with more than just releasing the deposit? Can I end up paying for court costs or legal fees?

  • InActive_Account4th August, 2005

    The property will become tax defaulted and eventually be auctioned off.

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