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Hi and welcome to JA. I am Ray and will be the expert helping you today.
I would try to resolve this with the contractor and get a signed release.As it is here you signed that it was complete as did he.You want to make sure he does not file a mechanics line on your property.I would try to settle this cheap here since you don't want the work done.If you can get a release here for a nominal amount say $500 I would strongly consider it.
I cannot tell you how this would turn out in a civil suit.They have documents you stated it was complete, contractor did to so there will be problems for everyone in a suit.Again if you can resolve this cheaply $500-$750 release included this might be the best outcome.
I understand the contractor did not complete this properly but mechanics liens even if falsely filed can be very expensive legally to clear.Again this amounts to a minimal payment to get them to go away.
Release form you file in deed records once they sign it..
I appreciate the chance to help you today.I am so sorry you are having to deal with this.