North Hills, CA asked in Construction Law for California

Q: Can a contractor file a lien on my property, if loan company fully released funds and paid them off for the project?

I've been dealing with a general contractor (that installed solar panels on my roof) ever since February. Loan company released funds and fully paid them off before the project was finished. I've been making loan payment for past few months. I recently received notice from contractor, declaring the intent to file a mechanics lien, unless I fully pay them of (nearly 30k) within ten days. They claim that loan company will call funds back from them, because equipment is not operational. There are many details I have no room to enclose, such as contractor breaching their own agreement and damaging property. But right now my main concern and question boils down to this: Can a mechanics lien be filed, while I as a customer am still making loan payments to lender that financed the project, and while the loan company's (lender's) records show that installer (contractor) was fully paid? Thank you

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1 Lawyer Answer
James R. Dickinson
James R. Dickinson
Answered
  • San Bernardino, CA
  • Licensed in California

A: You need an attorney to guide you through this. It is very important that you understand, among other things, your agreement with the contractor and how the project is being financed. Speak with an attorney today. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]

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