Our company ( it's corporation) file a mechanic's lien but we short of fund to hire attorney to represent us to foreclose the line. Can I sell to other people to fight with the owner?
1 reply
Jun 28, 2019
That's an excellent question, and it's one we don't get all that often here - kudos!
While some states specifically provide for the ability to assign their mechanics lien right so some other party (via sale or some other transfer), California is silent as to whether a mechanics lien claimant can assign their lien claim to someone else. The general rule when it comes to assigning mechanics lien is that a lien claimant can assign their lien claim to some other party after the lien has been perfected unless there's some provision in the state's lien statute which forbids the ability to do so.
So, it would seem that California lien claimants can assign their filed mechanics lien to some other party. However, there should generally be some contract or documentation memorializing the transfer of rights - otherwise, a party who is "assigned" a mechanics lien might not be able to recover based on someone else's claim.
It's also worth noting, though, that most mechanics lien claims are resolved without the need for legal action. If a lien claim has been filed but remains unpaid, sending a warning document like a Notice of Intent to Foreclose might be helpful to get paid without the need for actually filing a lien enforcement suit. So, that may be one last hope at recovery before contemplating assigning the right to enforce a mechanics lien to someone else.
For more information on assigning lien claims, these are helpful resources: (1) Assignment of Mechanics Liens (But Not The Right to Lien) (2) Things To Think About When Assigning A Mechanics Lien.