Q: Claim of Mechanics Lien by tenant for work done on rental prop without any contract or written permission by landlord

A: This is a complex situation involving several areas of California law. Let's break down the key issues and address your questions:

1) How should the landlord handle this Claim of Mechanics Lien & proceed with sale of property?

The landlord should take this claim seriously, as mechanics liens can potentially interfere with the sale of property. Here are some steps to consider:

a) Verify the validity of the lien: Check if all legal requirements for filing a mechanics lien have been met. In California, there are strict timelines and notice requirements for mechanics liens.

b) Request documentation: Ask the tenant for all relevant documentation, including any proof of the alleged permission from the deceased spouse, receipts, and contractor information.

c) Consider filing a petition to release the lien: If the lien appears invalid, the landlord can file a petition with the court to release the lien.

d) Negotiate with the tenant: If there's any merit to the claim, consider negotiating a settlement to remove the lien and allow the sale to proceed.

e) Consult with a real estate attorney: Given the complexity of the situation and the pending sale, it's advisable to seek legal counsel.

2) Does lien filed on landlords individually have any effect if the prop is in living trust?

Generally, if the property is held in a living trust, a lien filed against the landlord individually may not directly affect the property. However, this depends on the specific terms of the trust and how the property is titled. It's possible that the lien could still cause complications, especially if the landlord is also the trustee.

3) Can the lien stop the living trust from selling the prop?

While the lien might not directly prevent the trust from selling the property, it could significantly complicate the sale process. Most buyers and their lenders will want clear title, free of any liens. The escrow company will likely require the lien to be addressed before closing the sale.

4) Any legality of this lien?

The legality of the lien depends on several factors:

a) Timing: In California, a mechanics lien must generally be filed within 90 days after completion of work. The lien claim here appears to be well past this deadline, which could make it invalid.

b) Authorization: Typically, a tenant cannot authorize work that results in a valid mechanics lien without the property owner's consent. The alleged permission from the deceased spouse may not be sufficient, especially without written documentation.

c) Notice requirements: California law requires specific notices to be given before filing a mechanics lien. If these weren't followed, the lien might be invalid.

d) Documentation: The lack of receipts and contractor information could weaken the claim's validity.

Given these issues, there are grounds to challenge the legality of this lien. However, resolving this may require legal action, which could delay the property sale.

In conclusion, the landlord should consult with a real estate attorney experienced in mechanics lien issues to navigate this situation. The attorney can help verify the lien's validity, explore options for removing it, and ensure the property sale can proceed smoothly.