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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 116834
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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We have a contractor that we did a JV project with and he

Customer Question

We have a contractor that we did a JV project with and he agreed to carry 75k on the rehab now he has lei rd the property for that amount plus and the property hadn't been sold yet . If he has a written agreement to Carry money to be paid at the close of escrow can he legally place a Lein on that same property for the amount he is contracted to carry ..
Submitted: 11 months ago.
Category: Legal
Customer: replied 11 months ago.
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Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Yes, he can legally place a lien to secure the payment, even though he has agreed to carry the money to be paid to the end of escrow. The lien is just a security to insure he will be paid off as agreed.
Customer: replied 11 months ago.
But the house can't be sold with the mechanics Leon on it so the agreement was
To be
Paid at the close of escrow .. How can he place a Leon for money he put into the project ?
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
It is not true the house cannot be sold with the lien. What has to happen is the lien has to be agreed to be paid through the sale. So if you cannot negotiate with him to remove the lien or if he did not agree in the contract to not place a lien, he has a right to place it. So, the lien is a speed bump, but not a prohibition to the sale. So the lien is not illegal if the contract does not say he agreed not to place a lien.

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