There are a lot of reasons that a lien might be recorded on a property you own. A subcontractor might not have been necessarily paid by the contractor and, consequently, filed a lien on your property. You might have failed to pay your HOA dues and, again, consequently, your HOA is going to file a lien. You might even be in the middle of the sale of your home and find a lien you never even knew about.
For whichever reason a lien has been placed on your property, there are some alternatives to having it removed under Arizona law. No matter if the lien was recorded by mistake, was not withdrawn when the liability was paid, or is being contested, the alternatives of clearing a title to a property in Arizona are usually through a subtle title action or a specialized action through A.R.S. § 33-420.
Removing an Erroneous Lien
Under Arizona statutes, anyone recording an erroneous lien is responsible for paying the property owner $5,000 or three times the actual damages, plus real estate attorneys’ fees. You should initially establish that the lien filed was submitted by mistake and then speak with a real estate attorney to help you with the liens removal.
Removal by Quiet Title
A quiet title action strives for the removal of a lien in order to expunge your title. If it is victorious, the lienholder is forbidden from ever again claiming an adverse interest. Nevertheless, prior to your filing suit, you might want to have your real estate attorney send a demand message first because Arizona statutes enable a defendant in a quiet title action to recover expenses from the plaintiff if the defendant recognizes that the lien erroneous and waives their interest. If the demand letter goes with no response for 20 days, then the lienholder would be unable to recover their expenses to defend their lien.
Filing Suit
You additionally have the choice of filing a lawsuit against the person(s) that filed the lien. Following the complaint being filed, the clerk is going to issue a summons to the defendant, that must show just cause within 20 days why the lien shouldn’t be vacated or applied by action. When the defendant fails to foreclose on the lien inside of 20 days of service, the court usually releases it.
You should speak with a knowledgeable real estate attorney, in which can help you establish what the best option is for you in contesting a claim of lien in Arizona.
Contesting a Lien in Short
Getting struck with a property lien is nobody’s idea of an enjoyable time. Nevertheless, it isn’t the contention ender that some people see it to be. There are particular steps that you can take to stop the stalemate that a lien creates. Doing that could help you to resolve the issue to your eventual satisfaction.
Settling the Lien and Getting it Released
Settling the lien in full may not be your favorite way to address the issue. Nevertheless, it is almost always the fastest and easiest way to get the weight off your back.
If you have the funds to do it, you might as well deal with it. Request that your lender give you access to a lien release form. Have it filed with the county records office. In a lot of cases, this is going to quickly clear the title of the property.
Ask the Court to Render It Null
If you think that the lien is erroneous or unjust, you can request that the court remove it. The best way to do so is to file a lawsuit against your lender. You are going to be required to show proof to demonstrate your claim that the lien should be dismissed.
Obtain a Lien Bond
When contesting a lien, a lien bond is going to guarantee the settlement of the outstanding debt to the lender. Making it a type of protection in the event you are unsuccessful in your lawsuit. Placing this type of bond is going to allow you to discharge the lien out of your property. Then you can transfer it directly to the bond.
Doing so is going to allow you to clear the title of your property. After that, you will be able to put it up for sale or have it refinanced. You can legally accomplish that without having to pay off the debt ahead of time.
Hire a Real Estate Attorney to Represent Your Case
It’s a very good idea to consult a qualified real estate attorney (when contesting a lien) prior to taking any further action to address a lien on your property. A real estate attorney can help you understand your rights and what options you have. They can also provide valuable assistance and counsel on the best plan of action for you to take.
Dar-Liens Offers Lien Processing and Filing in Arizona
Dar-Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.
