The Riz Communities lawsuit picture is really a lien crisis: subcontractors who say the Atlanta-area homebuilder never paid them have filed hundreds of mechanic’s liens against houses their buyers had already closed on and paid for in full. By October 2025, the Georgia Clerk’s Authority counted nearly 300 liens or pending legal actions against Riz Communities properties since 2023, and more than 800 total filings when Sohail Choudhry’s affiliated entities were included.1WSB-TV. More Metro Atlanta Homeowners Shocked by Liens Against Their Brand New Homes One civil breach-of-contract suit has been filed directly against Choudhry personally. No criminal charges or state enforcement action had been publicly announced in the available record.
What Actually Happened
Riz Communities, founded in Atlanta in 2018 by Sohail Choudhry, built homes through a sprawling group of more than 30 project-specific LLCs, along with related brands Buyside Capital and Prestigious Group.1WSB-TV. More Metro Atlanta Homeowners Shocked by Liens Against Their Brand New Homes The trades that installed flooring, electrical, blinds, and other components in those homes say Riz never paid them for the work.
Under Georgia law, that unpaid work follows the house, not the builder. A subcontractor who goes unpaid can record a mechanic’s lien against the property itself, even when the homeowner has already paid the builder in full.2WSB-TV. Nightmare: New Homeowners Face Liens on Their Homes After Contractors Not Paid by Builder That is how Newton County homeowner Rachel Bradford, whose story WSB-TV reported in August 2025, ended up with more than $200,000 tied up in escrow on a house she had already bought. She told the station Riz had pressed her to move in at a reduced rate before title insurance and closing documents were finalized.3Yahoo News. Nightmare: Homeowners Face Liens on Homes After Contractors Not Paid by Builder
Choudhry, asked about the liens that August, said he was aware of them, called it an “internal issue with a few of our vendors,” said the liens had been “taken care of,” and asked for 14 to 21 days to sort things out. Bradford and other homeowners disputed both the timeline and the claim that the debts were being paid.2WSB-TV. Nightmare: New Homeowners Face Liens on Their Homes After Contractors Not Paid by Builder
How Big the Problem Is
The Georgia Clerk’s Authority totals put the scale in context. Nearly 300 liens or pending legal actions have been filed against Riz Communities properties since 2023. Adding Buyside Capital, Prestigious Group, and the rest of Choudhry’s affiliated entities brings the count above 800 across several metro Atlanta counties.1WSB-TV. More Metro Atlanta Homeowners Shocked by Liens Against Their Brand New Homes Affected properties have been identified in Austell in Cobb County and Covington in Newton County, among other locations.
The dollar exposure varies. One rental-property owner reported more than $17,000 in liens on a single home. Others have received outright foreclosure notices tied to debts they had nothing to do with.4Yahoo News. More Metro Atlanta Homeowners Shocked by Liens Against Their Brand New Homes
Title Insurers Have Blacklisted Riz
Before any government agency acted publicly, the title insurance industry moved. On August 7, 2025, Williston Financial Group National Title Insurance Company issued Bulletin GA 2025-02 to its Georgia agents, naming more than two dozen entities and three individuals — Sohail Choudhry, Shamalla Choudhry, and Sueray Hollowell — and warning that agents could be “held responsible for any loss” if they closed a transaction involving them without contacting underwriting.5WFG National Title Insurance Company. GA 2025-02 Cautionary Alert
On August 20, 2025, Stewart Title Guaranty Company issued Special Alert SA2025246, ordering Georgia issuing offices not to accept orders, issue commitments, or close any transaction involving Riz Communities & Development LLC or related entities without written clearance from Stewart Legal Services.6Virtual Underwriter. SA2025246 Special Alert Between the two bulletins, Riz effectively lost normal access to title insurance in Georgia.
Lawsuits Filed So Far
Beyond the mechanic’s liens themselves, one commercial case has been filed directly against Choudhry. In July 2025, Blade Funding Corp sued Buyside Capital Advisors LLC, Riz Communities & Development LLC, several other entities, and Sohail Majeed Choudhry personally in Fulton County Superior Court, alleging breach of contract. A summons was issued to Choudhry on July 15, 2025.7Trellis Law. Blade Funding Corp v. Buyside Capital Advisors LLC et al. Affected homeowners, including Al Frierson, have publicly called for a class action and for a formal investigation. None had been announced in the available record as of October 2025.
If a Lien Is on Your Riz-Built Home
Georgia’s mechanic’s lien statute, O.C.G.A. § 44-14-360, is what allows a lien to attach to your property even after you paid the builder.8Georgia Consumer Education. Liens Against Your Home The same statutory framework also caps how long a lien can sit on your title. A lien must be filed within 90 days of the work’s completion, and it expires automatically after 12 months unless the lienholder files a lawsuit to enforce it.9Georgia Legal Aid. What Should I Know About a Materialman’s Lien on My Property
Homeowners caught in the Riz situation generally have four options:
- File a Notice of Contest with the county. This forces the lienholder to sue within 60 days or the lien expires automatically.
- Bond off the lien. A bond transfers the claim from the property to the bond itself, clearing the encumbrance from the home.
- Wait it out. If the lienholder never sues within 12 months of recording, the lien expires by operation of law.
- Pay or settle directly. Some Riz homeowners have paid off liens themselves to protect their properties, even though the underlying debt was not theirs.
Real estate attorney Erin Glynn told reporters that buyers of new construction should never move in without an occupancy permit and title insurance in place, and should be cautious of any seller who resists providing documentation. She recommended signing up for the Georgia Clerk’s Authority alert system to monitor for new lien filings against a property.3Yahoo News. Nightmare: Homeowners Face Liens on Homes After Contractors Not Paid by Builder One protection that ordinarily helps in this scenario — the Affidavit of Payment that a builder signs at closing swearing all subcontractors have been paid — appears not to have stopped the liens in the Riz transactions.
Where Riz Stands Now
As of the most recent reporting in October 2025, Riz Communities had taken down its website and gone silent on social media. Of the hundreds of liens tied to its properties, Choudhry had reportedly paid off only one, belonging to a homeowner interviewed by reporters.1WSB-TV. More Metro Atlanta Homeowners Shocked by Liens Against Their Brand New Homes If you own a home built by Riz or any of its affiliated entities, the immediate steps are to pull a current lien search through the Georgia Clerk’s Authority, check that your title policy is in force, and talk to a Georgia real estate attorney about whether a Notice of Contest or a bond is the faster route to a clean title in your case.