Question: I was awarded our family home in Glendale in my divorce, however my ex-wife had the right to live in the home until it was sold. I found a buyer for the home and the sale of the home was scheduled to close last week. But just prior to closing, my ex-wife recorded a document saying that she was owed $50,000 from the sale of the home. The title company refused to close the sale of the home. The buyer was upset and decided to buy a different home. My ex-wife is emotionally unstable and just does not want to move out of the home. Although she has now apologized to me I am concerned that if I find another buyer for the home she will again record some “bogus” claim against the home. Is there anything that I can do to prevent my ex-wife from recording a wrongful lien against the home?
Answer: 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 your ex-wife from recording a wrongful lien, a court can order her not to record any wrongful liens against the home. If your ex-wife violates 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