Serious Penaltiesfor Filing False Liens

A gentleman was awarded hisGlendale family home in his divorce buthis ex-wife had the right to live in the home until it was sold. A buyer for the home was found and the closing sale of the home was scheduled. However, just prior to thehome’s closing, the ex-wife recorded a document saying that she was owed $50,000 from the sale of the home. Because of the document, the title company refused to close the sale of the home. Understandably, the buyer was upset and purchased a different home. The woman is emotionally unstable and just does not want to move out of the home. She has apologized but the homeowner is concerned that when another buyer is found she will record some “bogus” claim against the home again. Is there anything the homeowner can do to prevent her from recording a wrongful lien against the home?

According to Arizona real estate law, if a lien is wrongfully recorded against a home or other real property there are sanctions, namely, $5,000 or treble actual damages, whichever is greater, plus attorneys fees and court costs. A.R.S.’ 33-420(A). If these monetary sanctions do not deter you’re the ex-wife from recording a wrongful lien, a court can order her not to record any wrongful liens against the home. If your she were to violate this court order, she could be held in contempt of court with serious penalties, including jail time.

Note: If a wrongful lien is recorded in the name of an unidentifiable person or entity, e.g., invalid address or a non-existent limited liability company, a title company will generally require a quiet title lawsuit to determine that the lien is invalid. This quiet title lawsuit could be expensive, primarily due to the requirement of service of process by publication because the individual or entity is unidentifiable.

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