There are at least some contracts that an unlicensed contractor cannot enforce. Yours may be one of them. But that isn't the immediate question. The question, I think, is whether a lien filed in 2008 is still a valid lien. A general contractor who is employed by the owner can file a lien up to six months after the last work was performed -- but he also has to file a lawsuit within the same time frame which is aimed at enforcing the lien. Had he filed the suit to enforce his lien, you would have already litigated the question about whether his absence of a license would defeat his contract -- and whether his work was reasonably done. At this point, the lien's validity is in question and perhaps could be ignored by the lender's title insurer. You should ask the title examiner whether the lien can still be any good after 4 years and whether the exception to the title commitment might be deleted. If your lender's title examiner is not local, confer with a good real estate lawyer in your area. If he concludes the lien has expired, perhaps you should ask if he can assume responsibility for closing your refinance loan.
Answered on Mar 26th, 2012 at 7:51 PM